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92_SB0119eng SB119 Engrossed LRB9204827JSpc 1 AN ACT in relation to financial regulation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Banking Act is amended by 5 changing Sections 16, 32, 46, 48, and 48.1 as follows: 6 (205 ILCS 5/16) (from Ch. 17, par. 323) 7 Sec. 16. Directors. The business and affairs of a State 8 bank shall be managed by its board of directors that shall 9 exercise its powers as follows: 10 (1) Directors shall be elected as provided in this Act. 11 Any omission to elect a director or directors shall not 12 impair any of the rights and privileges of the bank or of any 13 person in any way interested. The existing directors shall 14 hold office until their successors are elected and qualify. 15 (2) (a) Notwithstanding the provisions of any charter 16 heretofore or hereafter issued, the number of directors, 17 not fewer than 5 nor more than 25, may be fixed from time 18 to time by the stockholders at any meeting of the 19 stockholders called for the purpose of electing directors 20 or changing the number thereof by the affirmative vote of 21 at least two-thirds of the outstanding stock entitled to 22 vote at the meeting, and the number so fixed shall be the 23 board regardless of vacancies until the number of 24 directors is thereafter changed by similar action. 25 (b) Notwithstanding the minimum number of directors 26 specified in paragraph (a) of this subsection, a State 27 bank that has been in existence for 10 years or more and 28 has less than $20,000,000 in assets, as of the December 29 31 immediately preceding the annual meeting of 30 shareholders at which directors are elected, may, subject 31 to the approval of the Commissioner, have a minimum of 3 SB119 Engrossed -2- LRB9204827JSpc 1 directors; provided that if a State bank has fewer than 5 2 directors, at least one director shall not be an officer 3 or employee of the bank. The Commissioner shall annually 4 review the appropriateness of the grant of authority to 5 have a reduced minimum number of directors pursuant to 6 this paragraph (b). 7 (3) Except as otherwise provided in this paragraph (3), 8 directors shall hold office until the next annual meeting of 9 the stockholders succeeding their election or until their 10 successors are elected and qualify. If the board of directors 11 consists of 6 or more members, in lieu of electing the 12 membership of the whole board of directors annually, the 13 charter or by-laws of a State bank may provide that the 14 directors shall be divided into either 2 or 3 classes, each 15 class to be as nearly equal in number as is possible. The 16 term of office of directors of the first class shall expire 17 at the first annual meeting of the stockholders after their 18 election, that of the second class shall expire at the second 19 annual meeting after their election, and that of the third 20 class, if any, shall expire at the third annual meeting after 21 their election. At each annual meeting after classification, 22 the number of directors equal to the number of the class 23 whose terms expire at the time of the meeting shall be 24 elected to hold office until the second succeeding annual 25 meeting, if there be 2 classes, or until the third succeeding 26 annual meeting, if there be 3 classes. Vacancies may be 27 filled by stockholders at a special meeting called for the 28 purpose. 29 If authorized by the bank's by-laws or an amendment 30 thereto, the directors of a State bank may properly fill a 31 vacancy or vacancies arising between shareholders' meetings, 32 but at no time may the number of directors selected to fill a 33 vacancy in this manner during any interim period between 34 shareholders' meetings exceed 33 1/3% of the total membership SB119 Engrossed -3- LRB9204827JSpc 1 of the board of directors. 2 (4) The board of directors shall hold regular meetings 3 at least once each month, provided that, upon prior written 4 approval by the Commissioner, the board of directors may hold 5 regular meetings less frequently than once each month but at 6 least once each calendar quarter. A special meeting of the 7 board of directors may be held as provided by the by-laws. A 8 special meeting of the board of directors may also be held 9 upon call by the Commissioner or a bank examiner appointed 10 under the provisions of this Act upon not less than 12 hours 11 notice of the meeting by personal service of the notice or by 12 mailing the notice to each of the directors at his residence 13 as shown by the books of the bank. A majority of the board 14 of directors shall constitute a quorum for the transaction of 15 business unless a greater number is required by the charter 16 or the by-laws. The act of the majority of the directors 17 present at a meeting at which a quorum is present shall be 18 the act of the board of directors unless the act of a greater 19 number is required by the charter or by the by-laws. 20 (5) A member of the board of directors shall be elected 21 president. The board of directors may appoint other officers, 22 as the by-laws may provide, and fix their salaries to carry 23 on the business of the bank. The board of directors may make 24 and amend by-laws (not inconsistent with this Act) for the 25 government of the bank and may, by the affirmative vote of a 26 majority of the board of directors, establish reasonable 27 compensation of all directors for services to the corporation 28 as directors, officers, or otherwise. An officer, whether 29 elected or appointed by the board of directors or appointed 30 pursuant to the by-laws, may be removed by the board of 31 directors at any time. 32 (6) The board of directors shall cause suitable books 33 and records of all the bank's transactions to be kept. 34 (7) (a) In discharging the duties of their respective SB119 Engrossed -4- LRB9204827JSpc 1 positions, the board of directors, committees of the 2 board, and individual directors may, in considering the 3 best long term and short term interests of the bank, 4 consider the effects of any action (including, without 5 limitation, action that may involve or relate to a merger 6 or potential merger or to a change or potential change in 7 control of the bank) upon employees, depositors, 8 suppliers, and customers of the corporation or its 9 subsidiaries, communities in which the main banking 10 premises, branches, offices, or other establishments of 11 the bank or its subsidiaries are located, and all 12 pertinent factors. 13 (b) In discharging the duties of their respective 14 positions, the board of directors, committees of the 15 board, and individual directors shall be entitled to rely 16 on advice, information, opinions, reports or statements, 17 including financial statements and financial data, 18 prepared or presented by: (i) one or more officers or 19 employees of the bank whom the director believes to be 20 reliable and competent in the matter presented; (ii) one 21 or more counsels, accountants, or other consultants as to 22 matters that the director believes to be within that 23 person's professional or expert competence; or (iii) a 24 committee of the board upon which the director does not 25 serve, as to matters within that committee's designated 26 authority. 27 (Source: P.A. 90-301, eff. 8-1-97; 91-452, eff. 1-1-00.) 28 (205 ILCS 5/32) (from Ch. 17, par. 339) 29 Sec. 32. Basic loaning limits. The liabilities 30 outstanding at one time to a state bank of a person for money 31 borrowed, including the liabilities of a partnership or joint 32 venture in the liabilities of the several members thereof, 33 shall not exceed 25%20%of the amount of the unimpaired SB119 Engrossed -5- LRB9204827JSpc 1 capital and unimpaired surplus of the bank. 2 The liabilities to any state bank of a person may exceed 3 25%20%of the unimpaired capital and unimpaired surplus of 4 the bank, provided that (i) the excess amount from time to 5 time outstanding is fully secured by readily marketable 6 collateral having a market value, as determined by reliable 7 and continuously available quotations, at least equal to the 8 excess amount outstanding; and (ii) the total liabilities 9 shall not exceed 30% of the unimpaired capital and unimpaired 10 surplus of the bank. 11 The following shall not be considered as money borrowed 12 within the meaning of this Section: 13 (1) The purchase orofdiscount of bills of 14 exchange drawn in good faith against actually existing 15 values. 16 (2) The purchase or discount of commercial or 17 business paper actually owned by the person negotiating 18 the same. 19 (3) The purchase of or loaning money in exchange 20 for evidences of indebtedness which shall be secured by 21 mortgage or trust deed upon productive real estate the 22 value of which, as ascertained by the oath of 2 qualified 23 appraisers, neither of whom shall be an officer, 24 director, or employee of the bank or of any subsidiary or 25 affiliate of the bank, is double the amount of the 26 principal debt secured at the time of the original 27 purchase of evidence of indebtedness or loan of money and 28 which is still double the amount of the principal debt 29 secured at the time of any renewal of the indebtedness or 30 loan, and which mortgage or trust deed is shown, either 31 by a guaranty policy of a title guaranty company approved 32 by the Commissioner or by a registrar's certificate of 33 title in any county having adopted the provisions of the 34 Registered Titles (Torrens) Act, or by the opinion of an SB119 Engrossed -6- LRB9204827JSpc 1 attorney-at-law, to be a first lien upon the real estate 2 therein described, and real estate shall not be deemed to 3 be encumbered within the meaning of this subsection (3) 4 by reason of the existence of instruments reserving 5 rights-of-way, sewer rights and rights in wells, building 6 restrictions or other restrictive covenants, nor by 7 reason of the fact it is subject to lease under which 8 rents or profits are reserved by the owners. 9 (4) The purchase of marketable investment 10 securities. 11 (5) The liability to a state bank of a person who 12 is an accommodation party to, or guarantor of payment 13 for, any evidence of indebtedness of another person who 14 obtains a loan from or discounts paper with or sells 15 paper to the state bank; but the total liability to a 16 state bank of a person as an accommodation party or 17 guarantor of payment in respect of such evidences of 18 indebtedness shall not exceed 20% of the amount of the 19 unimpaired capital and unimpaired surplus of the bank; 20 provided however that the liability of an accommodation 21 party to paper excepted under subsection 2 of this 22 Section shall not be included in the computation of this 23 limitation. 24 (6) The liability to a state bank of a person, who 25 as a guarantor, guarantees collection of the obligation 26 or indebtedness of another person. 27 The total liabilities of any one person, for money 28 borrowed, or otherwise, shall not exceed 25% of the deposits 29 of the bank, and those total liabilities shall at no time 30 exceed 50% of the amount of the unimpaired capital and 31 unimpaired surplus of the bank. Absent an actual unremedied 32 breach, the obligation or responsibility for breach of 33 warranties or representations, express or implied, of a 34 person transferring negotiable or non-negotiable paper to a SB119 Engrossed -7- LRB9204827JSpc 1 bank without recourse and without guaranty of payment, shall 2 not be included in determining the amount of liabilities of 3 the person to the bank for borrowed money or otherwise; and 4 in the event of and to the extent of an unremedied breach, 5 the amount remaining unpaid for principal and interest on the 6 paper in respect of which the unremedied breach exists shall 7 thereafter for the purpose of determining whether subsequent 8 transactions giving rise to additional liability of the 9 person to the state bank for borrowed money or otherwise are 10 within the limitations of Sections 32 through 34 of this Act, 11 be included in computing the amount of liabilities of the 12 person for borrowed money or otherwise. 13 The liability of a person to a state bank on account of 14 acceptances made or issued by the state bank on behalf of the 15 person shall be included in the computation of the total 16 liabilities of the person for money borrowed except to the 17 extent the acceptances grow out of transactions of the 18 character described in subsection (6) of Section 34 of this 19 Act and are otherwise within the limitations of that 20 subsection; provided nevertheless that any such excepted 21 acceptances acquired by the state bank which accepted the 22 same shall be included in the computation of the liabilities 23 of the person to the state bank for money borrowed. 24 (Source: P.A. 89-364, eff. 8-18-95; 90-301, eff. 8-1-97.) 25 (205 ILCS 5/46) (from Ch. 17, par. 357) 26 Sec. 46. Misleading practices and names prohibited; 27 penalty. 28 (a) No person, firm, partnership, or corporation that is 29 not a bank shall transact business in this State in a manner 30 which has a substantial likelihood of misleading the public 31 by implying that the business is a bank, or shall use the 32 word "bank", "banker", or "banking" in connection with the 33 business. Any person, firm, partnership or corporation SB119 Engrossed -8- LRB9204827JSpc 1 violating this Section shall be deemed guilty of a Class A 2 misdemeanor, and the Attorney General or State's Attorney of 3 the county in which any such violation occurs may restrain 4 such violation by a complaint for injunctive relief. 5 (b) If the Commissioner is of the opinion and finds that 6 a person, firm, partnership, or corporation that is not a 7 bank has transacted or intends to transact business in this 8 State in a manner which has a substantial likelihood of 9 misleading the public by implying that the business is a 10 bank, or has used or intends to use the word "bank", 11 "banker", or "banking" in connection with the business, then 12 the Commissioner may direct that person, firm, partnership, 13 or corporation to cease and desist from transacting the 14 business or using the word "bank", "banker", or "banking". 15 If that person, firm, partnership, or corporation persists in 16 transacting the business or using the word "bank", "banker", 17 or "banking", then the Commissioner may impose a civil 18 penalty of up to $10,000 for each violation. Each day that 19 the person, firm, partnership, or corporation continues 20 transacting the business or using the word "bank", "banker", 21 or "banking" in connection with the business shall constitute 22 a separate violation of these provisions. 23 (c) A person, firm, partnership, or corporation that is 24 not a bank, and is not transacting or intending to transact 25 business in this State in a manner that has a substantial 26 likelihood of misleading the public by implying that such 27 business is a bank, may apply to the Commissioner for 28 permission to use the word "bank", "banker", or "banking" in 29 connection with the business. If the Commissioner determines 30 that there is no substantial likelihood of misleading the 31 public, and upon such conditions as the Commissioner may 32 impose to prevent the person, firm, partnership, or 33 corporation from holding itself out in a misleading manner, 34 then such person, firm, partnership, or corporation may use SB119 Engrossed -9- LRB9204827JSpc 1 the word "bank", "banker", or "banking". 2 (d) (1) No person, firm, partnership, or 3 corporation may use the name of an existing bank, or a 4 name deceptively similar to that of an existing bank, 5 when sending, transmitting, or otherwise delivering 6 marketing material or solicitations to customers or 7 prospective customers if the reference to the existing 8 bank is made (i) without the consent of the existing bank 9 and (ii) in a manner that could cause a reasonable person 10 to believe that the marketing material or solicitation 11 originated from or is endorsed by the existing bank or 12 that the existing bank is in any other way responsible 13 for the marketing material or solicitation. 14 (2) An existing bank may, in addition to any other 15 remedies available under the law, report an alleged 16 violation of this subsection (d) to the Commissioner. If 17 the Commissioner finds the marketing material or 18 solicitation in question to be in violation of this 19 subsection, the Commissioner may direct the person, firm, 20 partnership, or corporation to cease and desist from 21 using that marketing material or solicitation in 22 Illinois. If that person, firm, partnership, or 23 corporation persists in the use of the marketing material 24 or solicitation, then the Commissioner may impose a civil 25 penalty of up to $10,000 for each violation. Each 26 instance in which the marketing material or solicitation 27 is sent to a customer or prospective customer shall 28 constitute a separate violation of these provisions. 29 (3) Nothing in this subsection (d) prohibits the 30 use of or reference to the name of an existing bank in 31 marketing materials or solicitations, provided that the 32 use or reference would not deceive or confuse a 33 reasonable person regarding whether the marketing 34 material or solicitation originated from or was endorsed SB119 Engrossed -10- LRB9204827JSpc 1 by the existing bank or whether the existing bank was in 2 any other way responsible for the marketing material or 3 solicitation. The Commissioner is authorized to 4 promulgate rules to administer these provisions. 5 (Source: P.A. 89-567, eff. 7-26-96.) 6 (205 ILCS 5/48) (from Ch. 17, par. 359) 7 Sec. 48. Commissioner's powers; duties. The Commissioner 8 shall have the powers and authority, and is charged with the 9 duties and responsibilities designated in this Act, and a 10 State bank shall not be subject to any other visitorial power 11 other than as authorized by this Act, except those vested in 12 the courts, or upon prior consultation with the Commissioner, 13 a foreign bank regulator with an appropriate supervisory 14 interest in the parent or affiliate of a state bank. In the 15 performance of the Commissioner's duties: 16 (1) The Commissioner shall call for statements from all 17 State banks as provided in Section 47 at least one time 18 during each calendar quarter. 19 (2) (a) The Commissioner, as often as the Commissioner 20 shall deem necessary or proper, and no less frequently than 21 18 months following the preceding examination, shall appoint 22 a suitable person or persons to make an examination of the 23 affairs of every State bank, except that for every eligible 24 State bank, as defined by regulation, the Commissioner in 25 lieu of the examination may accept on an alternating basis 26 the examination made by the eligible State bank's appropriate 27 federal banking agency pursuant to Section 111 of the Federal 28 Deposit Insurance Corporation Improvement Act of 1991, 29 provided the appropriate federal banking agency has made such 30 an examination. A person so appointed shall not be a 31 stockholder or officer or employee of any bank which that 32 person may be directed to examine, and shall have powers to 33 make a thorough examination into all the affairs of the bank SB119 Engrossed -11- LRB9204827JSpc 1 and in so doing to examine any of the officers or agents or 2 employees thereof on oath and shall make a full and detailed 3 report of the condition of the bank to the Commissioner. In 4 making the examination the examiners shall include an 5 examination of the affairs of all the affiliates of the bank, 6 as defined in subsection (b) of Section 35.2 of this Act, as 7 shall be necessary to disclose fully the conditions of the 8 affiliates, the relations between the bank and the affiliates 9 and the effect of those relations upon the affairs of the 10 bank, and in connection therewith shall have power to examine 11 any of the officers, directors, agents, or employees of the 12 affiliates on oath. After May 31, 1997, the Commissioner may 13 enter into cooperative agreements with state regulatory 14 authorities of other states to provide for examination of 15 State bank branches in those states, and the Commissioner may 16 accept reports of examinations of State bank branches from 17 those state regulatory authorities. These cooperative 18 agreements may set forth the manner in which the other state 19 regulatory authorities may be compensated for examinations 20 prepared for and submitted to the Commissioner. 21 (b) After May 31, 1997, the Commissioner is authorized 22 to examine, as often as the Commissioner shall deem necessary 23 or proper, branches of out-of-state banks. The Commissioner 24 may establish and may assess fees to be paid to the 25 Commissioner for examinations under this subsection (b). The 26 fees shall be borne by the out-of-state bank, unless the fees 27 are borne by the state regulatory authority that chartered 28 the out-of-state bank, as determined by a cooperative 29 agreement between the Commissioner and the state regulatory 30 authority that chartered the out-of-state bank. 31 (2.5) Whenever any State bank, any subsidiary or 32 affiliate of a State bank, or after May 31, 1997, any branch 33 of an out-of-state bank causes to be performed, by contract 34 or otherwise, any bank services for itself, whether on or off SB119 Engrossed -12- LRB9204827JSpc 1 its premises: 2 (a) that performance shall be subject to 3 examination by the Commissioner to the same extent as if 4 services were being performed by the bank or, after May 5 31, 1997, branch of the out-of-state bank itself on its 6 own premises; and 7 (b) the bank or, after May 31, 1997, branch of the 8 out-of-state bank shall notify the Commissioner of the 9 existence of a service relationship. The notification 10 shall be submitted with the first statement of condition 11 (as required by Section 47 of this Act) due after the 12 making of the service contract or the performance of the 13 service, whichever occurs first. The Commissioner shall 14 be notified of each subsequent contract in the same 15 manner. 16 For purposes of this subsection (2.5), the term "bank 17 services" means services such as sorting and posting of 18 checks and deposits, computation and posting of interest and 19 other credits and charges, preparation and mailing of checks, 20 statements, notices, and similar items, or any other 21 clerical, bookkeeping, accounting, statistical, or similar 22 functions performed for a State bank, including but not 23 limited to electronic data processing related to those bank 24 services. 25 (3) The expense of administering this Act, including the 26 expense of the examinations of State banks as provided in 27 this Act, shall to the extent of the amounts resulting from 28 the fees provided for in paragraphs (a), (a-2), and (b) of 29 this subsection (3) be assessed against and borne by the 30 State banks: 31 (a) Each bank shall pay to the Commissioner a Call 32 Report Fee which shall be paid in quarterly installments 33 equal to one-fourth of the sum of the annual fixed fee of 34 $800, plus a variable fee based on the assets shown on SB119 Engrossed -13- LRB9204827JSpc 1 the quarterly statement of condition delivered to the 2 Commissioner in accordance with Section 47 for the 3 preceding quarter according to the following schedule: 4 16¢ per $1,000 of the first $5,000,000 of total assets, 5 15¢ per $1,000 of the next $20,000,000 of total assets, 6 13¢ per $1,000 of the next $75,000,000 of total assets, 7 9¢ per $1,000 of the next $400,000,000 of total assets, 8 7¢ per $1,000 of the next $500,000,000 of total assets, 9 and 5¢ per $1,000 of all assets in excess of 10 $1,000,000,000, of the State bank. The Call Report Fee 11 shall be calculated by the Commissioner and billed to the 12 banks for remittance at the time of the quarterly 13 statements of condition provided for in Section 47. The 14 Commissioner may require payment of the fees provided in 15 this Section by an electronic transfer of funds or an 16 automatic debit of an account of each of the State banks. 17 In case more than one examination of any bank is deemed 18 by the Commissioner to be necessary in any examination 19 frequency cycle specified in subsection 2(a) of this 20 Section, and is performed at his direction, the 21 Commissioner may assess a reasonable additional fee to 22 recover the cost of the additional examination; provided, 23 however, that an examination conducted at the request of 24 the State Treasurer pursuant to the Uniform Disposition 25 of Unclaimed Property Act shall not be deemed to be an 26 additional examination under this Section. In lieu of the 27 method and amounts set forth in this paragraph (a) for 28 the calculation of the Call Report Fee, the Commissioner 29 may specify by rule that the Call Report Fees provided by 30 this Section may be assessed semiannually or some other 31 period and may provide in the rule the formula to be used 32 for calculating and assessing the periodic Call Report 33 Fees to be paid by State banks. 34 (a-1) If in the opinion of the Commissioner an SB119 Engrossed -14- LRB9204827JSpc 1 emergency exists or appears likely, the Commissioner may 2 assign an examiner or examiners to monitor the affairs of 3 a State bank with whatever frequency he deems 4 appropriate, including but not limited to a daily basis. 5 The reasonable and necessary expenses of the Commissioner 6 during the period of the monitoring shall be borne by the 7 subject bank. The Commissioner shall furnish the State 8 bank a statement of time and expenses if requested to do 9 so within 30 days of the conclusion of the monitoring 10 period. 11 (a-2) On and after January 1, 1990, the reasonable 12 and necessary expenses of the Commissioner during 13 examination of the performance of electronic data 14 processing services under subsection (2.5) shall be borne 15 by the banks for which the services are provided. An 16 amount, based upon a fee structure prescribed by the 17 Commissioner, shall be paid by the banks or, after May 18 31, 1997, branches of out-of-state banks receiving the 19 electronic data processing services along with the Call 20 Report Fee assessed under paragraph (a) of this 21 subsection (3). 22 (a-3) After May 31, 1997, the reasonable and 23 necessary expenses of the Commissioner during examination 24 of the performance of electronic data processing services 25 under subsection (2.5) at or on behalf of branches of 26 out-of-state banks shall be borne by the out-of-state 27 banks, unless those expenses are borne by the state 28 regulatory authorities that chartered the out-of-state 29 banks, as determined by cooperative agreements between 30 the Commissioner and the state regulatory authorities 31 that chartered the out-of-state banks. 32 (b) "Fiscal year" for purposes of this Section 48 33 is defined as a period beginning July 1 of any year and 34 ending June 30 of the next year. The Commissioner shall SB119 Engrossed -15- LRB9204827JSpc 1 receive for each fiscal year, commencing with the fiscal 2 year ending June 30, 1987, a contingent fee equal to the 3 lesser of the aggregate of the fees paid by all State 4 banks under paragraph (a) of subsection (3) for that 5 year, or the amount, if any, whereby the aggregate of the 6 administration expenses, as defined in paragraph (c), for 7 that fiscal year exceeds the sum of the aggregate of the 8 fees payable by all State banks for that year under 9 paragraph (a) of subsection (3), plus any amounts 10 transferred into the Bank and Trust Company Fund from the 11 State Pensions Fund for that year, 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 SB119 Engrossed -16- LRB9204827JSpc 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 SB119 Engrossed -17- LRB9204827JSpc 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. All earnings received from investments of funds 12 in the Bank and Trust Company Fund shall be deposited 13 into the Bank and Trust Company Fund and may be used for 14 the same purposes as fees deposited into that Fund. The 15 amount from time to time deposited into the Bank and 16 Trust Company Fund shall be used to offset the ordinary 17 administrative expenses of the Commissioner of Banks and 18 Real Estate as defined in this Section. Nothing in this 19 amendatory Act of 1979 shall prevent continuing the 20 practice of paying expenses involving salaries, 21 retirement, social security, and State-paid insurance 22 premiums of State officers by appropriations from the 23 General Revenue Fund. However, the General Revenue Fund 24 shall be reimbursed for those payments made on and after 25 July 1, 1979, by an annual transfer of funds from the 26 Bank and Trust Company Fund. 27 (d-1) Adequate funds shall be available in the Bank 28 and Trust Company Fund to permit the timely payment of 29 administration expenses. In each fiscal year the total 30 administration expenses shall be deducted from the total 31 fees collected by the Commissioner and the remainder 32 transferred into the Cash Flow Reserve Account, unless 33 the balance of the Cash Flow Reserve Account prior to the 34 transfer equals or exceeds one-fourth of the total SB119 Engrossed -18- LRB9204827JSpc 1 initial appropriations from the Bank and Trust Company 2 Fund for the subsequent year, in which case the remainder 3 shall be credited to State banks and foreign banking 4 corporations and applied against their fees for the 5 subsequent year. The amount credited to each State bank 6 and foreign banking corporation shall be in the same 7 proportion as the Call Report Fees paid by each for the 8 year bear to the total Call Report Fees collected for the 9 year. If, after a transfer to the Cash Flow Reserve 10 Account is made or if no remainder is available for 11 transfer, the balance of the Cash Flow Reserve Account is 12 less than one-fourth of the total initial appropriations 13 for the subsequent year and the amount transferred is 14 less than 5% of the total Call Report Fees for the year, 15 additional amounts needed to make the transfer equal to 16 5% of the total Call Report Fees for the year shall be 17 apportioned amongst, assessed upon, and paid by the State 18 banks and foreign banking corporations in the same 19 proportion that the Call Report Fees of each, 20 respectively, for the year bear to the total Call Report 21 Fees collected for the year. The additional amounts 22 assessed shall be transferred into the Cash Flow Reserve 23 Account. For purposes of this paragraph (d-1), the 24 calculation of the fees collected by the Commissioner 25 shall exclude the receivership fees provided for in 26 Section 5-10 of the Corporate Fiduciary Act. 27 (e) The Commissioner may upon request certify to 28 any public record in his keeping and shall have authority 29 to levy a reasonable charge for issuing certifications of 30 any public record in his keeping. 31 (f) In addition to fees authorized elsewhere in 32 this Act, the Commissioner may, in connection with a 33 review, approval, or provision of a service, levy a 34 reasonable charge to recover the cost of the review, SB119 Engrossed -19- LRB9204827JSpc 1 approval, or service. 2 (4) Nothing contained in this Act shall be construed to 3 limit the obligation relative to examinations and reports of 4 any State bank, deposits in which are to any extent insured 5 by the United States or any agency thereof, nor to limit in 6 any way the powers of the Commissioner with reference to 7 examinations and reports of that bank. 8 (5) The nature and condition of the assets in or 9 investment of any bonus, pension, or profit sharing plan for 10 officers or employees of every State bank or, after May 31, 11 1997, branch of an out-of-state bank shall be deemed to be 12 included in the affairs of that State bank or branch of an 13 out-of-state bank subject to examination by the Commissioner 14 under the provisions of subsection (2) of this Section, and 15 if the Commissioner shall find from an examination that the 16 condition of or operation of the investments or assets of the 17 plan is unlawful, fraudulent, or unsafe, or that any trustee 18 has abused his trust, the Commissioner shall, if the 19 situation so found by the Commissioner shall not be corrected 20 to his satisfaction within 60 days after the Commissioner has 21 given notice to the board of directors of the State bank or 22 out-of-state bank of his findings, report the facts to the 23 Attorney General who shall thereupon institute proceedings 24 against the State bank or out-of-state bank, the board of 25 directors thereof, or the trustees under such plan as the 26 nature of the case may require. 27 (6) The Commissioner shall have the power: 28 (a) To promulgate reasonable rules for the purpose 29 of administering the provisions of this Act. 30 (b) To issue orders for the purpose of 31 administering the provisions of this Act and any rule 32 promulgated in accordance with this Act. 33 (c) To appoint hearing officers to execute any of 34 the powers granted to the Commissioner under this Section SB119 Engrossed -20- LRB9204827JSpc 1 for the purpose of administering this Act and any rule 2 promulgated in accordance with this Act. 3 (d) To subpoena witnesses, to compel their 4 attendance, to administer an oath, to examine any person 5 under oath, and to require the production of any relevant 6 books, papers, accounts, and documents in the course of 7 and pursuant to any investigation being conducted, or any 8 action being taken, by the Commissioner in respect of any 9 matter relating to the duties imposed upon, or the powers 10 vested in, the Commissioner under the provisions of this 11 Act or any rule promulgated in accordance with this Act. 12 (e) To conduct hearings. 13 (7) Whenever, in the opinion of the Commissioner, any 14 director, officer, employee, or agent of a State bank or, 15 after May 31, 1997, of any branch of an out-of-state bank 16 shall have violated any law, rule, or order relating to that 17 bank or shall have engaged in an unsafe or unsound practice 18 in conducting the business of that bank or shall have 19 violated any law or engaged or participated in any unsafe or 20 unsound practice in connection with any financial institution 21 or other business entity such that the character and fitness 22 of the director, officer, employee, or agent does not assure 23 reasonable promise of safe and sound operation of the State 24 bank, the Commissioner may issue an order of removal. If, in 25 the opinion of the Commissioner, any former director, 26 officer, employee, or agent of a State bank, prior to the 27 termination of his or her service with that bank, violated 28 any law, rule, or order relating to that State bank or 29 engaged in an unsafe or unsound practice in conducting the 30 business of that bank or violated any law or engaged or 31 participated in any unsafe or unsound practice in connection 32 with any financial institution or other business entity such 33 that the character and fitness of the director, officer, 34 employee, or agent would not have assured reasonable promise SB119 Engrossed -21- LRB9204827JSpc 1 of safe and sound operation of the State bank, the 2 Commissioner may issue an order prohibiting that person from 3 further service with a bank as a director, officer, employee, 4 or agent. An order issued pursuant to this subsection shall 5 be served upon the director, officer, employee, or agent. A 6 copy of the order shall be sent to each director of the bank 7 affected by registered mail. The person affected by the 8 action may request a hearing before the State Banking Board 9 within 10 days after receipt of the order of removal. The 10 hearing shall be held by the Board within 30 days after the 11 request has been received by the Board. The Board shall make 12 a determination approving, modifying, or disapproving the 13 order of the Commissioner as its final administrative 14 decision. If a hearing is held by the Board, the Board shall 15 make its determination within 60 days from the conclusion of 16 the hearing. Any person affected by a decision of the Board 17 under this subsection (7) of Section 48 of this Act may have 18 the decision reviewed only under and in accordance with the 19 Administrative Review Law and the rules adopted pursuant 20 thereto. A copy of the order shall also be served upon the 21 bank of which he is a director, officer, employee, or agent, 22 whereupon he shall cease to be a director, officer, employee, 23 or agent of that bank. The Commissioner may institute a 24 civil action against the director, officer, or agent of the 25 State bank or, after May 31, 1997, of the branch of the 26 out-of-state bank against whom any order provided for by this 27 subsection (7) of this Section 48 has been issued, and 28 against the State bank or, after May 31, 1997, out-of-state 29 bank, to enforce compliance with or to enjoin any violation 30 of the terms of the order. Any person who has been the 31 subject of an order of removal or an order of prohibition 32 issued by the Commissioner under this subsection or Section 33 5-6 of the Corporate Fiduciary Act may not thereafter serve 34 as director, officer, employee, or agent of any State bank or SB119 Engrossed -22- LRB9204827JSpc 1 of any branch of any out-of-state bank, or of any corporate 2 fiduciary, as defined in Section 1-5.05 of the Corporate 3 Fiduciary Act, or of any other entity that is subject to 4 licensure or regulation by the Commissioner or the Office of 5 Banks and Real Estate unless the Commissioner has granted 6 prior approval in writing. 7 (8) The Commissioner may impose civil penalties of up to 8 $10,000 against any person for each violation of any 9 provision of this Act, any rule promulgated in accordance 10 with this Act, any order of the Commissioner, or any other 11 action which in the Commissioner's discretion is an unsafe or 12 unsound banking practice. 13 (9) The Commissioner may impose civil penalties of up to 14 $100 against any person for the first failure to comply with 15 reporting requirements set forth in the report of examination 16 of the bank and up to $200 for the second and subsequent 17 failures to comply with those reporting requirements. 18 (10) All final administrative decisions of the 19 Commissioner hereunder shall be subject to judicial review 20 pursuant to the provisions of the Administrative Review Law. 21 For matters involving administrative review, venue shall be 22 in either Sangamon County or Cook County. 23 (11) The endowment fund for the Illinois Bank Examiners' 24 Education Foundation shall be administered as follows: 25 (a) (Blank). 26 (b) The Foundation is empowered to receive 27 voluntary contributions, gifts, grants, bequests, and 28 donations on behalf of the Illinois Bank Examiners' 29 Education Foundation from national banks and other 30 persons for the purpose of funding the endowment of the 31 Illinois Bank Examiners' Education Foundation. 32 (c) The aggregate of all special educational fees 33 collected by the Commissioner and property received by 34 the Commissioner on behalf of the Illinois Bank SB119 Engrossed -23- LRB9204827JSpc 1 Examiners' Education Foundation under this subsection 2 (11) on or after June 30, 1986, shall be either (i) 3 promptly paid after receipt of the same, accompanied by a 4 detailed statement thereof, into the State Treasury and 5 shall be set apart in a special fund to be known as "The 6 Illinois Bank Examiners' Education Fund" to be invested 7 by either the Treasurer of the State of Illinois in the 8 Public Treasurers' Investment Pool or in any other 9 investment he is authorized to make or by the Illinois 10 State Board of Investment as the board of trustees of the 11 Illinois Bank Examiners' Education Foundation may direct 12 or (ii) deposited into an account maintained in a 13 commercial bank or corporate fiduciary in the name of the 14 Illinois Bank Examiners' Education Foundation pursuant to 15 the order and direction of the Board of Trustees of the 16 Illinois Bank Examiners' Education Foundation. 17 (12) (Blank). 18 (Source: P.A. 90-14, eff. 7-1-97; 90-301, eff. 8-1-97; 19 90-665, eff. 7-30-98; 91-16, eff. 7-1-99.) 20 (205 ILCS 5/48.1) (from Ch. 17, par. 360) 21 Sec. 48.1. Customer financial records; confidentiality. 22 (a) For the purpose of this Section, the term "financial 23 records" means any original, any copy, or any summary of: 24 (1) a document granting signature authority over a 25 deposit or account; 26 (2) a statement, ledger card or other record on any 27 deposit or account, which shows each transaction in or 28 with respect to that account; 29 (3) a check, draft or money order drawn on a bank 30 or issued and payable by a bank; or 31 (4) any other item containing information 32 pertaining to any relationship established in the 33 ordinary course of a bank's business between a bank and SB119 Engrossed -24- LRB9204827JSpc 1 its customer, including financial statements or other 2 financial information provided by the customer. 3 (b) This Section does not prohibit: 4 (1) The preparation, examination, handling or 5 maintenance of any financial records by any officer, 6 employee or agent of a bank having custody of the 7 records, or the examination of the records by a certified 8 public accountant engaged by the bank to perform an 9 independent audit. 10 (2) The examination of any financial records by, or 11 the furnishing of financial records by a bank to, any 12 officer, employee or agent of (i) the Commissioner of 13 Banks and Real Estate, (ii) after May 31, 1997, a state 14 regulatory authority authorized to examine a branch of a 15 State bank located in another state, (iii) the 16 Comptroller of the Currency, (iv) the Federal Reserve 17 Board, or (v) the Federal Deposit Insurance Corporation 18 for use solely in the exercise of his duties as an 19 officer, employee, or agent. 20 (3) The publication of data furnished from 21 financial records relating to customers where the data 22 cannot be identified to any particular customer or 23 account. 24 (4) The making of reports or returns required under 25 Chapter 61 of the Internal Revenue Code of 1986. 26 (5) Furnishing information concerning the dishonor 27 of any negotiable instrument permitted to be disclosed 28 under the Uniform Commercial Code. 29 (6) The exchange in the regular course of business 30 of (i) credit information between a bank and other banks 31 or financial institutions or commercial enterprises, 32 directly or through a consumer reporting agency or (ii) 33 financial records or information derived from financial 34 records between a bank and other banks or financial SB119 Engrossed -25- LRB9204827JSpc 1 institutions or commercial enterprises for the purpose of 2 conducting due diligence pursuant to a purchase or sale 3 involving the bank or assets or liabilities of the bank. 4 (7) The furnishing of information to the 5 appropriate law enforcement authorities where the bank 6 reasonably believes it has been the victim of a crime. 7 (8) The furnishing of information under the Uniform 8 Disposition of Unclaimed Property Act. 9 (9) The furnishing of information under the 10 Illinois Income Tax Act and the Illinois Estate and 11 Generation-Skipping Transfer Tax Act. 12 (10) The furnishing of information under the 13 federal Currency and Foreign Transactions Reporting Act 14 Title 31, United States Code, Section 1051 et seq. 15 (11) The furnishing of information under any other 16 statute that by its terms or by regulations promulgated 17 thereunder requires the disclosure of financial records 18 other than by subpoena, summons, warrant, or court order. 19 (12) The furnishing of information about the 20 existence of an account of a person to a judgment 21 creditor of that person who has made a written request 22 for that information. 23 (13) The exchange in the regular course of business 24 of information between commonly owned banks in connection 25 with a transaction authorized under paragraph (23) of 26 Section 5 and conducted at an affiliate facility. 27 (14) The furnishing of information in accordance 28 with the federal Personal Responsibility and Work 29 Opportunity Reconciliation Act of 1996. Any bank governed 30 by this Act shall enter into an agreement for data 31 exchanges with a State agency provided the State agency 32 pays to the bank a reasonable fee not to exceed its 33 actual cost incurred. A bank providing information in 34 accordance with this item shall not be liable to any SB119 Engrossed -26- LRB9204827JSpc 1 account holder or other person for any disclosure of 2 information to a State agency, for encumbering or 3 surrendering any assets held by the bank in response to a 4 lien or order to withhold and deliver issued by a State 5 agency, or for any other action taken pursuant to this 6 item, including individual or mechanical errors, provided 7 the action does not constitute gross negligence or 8 willful misconduct. A bank shall have no obligation to 9 hold, encumber, or surrender assets until it has been 10 served with a subpoena, summons, warrant, court or 11 administrative order, lien, or levy. 12 (15) The exchange in the regular course of business 13 of information between a bank and any commonly owned 14 affiliate of the bank, subject to the provisions of the 15 Financial Institutions Insurance Sales Law. 16 (16) The furnishing of information to law 17 enforcement authorities, the Illinois Department on Aging 18 and its regional administrative and provider agencies, 19 the Department of Human Services Office of Inspector 20 General, or public guardians, if the bank suspects that a 21 customer who is an elderly or disabled person has been or 22 may become the victim of financial exploitation. For the 23 purposes of this item (16), the term: (i) "elderly 24 person" means a person who is 60 or more years of age, 25 (ii) "disabled person" means a person who has or 26 reasonably appears to the bank to have a physical or 27 mental disability that impairs his or her ability to seek 28 or obtain protection from or prevent financial 29 exploitation, and (iii) "financial exploitation" means 30 tortious or illegal use of the assets or resources of an 31 elderly or disabled person, and includes, without 32 limitation, misappropriation of the elderly or disabled 33 person's assets or resources by undue influence, breach 34 of fiduciary relationship, intimidation, fraud, SB119 Engrossed -27- LRB9204827JSpc 1 deception, extortion, or the use of assets or resources 2 in any manner contrary to law. A bank or person 3 furnishing information pursuant to this item (16) shall 4 be entitled to the same rights and protections as a 5 person furnishing information under the Elder Abuse and 6 Neglect Act and the Illinois Domestic Violence Act of 7 1986. 8 (17) The disclosure of financial records or 9 information as necessary to effect, administer, or 10 enforce a transaction requested or authorized by the 11 customer, or in connection with: 12 (A) servicing or processing a financial 13 product or service requested or authorized by the 14 customer; 15 (B) maintaining or servicing a customer's 16 account with the bank; or 17 (C) a proposed or actual securitization or 18 secondary market sale (including sales of servicing 19 rights) related to a transaction of a customer. 20 Nothing in this item (17), however, authorizes the 21 sale of the financial records or information of a 22 customer without the consent of the customer. 23 (c) Except as otherwise provided by this Act, a bank may 24 not disclose to any person, except to the customer or his 25 duly authorized agent, any financial records or financial 26 information obtained from financial records relating to that 27 customer of that bank unless: 28 (1) the customer has authorized disclosure to the 29 person; 30 (2) the financial records are disclosed in response 31 to a lawful subpoena, summons, warrant or court order 32 which meets the requirements of subsection (d) of this 33 Section; or 34 (3) the bank is attempting to collect an obligation SB119 Engrossed -28- LRB9204827JSpc 1 owed to the bank and the bank complies with the 2 provisions of Section 2I of the Consumer Fraud and 3 Deceptive Business Practices Act. 4 (d) A bank shall disclose financial records under 5 paragraph (2) of subsection (c) of this Section under a 6 lawful subpoena, summons, warrant, or court order only after 7 the bank mails a copy of the subpoena, summons, warrant, or 8 court order to the person establishing the relationship with 9 the bank, if living, and, otherwise his personal 10 representative, if known, at his last known address by first 11 class mail, postage prepaid, unless the bank is specifically 12 prohibited from notifying the person by order of court or by 13 applicable State or federal law. A bank shall not mail a 14 copy of a subpoena to any person pursuant to this subsection 15 if the subpoena was issued by a grand jury under the 16 Statewide Grand Jury Act. 17 (e) Any officer or employee of a bank who knowingly and 18 willfully furnishes financial records in violation of this 19 Section is guilty of a business offense and, upon conviction, 20 shall be fined not more than $1,000. 21 (f) Any person who knowingly and willfully induces or 22 attempts to induce any officer or employee of a bank to 23 disclose financial records in violation of this Section is 24 guilty of a business offense and, upon conviction, shall be 25 fined not more than $1,000. 26 (g) A bank shall be reimbursed for costs that are 27 reasonably necessary and that have been directly incurred in 28 searching for, reproducing, or transporting books, papers, 29 records, or other data of a customer required or requested to 30 be produced pursuant to a lawful subpoena, summons, warrant, 31 or court order. The Commissioner shall determine the rates 32 and conditions under which payment may be made. 33 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98; 34 91-330, eff. 7-29-99; 91-929, eff. 12-15-00.) SB119 Engrossed -29- LRB9204827JSpc 1 Section 10. The Illinois Savings and Loan Act of 1985 is 2 amended by changing Sections 3-8 and 7-19.1 as follows: 3 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8) 4 Sec. 3-8. Access to books and records; communication 5 with members. 6 (a) Every member or holder of capital shall have the 7 right to inspect the books and records of the association 8 that pertain to his account. Otherwise, the right of 9 inspection and examination of the books and records shall be 10 limited as provided in this Act, and no other person shall 11 have access to the books and records or shall be entitled to 12 a list of the members. 13 (b) For the purpose of this Section, the term "financial 14 records" means any original, any copy, or any summary of (i) 15 a document granting signature authority over a deposit or 16 account; (ii) a statement, ledger card, or other record on 17 any deposit or account that shows each transaction in or with 18 respect to that account; (iii) a check, draft, or money order 19 drawn on an association or issued and payable by an 20 association; or (iv) any other item containing information 21 pertaining to any relationship established in the ordinary 22 course of an association's business between an association 23 and its customer, including financial statements or other 24 financial information provided by the member or holder of 25 capital. 26 (c) This Section does not prohibit: 27 (1) The preparation, examination, handling, or 28 maintenance of any financial records by any officer, 29 employee, or agent of an association having custody of 30 those records or the examination of those records by a 31 certified public accountant engaged by the association to 32 perform an independent audit; 33 (2) The examination of any financial records by, or SB119 Engrossed -30- LRB9204827JSpc 1 the furnishing of financial records by an association to, 2 any officer, employee, or agent of the Commissioner of 3 Banks and Real Estate, Federal Savings and Loan Insurance 4 Corporation and its successors, Federal Deposit Insurance 5 Corporation, Resolution Trust Corporation and its 6 successors, Federal Home Loan Bank Board and its 7 successors, Office of Thrift Supervision, Federal Housing 8 Finance Board, Board of Governors of the Federal Reserve 9 System, any Federal Reserve Bank, or the Office of the 10 Comptroller of the Currency for use solely in the 11 exercise of his duties as an officer, employee, or agent; 12 (3) The publication of data furnished from 13 financial records relating to members or holders of 14 capital where the data cannot be identified to any 15 particular member, holder of capital, or account; 16 (4) The making of reports or returns required under 17 Chapter 61 of the Internal Revenue Code of 1986; 18 (5) Furnishing information concerning the dishonor 19 of any negotiable instrument permitted to be disclosed 20 under the Uniform Commercial Code; 21 (6) The exchange in the regular course of business 22 of (i) credit information between an association and 23 other associations or financial institutions or 24 commercial enterprises, directly or through a consumer 25 reporting agency or (ii) financial records or information 26 derived from financial records between an association and 27 other associations or financial institutions or 28 commercial enterprises for the purpose of conducting due 29 diligence pursuant to a purchase or sale involving the 30 association or assets or liabilities of the association; 31 (7) The furnishing of information to the 32 appropriate law enforcement authorities where the 33 association reasonably believes it has been the victim of 34 a crime; SB119 Engrossed -31- LRB9204827JSpc 1 (8) The furnishing of information pursuant to the 2 Uniform Disposition of Unclaimed Property Act; 3 (9) The furnishing of information pursuant to the 4 Illinois Income Tax Act and the Illinois Estate and 5 Generation-Skipping Transfer Tax Act; 6 (10) The furnishing of information pursuant to the 7 federal "Currency and Foreign Transactions Reporting 8 Act", (Title 31, United States Code, Section 1051 et 9 seq.); 10 (11) The furnishing of information pursuant to any 11 other statute that by its terms or by regulations 12 promulgated thereunder requires the disclosure of 13 financial records other than by subpoena, summons, 14 warrant, or court order; 15 (12) The exchange of information between an 16 association and an affiliate of the association; as used 17 in this item, "affiliate" includes any company, 18 partnership, or organization that controls, is controlled 19 by, or is under common control with an association. 20 (13) The furnishing of information in accordance 21 with the federal Personal Responsibility and Work 22 Opportunity Reconciliation Act of 1996. Any association 23 governed by this Act shall enter into an agreement for 24 data exchanges with a State agency provided the State 25 agency pays to the association a reasonable fee not to 26 exceed its actual cost incurred. An association 27 providing information in accordance with this item shall 28 not be liable to any account holder or other person for 29 any disclosure of information to a State agency, for 30 encumbering or surrendering any assets held by the 31 association in response to a lien or order to withhold 32 and deliver issued by a State agency, or for any other 33 action taken pursuant to this item, including individual 34 or mechanical errors, provided the action does not SB119 Engrossed -32- LRB9204827JSpc 1 constitute gross negligence or willful misconduct. An 2 association shall have no obligation to hold, encumber, 3 or surrender assets until it has been served with a 4 subpoena, summons, warrant, court or administrative 5 order, lien, or levy. 6 (14) The furnishing of information to law 7 enforcement authorities, the Illinois Department on Aging 8 and its regional administrative and provider agencies, 9 the Department of Human Services Office of Inspector 10 General, or public guardians, if the association suspects 11 that a customer who is an elderly or disabled person has 12 been or may become the victim of financial exploitation. 13 For the purposes of this item (14), the term: (i) 14 "elderly person" means a person who is 60 or more years 15 of age, (ii) "disabled person" means a person who has or 16 reasonably appears to the association to have a physical 17 or mental disability that impairs his or her ability to 18 seek or obtain protection from or prevent financial 19 exploitation, and (iii) "financial exploitation" means 20 tortious or illegal use of the assets or resources of an 21 elderly or disabled person, and includes, without 22 limitation, misappropriation of the elderly or disabled 23 person's assets or resources by undue influence, breach 24 of fiduciary relationship, intimidation, fraud, 25 deception, extortion, or the use of assets or resources 26 in any manner contrary to law. An association or person 27 furnishing information pursuant to this item (14) shall 28 be entitled to the same rights and protections as a 29 person furnishing information under the Elder Abuse and 30 Neglect Act and the Illinois Domestic Violence Act of 31 1986. 32 (15) The disclosure of financial records or 33 information as necessary to effect, administer, or 34 enforce a transaction requested or authorized by the SB119 Engrossed -33- LRB9204827JSpc 1 member or holder of capital, or in connection with: 2 (A) servicing or processing a financial 3 product or service requested or authorized by the 4 member or holder of capital; 5 (B) maintaining or servicing an account of a 6 member or holder of capital with the association; or 7 (C) a proposed or actual securitization or 8 secondary market sale (including sales of servicing 9 rights) related to a transaction of a member or 10 holder of capital. 11 Nothing in this item (15), however, authorizes the 12 sale of the financial records or information of a member 13 or holder of capital without the consent of the member or 14 holder of capital. 15 (d) An association may not disclose to any person, 16 except to the member or holder of capital or his duly 17 authorized agent, any financial records relating to that 18 member or holder of capital of that association unless: 19 (1) The member or holder of capital has authorized 20 disclosure to the person; or 21 (2) The financial records are disclosed in response 22 to a lawful subpoena, summons, warrant, or court order 23 that meets the requirements of subsection (e) of this 24 Section. 25 (e) An association shall disclose financial records 26 under subsection (d) of this Section pursuant to a lawful 27 subpoena, summons, warrant, or court order only after the 28 association mails a copy of the subpoena, summons, warrant, 29 or court order to the person establishing the relationship 30 with the association, if living, and, otherwise, his personal 31 representative, if known, at his last known address by first 32 class mail, postage prepaid, unless the association is 33 specifically prohibited from notifying that person by order 34 of court. SB119 Engrossed -34- LRB9204827JSpc 1 (f) (1) Any officer or employee of an association who 2 knowingly and willfully furnishes financial records in 3 violation of this Section is guilty of a business offense 4 and, upon conviction, shall be fined not more than $1,000. 5 (2) Any person who knowingly and willfully induces or 6 attempts to induce any officer or employee of an association 7 to disclose financial records in violation of this Section is 8 guilty of a business offense and, upon conviction, shall be 9 fined not more than $1,000. 10 (g) However, if any member desires to communicate with 11 the other members of the association with reference to any 12 question pending or to be presented at a meeting of the 13 members, the association shall give him upon request a 14 statement of the approximate number of members entitled to 15 vote at the meeting and an estimate of the cost of preparing 16 and mailing the communication. The requesting member then 17 shall submit the communication to the Commissioner who, if he 18 finds it to be appropriate and truthful, shall direct that it 19 be prepared and mailed to the members upon the requesting 20 member's payment or adequate provision for payment of the 21 expenses of preparation and mailing. 22 (h) An association shall be reimbursed for costs that 23 are necessary and that have been directly incurred in 24 searching for, reproducing, or transporting books, papers, 25 records, or other data of a customer required to be 26 reproduced pursuant to a lawful subpoena, warrant, or court 27 order. 28 (Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.) 29 (205 ILCS 105/7-19.1) (from Ch. 17, par. 3307-19.1) 30 Sec. 7-19.1. Savings and Residential Finance Regulatory 31 Fund. 32 (a) The aggregate of all fees collected by the 33 Commissioner under this Act shall be paid promptly after SB119 Engrossed -35- LRB9204827JSpc 1 receipt of the same, accompanied by a detailed statement 2 thereof, into the State treasury and shall be set apart in 3 the Savings and Residential Finance Regulatory Fund, a 4 special fund hereby created in the State treasury. The 5 amounts deposited into the Fund shall be used for the 6 ordinary and contingent expenses of the Office of Banks and 7 Real Estate. Nothing in this Act shall prevent continuing 8 the practice of paying expenses involving salaries, 9 retirement, social security, and State-paid insurance of 10 State officers by appropriation from the General Revenue 11 Fund. 12 (b) Moneys in the Savings and Residential Finance 13 Regulatory Fund may not be appropriated, assigned, or 14 transferred to another State fund. The moneys in the Fund 15 shall be for the sole benefit of the institutions assessed. 16 (c) All earnings received from investments of funds in 17 the Savings and Residential Finance Regulatory Fund shall be 18 deposited into the Savings and Residential Finance Regulatory 19 Fund and may be used for the same purposes as fees deposited 20 into that Fund. 21 (Source: P.A. 88-579, eff. 8-12-94; 89-508, eff. 7-3-96.) 22 Section 15. The Savings Bank Act is amended by changing 23 Section 4013 as follows: 24 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13) 25 Sec. 4013. Access to books and records; communication 26 with members and shareholders. 27 (a) Every member or shareholder shall have the right to 28 inspect books and records of the savings bank that pertain to 29 his accounts. Otherwise, the right of inspection and 30 examination of the books and records shall be limited as 31 provided in this Act, and no other person shall have access 32 to the books and records nor shall be entitled to a list of SB119 Engrossed -36- LRB9204827JSpc 1 the members or shareholders. 2 (b) For the purpose of this Section, the term "financial 3 records" means any original, any copy, or any summary of (1) 4 a document granting signature authority over a deposit or 5 account; (2) a statement, ledger card, or other record on any 6 deposit or account that shows each transaction in or with 7 respect to that account; (3) a check, draft, or money order 8 drawn on a savings bank or issued and payable by a savings 9 bank; or (4) any other item containing information pertaining 10 to any relationship established in the ordinary course of a 11 savings bank's business between a savings bank and its 12 customer, including financial statements or other financial 13 information provided by the member or shareholder. 14 (c) This Section does not prohibit: 15 (1) The preparation examination, handling, or 16 maintenance of any financial records by any officer, 17 employee, or agent of a savings bank having custody of 18 records or examination of records by a certified public 19 accountant engaged by the savings bank to perform an 20 independent audit. 21 (2) The examination of any financial records by, or 22 the furnishing of financial records by a savings bank to, 23 any officer, employee, or agent of the Commissioner of 24 Banks and Real Estate or the Federal Deposit Insurance 25 Corporation for use solely in the exercise of his duties 26 as an officer, employee, or agent. 27 (3) The publication of data furnished from 28 financial records relating to members or holders of 29 capital where the data cannot be identified to any 30 particular member, shareholder, or account. 31 (4) The making of reports or returns required under 32 Chapter 61 of the Internal Revenue Code of 1986. 33 (5) Furnishing information concerning the dishonor 34 of any negotiable instrument permitted to be disclosed SB119 Engrossed -37- LRB9204827JSpc 1 under the Uniform Commercial Code. 2 (6) The exchange in the regular course of business 3 of (i) credit information between a savings bank and 4 other savings banks or financial institutions or 5 commercial enterprises, directly or through a consumer 6 reporting agency or (ii) financial records or information 7 derived from financial records between a savings bank and 8 other savings banks or financial institutions or 9 commercial enterprises for the purpose of conducting due 10 diligence pursuant to a purchase or sale involving the 11 savings bank or assets or liabilities of the savings 12 bank. 13 (7) The furnishing of information to the 14 appropriate law enforcement authorities where the savings 15 bank reasonably believes it has been the victim of a 16 crime. 17 (8) The furnishing of information pursuant to the 18 Uniform Disposition of Unclaimed Property Act. 19 (9) The furnishing of information pursuant to the 20 Illinois Income Tax Act and the Illinois Estate and 21 Generation-Skipping Transfer Tax Act. 22 (10) The furnishing of information pursuant to the 23 federal "Currency and Foreign Transactions Reporting 24 Act", (Title 31, United States Code, Section 1051 et 25 seq.). 26 (11) The furnishing of information pursuant to any 27 other statute which by its terms or by regulations 28 promulgated thereunder requires the disclosure of 29 financial records other than by subpoena, summons, 30 warrant, or court order. 31 (12) The furnishing of information in accordance 32 with the federal Personal Responsibility and Work 33 Opportunity Reconciliation Act of 1996. Any savings bank 34 governed by this Act shall enter into an agreement for SB119 Engrossed -38- LRB9204827JSpc 1 data exchanges with a State agency provided the State 2 agency pays to the savings bank a reasonable fee not to 3 exceed its actual cost incurred. A savings bank 4 providing information in accordance with this item shall 5 not be liable to any account holder or other person for 6 any disclosure of information to a State agency, for 7 encumbering or surrendering any assets held by the 8 savings bank in response to a lien or order to withhold 9 and deliver issued by a State agency, or for any other 10 action taken pursuant to this item, including individual 11 or mechanical errors, provided the action does not 12 constitute gross negligence or willful misconduct. A 13 savings bank shall have no obligation to hold, encumber, 14 or surrender assets until it has been served with a 15 subpoena, summons, warrant, court or administrative 16 order, lien, or levy. 17 (13) The furnishing of information to law 18 enforcement authorities, the Illinois Department on Aging 19 and its regional administrative and provider agencies, 20 the Department of Human Services Office of Inspector 21 General, or public guardians, if the savings bank 22 suspects that a customer who is an elderly or disabled 23 person has been or may become the victim of financial 24 exploitation. For the purposes of this item (13), the 25 term: (i) "elderly person" means a person who is 60 or 26 more years of age, (ii) "disabled person" means a person 27 who has or reasonably appears to the savings bank to have 28 a physical or mental disability that impairs his or her 29 ability to seek or obtain protection from or prevent 30 financial exploitation, and (iii) "financial 31 exploitation" means tortious or illegal use of the assets 32 or resources of an elderly or disabled person, and 33 includes, without limitation, misappropriation of the 34 elderly or disabled person's assets or resources by undue SB119 Engrossed -39- LRB9204827JSpc 1 influence, breach of fiduciary relationship, 2 intimidation, fraud, deception, extortion, or the use of 3 assets or resources in any manner contrary to law. A 4 savings bank or person furnishing information pursuant to 5 this item (13) shall be entitled to the same rights and 6 protections as a person furnishing information under the 7 Elder Abuse and Neglect Act and the Illinois Domestic 8 Violence Act of 1986. 9 (14) The disclosure of financial records or 10 information as necessary to effect, administer, or 11 enforce a transaction requested or authorized by the 12 member or holder of capital, or in connection with: 13 (A) servicing or processing a financial 14 product or service requested or authorized by the 15 member or holder of capital; 16 (B) maintaining or servicing an account of a 17 member or holder of capital with the savings bank; 18 or 19 (C) a proposed or actual securitization or 20 secondary market sale (including sales of servicing 21 rights) related to a transaction of a member or 22 holder of capital. 23 Nothing in this item (14), however, authorizes the 24 sale of the financial records or information of a member 25 or holder of capital without the consent of the member or 26 holder of capital. 27 (15) The exchange in the regular course of business 28 of information between a savings bank and any commonly 29 owned affiliate of the savings bank, subject to the 30 provisions of the Financial Institutions Insurance Sales 31 Law. 32 (d) A savings bank may not disclose to any person, 33 except to the member or holder of capital or his duly 34 authorized agent, any financial records relating to that SB119 Engrossed -40- LRB9204827JSpc 1 member or shareholder of the savings bank unless: 2 (1) the member or shareholder has authorized 3 disclosure to the person; or 4 (2) the financial records are disclosed in response 5 to a lawful subpoena, summons, warrant, or court order 6 that meets the requirements of subsection (e) of this 7 Section. 8 (e) A savings bank shall disclose financial records 9 under subsection (d) of this Section pursuant to a lawful 10 subpoena, summons, warrant, or court order only after the 11 savings bank mails a copy of the subpoena, summons, warrant, 12 or court order to the person establishing the relationship 13 with the savings bank, if living, and otherwise, his personal 14 representative, if known, at his last known address by first 15 class mail, postage prepaid, unless the savings bank is 16 specifically prohibited from notifying the person by order of 17 court. 18 (f) Any officer or employee of a savings bank who 19 knowingly and willfully furnishes financial records in 20 violation of this Section is guilty of a business offense 21 and, upon conviction, shall be fined not more than $1,000. 22 (g) Any person who knowingly and willfully induces or 23 attempts to induce any officer or employee of a savings bank 24 to disclose financial records in violation of this Section is 25 guilty of a business offense and, upon conviction, shall be 26 fined not more than $1,000. 27 (h) If any member or shareholder desires to communicate 28 with the other members or shareholders of the savings bank 29 with reference to any question pending or to be presented at 30 an annual or special meeting, the savings bank shall give 31 that person, upon request, a statement of the approximate 32 number of members or shareholders entitled to vote at the 33 meeting and an estimate of the cost of preparing and mailing 34 the communication. The requesting member shall submit the SB119 Engrossed -41- LRB9204827JSpc 1 communication to the Commissioner who, upon finding it to be 2 appropriate and truthful, shall direct that it be prepared 3 and mailed to the members upon the requesting member's or 4 shareholder's payment or adequate provision for payment of 5 the expenses of preparation and mailing. 6 (i) A savings bank shall be reimbursed for costs that 7 are 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 to be 10 reproduced pursuant to a lawful subpoena, warrant, or court 11 order. 12 (j) Notwithstanding the provisions of this Section, a 13 savings bank may sell or otherwise make use of lists of 14 customers' names and addresses. All other information 15 regarding a customer's account are subject to the disclosure 16 provisions of this Section. At the request of any customer, 17 that customer's name and address shall be deleted from any 18 list that is to be sold or used in any other manner beyond 19 identification of the customer's accounts. 20 (Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.) 21 Section 20. The Illinois Credit Union Act is amended by 22 changing Sections 10, 12, and 59 as follows: 23 (205 ILCS 305/10) (from Ch. 17, par. 4411) 24 Sec. 10. Credit union records; member financial records. 25 (1) A credit union shall establish and maintain books, 26 records, accounting systems and procedures which accurately 27 reflect its operations and which enable the Department to 28 readily ascertain the true financial condition of the credit 29 union and whether it is complying with this Act. 30 (2) A photostatic or photographic reproduction of any 31 credit union records shall be admissible as evidence of 32 transactions with the credit union. SB119 Engrossed -42- LRB9204827JSpc 1 (3) (a) For the purpose of this Section, the term 2 "financial records" means any original, any copy, or any 3 summary of (1) a document granting signature authority 4 over an account, (2) a statement, ledger card or other 5 record on any account which shows each transaction in or 6 with respect to that account, (3) a check, draft or money 7 order drawn on a financial institution or other entity or 8 issued and payable by or through a financial institution 9 or other entity, or (4) any other item containing 10 information pertaining to any relationship established in 11 the ordinary course of business between a credit union 12 and its member, including financial statements or other 13 financial information provided by the member. 14 (b) This Section does not prohibit: 15 (1) The preparation, examination, handling or 16 maintenance of any financial records by any officer, 17 employee or agent of a credit union having custody 18 of such records, or the examination of such records 19 by a certified public accountant engaged by the 20 credit union to perform an independent audit; 21 (2) The examination of any financial records 22 by or the furnishing of financial records by a 23 credit union to any officer, employee or agent of 24 the Department, the National Credit Union 25 Administration, Federal Reserve board or any insurer 26 of share accounts for use solely in the exercise of 27 his duties as an officer, employee or agent; 28 (3) The publication of data furnished from 29 financial records relating to members where the data 30 cannot be identified to any particular customer of 31 account; 32 (4) The making of reports or returns required 33 under Chapter 61 of the Internal Revenue Code of 34 1954; SB119 Engrossed -43- LRB9204827JSpc 1 (5) Furnishing information concerning the 2 dishonor of any negotiable instrument permitted to 3 be disclosed under the Uniform Commercial Code; 4 (6) The exchange in the regular course of 5 business of (i) credit information between a credit 6 union and other credit unions or financial 7 institutions or commercial enterprises, directly or 8 through a consumer reporting agency or (ii) 9 financial records or information derived from 10 financial records between a credit union and other 11 credit unions or financial institutions or 12 commercial enterprises for the purpose of conducting 13 due diligence pursuant to a merger or a purchase or 14 sale of assets or liabilities of the credit union; 15 (7) The furnishing of information to the 16 appropriate law enforcement authorities where the 17 credit union reasonably believes it has been the 18 victim of a crime; 19 (8) The furnishing of information pursuant to 20 the Uniform Disposition of Unclaimed Property Act; 21 (9) The furnishing of information pursuant to 22 the Illinois Income Tax Act and the Illinois Estate 23 and Generation-Skipping Transfer Tax Act; 24 (10) The furnishing of information pursuant to 25 the federal "Currency and Foreign Transactions 26 Reporting Act", Title 31, United States Code, 27 Section 1051 et sequentia; or 28 (11) The furnishing of information pursuant to 29 any other statute which by its terms or by 30 regulations promulgated thereunder requires the 31 disclosure of financial records other than by 32 subpoena, summons, warrant or court order. 33 (12) The furnishing of information in 34 accordance with the federal Personal Responsibility SB119 Engrossed -44- LRB9204827JSpc 1 and Work Opportunity Reconciliation Act of 1996. Any 2 credit union governed by this Act shall enter into 3 an agreement for data exchanges with a State agency 4 provided the State agency pays to the credit union a 5 reasonable fee not to exceed its actual cost 6 incurred. A credit union providing information in 7 accordance with this item shall not be liable to any 8 account holder or other person for any disclosure of 9 information to a State agency, for encumbering or 10 surrendering any assets held by the credit union in 11 response to a lien or order to withhold and deliver 12 issued by a State agency, or for any other action 13 taken pursuant to this item, including individual or 14 mechanical errors, provided the action does not 15 constitute gross negligence or willful misconduct. A 16 credit union shall have no obligation to hold, 17 encumber, or surrender assets until it has been 18 served with a subpoena, summons, warrant, court or 19 administrative order, lien, or levy. 20 (13) The furnishing of information to law 21 enforcement authorities, the Illinois Department on 22 Aging and its regional administrative and provider 23 agencies, the Department of Human Services Office of 24 Inspector General, or public guardians, if the 25 credit union suspects that a member who is an 26 elderly or disabled person has been or may become 27 the victim of financial exploitation. For the 28 purposes of this item (13), the term: (i) "elderly 29 person" means a person who is 60 or more years of 30 age, (ii) "disabled person" means a person who has 31 or reasonably appears to the credit union to have a 32 physical or mental disability that impairs his or 33 her ability to seek or obtain protection from or 34 prevent financial exploitation, and (iii) "financial SB119 Engrossed -45- LRB9204827JSpc 1 exploitation" means tortious or illegal use of the 2 assets or resources of an elderly or disabled 3 person, and includes, without limitation, 4 misappropriation of the elderly or disabled person's 5 assets or resources by undue influence, breach of 6 fiduciary relationship, intimidation, fraud, 7 deception, extortion, or the use of assets or 8 resources in any manner contrary to law. A credit 9 union or person furnishing information pursuant to 10 this item (13) shall be entitled to the same rights 11 and protections as a person furnishing information 12 under the Elder Abuse and Neglect Act and the 13 Illinois Domestic Violence Act of 1986. 14 (14) The disclosure of financial records or 15 information as necessary to effect, administer, or 16 enforce a transaction requested or authorized by the 17 member, or in connection with: 18 (A) servicing or processing a financial 19 product or service requested or authorized by 20 the member; 21 (B) maintaining or servicing a member's 22 account with the credit union; or 23 (C) a proposed or actual securitization 24 or secondary market sale (including sales of 25 servicing rights) related to a transaction of a 26 member. 27 Nothing in this item (14), however, authorizes the 28 sale of the financial records or information of a member 29 without the consent of the member. 30 (c) Except as otherwise provided by this Act, a credit 31 union may not disclose to any person, except to the member or 32 his duly authorized agent, any financial records relating to 33 that member of the credit union unless: 34 (1) the member has authorized disclosure to the SB119 Engrossed -46- LRB9204827JSpc 1 person; 2 (2) the financial records are disclosed in response 3 to a lawful subpoena, summons, warrant or court order 4 that meets the requirements of subparagraph (d) of this 5 Section; or 6 (3) the credit union is attempting to collect an 7 obligation owed to the credit union and the credit union 8 complies with the provisions of Section 2I of the 9 Consumer Fraud and Deceptive Business Practices Act. 10 (d) A credit union shall disclose financial records 11 under subparagraph (c)(2) of this Section pursuant to a 12 lawful subpoena, summons, warrant or court order only after 13 the credit union mails a copy of the subpoena, summons, 14 warrant or court order to the person establishing the 15 relationship with the credit union, if living, and otherwise 16 his personal representative, if known, at his last known 17 address by first class mail, postage prepaid unless the 18 credit union is specifically prohibited from notifying the 19 person by order of court or by applicable State or federal 20 law. In the case of a grand jury subpoena, a credit union 21 shall not mail a copy of a subpoena to any person pursuant to 22 this subsection if the subpoena was issued by a grand jury 23 under the Statewide Grand Jury Act or notifying the person 24 would constitute a violation of the federal Right to 25 Financial Privacy Act of 1978. 26 (e) (1) Any officer or employee of a credit union who 27 knowingly and wilfully furnishes financial records in 28 violation of this Section is guilty of a business offense 29 and upon conviction thereof shall be fined not more than 30 $1,000. 31 (2) Any person who knowingly and wilfully induces 32 or attempts to induce any officer or employee of a credit 33 union to disclose financial records in violation of this 34 Section is guilty of a business offense and upon SB119 Engrossed -47- LRB9204827JSpc 1 conviction thereof shall be fined not more than $1,000. 2 (f) A credit union shall be reimbursed for costs which 3 are reasonably necessary and which have been directly 4 incurred in searching for, reproducing or transporting books, 5 papers, records or other data of a member required or 6 requested to be produced pursuant to a lawful subpoena, 7 summons, warrant or court order. The Director may determine, 8 by rule, the rates and conditions under which payment shall 9 be made. Delivery of requested documents may be delayed 10 until final reimbursement of all costs is received. 11 (Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.) 12 (205 ILCS 305/12) (from Ch. 17, par. 4413) 13 Sec. 12. Regulatory feesfor examination and14administration. 15 (1) A credit union regulated by the Department shall pay 16 a regulatory fee to the Department based upon its total 17 assets as shown by its Year-end Call Report at the following 18 rates: 19 TOTAL ASSETS REGULATORY FEE 20 $25,000 or less .............. $100 21 Over $25,000 and not over 22 $100,000 ..................... $100 plus $4 per $1,000 of 23 assets in excess of $25,000 24 Over $100,000 and not over 25 $200,000 ..................... $400 plus $3 per $1,000 of 26 assets in excess of $100,000 27 Over $200,000 and not over 28 $500,000 ..................... $700 plus $2 per $1,000 of 29 assets in excess of $200,000 30 Over $500,000 and not over 31 $1,000,000 ................... $1,300 plus $1.40 per $1,000 32 of assets in excess of 33 $500,000 SB119 Engrossed -48- LRB9204827JSpc 1 Over $1,000,000 and not 2 over $5,000,000............... $2,000 plus $0.50 per 3 $1,000 of assets in 4 excess of $1,000,000 5 Over $5,000,000 and not 6 over $30,000,000 ............. $4,000 plus $0.35 7 per $1,000 assets 8 in excess of $5,000,000 9 Over $30,000,000 and not 10 over $100,000,000 ............ $12,750 plus $0.30 11 per $1,000 of assets in 12 excess of $30,000,000 13 Over $100,000,000 and not 14 over $500,000,000 ............ $33,750 plus $0.15 per 15 $1,000 of assets in excess 16 of $100,000,000 17 Over $500,000,000 ............ $93,750 plus $0.05 per 18 $1,000 of assets in excess 19 of $500,000,000 20 (2) The Director shall review the regulatory fee 21 schedule in subsection (1) and the projected earnings on 22 those fees on an annual basis and adjust the fee schedule no 23 more than 5% annually if necessary to defray the estimated 24 administrative and operational expenses of the Department as 25 defined in subsection (5). The Director shall provide credit 26 unions with written notice of any adjustment made in the 27 regulatory fee schedule. 28 (3) Not later than March 1 of each calendar year, a 29 credit union shall pay to the Department, for the preceding30calendar year,a regulatory fee for that calendar year in 31 accordance with the regulatory fee schedule in subsection 32 (1), on the basis of assets as of the Year-end Call Report of 33 the preceding year. The regulatory fee shall not be less 34 than $100 or more than $125,000, provided that the regulatory SB119 Engrossed -49- LRB9204827JSpc 1 fee cap of $125,000 shall be adjusted to incorporate the same 2 percentage increase as the Director makes in the regulatory 3 fee schedule from time to time under subsection (2). No 4 regulatory fee shall be collected from a credit union until 5 it has been in operation for one year. 6 (4) The aggregate of all fees collected by the 7 Department under this Act shall be paid promptly after they 8 are receivedreceipt of the same, accompanied by a detailed 9 statement thereof, into the State Treasury and shall be set 10 apart in the Credit Union Fund, a special fund hereby created 11 in the State treasury. The amount from time to time 12 deposited in the Credit Union Fund and shall be used to 13 offset the ordinary administrative and operational expenses 14 of the Department under this Act. All earnings received from 15 investments of funds in the Credit Union Fund shall be 16 deposited into the Credit Union Fund and may be used for the 17 same purposes as fees deposited into that Fund. 18 (5) The administrative and operational expenses for any 19 calendar year shall mean the ordinary and contingent expenses 20 for that year incidental to making the examinations provided 21 for by, and for administering, this Act, including all 22 salaries and other compensation paid for personal services 23 rendered for the State by officers or employees of the State 24 to enforce this Act; all expenditures for telephone and 25 telegraph charges, postage and postal charges, office 26 supplies and services, furniture and equipment, office space 27 and maintenance thereof, travel expenses and other necessary 28 expenses; all to the extent that such expenditures are 29 directly incidental to such examination or administration. 30 (6) When the aggregate of all fees collected by the 31 Department under this Act and all earnings thereon for any 32 calendar year exceeds 150% of the total administrative and 33 operational expenses under this Act for that year, such 34 excess shall be credited to credit unions and applied against SB119 Engrossed -50- LRB9204827JSpc 1 their regulatory fees for the subsequent year. The amount 2 credited to a credit union shall be in the same proportion as 3 the fee paid by such credit union for the calendar year in 4 which the excess is produced bears to the aggregate of the 5 fees collected by the Department under this Act for the same 6 year. 7 (7) Examination fees for the year 2000 statutory 8 examinations paid pursuant to the examination fee schedule in 9 effect at that time shall be credited toward the regulatory 10 fee to be assessed the credit union in calendar year 2001. 11 (8) Nothing in this Act shall prohibit the General 12 Assembly from appropriating funds to the Department from the 13 General Revenue Fund for the purpose of administering this 14 Act. 15 (Source: P.A. 91-755, eff. 1-1-01.) 16 (205 ILCS 305/59) (from Ch. 17, par. 4460) 17 Sec. 59. Investment of Funds. Funds not used in loans to 18 members may be invested, pursuant to subsection (7) of 19 Section 30 of this Act, and subject to Departmental rules and 20 regulations: 21 (1) In securities, obligations or other instruments of 22 or issued by or fully guaranteed as to principal and interest 23 by the United States of America or any agency thereof or in 24 any trust or trusts established for investing directly or 25 collectively in the same; 26 (2) In obligations of any state of the United States, 27 the District of Columbia, the Commonwealth of Puerto Rico, 28 and the several territories organized by Congress, or any 29 political subdivision thereof; however, a credit union may 30 not invest more than 10% of its unimpaired capital and 31 surplus in the obligations of one issuer, exclusive of 32 general obligations of the issuer, and investments in 33 municipal securities must be limited to securities rated in SB119 Engrossed -51- LRB9204827JSpc 1 one of the 4 highest rating categories by a nationally 2 recognized statistical rating organization; 3 (3) In certificates of deposit or passbook type accounts 4 issued by a state or national bank, mutual savings bank or 5 savings and loan association; provided that such institutions 6 have their accounts insured by the Federal Deposit Insurance 7 Corporation or the Federal Savings and Loan Insurance 8 Corporation; but provided, further, that a credit union's 9 investment in an account in any one institution may exceed 10 the insured limit on accounts; 11 (4) In shares, classes of shares or share certificates 12 of other credit unions, including, but not limited to 13 corporate credit unions; provided that such credit unions 14 have their members' accounts insured by the NCUA or other 15 approved insurers, and that if the members' accounts are so 16 insured, a credit union's investment may exceed the insured 17 limit on accounts; 18 (5) In shares of a cooperative society organized under 19 the laws of this State or the laws of the United States in 20 the total amount not exceeding 10% of the unimpaired capital 21 and surplus of the credit union; provided that such 22 investment shall first be approved by the Department; 23 (6) In obligations of the State of Israel, or 24 obligations fully guaranteed by the State of Israel as to 25 payment of principal and interest; 26 (7) In shares, stocks or obligations of other financial 27 institutions in the total amount not exceeding 5% of the 28 unimpaired capital and surplus of the credit union; 29 (8) In federal funds and bankers' acceptances; 30 (9) In shares or stocks of Credit Union Service 31 Organizations in the total amount not exceeding 1% of the 32 unimpaired capital and surplus of the credit union. 33 As used in this Section, "political subdivision" 34 includes, but is not limited to, counties, townships, cities, SB119 Engrossed -52- LRB9204827JSpc 1 villages, incorporated towns, school districts, educational 2 service regions, special road districts, public water supply 3 districts, fire protection districts, drainage districts, 4 levee districts, sewer districts, housing authorities, park 5 districts, and any agency, corporation, or instrumentality of 6 a state or its political subdivisions, whether now or 7 hereafter created and whether herein specifically mentioned 8 or not. 9 (Source: P.A. 86-432.) 10 Section 25. The Illinois Trust and Payable on Death 11 Accounts Act is amended by changing Sections 2 and 4 as 12 follows: 13 (205 ILCS 625/2) (from Ch. 17, par. 2132) 14 Sec. 2. Definitions. As used in this Act, the following 15 words have the meanings ascribed to them as set forth herein: 16 (a) "Institution" includes any bank as defined in 17 Section 2 of the"Illinois Banking Act", approved May 11,181955, as amended, any association as defined in Section 19 1-10.03 of the"Illinois Savings and Loan Act", approved July205, 1955, as amended, any insured savings bank as defined in 21 Section 1007.75 of the Savings Bank Act, or any credit union 22 as defined in Section 1.1 of the"Illinois Credit Union Act",23approved August 30, 1979, as amended, and similar federal 24 institutions. 25 (b) "Account" includes any account, deposit, certificate 26 of deposit, withdrawable capital account or credit union 27 share in any institution. 28 (Source: P.A. 84-461.) 29 (205 ILCS 625/4) (from Ch. 17, par. 2134) 30 Sec. 4. Payable on Death Account Incidents. If one or 31 more personsa personopening or holding an account sign SB119 Engrossed -53- LRB9204827JSpc 1signsan agreement with the institution providing that on the 2 death of the last surviving person designated as holder the 3 account shall be paid to or held by another person or 4 persons, the account, and any balance therein which exists 5 from time to time, shall be held as a payablepaymenton 6 death account and unless otherwise agreed in writing between 7 the person or persons opening or holding the account and the 8 institution: 9 (a) AnyTheholder during his or her lifetime may change 10 any of the designated persons to own the account at thehis11or herdeath of the last surviving holder without the 12 knowledge or consent of any other holder or thesaid13 designated persons by a written instrument accepted by the 14 institution; 15 (b) AnyTheholder may make additional deposits to and 16 withdraw any part or all of the account at any time without 17 the knowledge or consent of any other holder or the 18 designated person or persons to own the account at thehis or19herdeath of the last surviving holder, subject to the bylaws 20 and regulations of the institution, and all withdrawals shall 21 constitute a revocation of the agreement as to the amount 22 withdrawn; and 23 (c) Upon the death of the last surviving holder of the 24 account, the person so designated to be the owner of the 25 account who is then living shall be the sole owner of the 26 account, unless more than one person is so designated and 27 then living in which case thosesaidpersons shall hold the 28 account in equal shares as tenants in common with no right of 29 survivorship as between those persons. If no person 30 designated as the owner of the account on the death of the 31 last surviving holder is then living, the proceeds shall vest 32 in the estate of the last surviving holder of the account. 33 (Source: P.A. 84-461.) SB119 Engrossed -54- LRB9204827JSpc 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.