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92_SB0119sam001
LRB9204827JSpcam01
1 AMENDMENT TO SENATE BILL 119
2 AMENDMENT NO. . Amend Senate Bill 119 by replacing
3 everything after the enacting clause with the following:
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
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1 board regardless of vacancies until the number of
2 directors is thereafter changed by similar action.
3 (b) Notwithstanding the minimum number of directors
4 specified in paragraph (a) of this subsection, a State
5 bank that has been in existence for 10 years or more and
6 has less than $20,000,000 in assets, as of the December
7 31 immediately preceding the annual meeting of
8 shareholders at which directors are elected, may, subject
9 to the approval of the Commissioner, have a minimum of 3
10 directors; provided that if a State bank has fewer than 5
11 directors, at least one director shall not be an officer
12 or employee of the bank. The Commissioner shall annually
13 review the appropriateness of the grant of authority to
14 have a reduced minimum number of directors pursuant to
15 this paragraph (b).
16 (3) Except as otherwise provided in this paragraph (3),
17 directors shall hold office until the next annual meeting of
18 the stockholders succeeding their election or until their
19 successors are elected and qualify. If the board of directors
20 consists of 6 or more members, in lieu of electing the
21 membership of the whole board of directors annually, the
22 charter or by-laws of a State bank may provide that the
23 directors shall be divided into either 2 or 3 classes, each
24 class to be as nearly equal in number as is possible. The
25 term of office of directors of the first class shall expire
26 at the first annual meeting of the stockholders after their
27 election, that of the second class shall expire at the second
28 annual meeting after their election, and that of the third
29 class, if any, shall expire at the third annual meeting after
30 their election. At each annual meeting after classification,
31 the number of directors equal to the number of the class
32 whose terms expire at the time of the meeting shall be
33 elected to hold office until the second succeeding annual
34 meeting, if there be 2 classes, or until the third succeeding
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1 annual meeting, if there be 3 classes. Vacancies may be
2 filled by stockholders at a special meeting called for the
3 purpose.
4 If authorized by the bank's by-laws or an amendment
5 thereto, the directors of a State bank may properly fill a
6 vacancy or vacancies arising between shareholders' meetings,
7 but at no time may the number of directors selected to fill a
8 vacancy in this manner during any interim period between
9 shareholders' meetings exceed 33 1/3% of the total membership
10 of the board of directors.
11 (4) The board of directors shall hold regular meetings
12 at least once each month, provided that, upon prior written
13 approval by the Commissioner, the board of directors may hold
14 regular meetings less frequently than once each month but at
15 least once each calendar quarter. A special meeting of the
16 board of directors may be held as provided by the by-laws. A
17 special meeting of the board of directors may also be held
18 upon call by the Commissioner or a bank examiner appointed
19 under the provisions of this Act upon not less than 12 hours
20 notice of the meeting by personal service of the notice or by
21 mailing the notice to each of the directors at his residence
22 as shown by the books of the bank. A majority of the board
23 of directors shall constitute a quorum for the transaction of
24 business unless a greater number is required by the charter
25 or the by-laws. The act of the majority of the directors
26 present at a meeting at which a quorum is present shall be
27 the act of the board of directors unless the act of a greater
28 number is required by the charter or by the by-laws.
29 (5) A member of the board of directors shall be elected
30 president. The board of directors may appoint other officers,
31 as the by-laws may provide, and fix their salaries to carry
32 on the business of the bank. The board of directors may make
33 and amend by-laws (not inconsistent with this Act) for the
34 government of the bank and may, by the affirmative vote of a
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1 majority of the board of directors, establish reasonable
2 compensation of all directors for services to the corporation
3 as directors, officers, or otherwise. An officer, whether
4 elected or appointed by the board of directors or appointed
5 pursuant to the by-laws, may be removed by the board of
6 directors at any time.
7 (6) The board of directors shall cause suitable books
8 and records of all the bank's transactions to be kept.
9 (7) (a) In discharging the duties of their respective
10 positions, the board of directors, committees of the
11 board, and individual directors may, in considering the
12 best long term and short term interests of the bank,
13 consider the effects of any action (including, without
14 limitation, action that may involve or relate to a merger
15 or potential merger or to a change or potential change in
16 control of the bank) upon employees, depositors,
17 suppliers, and customers of the corporation or its
18 subsidiaries, communities in which the main banking
19 premises, branches, offices, or other establishments of
20 the bank or its subsidiaries are located, and all
21 pertinent factors.
22 (b) In discharging the duties of their respective
23 positions, the board of directors, committees of the
24 board, and individual directors shall be entitled to rely
25 on advice, information, opinions, reports or statements,
26 including financial statements and financial data,
27 prepared or presented by: (i) one or more officers or
28 employees of the bank whom the director believes to be
29 reliable and competent in the matter presented; (ii) one
30 or more counsels, accountants, or other consultants as to
31 matters that the director believes to be within that
32 person's professional or expert competence; or (iii) a
33 committee of the board upon which the director does not
34 serve, as to matters within that committee's designated
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1 authority.
2 (Source: P.A. 90-301, eff. 8-1-97; 91-452, eff. 1-1-00.)
3 (205 ILCS 5/32) (from Ch. 17, par. 339)
4 Sec. 32. Basic loaning limits. The liabilities
5 outstanding at one time to a state bank of a person for money
6 borrowed, including the liabilities of a partnership or joint
7 venture in the liabilities of the several members thereof,
8 shall not exceed 25% 20% of the amount of the unimpaired
9 capital and unimpaired surplus of the bank.
10 The liabilities to any state bank of a person may exceed
11 25% 20% of the unimpaired capital and unimpaired surplus of
12 the bank, provided that (i) the excess amount from time to
13 time outstanding is fully secured by readily marketable
14 collateral having a market value, as determined by reliable
15 and continuously available quotations, at least equal to the
16 excess amount outstanding; and (ii) the total liabilities
17 shall not exceed 30% of the unimpaired capital and unimpaired
18 surplus of the bank.
19 The following shall not be considered as money borrowed
20 within the meaning of this Section:
21 (1) The purchase or of discount of bills of
22 exchange drawn in good faith against actually existing
23 values.
24 (2) The purchase or discount of commercial or
25 business paper actually owned by the person negotiating
26 the same.
27 (3) The purchase of or loaning money in exchange
28 for evidences of indebtedness which shall be secured by
29 mortgage or trust deed upon productive real estate the
30 value of which, as ascertained by the oath of 2 qualified
31 appraisers, neither of whom shall be an officer,
32 director, or employee of the bank or of any subsidiary or
33 affiliate of the bank, is double the amount of the
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1 principal debt secured at the time of the original
2 purchase of evidence of indebtedness or loan of money and
3 which is still double the amount of the principal debt
4 secured at the time of any renewal of the indebtedness or
5 loan, and which mortgage or trust deed is shown, either
6 by a guaranty policy of a title guaranty company approved
7 by the Commissioner or by a registrar's certificate of
8 title in any county having adopted the provisions of the
9 Registered Titles (Torrens) Act, or by the opinion of an
10 attorney-at-law, to be a first lien upon the real estate
11 therein described, and real estate shall not be deemed to
12 be encumbered within the meaning of this subsection (3)
13 by reason of the existence of instruments reserving
14 rights-of-way, sewer rights and rights in wells, building
15 restrictions or other restrictive covenants, nor by
16 reason of the fact it is subject to lease under which
17 rents or profits are reserved by the owners.
18 (4) The purchase of marketable investment
19 securities.
20 (5) The liability to a state bank of a person who
21 is an accommodation party to, or guarantor of payment
22 for, any evidence of indebtedness of another person who
23 obtains a loan from or discounts paper with or sells
24 paper to the state bank; but the total liability to a
25 state bank of a person as an accommodation party or
26 guarantor of payment in respect of such evidences of
27 indebtedness shall not exceed 20% of the amount of the
28 unimpaired capital and unimpaired surplus of the bank;
29 provided however that the liability of an accommodation
30 party to paper excepted under subsection 2 of this
31 Section shall not be included in the computation of this
32 limitation.
33 (6) The liability to a state bank of a person, who
34 as a guarantor, guarantees collection of the obligation
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1 or indebtedness of another person.
2 The total liabilities of any one person, for money
3 borrowed, or otherwise, shall not exceed 25% of the deposits
4 of the bank, and those total liabilities shall at no time
5 exceed 50% of the amount of the unimpaired capital and
6 unimpaired surplus of the bank. Absent an actual unremedied
7 breach, the obligation or responsibility for breach of
8 warranties or representations, express or implied, of a
9 person transferring negotiable or non-negotiable paper to a
10 bank without recourse and without guaranty of payment, shall
11 not be included in determining the amount of liabilities of
12 the person to the bank for borrowed money or otherwise; and
13 in the event of and to the extent of an unremedied breach,
14 the amount remaining unpaid for principal and interest on the
15 paper in respect of which the unremedied breach exists shall
16 thereafter for the purpose of determining whether subsequent
17 transactions giving rise to additional liability of the
18 person to the state bank for borrowed money or otherwise are
19 within the limitations of Sections 32 through 34 of this Act,
20 be included in computing the amount of liabilities of the
21 person for borrowed money or otherwise.
22 The liability of a person to a state bank on account of
23 acceptances made or issued by the state bank on behalf of the
24 person shall be included in the computation of the total
25 liabilities of the person for money borrowed except to the
26 extent the acceptances grow out of transactions of the
27 character described in subsection (6) of Section 34 of this
28 Act and are otherwise within the limitations of that
29 subsection; provided nevertheless that any such excepted
30 acceptances acquired by the state bank which accepted the
31 same shall be included in the computation of the liabilities
32 of the person to the state bank for money borrowed.
33 (Source: P.A. 89-364, eff. 8-18-95; 90-301, eff. 8-1-97.)
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1 (205 ILCS 5/46) (from Ch. 17, par. 357)
2 Sec. 46. Misleading practices and names prohibited;
3 penalty.
4 (a) No person, firm, partnership, or corporation that is
5 not a bank shall transact business in this State in a manner
6 which has a substantial likelihood of misleading the public
7 by implying that the business is a bank, or shall use the
8 word "bank", "banker", or "banking" in connection with the
9 business. Any person, firm, partnership or corporation
10 violating this Section shall be deemed guilty of a Class A
11 misdemeanor, and the Attorney General or State's Attorney of
12 the county in which any such violation occurs may restrain
13 such violation by a complaint for injunctive relief.
14 (b) If the Commissioner is of the opinion and finds that
15 a person, firm, partnership, or corporation that is not a
16 bank has transacted or intends to transact business in this
17 State in a manner which has a substantial likelihood of
18 misleading the public by implying that the business is a
19 bank, or has used or intends to use the word "bank",
20 "banker", or "banking" in connection with the business, then
21 the Commissioner may direct that person, firm, partnership,
22 or corporation to cease and desist from transacting the
23 business or using the word "bank", "banker", or "banking".
24 If that person, firm, partnership, or corporation persists in
25 transacting the business or using the word "bank", "banker",
26 or "banking", then the Commissioner may impose a civil
27 penalty of up to $10,000 for each violation. Each day that
28 the person, firm, partnership, or corporation continues
29 transacting the business or using the word "bank", "banker",
30 or "banking" in connection with the business shall constitute
31 a separate violation of these provisions.
32 (c) A person, firm, partnership, or corporation that is
33 not a bank, and is not transacting or intending to transact
34 business in this State in a manner that has a substantial
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1 likelihood of misleading the public by implying that such
2 business is a bank, may apply to the Commissioner for
3 permission to use the word "bank", "banker", or "banking" in
4 connection with the business. If the Commissioner determines
5 that there is no substantial likelihood of misleading the
6 public, and upon such conditions as the Commissioner may
7 impose to prevent the person, firm, partnership, or
8 corporation from holding itself out in a misleading manner,
9 then such person, firm, partnership, or corporation may use
10 the word "bank", "banker", or "banking".
11 (d) (1) No person, firm, partnership, or
12 corporation may use the name of an existing bank, or a
13 name deceptively similar to that of an existing bank,
14 when sending, transmitting, or otherwise delivering
15 marketing material or solicitations to customers or
16 prospective customers if the reference to the existing
17 bank is made (i) without the consent of the existing bank
18 and (ii) in a manner that could cause a reasonable person
19 to believe that the marketing material or solicitation
20 originated from or is endorsed by the existing bank or
21 that the existing bank is in any other way responsible
22 for the marketing material or solicitation.
23 (2) An existing bank may, in addition to any other
24 remedies available under the law, report an alleged
25 violation of this subsection (d) to the Commissioner. If
26 the Commissioner finds the marketing material or
27 solicitation in question to be in violation of this
28 subsection, the Commissioner may direct the person, firm,
29 partnership, or corporation to cease and desist from
30 using that marketing material or solicitation in
31 Illinois. If that person, firm, partnership, or
32 corporation persists in the use of the marketing material
33 or solicitation, then the Commissioner may impose a civil
34 penalty of up to $10,000 for each violation. Each
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1 instance in which the marketing material or solicitation
2 is sent to a customer or prospective customer shall
3 constitute a separate violation of these provisions.
4 (3) Nothing in this subsection (d) prohibits the
5 use of or reference to the name of an existing bank in
6 marketing materials or solicitations, provided that the
7 use or reference would not deceive or confuse a
8 reasonable person regarding whether the marketing
9 material or solicitation originated from or was endorsed
10 by the existing bank or whether the existing bank was in
11 any other way responsible for the marketing material or
12 solicitation. The Commissioner is authorized to
13 promulgate rules to administer these provisions.
14 (Source: P.A. 89-567, eff. 7-26-96.)
15 (205 ILCS 5/48) (from Ch. 17, par. 359)
16 Sec. 48. Commissioner's powers; duties. The Commissioner
17 shall have the powers and authority, and is charged with the
18 duties and responsibilities designated in this Act, and a
19 State bank shall not be subject to any other visitorial power
20 other than as authorized by this Act, except those vested in
21 the courts, or upon prior consultation with the Commissioner,
22 a foreign bank regulator with an appropriate supervisory
23 interest in the parent or affiliate of a state bank. In the
24 performance of the Commissioner's duties:
25 (1) The Commissioner shall call for statements from all
26 State banks as provided in Section 47 at least one time
27 during each calendar quarter.
28 (2) (a) The Commissioner, as often as the Commissioner
29 shall deem necessary or proper, and no less frequently than
30 18 months following the preceding examination, shall appoint
31 a suitable person or persons to make an examination of the
32 affairs of every State bank, except that for every eligible
33 State bank, as defined by regulation, the Commissioner in
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1 lieu of the examination may accept on an alternating basis
2 the examination made by the eligible State bank's appropriate
3 federal banking agency pursuant to Section 111 of the Federal
4 Deposit Insurance Corporation Improvement Act of 1991,
5 provided the appropriate federal banking agency has made such
6 an examination. A person so appointed shall not be a
7 stockholder or officer or employee of any bank which that
8 person may be directed to examine, and shall have powers to
9 make a thorough examination into all the affairs of the bank
10 and in so doing to examine any of the officers or agents or
11 employees thereof on oath and shall make a full and detailed
12 report of the condition of the bank to the Commissioner. In
13 making the examination the examiners shall include an
14 examination of the affairs of all the affiliates of the bank,
15 as defined in subsection (b) of Section 35.2 of this Act, as
16 shall be necessary to disclose fully the conditions of the
17 affiliates, the relations between the bank and the affiliates
18 and the effect of those relations upon the affairs of the
19 bank, and in connection therewith shall have power to examine
20 any of the officers, directors, agents, or employees of the
21 affiliates on oath. After May 31, 1997, the Commissioner may
22 enter into cooperative agreements with state regulatory
23 authorities of other states to provide for examination of
24 State bank branches in those states, and the Commissioner may
25 accept reports of examinations of State bank branches from
26 those state regulatory authorities. These cooperative
27 agreements may set forth the manner in which the other state
28 regulatory authorities may be compensated for examinations
29 prepared for and submitted to the Commissioner.
30 (b) After May 31, 1997, the Commissioner is authorized
31 to examine, as often as the Commissioner shall deem necessary
32 or proper, branches of out-of-state banks. The Commissioner
33 may establish and may assess fees to be paid to the
34 Commissioner for examinations under this subsection (b). The
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1 fees shall be borne by the out-of-state bank, unless the fees
2 are borne by the state regulatory authority that chartered
3 the out-of-state bank, as determined by a cooperative
4 agreement between the Commissioner and the state regulatory
5 authority that chartered the out-of-state bank.
6 (2.5) Whenever any State bank, any subsidiary or
7 affiliate of a State bank, or after May 31, 1997, any branch
8 of an out-of-state bank causes to be performed, by contract
9 or otherwise, any bank services for itself, whether on or off
10 its premises:
11 (a) that performance shall be subject to
12 examination by the Commissioner to the same extent as if
13 services were being performed by the bank or, after May
14 31, 1997, branch of the out-of-state bank itself on its
15 own premises; and
16 (b) the bank or, after May 31, 1997, branch of the
17 out-of-state bank shall notify the Commissioner of the
18 existence of a service relationship. The notification
19 shall be submitted with the first statement of condition
20 (as required by Section 47 of this Act) due after the
21 making of the service contract or the performance of the
22 service, whichever occurs first. The Commissioner shall
23 be notified of each subsequent contract in the same
24 manner.
25 For purposes of this subsection (2.5), the term "bank
26 services" means services such as sorting and posting of
27 checks and deposits, computation and posting of interest and
28 other credits and charges, preparation and mailing of checks,
29 statements, notices, and similar items, or any other
30 clerical, bookkeeping, accounting, statistical, or similar
31 functions performed for a State bank, including but not
32 limited to electronic data processing related to those bank
33 services.
34 (3) The expense of administering this Act, including the
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1 expense of the examinations of State banks as provided in
2 this Act, shall to the extent of the amounts resulting from
3 the fees provided for in paragraphs (a), (a-2), and (b) of
4 this subsection (3) be assessed against and borne by the
5 State banks:
6 (a) Each bank shall pay to the Commissioner a Call
7 Report Fee which shall be paid in quarterly installments
8 equal to one-fourth of the sum of the annual fixed fee of
9 $800, plus a variable fee based on the assets shown on
10 the quarterly statement of condition delivered to the
11 Commissioner in accordance with Section 47 for the
12 preceding quarter according to the following schedule:
13 16¢ per $1,000 of the first $5,000,000 of total assets,
14 15¢ per $1,000 of the next $20,000,000 of total assets,
15 13¢ per $1,000 of the next $75,000,000 of total assets,
16 9¢ per $1,000 of the next $400,000,000 of total assets,
17 7¢ per $1,000 of the next $500,000,000 of total assets,
18 and 5¢ per $1,000 of all assets in excess of
19 $1,000,000,000, of the State bank. The Call Report Fee
20 shall be calculated by the Commissioner and billed to the
21 banks for remittance at the time of the quarterly
22 statements of condition provided for in Section 47. The
23 Commissioner may require payment of the fees provided in
24 this Section by an electronic transfer of funds or an
25 automatic debit of an account of each of the State banks.
26 In case more than one examination of any bank is deemed
27 by the Commissioner to be necessary in any examination
28 frequency cycle specified in subsection 2(a) of this
29 Section, and is performed at his direction, the
30 Commissioner may assess a reasonable additional fee to
31 recover the cost of the additional examination; provided,
32 however, that an examination conducted at the request of
33 the State Treasurer pursuant to the Uniform Disposition
34 of Unclaimed Property Act shall not be deemed to be an
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1 additional examination under this Section. In lieu of the
2 method and amounts set forth in this paragraph (a) for
3 the calculation of the Call Report Fee, the Commissioner
4 may specify by rule that the Call Report Fees provided by
5 this Section may be assessed semiannually or some other
6 period and may provide in the rule the formula to be used
7 for calculating and assessing the periodic Call Report
8 Fees to be paid by State banks.
9 (a-1) If in the opinion of the Commissioner an
10 emergency exists or appears likely, the Commissioner may
11 assign an examiner or examiners to monitor the affairs of
12 a State bank with whatever frequency he deems
13 appropriate, including but not limited to a daily basis.
14 The reasonable and necessary expenses of the Commissioner
15 during the period of the monitoring shall be borne by the
16 subject bank. The Commissioner shall furnish the State
17 bank a statement of time and expenses if requested to do
18 so within 30 days of the conclusion of the monitoring
19 period.
20 (a-2) On and after January 1, 1990, the reasonable
21 and necessary expenses of the Commissioner during
22 examination of the performance of electronic data
23 processing services under subsection (2.5) shall be borne
24 by the banks for which the services are provided. An
25 amount, based upon a fee structure prescribed by the
26 Commissioner, shall be paid by the banks or, after May
27 31, 1997, branches of out-of-state banks receiving the
28 electronic data processing services along with the Call
29 Report Fee assessed under paragraph (a) of this
30 subsection (3).
31 (a-3) After May 31, 1997, the reasonable and
32 necessary expenses of the Commissioner during examination
33 of the performance of electronic data processing services
34 under subsection (2.5) at or on behalf of branches of
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1 out-of-state banks shall be borne by the out-of-state
2 banks, unless those expenses are borne by the state
3 regulatory authorities that chartered the out-of-state
4 banks, as determined by cooperative agreements between
5 the Commissioner and the state regulatory authorities
6 that chartered the out-of-state banks.
7 (b) "Fiscal year" for purposes of this Section 48
8 is defined as a period beginning July 1 of any year and
9 ending June 30 of the next year. The Commissioner shall
10 receive for each fiscal year, commencing with the fiscal
11 year ending June 30, 1987, a contingent fee equal to the
12 lesser of the aggregate of the fees paid by all State
13 banks under paragraph (a) of subsection (3) for that
14 year, or the amount, if any, whereby the aggregate of the
15 administration expenses, as defined in paragraph (c), for
16 that fiscal year exceeds the sum of the aggregate of the
17 fees payable by all State banks for that year under
18 paragraph (a) of subsection (3), plus any amounts
19 transferred into the Bank and Trust Company Fund from the
20 State Pensions Fund for that year, plus all other amounts
21 collected by the Commissioner for that year under any
22 other provision of this Act, plus the aggregate of all
23 fees collected for that year by the Commissioner under
24 the Corporate Fiduciary Act, excluding the receivership
25 fees provided for in Section 5-10 of the Corporate
26 Fiduciary Act, and the Foreign Banking Office Act. The
27 aggregate amount of the contingent fee thus arrived at
28 for any fiscal year shall be apportioned amongst,
29 assessed upon, and paid by the State banks and foreign
30 banking corporations, respectively, in the same
31 proportion that the fee of each under paragraph (a) of
32 subsection (3), respectively, for that year bears to the
33 aggregate for that year of the fees collected under
34 paragraph (a) of subsection (3). The aggregate amount of
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1 the contingent fee, and the portion thereof to be
2 assessed upon each State bank and foreign banking
3 corporation, respectively, shall be determined by the
4 Commissioner and shall be paid by each, respectively,
5 within 120 days of the close of the period for which the
6 contingent fee is computed and is payable, and the
7 Commissioner shall give 20 days advance notice of the
8 amount of the contingent fee payable by the State bank
9 and of the date fixed by the Commissioner for payment of
10 the fee.
11 (c) The "administration expenses" for any fiscal
12 year shall mean the ordinary and contingent expenses for
13 that year incident to making the examinations provided
14 for by, and for otherwise administering, this Act, the
15 Corporate Fiduciary Act, excluding the expenses paid from
16 the Corporate Fiduciary Receivership account in the Bank
17 and Trust Company Fund, the Foreign Banking Office Act,
18 the Electronic Fund Transfer Act, and the Illinois Bank
19 Examiners' Education Foundation Act, including all
20 salaries and other compensation paid for personal
21 services rendered for the State by officers or employees
22 of the State, including the Commissioner and the Deputy
23 Commissioners, all expenditures for telephone and
24 telegraph charges, postage and postal charges, office
25 stationery, supplies and services, and office furniture
26 and equipment, including typewriters and copying and
27 duplicating machines and filing equipment, surety bond
28 premiums, and travel expenses of those officers and
29 employees, employees, expenditures or charges for the
30 acquisition, enlargement or improvement of, or for the
31 use of, any office space, building, or structure, or
32 expenditures for the maintenance thereof or for
33 furnishing heat, light, or power with respect thereto,
34 all to the extent that those expenditures are directly
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1 incidental to such examinations or administration. The
2 Commissioner shall not be required by paragraphs (c) or
3 (d-1) of this subsection (3) to maintain in any fiscal
4 year's budget appropriated reserves for accrued vacation
5 and accrued sick leave that is required to be paid to
6 employees of the Commissioner upon termination of their
7 service with the Commissioner in an amount that is more
8 than is reasonably anticipated to be necessary for any
9 anticipated turnover in employees, whether due to normal
10 attrition or due to layoffs, terminations, or
11 resignations.
12 (d) The aggregate of all fees collected by the
13 Commissioner under this Act, the Corporate Fiduciary Act,
14 or the Foreign Banking Office Act on and after July 1,
15 1979, shall be paid promptly after receipt of the same,
16 accompanied by a detailed statement thereof, into the
17 State treasury and shall be set apart in a special fund
18 to be known as the "Bank and Trust Company Fund", except
19 as provided in paragraph (c) of subsection (11) of this
20 Section. All earnings received from investments of funds
21 in the Bank and Trust Company Fund shall be deposited
22 into the Bank and Trust Company Fund and may be used for
23 the same purposes as fees deposited into that Fund. The
24 amount from time to time deposited into the Bank and
25 Trust Company Fund shall be used to offset the ordinary
26 administrative expenses of the Commissioner of Banks and
27 Real Estate as defined in this Section. Nothing in this
28 amendatory Act of 1979 shall prevent continuing the
29 practice of paying expenses involving salaries,
30 retirement, social security, and State-paid insurance
31 premiums of State officers by appropriations from the
32 General Revenue Fund. However, the General Revenue Fund
33 shall be reimbursed for those payments made on and after
34 July 1, 1979, by an annual transfer of funds from the
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1 Bank and Trust Company Fund.
2 (d-1) Adequate funds shall be available in the Bank
3 and Trust Company Fund to permit the timely payment of
4 administration expenses. In each fiscal year the total
5 administration expenses shall be deducted from the total
6 fees collected by the Commissioner and the remainder
7 transferred into the Cash Flow Reserve Account, unless
8 the balance of the Cash Flow Reserve Account prior to the
9 transfer equals or exceeds one-fourth of the total
10 initial appropriations from the Bank and Trust Company
11 Fund for the subsequent year, in which case the remainder
12 shall be credited to State banks and foreign banking
13 corporations and applied against their fees for the
14 subsequent year. The amount credited to each State bank
15 and foreign banking corporation shall be in the same
16 proportion as the Call Report Fees paid by each for the
17 year bear to the total Call Report Fees collected for the
18 year. If, after a transfer to the Cash Flow Reserve
19 Account is made or if no remainder is available for
20 transfer, the balance of the Cash Flow Reserve Account is
21 less than one-fourth of the total initial appropriations
22 for the subsequent year and the amount transferred is
23 less than 5% of the total Call Report Fees for the year,
24 additional amounts needed to make the transfer equal to
25 5% of the total Call Report Fees for the year shall be
26 apportioned amongst, assessed upon, and paid by the State
27 banks and foreign banking corporations in the same
28 proportion that the Call Report Fees of each,
29 respectively, for the year bear to the total Call Report
30 Fees collected for the year. The additional amounts
31 assessed shall be transferred into the Cash Flow Reserve
32 Account. For purposes of this paragraph (d-1), the
33 calculation of the fees collected by the Commissioner
34 shall exclude the receivership fees provided for in
-19- LRB9204827JSpcam01
1 Section 5-10 of the Corporate Fiduciary Act.
2 (e) The Commissioner may upon request certify to
3 any public record in his keeping and shall have authority
4 to levy a reasonable charge for issuing certifications of
5 any public record in his keeping.
6 (f) In addition to fees authorized elsewhere in
7 this Act, the Commissioner may, in connection with a
8 review, approval, or provision of a service, levy a
9 reasonable charge to recover the cost of the review,
10 approval, or service.
11 (4) Nothing contained in this Act shall be construed to
12 limit the obligation relative to examinations and reports of
13 any State bank, deposits in which are to any extent insured
14 by the United States or any agency thereof, nor to limit in
15 any way the powers of the Commissioner with reference to
16 examinations and reports of that bank.
17 (5) The nature and condition of the assets in or
18 investment of any bonus, pension, or profit sharing plan for
19 officers or employees of every State bank or, after May 31,
20 1997, branch of an out-of-state bank shall be deemed to be
21 included in the affairs of that State bank or branch of an
22 out-of-state bank subject to examination by the Commissioner
23 under the provisions of subsection (2) of this Section, and
24 if the Commissioner shall find from an examination that the
25 condition of or operation of the investments or assets of the
26 plan is unlawful, fraudulent, or unsafe, or that any trustee
27 has abused his trust, the Commissioner shall, if the
28 situation so found by the Commissioner shall not be corrected
29 to his satisfaction within 60 days after the Commissioner has
30 given notice to the board of directors of the State bank or
31 out-of-state bank of his findings, report the facts to the
32 Attorney General who shall thereupon institute proceedings
33 against the State bank or out-of-state bank, the board of
34 directors thereof, or the trustees under such plan as the
-20- LRB9204827JSpcam01
1 nature of the case may require.
2 (6) The Commissioner shall have the power:
3 (a) To promulgate reasonable rules for the purpose
4 of administering the provisions of this Act.
5 (b) To issue orders for the purpose of
6 administering the provisions of this Act and any rule
7 promulgated in accordance with this Act.
8 (c) To appoint hearing officers to execute any of
9 the powers granted to the Commissioner under this Section
10 for the purpose of administering this Act and any rule
11 promulgated in accordance with this Act.
12 (d) To subpoena witnesses, to compel their
13 attendance, to administer an oath, to examine any person
14 under oath, and to require the production of any relevant
15 books, papers, accounts, and documents in the course of
16 and pursuant to any investigation being conducted, or any
17 action being taken, by the Commissioner in respect of any
18 matter relating to the duties imposed upon, or the powers
19 vested in, the Commissioner under the provisions of this
20 Act or any rule promulgated in accordance with this Act.
21 (e) To conduct hearings.
22 (7) Whenever, in the opinion of the Commissioner, any
23 director, officer, employee, or agent of a State bank or,
24 after May 31, 1997, of any branch of an out-of-state bank
25 shall have violated any law, rule, or order relating to that
26 bank or shall have engaged in an unsafe or unsound practice
27 in conducting the business of that bank or shall have
28 violated any law or engaged or participated in any unsafe or
29 unsound practice in connection with any financial institution
30 or other business entity such that the character and fitness
31 of the director, officer, employee, or agent does not assure
32 reasonable promise of safe and sound operation of the State
33 bank, the Commissioner may issue an order of removal. If, in
34 the opinion of the Commissioner, any former director,
-21- LRB9204827JSpcam01
1 officer, employee, or agent of a State bank, prior to the
2 termination of his or her service with that bank, violated
3 any law, rule, or order relating to that State bank or
4 engaged in an unsafe or unsound practice in conducting the
5 business of that bank or violated any law or engaged or
6 participated in any unsafe or unsound practice in connection
7 with any financial institution or other business entity such
8 that the character and fitness of the director, officer,
9 employee, or agent would not have assured reasonable promise
10 of safe and sound operation of the State bank, the
11 Commissioner may issue an order prohibiting that person from
12 further service with a bank as a director, officer, employee,
13 or agent. An order issued pursuant to this subsection shall
14 be served upon the director, officer, employee, or agent. A
15 copy of the order shall be sent to each director of the bank
16 affected by registered mail. The person affected by the
17 action may request a hearing before the State Banking Board
18 within 10 days after receipt of the order of removal. The
19 hearing shall be held by the Board within 30 days after the
20 request has been received by the Board. The Board shall make
21 a determination approving, modifying, or disapproving the
22 order of the Commissioner as its final administrative
23 decision. If a hearing is held by the Board, the Board shall
24 make its determination within 60 days from the conclusion of
25 the hearing. Any person affected by a decision of the Board
26 under this subsection (7) of Section 48 of this Act may have
27 the decision reviewed only under and in accordance with the
28 Administrative Review Law and the rules adopted pursuant
29 thereto. A copy of the order shall also be served upon the
30 bank of which he is a director, officer, employee, or agent,
31 whereupon he shall cease to be a director, officer, employee,
32 or agent of that bank. The Commissioner may institute a
33 civil action against the director, officer, or agent of the
34 State bank or, after May 31, 1997, of the branch of the
-22- LRB9204827JSpcam01
1 out-of-state bank against whom any order provided for by this
2 subsection (7) of this Section 48 has been issued, and
3 against the State bank or, after May 31, 1997, out-of-state
4 bank, to enforce compliance with or to enjoin any violation
5 of the terms of the order. Any person who has been the
6 subject of an order of removal or an order of prohibition
7 issued by the Commissioner under this subsection or Section
8 5-6 of the Corporate Fiduciary Act may not thereafter serve
9 as director, officer, employee, or agent of any State bank or
10 of any branch of any out-of-state bank, or of any corporate
11 fiduciary, as defined in Section 1-5.05 of the Corporate
12 Fiduciary Act, or of any other entity that is subject to
13 licensure or regulation by the Commissioner or the Office of
14 Banks and Real Estate unless the Commissioner has granted
15 prior approval in writing.
16 (8) The Commissioner may impose civil penalties of up to
17 $10,000 against any person for each violation of any
18 provision of this Act, any rule promulgated in accordance
19 with this Act, any order of the Commissioner, or any other
20 action which in the Commissioner's discretion is an unsafe or
21 unsound banking practice.
22 (9) The Commissioner may impose civil penalties of up to
23 $100 against any person for the first failure to comply with
24 reporting requirements set forth in the report of examination
25 of the bank and up to $200 for the second and subsequent
26 failures to comply with those reporting requirements.
27 (10) All final administrative decisions of the
28 Commissioner hereunder shall be subject to judicial review
29 pursuant to the provisions of the Administrative Review Law.
30 For matters involving administrative review, venue shall be
31 in either Sangamon County or Cook County.
32 (11) The endowment fund for the Illinois Bank Examiners'
33 Education Foundation shall be administered as follows:
34 (a) (Blank).
-23- LRB9204827JSpcam01
1 (b) The Foundation is empowered to receive
2 voluntary contributions, gifts, grants, bequests, and
3 donations on behalf of the Illinois Bank Examiners'
4 Education Foundation from national banks and other
5 persons for the purpose of funding the endowment of the
6 Illinois Bank Examiners' Education Foundation.
7 (c) The aggregate of all special educational fees
8 collected by the Commissioner and property received by
9 the Commissioner on behalf of the Illinois Bank
10 Examiners' Education Foundation under this subsection
11 (11) on or after June 30, 1986, shall be either (i)
12 promptly paid after receipt of the same, accompanied by a
13 detailed statement thereof, into the State Treasury and
14 shall be set apart in a special fund to be known as "The
15 Illinois Bank Examiners' Education Fund" to be invested
16 by either the Treasurer of the State of Illinois in the
17 Public Treasurers' Investment Pool or in any other
18 investment he is authorized to make or by the Illinois
19 State Board of Investment as the board of trustees of the
20 Illinois Bank Examiners' Education Foundation may direct
21 or (ii) deposited into an account maintained in a
22 commercial bank or corporate fiduciary in the name of the
23 Illinois Bank Examiners' Education Foundation pursuant to
24 the order and direction of the Board of Trustees of the
25 Illinois Bank Examiners' Education Foundation.
26 (12) (Blank).
27 (Source: P.A. 90-14, eff. 7-1-97; 90-301, eff. 8-1-97;
28 90-665, eff. 7-30-98; 91-16, eff. 7-1-99.)
29 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
30 Sec. 48.1. Customer financial records; confidentiality.
31 (a) For the purpose of this Section, the term "financial
32 records" means any original, any copy, or any summary of:
33 (1) a document granting signature authority over a
-24- LRB9204827JSpcam01
1 deposit or account;
2 (2) a statement, ledger card or other record on any
3 deposit or account, which shows each transaction in or
4 with respect to that account;
5 (3) a check, draft or money order drawn on a bank
6 or issued and payable by a bank; or
7 (4) any other item containing information
8 pertaining to any relationship established in the
9 ordinary course of a bank's business between a bank and
10 its customer, including financial statements or other
11 financial information provided by the customer.
12 (b) This Section does not prohibit:
13 (1) The preparation, examination, handling or
14 maintenance of any financial records by any officer,
15 employee or agent of a bank having custody of the
16 records, or the examination of the records by a certified
17 public accountant engaged by the bank to perform an
18 independent audit.
19 (2) The examination of any financial records by, or
20 the furnishing of financial records by a bank to, any
21 officer, employee or agent of (i) the Commissioner of
22 Banks and Real Estate, (ii) after May 31, 1997, a state
23 regulatory authority authorized to examine a branch of a
24 State bank located in another state, (iii) the
25 Comptroller of the Currency, (iv) the Federal Reserve
26 Board, or (v) the Federal Deposit Insurance Corporation
27 for use solely in the exercise of his duties as an
28 officer, employee, or agent.
29 (3) The publication of data furnished from
30 financial records relating to customers where the data
31 cannot be identified to any particular customer or
32 account.
33 (4) The making of reports or returns required under
34 Chapter 61 of the Internal Revenue Code of 1986.
-25- LRB9204827JSpcam01
1 (5) Furnishing information concerning the dishonor
2 of any negotiable instrument permitted to be disclosed
3 under the Uniform Commercial Code.
4 (6) The exchange in the regular course of business
5 of (i) credit information between a bank and other banks
6 or financial institutions or commercial enterprises,
7 directly or through a consumer reporting agency or (ii)
8 financial records or information derived from financial
9 records between a bank and other banks or financial
10 institutions or commercial enterprises for the purpose of
11 conducting due diligence pursuant to a purchase or sale
12 involving the bank or assets or liabilities of the bank.
13 (7) The furnishing of information to the
14 appropriate law enforcement authorities where the bank
15 reasonably believes it has been the victim of a crime.
16 (8) The furnishing of information under the Uniform
17 Disposition of Unclaimed Property Act.
18 (9) The furnishing of information under the
19 Illinois Income Tax Act and the Illinois Estate and
20 Generation-Skipping Transfer Tax Act.
21 (10) The furnishing of information under the
22 federal Currency and Foreign Transactions Reporting Act
23 Title 31, United States Code, Section 1051 et seq.
24 (11) The furnishing of information under any other
25 statute that by its terms or by regulations promulgated
26 thereunder requires the disclosure of financial records
27 other than by subpoena, summons, warrant, or court order.
28 (12) The furnishing of information about the
29 existence of an account of a person to a judgment
30 creditor of that person who has made a written request
31 for that information.
32 (13) The exchange in the regular course of business
33 of information between commonly owned banks in connection
34 with a transaction authorized under paragraph (23) of
-26- LRB9204827JSpcam01
1 Section 5 and conducted at an affiliate facility.
2 (14) The furnishing of information in accordance
3 with the federal Personal Responsibility and Work
4 Opportunity Reconciliation Act of 1996. Any bank governed
5 by this Act shall enter into an agreement for data
6 exchanges with a State agency provided the State agency
7 pays to the bank a reasonable fee not to exceed its
8 actual cost incurred. A bank providing information in
9 accordance with this item shall not be liable to any
10 account holder or other person for any disclosure of
11 information to a State agency, for encumbering or
12 surrendering any assets held by the bank in response to a
13 lien or order to withhold and deliver issued by a State
14 agency, or for any other action taken pursuant to this
15 item, including individual or mechanical errors, provided
16 the action does not constitute gross negligence or
17 willful misconduct. A bank shall have no obligation to
18 hold, encumber, or surrender assets until it has been
19 served with a subpoena, summons, warrant, court or
20 administrative order, lien, or levy.
21 (15) The exchange in the regular course of business
22 of information between a bank and any commonly owned
23 affiliate of the bank, subject to the provisions of the
24 Financial Institutions Insurance Sales Law.
25 (16) The furnishing of information to law
26 enforcement authorities, the Illinois Department on Aging
27 and its regional administrative and provider agencies,
28 the Department of Human Services Office of Inspector
29 General, or public guardians, if the bank suspects that a
30 customer who is an elderly or disabled person has been or
31 may become the victim of financial exploitation. For the
32 purposes of this item (16), the term: (i) "elderly
33 person" means a person who is 60 or more years of age,
34 (ii) "disabled person" means a person who has or
-27- LRB9204827JSpcam01
1 reasonably appears to the bank to have a physical or
2 mental disability that impairs his or her ability to seek
3 or obtain protection from or prevent financial
4 exploitation, and (iii) "financial exploitation" means
5 tortious or illegal use of the assets or resources of an
6 elderly or disabled person, and includes, without
7 limitation, misappropriation of the elderly or disabled
8 person's assets or resources by undue influence, breach
9 of fiduciary relationship, intimidation, fraud,
10 deception, extortion, or the use of assets or resources
11 in any manner contrary to law. A bank or person
12 furnishing information pursuant to this item (16) shall
13 be entitled to the same rights and protections as a
14 person furnishing information under the Elder Abuse and
15 Neglect Act and the Illinois Domestic Violence Act of
16 1986.
17 (17) The disclosure of financial records or
18 information as necessary to effect, administer, or
19 enforce a transaction requested or authorized by the
20 customer, or in connection with:
21 (A) servicing or processing a financial
22 product or service requested or authorized by the
23 customer;
24 (B) maintaining or servicing a customer's
25 account with the bank; or
26 (C) a proposed or actual securitization or
27 secondary market sale (including sales of servicing
28 rights) related to a transaction of a customer.
29 Nothing in this item (17), however, authorizes the
30 sale of the financial records or information of a
31 customer without the consent of the customer.
32 (c) Except as otherwise provided by this Act, a bank may
33 not disclose to any person, except to the customer or his
34 duly authorized agent, any financial records or financial
-28- LRB9204827JSpcam01
1 information obtained from financial records relating to that
2 customer of that bank unless:
3 (1) the customer has authorized disclosure to the
4 person;
5 (2) the financial records are disclosed in response
6 to a lawful subpoena, summons, warrant or court order
7 which meets the requirements of subsection (d) of this
8 Section; or
9 (3) the bank is attempting to collect an obligation
10 owed to the bank and the bank complies with the
11 provisions of Section 2I of the Consumer Fraud and
12 Deceptive Business Practices Act.
13 (d) A bank shall disclose financial records under
14 paragraph (2) of subsection (c) of this Section under a
15 lawful subpoena, summons, warrant, or court order only after
16 the bank mails a copy of the subpoena, summons, warrant, or
17 court order to the person establishing the relationship with
18 the bank, if living, and, otherwise his personal
19 representative, if known, at his last known address by first
20 class mail, postage prepaid, unless the bank is specifically
21 prohibited from notifying the person by order of court or by
22 applicable State or federal law. A bank shall not mail a
23 copy of a subpoena to any person pursuant to this subsection
24 if the subpoena was issued by a grand jury under the
25 Statewide Grand Jury Act.
26 (e) Any officer or employee of a bank who knowingly and
27 willfully furnishes financial records in violation of this
28 Section is guilty of a business offense and, upon conviction,
29 shall be fined not more than $1,000.
30 (f) Any person who knowingly and willfully induces or
31 attempts to induce any officer or employee of a bank to
32 disclose financial records in violation of this Section is
33 guilty of a business offense and, upon conviction, shall be
34 fined not more than $1,000.
-29- LRB9204827JSpcam01
1 (g) A bank shall be reimbursed for costs that are
2 reasonably necessary and that have been directly incurred in
3 searching for, reproducing, or transporting books, papers,
4 records, or other data of a customer required or requested to
5 be produced pursuant to a lawful subpoena, summons, warrant,
6 or court order. The Commissioner shall determine the rates
7 and conditions under which payment may be made.
8 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
9 91-330, eff. 7-29-99; 91-929, eff. 12-15-00.)
10 Section 10. The Illinois Savings and Loan Act of 1985 is
11 amended by changing Sections 3-8 and 7-19.1 as follows:
12 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
13 Sec. 3-8. Access to books and records; communication
14 with members.
15 (a) Every member or holder of capital shall have the
16 right to inspect the books and records of the association
17 that pertain to his account. Otherwise, the right of
18 inspection and examination of the books and records shall be
19 limited as provided in this Act, and no other person shall
20 have access to the books and records or shall be entitled to
21 a list of the members.
22 (b) For the purpose of this Section, the term "financial
23 records" means any original, any copy, or any summary of (i)
24 a document granting signature authority over a deposit or
25 account; (ii) a statement, ledger card, or other record on
26 any deposit or account that shows each transaction in or with
27 respect to that account; (iii) a check, draft, or money order
28 drawn on an association or issued and payable by an
29 association; or (iv) any other item containing information
30 pertaining to any relationship established in the ordinary
31 course of an association's business between an association
32 and its customer, including financial statements or other
-30- LRB9204827JSpcam01
1 financial information provided by the member or holder of
2 capital.
3 (c) 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 an association having custody of
7 those records or the examination of those records by a
8 certified public accountant engaged by the association to
9 perform an independent audit;
10 (2) The examination of any financial records by, or
11 the furnishing of financial records by an association to,
12 any officer, employee, or agent of the Commissioner of
13 Banks and Real Estate, Federal Savings and Loan Insurance
14 Corporation and its successors, Federal Deposit Insurance
15 Corporation, Resolution Trust Corporation and its
16 successors, Federal Home Loan Bank Board and its
17 successors, Office of Thrift Supervision, Federal Housing
18 Finance Board, Board of Governors of the Federal Reserve
19 System, any Federal Reserve Bank, or the Office of the
20 Comptroller of the Currency for use solely in the
21 exercise of his duties as an officer, employee, or agent;
22 (3) The publication of data furnished from
23 financial records relating to members or holders of
24 capital where the data cannot be identified to any
25 particular member, holder of capital, or account;
26 (4) The making of reports or returns required under
27 Chapter 61 of the Internal Revenue Code of 1986;
28 (5) Furnishing information concerning the dishonor
29 of any negotiable instrument permitted to be disclosed
30 under the Uniform Commercial Code;
31 (6) The exchange in the regular course of business
32 of (i) credit information between an association and
33 other associations or financial institutions or
34 commercial enterprises, directly or through a consumer
-31- LRB9204827JSpcam01
1 reporting agency or (ii) financial records or information
2 derived from financial records between an association and
3 other associations or financial institutions or
4 commercial enterprises for the purpose of conducting due
5 diligence pursuant to a purchase or sale involving the
6 association or assets or liabilities of the association;
7 (7) The furnishing of information to the
8 appropriate law enforcement authorities where the
9 association reasonably believes it has been the victim of
10 a crime;
11 (8) The furnishing of information pursuant to the
12 Uniform Disposition of Unclaimed Property Act;
13 (9) The furnishing of information pursuant to the
14 Illinois Income Tax Act and the Illinois Estate and
15 Generation-Skipping Transfer Tax Act;
16 (10) The furnishing of information pursuant to the
17 federal "Currency and Foreign Transactions Reporting
18 Act", (Title 31, United States Code, Section 1051 et
19 seq.);
20 (11) The furnishing of information pursuant to any
21 other statute that by its terms or by regulations
22 promulgated thereunder requires the disclosure of
23 financial records other than by subpoena, summons,
24 warrant, or court order;
25 (12) The exchange of information between an
26 association and an affiliate of the association; as used
27 in this item, "affiliate" includes any company,
28 partnership, or organization that controls, is controlled
29 by, or is under common control with an association.
30 (13) The furnishing of information in accordance
31 with the federal Personal Responsibility and Work
32 Opportunity Reconciliation Act of 1996. Any association
33 governed by this Act shall enter into an agreement for
34 data exchanges with a State agency provided the State
-32- LRB9204827JSpcam01
1 agency pays to the association a reasonable fee not to
2 exceed its actual cost incurred. An association
3 providing information in accordance with this item shall
4 not be liable to any account holder or other person for
5 any disclosure of information to a State agency, for
6 encumbering or surrendering any assets held by the
7 association in response to a lien or order to withhold
8 and deliver issued by a State agency, or for any other
9 action taken pursuant to this item, including individual
10 or mechanical errors, provided the action does not
11 constitute gross negligence or willful misconduct. An
12 association shall have no obligation to hold, encumber,
13 or surrender assets until it has been served with a
14 subpoena, summons, warrant, court or administrative
15 order, lien, or levy.
16 (14) 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 association suspects
21 that a customer who is an elderly or disabled person has
22 been or may become the victim of financial exploitation.
23 For the purposes of this item (14), the term: (i)
24 "elderly person" means a person who is 60 or more years
25 of age, (ii) "disabled person" means a person who has or
26 reasonably appears to the association to have a physical
27 or mental disability that impairs his or her ability to
28 seek 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,
-33- LRB9204827JSpcam01
1 deception, extortion, or the use of assets or resources
2 in any manner contrary to law. An association or person
3 furnishing information pursuant to this item (14) 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 (15) The disclosure of financial records or
9 information as necessary to effect, administer, or
10 enforce a transaction requested or authorized by the
11 member or holder of capital, or in connection with:
12 (A) servicing or processing a financial
13 product or service requested or authorized by the
14 member or holder of capital;
15 (B) maintaining or servicing an account of a
16 member or holder of capital with the association; 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 member or
20 holder of capital.
21 Nothing in this item (15), however, authorizes the
22 sale of the financial records or information of a member
23 or holder of capital without the consent of the member or
24 holder of capital.
25 (d) An association may not disclose to any person,
26 except to the member or holder of capital or his duly
27 authorized agent, any financial records relating to that
28 member or holder of capital of that association unless:
29 (1) The member or holder of capital has authorized
30 disclosure to the person; or
31 (2) The financial records are disclosed in response
32 to a lawful subpoena, summons, warrant, or court order
33 that meets the requirements of subsection (e) of this
34 Section.
-34- LRB9204827JSpcam01
1 (e) An association shall disclose financial records
2 under subsection (d) of this Section pursuant to a lawful
3 subpoena, summons, warrant, or court order only after the
4 association mails a copy of the subpoena, summons, warrant,
5 or court order to the person establishing the relationship
6 with the association, if living, and, otherwise, his personal
7 representative, if known, at his last known address by first
8 class mail, postage prepaid, unless the association is
9 specifically prohibited from notifying that person by order
10 of court.
11 (f) (1) Any officer or employee of an association who
12 knowingly and willfully furnishes financial records in
13 violation of this Section is guilty of a business offense
14 and, upon conviction, shall be fined not more than $1,000.
15 (2) Any person who knowingly and willfully induces or
16 attempts to induce any officer or employee of an association
17 to disclose financial records in violation of this Section is
18 guilty of a business offense and, upon conviction, shall be
19 fined not more than $1,000.
20 (g) However, if any member desires to communicate with
21 the other members of the association with reference to any
22 question pending or to be presented at a meeting of the
23 members, the association shall give him upon request a
24 statement of the approximate number of members entitled to
25 vote at the meeting and an estimate of the cost of preparing
26 and mailing the communication. The requesting member then
27 shall submit the communication to the Commissioner who, if he
28 finds it to be appropriate and truthful, shall direct that it
29 be prepared and mailed to the members upon the requesting
30 member's payment or adequate provision for payment of the
31 expenses of preparation and mailing.
32 (h) An association shall be reimbursed for costs that
33 are necessary and that have been directly incurred in
34 searching for, reproducing, or transporting books, papers,
-35- LRB9204827JSpcam01
1 records, or other data of a customer required to be
2 reproduced pursuant to a lawful subpoena, warrant, or court
3 order.
4 (Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.)
5 (205 ILCS 105/7-19.1) (from Ch. 17, par. 3307-19.1)
6 Sec. 7-19.1. Savings and Residential Finance Regulatory
7 Fund.
8 (a) The aggregate of all fees collected by the
9 Commissioner under this Act shall be paid promptly after
10 receipt of the same, accompanied by a detailed statement
11 thereof, into the State treasury and shall be set apart in
12 the Savings and Residential Finance Regulatory Fund, a
13 special fund hereby created in the State treasury. The
14 amounts deposited into the Fund shall be used for the
15 ordinary and contingent expenses of the Office of Banks and
16 Real Estate. Nothing in this Act shall prevent continuing
17 the practice of paying expenses involving salaries,
18 retirement, social security, and State-paid insurance of
19 State officers by appropriation from the General Revenue
20 Fund.
21 (b) Moneys in the Savings and Residential Finance
22 Regulatory Fund may not be appropriated, assigned, or
23 transferred to another State fund. The moneys in the Fund
24 shall be for the sole benefit of the institutions assessed.
25 (c) All earnings received from investments of funds in
26 the Savings and Residential Finance Regulatory Fund shall be
27 deposited into the Savings and Residential Finance Regulatory
28 Fund and may be used for the same purposes as fees deposited
29 into that Fund.
30 (Source: P.A. 88-579, eff. 8-12-94; 89-508, eff. 7-3-96.)
31 Section 15. The Savings Bank Act is amended by changing
32 Section 4013 as follows:
-36- LRB9204827JSpcam01
1 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
2 Sec. 4013. Access to books and records; communication
3 with members and shareholders.
4 (a) Every member or shareholder shall have the right to
5 inspect books and records of the savings bank that pertain to
6 his accounts. Otherwise, the right of inspection and
7 examination of the books and records shall be limited as
8 provided in this Act, and no other person shall have access
9 to the books and records nor shall be entitled to a list of
10 the members or shareholders.
11 (b) For the purpose of this Section, the term "financial
12 records" means any original, any copy, or any summary of (1)
13 a document granting signature authority over a deposit or
14 account; (2) a statement, ledger card, or other record on any
15 deposit or account that shows each transaction in or with
16 respect to that account; (3) a check, draft, or money order
17 drawn on a savings bank or issued and payable by a savings
18 bank; or (4) any other item containing information pertaining
19 to any relationship established in the ordinary course of a
20 savings bank's business between a savings bank and its
21 customer, including financial statements or other financial
22 information provided by the member or shareholder.
23 (c) This Section does not prohibit:
24 (1) The preparation examination, handling, or
25 maintenance of any financial records by any officer,
26 employee, or agent of a savings bank having custody of
27 records or examination of records by a certified public
28 accountant engaged by the savings bank to perform an
29 independent audit.
30 (2) The examination of any financial records by, or
31 the furnishing of financial records by a savings bank to,
32 any officer, employee, or agent of the Commissioner of
33 Banks and Real Estate or the Federal Deposit Insurance
34 Corporation for use solely in the exercise of his duties
-37- LRB9204827JSpcam01
1 as an officer, employee, or agent.
2 (3) The publication of data furnished from
3 financial records relating to members or holders of
4 capital where the data cannot be identified to any
5 particular member, shareholder, or account.
6 (4) The making of reports or returns required under
7 Chapter 61 of the Internal Revenue Code of 1986.
8 (5) Furnishing information concerning the dishonor
9 of any negotiable instrument permitted to be disclosed
10 under the Uniform Commercial Code.
11 (6) The exchange in the regular course of business
12 of (i) credit information between a savings bank and
13 other savings banks or financial institutions or
14 commercial enterprises, directly or through a consumer
15 reporting agency or (ii) financial records or information
16 derived from financial records between a savings bank and
17 other savings banks or financial institutions or
18 commercial enterprises for the purpose of conducting due
19 diligence pursuant to a purchase or sale involving the
20 savings bank or assets or liabilities of the savings
21 bank.
22 (7) The furnishing of information to the
23 appropriate law enforcement authorities where the savings
24 bank reasonably believes it has been the victim of a
25 crime.
26 (8) The furnishing of information pursuant to the
27 Uniform Disposition of Unclaimed Property Act.
28 (9) The furnishing of information pursuant to the
29 Illinois Income Tax Act and the Illinois Estate and
30 Generation-Skipping Transfer Tax Act.
31 (10) The furnishing of information pursuant to the
32 federal "Currency and Foreign Transactions Reporting
33 Act", (Title 31, United States Code, Section 1051 et
34 seq.).
-38- LRB9204827JSpcam01
1 (11) The furnishing of information pursuant to any
2 other statute which by its terms or by regulations
3 promulgated thereunder requires the disclosure of
4 financial records other than by subpoena, summons,
5 warrant, or court order.
6 (12) The furnishing of information in accordance
7 with the federal Personal Responsibility and Work
8 Opportunity Reconciliation Act of 1996. Any savings bank
9 governed by this Act shall enter into an agreement for
10 data exchanges with a State agency provided the State
11 agency pays to the savings bank a reasonable fee not to
12 exceed its actual cost incurred. A savings bank
13 providing information in accordance with this item shall
14 not be liable to any account holder or other person for
15 any disclosure of information to a State agency, for
16 encumbering or surrendering any assets held by the
17 savings bank in response to a lien or order to withhold
18 and deliver issued by a State agency, or for any other
19 action taken pursuant to this item, including individual
20 or mechanical errors, provided the action does not
21 constitute gross negligence or willful misconduct. A
22 savings bank shall have no obligation to hold, encumber,
23 or surrender assets until it has been served with a
24 subpoena, summons, warrant, court or administrative
25 order, lien, or levy.
26 (13) The furnishing of information to law
27 enforcement authorities, the Illinois Department on Aging
28 and its regional administrative and provider agencies,
29 the Department of Human Services Office of Inspector
30 General, or public guardians, if the savings bank
31 suspects that a customer who is an elderly or disabled
32 person has been or may become the victim of financial
33 exploitation. For the purposes of this item (13), the
34 term: (i) "elderly person" means a person who is 60 or
-39- LRB9204827JSpcam01
1 more years of age, (ii) "disabled person" means a person
2 who has or reasonably appears to the savings bank to have
3 a physical or mental disability that impairs his or her
4 ability to seek or obtain protection from or prevent
5 financial exploitation, and (iii) "financial
6 exploitation" means tortious or illegal use of the assets
7 or resources of an elderly or disabled person, and
8 includes, without limitation, misappropriation of the
9 elderly or disabled person's assets or resources by undue
10 influence, breach of fiduciary relationship,
11 intimidation, fraud, deception, extortion, or the use of
12 assets or resources in any manner contrary to law. A
13 savings bank or person furnishing information pursuant to
14 this item (13) shall be entitled to the same rights and
15 protections as a person furnishing information under the
16 Elder Abuse and Neglect Act and the Illinois Domestic
17 Violence Act of 1986.
18 (14) The disclosure of financial records or
19 information as necessary to effect, administer, or
20 enforce a transaction requested or authorized by the
21 member or holder of capital, or in connection with:
22 (A) servicing or processing a financial
23 product or service requested or authorized by the
24 member or holder of capital;
25 (B) maintaining or servicing an account of a
26 member or holder of capital with the savings bank;
27 or
28 (C) a proposed or actual securitization or
29 secondary market sale (including sales of servicing
30 rights) related to a transaction of a member or
31 holder of capital.
32 Nothing in this item (14), however, authorizes the
33 sale of the financial records or information of a member
34 or holder of capital without the consent of the member or
-40- LRB9204827JSpcam01
1 holder of capital.
2 (15) The exchange in the regular course of business
3 of information between a savings bank and any commonly
4 owned affiliate of the savings bank, subject to the
5 provisions of the Financial Institutions Insurance Sales
6 Law.
7 (d) A savings bank may not disclose to any person,
8 except to the member or holder of capital or his duly
9 authorized agent, any financial records relating to that
10 member or shareholder of the savings bank unless:
11 (1) the member or shareholder has authorized
12 disclosure to the person; or
13 (2) the financial records are disclosed in response
14 to a lawful subpoena, summons, warrant, or court order
15 that meets the requirements of subsection (e) of this
16 Section.
17 (e) A savings bank shall disclose financial records
18 under subsection (d) of this Section pursuant to a lawful
19 subpoena, summons, warrant, or court order only after the
20 savings bank mails a copy of the subpoena, summons, warrant,
21 or court order to the person establishing the relationship
22 with the savings bank, if living, and otherwise, his personal
23 representative, if known, at his last known address by first
24 class mail, postage prepaid, unless the savings bank is
25 specifically prohibited from notifying the person by order of
26 court.
27 (f) Any officer or employee of a savings bank who
28 knowingly and willfully furnishes financial records in
29 violation of this Section is guilty of a business offense
30 and, upon conviction, shall be fined not more than $1,000.
31 (g) Any person who knowingly and willfully induces or
32 attempts to induce any officer or employee of a savings bank
33 to disclose financial records in violation of this Section is
34 guilty of a business offense and, upon conviction, shall be
-41- LRB9204827JSpcam01
1 fined not more than $1,000.
2 (h) If any member or shareholder desires to communicate
3 with the other members or shareholders of the savings bank
4 with reference to any question pending or to be presented at
5 an annual or special meeting, the savings bank shall give
6 that person, upon request, a statement of the approximate
7 number of members or shareholders entitled to vote at the
8 meeting and an estimate of the cost of preparing and mailing
9 the communication. The requesting member shall submit the
10 communication to the Commissioner who, upon finding it to be
11 appropriate and truthful, shall direct that it be prepared
12 and mailed to the members upon the requesting member's or
13 shareholder's payment or adequate provision for payment of
14 the expenses of preparation and mailing.
15 (i) A savings bank shall be reimbursed for costs that
16 are necessary and that have been directly incurred in
17 searching for, reproducing, or transporting books, papers,
18 records, or other data of a customer required to be
19 reproduced pursuant to a lawful subpoena, warrant, or court
20 order.
21 (j) Notwithstanding the provisions of this Section, a
22 savings bank may sell or otherwise make use of lists of
23 customers' names and addresses. All other information
24 regarding a customer's account are subject to the disclosure
25 provisions of this Section. At the request of any customer,
26 that customer's name and address shall be deleted from any
27 list that is to be sold or used in any other manner beyond
28 identification of the customer's accounts.
29 (Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.)
30 Section 20. The Illinois Credit Union Act is amended by
31 changing Sections 10, 12, and 59 as follows:
32 (205 ILCS 305/10) (from Ch. 17, par. 4411)
-42- LRB9204827JSpcam01
1 Sec. 10. Credit union records; member financial records.
2 (1) A credit union shall establish and maintain books,
3 records, accounting systems and procedures which accurately
4 reflect its operations and which enable the Department to
5 readily ascertain the true financial condition of the credit
6 union and whether it is complying with this Act.
7 (2) A photostatic or photographic reproduction of any
8 credit union records shall be admissible as evidence of
9 transactions with the credit union.
10 (3) (a) For the purpose of this Section, the term
11 "financial records" means any original, any copy, or any
12 summary of (1) a document granting signature authority
13 over an account, (2) a statement, ledger card or other
14 record on any account which shows each transaction in or
15 with respect to that account, (3) a check, draft or money
16 order drawn on a financial institution or other entity or
17 issued and payable by or through a financial institution
18 or other entity, or (4) any other item containing
19 information pertaining to any relationship established in
20 the ordinary course of business between a credit union
21 and its member, including financial statements or other
22 financial information provided by the member.
23 (b) This Section does not prohibit:
24 (1) The preparation, examination, handling or
25 maintenance of any financial records by any officer,
26 employee or agent of a credit union having custody
27 of such records, or the examination of such records
28 by a certified public accountant engaged by the
29 credit union to perform an independent audit;
30 (2) The examination of any financial records
31 by or the furnishing of financial records by a
32 credit union to any officer, employee or agent of
33 the Department, the National Credit Union
34 Administration, Federal Reserve board or any insurer
-43- LRB9204827JSpcam01
1 of share accounts for use solely in the exercise of
2 his duties as an officer, employee or agent;
3 (3) The publication of data furnished from
4 financial records relating to members where the data
5 cannot be identified to any particular customer of
6 account;
7 (4) The making of reports or returns required
8 under Chapter 61 of the Internal Revenue Code of
9 1954;
10 (5) Furnishing information concerning the
11 dishonor of any negotiable instrument permitted to
12 be disclosed under the Uniform Commercial Code;
13 (6) The exchange in the regular course of
14 business of (i) credit information between a credit
15 union and other credit unions or financial
16 institutions or commercial enterprises, directly or
17 through a consumer reporting agency or (ii)
18 financial records or information derived from
19 financial records between a credit union and other
20 credit unions or financial institutions or
21 commercial enterprises for the purpose of conducting
22 due diligence pursuant to a merger or a purchase or
23 sale of assets or liabilities of the credit union;
24 (7) The furnishing of information to the
25 appropriate law enforcement authorities where the
26 credit union reasonably believes it has been the
27 victim of a crime;
28 (8) The furnishing of information pursuant to
29 the Uniform Disposition of Unclaimed Property Act;
30 (9) The furnishing of information pursuant to
31 the Illinois Income Tax Act and the Illinois Estate
32 and Generation-Skipping Transfer Tax Act;
33 (10) The furnishing of information pursuant to
34 the federal "Currency and Foreign Transactions
-44- LRB9204827JSpcam01
1 Reporting Act", Title 31, United States Code,
2 Section 1051 et sequentia; or
3 (11) The furnishing of information pursuant to
4 any other statute which by its terms or by
5 regulations promulgated thereunder requires the
6 disclosure of financial records other than by
7 subpoena, summons, warrant or court order.
8 (12) The furnishing of information in
9 accordance with the federal Personal Responsibility
10 and Work Opportunity Reconciliation Act of 1996. Any
11 credit union governed by this Act shall enter into
12 an agreement for data exchanges with a State agency
13 provided the State agency pays to the credit union a
14 reasonable fee not to exceed its actual cost
15 incurred. A credit union providing information in
16 accordance with this item shall not be liable to any
17 account holder or other person for any disclosure of
18 information to a State agency, for encumbering or
19 surrendering any assets held by the credit union in
20 response to a lien or order to withhold and deliver
21 issued by a State agency, or for any other action
22 taken pursuant to this item, including individual or
23 mechanical errors, provided the action does not
24 constitute gross negligence or willful misconduct. A
25 credit union shall have no obligation to hold,
26 encumber, or surrender assets until it has been
27 served with a subpoena, summons, warrant, court or
28 administrative order, lien, or levy.
29 (13) The furnishing of information to law
30 enforcement authorities, the Illinois Department on
31 Aging and its regional administrative and provider
32 agencies, the Department of Human Services Office of
33 Inspector General, or public guardians, if the
34 credit union suspects that a member who is an
-45- LRB9204827JSpcam01
1 elderly or disabled person has been or may become
2 the victim of financial exploitation. For the
3 purposes of this item (13), the term: (i) "elderly
4 person" means a person who is 60 or more years of
5 age, (ii) "disabled person" means a person who has
6 or reasonably appears to the credit union to have a
7 physical or mental disability that impairs his or
8 her ability to seek or obtain protection from or
9 prevent financial exploitation, and (iii) "financial
10 exploitation" means tortious or illegal use of the
11 assets or resources of an elderly or disabled
12 person, and includes, without limitation,
13 misappropriation of the elderly or disabled person's
14 assets or resources by undue influence, breach of
15 fiduciary relationship, intimidation, fraud,
16 deception, extortion, or the use of assets or
17 resources in any manner contrary to law. A credit
18 union or person furnishing information pursuant to
19 this item (13) shall be entitled to the same rights
20 and protections as a person furnishing information
21 under the Elder Abuse and Neglect Act and the
22 Illinois Domestic Violence Act of 1986.
23 (14) The disclosure of financial records or
24 information as necessary to effect, administer, or
25 enforce a transaction requested or authorized by the
26 member, or in connection with:
27 (A) servicing or processing a financial
28 product or service requested or authorized by
29 the member;
30 (B) maintaining or servicing a member's
31 account with the credit union; or
32 (C) a proposed or actual securitization
33 or secondary market sale (including sales of
34 servicing rights) related to a transaction of a
-46- LRB9204827JSpcam01
1 member.
2 Nothing in this item (14), however, authorizes the
3 sale of the financial records or information of a member
4 without the consent of the member.
5 (c) Except as otherwise provided by this Act, a credit
6 union may not disclose to any person, except to the member or
7 his duly authorized agent, any financial records relating to
8 that member of the credit union unless:
9 (1) the member has authorized disclosure to the
10 person;
11 (2) the financial records are disclosed in response
12 to a lawful subpoena, summons, warrant or court order
13 that meets the requirements of subparagraph (d) of this
14 Section; or
15 (3) the credit union is attempting to collect an
16 obligation owed to the credit union and the credit union
17 complies with the provisions of Section 2I of the
18 Consumer Fraud and Deceptive Business Practices Act.
19 (d) A credit union shall disclose financial records
20 under subparagraph (c)(2) of this Section pursuant to a
21 lawful subpoena, summons, warrant or court order only after
22 the credit union mails a copy of the subpoena, summons,
23 warrant or court order to the person establishing the
24 relationship with the credit union, if living, and otherwise
25 his personal representative, if known, at his last known
26 address by first class mail, postage prepaid unless the
27 credit union is specifically prohibited from notifying the
28 person by order of court or by applicable State or federal
29 law. In the case of a grand jury subpoena, a credit union
30 shall not mail a copy of a subpoena to any person pursuant to
31 this subsection if the subpoena was issued by a grand jury
32 under the Statewide Grand Jury Act or notifying the person
33 would constitute a violation of the federal Right to
34 Financial Privacy Act of 1978.
-47- LRB9204827JSpcam01
1 (e) (1) Any officer or employee of a credit union who
2 knowingly and wilfully furnishes financial records in
3 violation of this Section is guilty of a business offense
4 and upon conviction thereof shall be fined not more than
5 $1,000.
6 (2) Any person who knowingly and wilfully induces
7 or attempts to induce any officer or employee of a credit
8 union to disclose financial records in violation of this
9 Section is guilty of a business offense and upon
10 conviction thereof shall be fined not more than $1,000.
11 (f) A credit union shall be reimbursed for costs which
12 are reasonably necessary and which have been directly
13 incurred in searching for, reproducing or transporting books,
14 papers, records or other data of a member required or
15 requested to be produced pursuant to a lawful subpoena,
16 summons, warrant or court order. The Director may determine,
17 by rule, the rates and conditions under which payment shall
18 be made. Delivery of requested documents may be delayed
19 until final reimbursement of all costs is received.
20 (Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.)
21 (205 ILCS 305/12) (from Ch. 17, par. 4413)
22 Sec. 12. Regulatory fees for examination and
23 administration.
24 (1) A credit union regulated by the Department shall pay
25 a regulatory fee to the Department based upon its total
26 assets as shown by its Year-end Call Report at the following
27 rates:
28 TOTAL ASSETS REGULATORY FEE
29 $25,000 or less .............. $100
30 Over $25,000 and not over
31 $100,000 ..................... $100 plus $4 per $1,000 of
32 assets in excess of $25,000
33 Over $100,000 and not over
-48- LRB9204827JSpcam01
1 $200,000 ..................... $400 plus $3 per $1,000 of
2 assets in excess of $100,000
3 Over $200,000 and not over
4 $500,000 ..................... $700 plus $2 per $1,000 of
5 assets in excess of $200,000
6 Over $500,000 and not over
7 $1,000,000 ................... $1,300 plus $1.40 per $1,000
8 of assets in excess of
9 $500,000
10 Over $1,000,000 and not
11 over $5,000,000............... $2,000 plus $0.50 per
12 $1,000 of assets in
13 excess of $1,000,000
14 Over $5,000,000 and not
15 over $30,000,000 ............. $4,000 plus $0.35
16 per $1,000 assets
17 in excess of $5,000,000
18 Over $30,000,000 and not
19 over $100,000,000 ............ $12,750 plus $0.30
20 per $1,000 of assets in
21 excess of $30,000,000
22 Over $100,000,000 and not
23 over $500,000,000 ............ $33,750 plus $0.15 per
24 $1,000 of assets in excess
25 of $100,000,000
26 Over $500,000,000 ............ $93,750 plus $0.05 per
27 $1,000 of assets in excess
28 of $500,000,000
29 (2) The Director shall review the regulatory fee
30 schedule in subsection (1) and the projected earnings on
31 those fees on an annual basis and adjust the fee schedule no
32 more than 5% annually if necessary to defray the estimated
33 administrative and operational expenses of the Department as
34 defined in subsection (5). The Director shall provide credit
-49- LRB9204827JSpcam01
1 unions with written notice of any adjustment made in the
2 regulatory fee schedule.
3 (3) Not later than March 1 of each calendar year, a
4 credit union shall pay to the Department, for the preceding
5 calendar year, a regulatory fee for that calendar year in
6 accordance with the regulatory fee schedule in subsection
7 (1), on the basis of assets as of the Year-end Call Report of
8 the preceding year. The regulatory fee shall not be less
9 than $100 or more than $125,000, provided that the regulatory
10 fee cap of $125,000 shall be adjusted to incorporate the same
11 percentage increase as the Director makes in the regulatory
12 fee schedule from time to time under subsection (2). No
13 regulatory fee shall be collected from a credit union until
14 it has been in operation for one year.
15 (4) The aggregate of all fees collected by the
16 Department under this Act shall be paid promptly after they
17 are received receipt of the same, accompanied by a detailed
18 statement thereof, into the State Treasury and shall be set
19 apart in the Credit Union Fund, a special fund hereby created
20 in the State treasury. The amount from time to time
21 deposited in the Credit Union Fund and shall be used to
22 offset the ordinary administrative and operational expenses
23 of the Department under this Act. All earnings received from
24 investments of funds in the Credit Union Fund shall be
25 deposited into the Credit Union Fund and may be used for the
26 same purposes as fees deposited into that Fund.
27 (5) The administrative and operational expenses for any
28 calendar year shall mean the ordinary and contingent expenses
29 for that year incidental to making the examinations provided
30 for by, and for administering, this Act, including all
31 salaries and other compensation paid for personal services
32 rendered for the State by officers or employees of the State
33 to enforce this Act; all expenditures for telephone and
34 telegraph charges, postage and postal charges, office
-50- LRB9204827JSpcam01
1 supplies and services, furniture and equipment, office space
2 and maintenance thereof, travel expenses and other necessary
3 expenses; all to the extent that such expenditures are
4 directly incidental to such examination or administration.
5 (6) When the aggregate of all fees collected by the
6 Department under this Act and all earnings thereon for any
7 calendar year exceeds 150% of the total administrative and
8 operational expenses under this Act for that year, such
9 excess shall be credited to credit unions and applied against
10 their regulatory fees for the subsequent year. The amount
11 credited to a credit union shall be in the same proportion as
12 the fee paid by such credit union for the calendar year in
13 which the excess is produced bears to the aggregate of the
14 fees collected by the Department under this Act for the same
15 year.
16 (7) Examination fees for the year 2000 statutory
17 examinations paid pursuant to the examination fee schedule in
18 effect at that time shall be credited toward the regulatory
19 fee to be assessed the credit union in calendar year 2001.
20 (8) Nothing in this Act shall prohibit the General
21 Assembly from appropriating funds to the Department from the
22 General Revenue Fund for the purpose of administering this
23 Act.
24 (Source: P.A. 91-755, eff. 1-1-01.)
25 (205 ILCS 305/59) (from Ch. 17, par. 4460)
26 Sec. 59. Investment of Funds. Funds not used in loans to
27 members may be invested, pursuant to subsection (7) of
28 Section 30 of this Act, and subject to Departmental rules and
29 regulations:
30 (1) In securities, obligations or other instruments of
31 or issued by or fully guaranteed as to principal and interest
32 by the United States of America or any agency thereof or in
33 any trust or trusts established for investing directly or
-51- LRB9204827JSpcam01
1 collectively in the same;
2 (2) In obligations of any state of the United States,
3 the District of Columbia, the Commonwealth of Puerto Rico,
4 and the several territories organized by Congress, or any
5 political subdivision thereof; however, a credit union may
6 not invest more than 10% of its unimpaired capital and
7 surplus in the obligations of one issuer, exclusive of
8 general obligations of the issuer, and investments in
9 municipal securities must be limited to securities rated in
10 one of the 4 highest rating categories by a nationally
11 recognized statistical rating organization;
12 (3) In certificates of deposit or passbook type accounts
13 issued by a state or national bank, mutual savings bank or
14 savings and loan association; provided that such institutions
15 have their accounts insured by the Federal Deposit Insurance
16 Corporation or the Federal Savings and Loan Insurance
17 Corporation; but provided, further, that a credit union's
18 investment in an account in any one institution may exceed
19 the insured limit on accounts;
20 (4) In shares, classes of shares or share certificates
21 of other credit unions, including, but not limited to
22 corporate credit unions; provided that such credit unions
23 have their members' accounts insured by the NCUA or other
24 approved insurers, and that if the members' accounts are so
25 insured, a credit union's investment may exceed the insured
26 limit on accounts;
27 (5) In shares of a cooperative society organized under
28 the laws of this State or the laws of the United States in
29 the total amount not exceeding 10% of the unimpaired capital
30 and surplus of the credit union; provided that such
31 investment shall first be approved by the Department;
32 (6) In obligations of the State of Israel, or
33 obligations fully guaranteed by the State of Israel as to
34 payment of principal and interest;
-52- LRB9204827JSpcam01
1 (7) In shares, stocks or obligations of other financial
2 institutions in the total amount not exceeding 5% of the
3 unimpaired capital and surplus of the credit union;
4 (8) In federal funds and bankers' acceptances;
5 (9) In shares or stocks of Credit Union Service
6 Organizations in the total amount not exceeding 1% of the
7 unimpaired capital and surplus of the credit union.
8 As used in this Section, "political subdivision"
9 includes, but is not limited to, counties, townships, cities,
10 villages, incorporated towns, school districts, educational
11 service regions, special road districts, public water supply
12 districts, fire protection districts, drainage districts,
13 levee districts, sewer districts, housing authorities, park
14 districts, and any agency, corporation, or instrumentality of
15 a state or its political subdivisions, whether now or
16 hereafter created and whether herein specifically mentioned
17 or not.
18 (Source: P.A. 86-432.)
19 Section 25. The Illinois Trust and Payable on Death
20 Accounts Act is amended by changing Sections 2 and 4 as
21 follows:
22 (205 ILCS 625/2) (from Ch. 17, par. 2132)
23 Sec. 2. Definitions. As used in this Act, the following
24 words have the meanings ascribed to them as set forth herein:
25 (a) "Institution" includes any bank as defined in
26 Section 2 of the "Illinois Banking Act", approved May 11,
27 1955, as amended, any association as defined in Section
28 1-10.03 of the "Illinois Savings and Loan Act", approved July
29 5, 1955, as amended, any insured savings bank as defined in
30 Section 1007.75 of the Savings Bank Act, or any credit union
31 as defined in Section 1.1 of the "Illinois Credit Union Act",
32 approved August 30, 1979, as amended, and similar federal
-53- LRB9204827JSpcam01
1 institutions.
2 (b) "Account" includes any account, deposit, certificate
3 of deposit, withdrawable capital account or credit union
4 share in any institution.
5 (Source: P.A. 84-461.)
6 (205 ILCS 625/4) (from Ch. 17, par. 2134)
7 Sec. 4. Payable on Death Account Incidents. If one or
8 more persons a person opening or holding an account sign
9 signs an agreement with the institution providing that on the
10 death of the last surviving person designated as holder the
11 account shall be paid to or held by another person or
12 persons, the account, and any balance therein which exists
13 from time to time, shall be held as a payable payment on
14 death account and unless otherwise agreed in writing between
15 the person or persons opening or holding the account and the
16 institution:
17 (a) Any The holder during his or her lifetime may change
18 any of the designated persons to own the account at the his
19 or her death of the last surviving holder without the
20 knowledge or consent of any other holder or the said
21 designated persons by a written instrument accepted by the
22 institution;
23 (b) Any The holder may make additional deposits to and
24 withdraw any part or all of the account at any time without
25 the knowledge or consent of any other holder or the
26 designated person or persons to own the account at the his or
27 her death of the last surviving holder, subject to the bylaws
28 and regulations of the institution, and all withdrawals shall
29 constitute a revocation of the agreement as to the amount
30 withdrawn; and
31 (c) Upon the death of the last surviving holder of the
32 account, the person so designated to be the owner of the
33 account who is then living shall be the sole owner of the
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1 account, unless more than one person is so designated and
2 then living in which case those said persons shall hold the
3 account in equal shares as tenants in common with no right of
4 survivorship as between those persons. If no person
5 designated as the owner of the account on the death of the
6 last surviving holder is then living, the proceeds shall vest
7 in the estate of the last surviving holder of the account.
8 (Source: P.A. 84-461.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.".