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Public Act 096-1163 | ||||
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AN ACT concerning financial regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Bank Examiners' Education | ||||
Foundation Act is amended by changing Sections 1, 3.01, 4, 5, | ||||
and 8 and by adding Section 3.07 as follows:
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(20 ILCS 3210/1) (from Ch. 17, par. 401)
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Sec. 1.
The Illinois Bank Examiners' Education Foundation | ||||
is hereby
created for the purpose of providing a means through | ||||
which funds may be
raised, invested and disbursed for | ||||
continuing education and professional
training activity for | ||||
the examination employees of the Division of Banking whose | ||||
responsibilities include the supervision and regulation of | ||||
commercial banks, foreign banking offices, trust companies, | ||||
and their information technology service providers | ||||
Commissioner's office .
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(Source: P.A. 84-1127.)
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(20 ILCS 3210/3.01) (from Ch. 17, par. 403.1)
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Sec. 3.01.
"Board" means the State Banking Board of | ||||
Illinois Board of Trustees of the Illinois Bank
Examiners' | ||||
Education Foundation created by the Illinois Banking Act this | ||||
Act .
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(Source: P.A. 84-1127.)
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(20 ILCS 3210/3.07 new) | ||
Sec. 3.07. Division of Banking. "Division of Banking" means | ||
the Division of Banking of the Department of Financial and | ||
Professional Regulation.
| ||
(20 ILCS 3210/4) (from Ch. 17, par. 404)
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Sec. 4.
The Foundation shall establish an endowment fund | ||
with the
monies in the Illinois Bank Examiners' Education Fund. | ||
The income from such
Fund shall be used to pay for continuing | ||
education and professional
training activity for the | ||
examination employees of the Division of Banking whose | ||
responsibilities include the supervision and regulation of | ||
commercial banks, foreign banking offices, trust companies, | ||
and their information technology service providers | ||
Commissioner's
office authorized by the Board of the Illinois | ||
Bank Examiners' Education
Program and to pay for reasonable | ||
expenses incurred by the Board in the
course of its official | ||
duties. The continuing education and professional
training | ||
activity to be funded by the Foundation shall be a supplement | ||
to
the education and training expenditures regularly being made | ||
from the Bank
& Trust Company Fund for such purposes.
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(Source: P.A. 84-1127.)
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(20 ILCS 3210/5) (from Ch. 17, par. 405)
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Sec. 5. The Foundation shall be governed by the State | ||
Banking Board of Illinois a Board of Trustees . The
Board shall | ||
consist of the following trustees: the Commissioner, who shall
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be its chairman; one Class A member and three Class B members | ||
from the
State Banking Board of Illinois, appointed by the | ||
Governor.
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The terms of the trustees of the Foundation who are members | ||
of the State
Banking Board of Illinois are to be coextensive | ||
with their terms on the
State Banking Board of Illinois. An | ||
appointment to fill a vacancy shall be
for the unexpired term | ||
of the trustee whose term is being filled. Trustees
shall | ||
receive no compensation for service on the Board, but shall be
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reimbursed for all reasonable and necessary expenditures | ||
incurred in the
performance of their official duties.
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(Source: P.A. 84-1127.)
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(20 ILCS 3210/8) (from Ch. 17, par. 408)
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Sec. 8.
No Neither the Commissioner nor any member of the | ||
Board shall be
subject to any civil liability or penalty, | ||
whether for damages or
otherwise, on account of or for any | ||
action taken or omitted to be taken in
their respective | ||
official capacities, except when such acts or omissions to
act | ||
are corrupt or malicious or unless such action is taken or | ||
omitted to
be taken not in good faith and without reasonable | ||
grounds.
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(Source: P.A. 84-1127.)
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Section 10. The Illinois Banking Act is amended by changing | ||
Sections 2, 48, 78, 79, 80, and 82 as follows:
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(205 ILCS 5/2) (from Ch. 17, par. 302)
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Sec. 2. General definitions. In this Act, unless the | ||
context otherwise
requires, the following words and phrases | ||
shall have the following meanings:
| ||
"Accommodation party" shall have the meaning ascribed to | ||
that term in
Section 3-419 of the Uniform Commercial Code.
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"Action" in the sense of a judicial proceeding includes | ||
recoupments,
counterclaims, set-off, and any other proceeding | ||
in which
rights are determined.
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"Affiliate facility" of a bank means a main banking | ||
premises or branch
of another commonly owned bank.
The main | ||
banking premises or any branch of a bank
may be an "affiliate | ||
facility" with respect to one or more other commonly owned
| ||
banks.
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"Appropriate federal banking agency" means the Federal | ||
Deposit Insurance
Corporation, the Federal Reserve Bank of | ||
Chicago, or the Federal Reserve Bank
of St. Louis, as | ||
determined by federal law.
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"Bank" means any person doing a banking business whether | ||
subject to the
laws of this or any other jurisdiction.
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A "banking house", "branch", "branch bank" or "branch
| ||
office" shall mean any place of business of a bank at which |
deposits are
received, checks paid, or loans made, but shall | ||
not include any place at
which only records thereof are made, | ||
posted, or kept. A place of business
at which deposits are | ||
received, checks paid, or loans made shall not be
deemed to be | ||
a branch, branch bank, or branch office if the place of
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business is adjacent to and connected with the main banking | ||
premises, or if
it is separated from the main banking premises | ||
by not more than an alley;
provided always that (i) if the | ||
place of business is separated by an alley
from the main | ||
banking premises there is a connection between the two by
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public or private way or by subterranean or overhead passage, | ||
and (ii) if
the place of business is in a building not wholly | ||
occupied by the bank, the
place of business shall not be within | ||
any office or room in which any other
business or service of | ||
any kind or nature other than the business of the
bank is | ||
conducted or carried on. A place of business at which deposits | ||
are
received, checks paid, or loans made shall not be deemed to | ||
be a branch,
branch bank, or branch office (i) of any bank if | ||
the place is a terminal established and maintained in | ||
accordance with
paragraph
(17) of Section 5 of this Act, or | ||
(ii) of a commonly owned bank
by virtue of
transactions | ||
conducted at that place on behalf of the other commonly owned | ||
bank
under paragraph (23) of Section 5 of this Act if the place | ||
is an affiliate
facility with respect to the other bank.
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"Branch of an out-of-state bank" means a branch established | ||
or maintained in
Illinois by an out-of-state bank as a result |
of a merger between an Illinois
bank and the out-of-state bank | ||
that occurs on or after May 31, 1997, or any
branch established | ||
by the out-of-state bank following the merger.
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"Bylaws" means the bylaws of a bank that are adopted by the | ||
bank's board of
directors or shareholders for the regulation | ||
and management of the bank's
affairs. If the bank operates as a | ||
limited liability company, however, "bylaws"
means the | ||
operating
agreement of the bank.
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"Call report fee" means the fee to be paid to the
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Commissioner by each State bank pursuant to paragraph (a) of | ||
subsection (3)
of Section 48 of this Act.
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"Capital" includes the aggregate of outstanding capital | ||
stock and
preferred stock.
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"Cash flow reserve account" means the account within the | ||
books and records
of the Commissioner of Banks and Real Estate | ||
used to
record funds designated to maintain a reasonable Bank | ||
and Trust Company Fund
operating balance to meet agency | ||
obligations on a timely basis.
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"Charter" includes the original charter and all amendments | ||
thereto
and articles of merger or consolidation.
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"Commissioner" means the Commissioner of Banks and Real | ||
Estate, except that beginning on April 6, 2009 ( the effective | ||
date of Public Act 95-1047)
this amendatory Act of the 95th | ||
General Assembly , all references in this Act to the | ||
Commissioner of Banks and Real Estate are deemed, in | ||
appropriate contexts, to be references to the Secretary of |
Financial and Professional Regulation.
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"Commonly owned banks" means 2 or more banks that each | ||
qualify as a bank
subsidiary of the same bank holding company | ||
pursuant to Section 18 of the
Federal Deposit Insurance Act; | ||
"commonly owned bank" refers to one of a group
of commonly | ||
owned banks but only with respect to one or more of the other | ||
banks
in the same group.
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"Community" means a city, village, or incorporated town and | ||
also includes
the area served by the banking offices of a bank, | ||
but need not be limited or
expanded to conform to the | ||
geographic boundaries of units of local
government.
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"Company" means a corporation, limited liability company, | ||
partnership,
business trust,
association, or similar | ||
organization and, unless specifically excluded,
includes a | ||
"State bank" and a "bank".
| ||
"Consolidating bank" means a party to a consolidation.
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"Consolidation" takes place when 2 or more banks, or a | ||
trust company and
a bank, are extinguished and by the same | ||
process a new bank is created,
taking over the assets and | ||
assuming the liabilities of the banks or trust
company passing | ||
out of existence.
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"Continuing bank" means a merging bank, the charter of | ||
which becomes the
charter of the resulting bank.
| ||
"Converting bank" means a State bank converting to become a | ||
national
bank, or a national bank converting to become a State | ||
bank.
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"Converting trust company" means a trust company | ||
converting to become a
State bank.
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"Court" means a court of competent jurisdiction.
| ||
"Director" means a member of the board of directors of a | ||
bank. In the case
of a manager-managed limited liability | ||
company, however, "director" means a
manager of
the bank and, | ||
in the case of a member-managed limited liability company,
| ||
"director" means a member of the bank. The term "director" does | ||
not include an
advisory director, honorary director, director | ||
emeritus, or similar person,
unless the person is otherwise | ||
performing
functions similar to those of a member of the board | ||
of directors.
| ||
"Director of Banking" means the Director of the Division of | ||
Banking of the Department of Financial and Professional | ||
Regulation. | ||
"Eligible depository institution" means an insured savings | ||
association
that is in default, an insured savings association | ||
that is in danger of
default, a State or national bank that is | ||
in default or a State or
national bank that is in danger of | ||
default, as those terms are defined in this
Section, or a new | ||
bank as that term defined in Section 11(m) of the Federal
| ||
Deposit Insurance Act or a bridge bank as that term is defined | ||
in Section 11(n)
of the Federal Deposit Insurance Act or a new | ||
federal savings association
authorized under Section | ||
11(d)(2)(f) of the Federal Deposit Insurance Act.
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"Fiduciary" means trustee, agent, executor, administrator, |
committee,
guardian for a minor or for a person under legal | ||
disability, receiver,
trustee in bankruptcy, assignee for | ||
creditors, or any holder of similar
position of trust.
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"Financial institution" means a bank, savings bank, | ||
savings and loan association,
credit union, or any licensee | ||
under the Consumer Installment Loan Act or
the Sales Finance | ||
Agency Act and, for purposes of Section 48.3, any
proprietary | ||
network, funds transfer corporation, or other entity providing
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electronic funds transfer services, or any corporate | ||
fiduciary, its
subsidiaries, affiliates, parent company, or | ||
contractual service provider
that is examined by the | ||
Commissioner. For purposes of Section 5c and subsection (b) of | ||
Section 13 of this Act, "financial institution" includes any | ||
proprietary network, funds transfer corporation, or other | ||
entity providing electronic funds transfer services, and any | ||
corporate fiduciary.
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"Foundation" means the Illinois Bank Examiners' Education | ||
Foundation.
| ||
"General obligation" means a bond, note, debenture, | ||
security, or other
instrument evidencing an obligation of the | ||
government entity that is the
issuer that is supported by the
| ||
full available resources of the issuer, the principal and | ||
interest of which
is payable in whole or in part by taxation.
| ||
"Guarantee" means an undertaking or promise to answer for | ||
payment of
another's debt or performance of another's duty, | ||
liability, or obligation
whether "payment guaranteed" or |
"collection guaranteed".
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"In danger of default" means a State or national bank, a | ||
federally chartered
insured savings association or an Illinois | ||
state chartered insured savings
association with respect to | ||
which the Commissioner or the appropriate
federal banking | ||
agency has advised the Federal Deposit Insurance
Corporation | ||
that:
| ||
(1) in the opinion of the Commissioner or the | ||
appropriate federal
banking agency,
| ||
(A) the State or national bank or insured savings | ||
association is not
likely to be able to meet the | ||
demands of the State or national bank's or
savings | ||
association's obligations in the normal course of | ||
business; and
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(B) there is no reasonable prospect that the State | ||
or national bank or
insured savings association will be | ||
able to meet those demands or pay those
obligations | ||
without federal assistance; or
| ||
(2) in the opinion of the Commissioner or the | ||
appropriate federal
banking agency,
| ||
(A) the State or national bank or insured savings | ||
association has
incurred or is likely to incur losses | ||
that will deplete all or substantially
all of its | ||
capital; and
| ||
(B) there is no reasonable prospect that the | ||
capital of the State
or national bank or insured |
savings association will be replenished without
| ||
federal assistance.
| ||
"In default" means, with respect to a State or national | ||
bank or an insured
savings association, any adjudication or | ||
other official determination by any
court of competent | ||
jurisdiction, the Commissioner, the appropriate federal
| ||
banking agency, or other public authority pursuant to which a | ||
conservator, receiver,
or other legal custodian is appointed | ||
for a State or national bank or an
insured savings association.
| ||
"Insured savings association" means any federal savings | ||
association chartered
under Section 5 of the federal Home | ||
Owners' Loan Act and any State savings
association chartered | ||
under the Illinois Savings and Loan Act of 1985 or a
| ||
predecessor Illinois statute, the deposits of which are insured | ||
by the Federal
Deposit Insurance Corporation. The term also | ||
includes a savings bank organized
or operating under the | ||
Savings Bank Act.
| ||
"Insured savings association in recovery" means an insured | ||
savings
association that is not an eligible depository | ||
institution and that does
not meet the minimum capital | ||
requirements applicable with respect to the
insured savings | ||
association.
| ||
"Issuer" means for purposes of Section 33 every person who | ||
shall have
issued or proposed to issue any security; except | ||
that (1) with respect to
certificates of deposit, voting trust | ||
certificates, collateral-trust
certificates, and certificates |
of interest or shares in an unincorporated
investment trust not | ||
having a board of directors (or persons performing
similar | ||
functions), "issuer" means the person or persons performing the
| ||
acts and assuming the duties of depositor or manager pursuant | ||
to the
provisions of the trust, agreement, or instrument under | ||
which the
securities are issued; (2) with respect to trusts | ||
other than those
specified in clause (1) above, where the | ||
trustee is a corporation
authorized to accept and execute | ||
trusts, "issuer" means the entrusters,
depositors, or creators | ||
of the trust and any manager or committee charged
with the | ||
general direction of the affairs of the trust pursuant to the
| ||
provisions of the agreement or instrument creating the trust; | ||
and (3) with
respect to equipment trust certificates or like | ||
securities, "issuer" means
the person to whom the equipment or | ||
property is or is to be leased or
conditionally sold.
| ||
"Letter of credit" and "customer" shall have the meanings | ||
ascribed to
those terms in Section 5-102 of the Uniform | ||
Commercial Code.
| ||
"Main banking premises" means the location that is | ||
designated in a
bank's charter as its main office.
| ||
"Maker or obligor" means for purposes of Section 33 the | ||
issuer of a
security, the promisor in a debenture or other debt | ||
security, or the
mortgagor or grantor of a trust deed or | ||
similar conveyance of a security
interest in real or personal | ||
property.
| ||
"Merged bank" means a merging bank that is not the |
continuing, resulting,
or surviving bank in a consolidation or | ||
merger.
| ||
"Merger" includes consolidation.
| ||
"Merging bank" means a party to a bank merger.
| ||
"Merging trust company" means a trust company party to a | ||
merger with
a State bank.
| ||
"Mid-tier bank holding company" means a corporation that | ||
(a) owns 100% of
the issued and outstanding shares of each | ||
class of stock of a State bank, (b)
has no other subsidiaries, | ||
and (c) 100% of the issued and outstanding shares of
the | ||
corporation are owned by a parent bank holding company.
| ||
"Municipality" means any municipality, political | ||
subdivision, school
district, taxing district, or agency.
| ||
"National bank" means a national banking association | ||
located in this
State and after May 31, 1997, means a national | ||
banking association without
regard to its location.
| ||
"Out-of-state bank" means a bank chartered under the laws | ||
of a state other
than Illinois, a territory of the United | ||
States, or the District of Columbia.
| ||
"Parent bank holding company" means a corporation that is a | ||
bank holding
company as that term is defined in the Illinois | ||
Bank Holding Company Act of
1957 and owns 100% of the issued | ||
and outstanding shares of a mid-tier bank
holding company.
| ||
"Person" means an individual, corporation, limited | ||
liability company,
partnership, joint
venture, trust, estate, | ||
or unincorporated association.
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"Public agency" means the State of Illinois, the various | ||
counties,
townships,
cities, towns, villages, school | ||
districts, educational service regions, special
road | ||
districts, public water supply districts, fire protection | ||
districts,
drainage districts, levee districts, sewer | ||
districts, housing authorities, the
Illinois Bank Examiners' | ||
Education Foundation, the Chicago Park District, and
all other | ||
political corporations or subdivisions of the State of | ||
Illinois,
whether now or hereafter created, whether herein | ||
specifically mentioned or
not, and shall also include any other
| ||
state or any political corporation or subdivision of another | ||
state.
| ||
"Public funds" or "public money" means
current operating | ||
funds, special funds, interest and sinking funds, and funds
of | ||
any kind or character belonging to, in the custody of, or | ||
subject to the
control or regulation of the United States or a | ||
public agency. "Public funds"
or "public money" shall include | ||
funds held by any of the officers, agents, or
employees of the | ||
United States or of a public agency in the course of their
| ||
official duties and, with respect to public money of the United | ||
States, shall
include Postal Savings funds.
| ||
"Published" means, unless the context requires otherwise, | ||
the publishing
of the notice or instrument referred to in some | ||
newspaper of general
circulation in the community in which the | ||
bank is located at least once
each week for 3 successive weeks. | ||
Publishing shall be accomplished by, and
at the expense of, the |
bank required to publish. Where publishing is
required, the | ||
bank shall submit to the Commissioner that evidence of the
| ||
publication as the Commissioner shall deem appropriate.
| ||
"Qualified financial contract" means any security | ||
contract,
commodity contract, forward contract, including spot | ||
and
forward foreign exchange contracts, repurchase agreement, | ||
swap agreement, and
any
similar agreement, any option to enter | ||
into any such agreement, including any
combination of the | ||
foregoing, and any master agreement for such agreements.
A | ||
master agreement, together with all supplements thereto, shall | ||
be treated
as one qualified financial contract. The contract, | ||
option, agreement, or
combination of contracts, options, or | ||
agreements shall be reflected upon the
books, accounts, or | ||
records of the bank, or a party to the contract shall
provide | ||
documentary evidence of such agreement.
| ||
"Recorded" means the filing or recording of the notice or | ||
instrument
referred to in the office of the Recorder of the | ||
county wherein
the bank is located.
| ||
"Resulting bank" means the bank resulting from a merger or | ||
conversion.
| ||
"Secretary" means the Secretary of Financial and | ||
Professional Regulation, or a person authorized by the | ||
Secretary or by this Act to act in the Secretary's stead. | ||
"Securities" means stocks, bonds, debentures, notes, or | ||
other similar
obligations.
| ||
"Stand-by letter of credit" means a letter of credit under |
which drafts
are payable upon the condition the customer has | ||
defaulted in performance of
a duty, liability, or obligation.
| ||
"State bank" means any banking corporation that has a | ||
banking charter
issued by the Commissioner under
this Act.
| ||
"State Banking Board" means the State Banking Board of | ||
Illinois.
| ||
"Subsidiary" with respect to a specified company means a | ||
company that is
controlled by the specified company. For | ||
purposes of paragraphs (8) and (12)
of Section 5 of this Act, | ||
"control" means the exercise of operational or
managerial | ||
control of a corporation by the bank, either alone or together | ||
with
other affiliates of the bank.
| ||
"Surplus" means the aggregate of (i) amounts paid in excess | ||
of the par
value of capital stock and preferred stock; (ii) | ||
amounts contributed other
than for capital stock and preferred | ||
stock and allocated to the surplus
account; and (iii) amounts | ||
transferred from undivided profits.
| ||
"Tier 1 Capital" and "Tier 2 Capital" have the meanings | ||
assigned to those
terms in regulations promulgated for the | ||
appropriate federal banking agency of
a state bank, as those | ||
regulations are now or hereafter amended.
| ||
"Trust company" means a limited liability company or | ||
corporation
incorporated in this State for the
purpose of | ||
accepting and executing trusts.
| ||
"Undivided profits" means undistributed earnings less | ||
discretionary
transfers to surplus.
|
"Unimpaired capital and unimpaired surplus", for the | ||
purposes of paragraph
(21) of Section 5 and Sections 32, 33, | ||
34, 35.1, 35.2, and 47 of this Act means
the sum of the state | ||
bank's Tier 1 Capital and Tier 2 Capital plus such other
| ||
shareholder equity as may be included by
regulation of the | ||
Commissioner. Unimpaired capital and unimpaired surplus
shall | ||
be calculated on the basis of the date of the last quarterly | ||
call report
filed with the Commissioner preceding the date of | ||
the transaction for which the
calculation is made, provided | ||
that: (i) when a material event occurs after the
date of the | ||
last quarterly call report filed with the Commissioner that | ||
reduces
or increases the bank's unimpaired capital and | ||
unimpaired surplus by 10% or
more, then the unimpaired capital | ||
and unimpaired surplus shall be calculated
from the date of the | ||
material
event for a transaction conducted after the date of | ||
the material event; and
(ii) if the Commissioner determines for | ||
safety and soundness reasons that a
state bank should calculate | ||
unimpaired capital and unimpaired surplus more
frequently than | ||
provided by this paragraph, the Commissioner may by written
| ||
notice direct the bank to calculate unimpaired capital and | ||
unimpaired surplus
at a more frequent interval. In the case of | ||
a state bank newly chartered under
Section 13 or a state bank | ||
resulting from a merger, consolidation, or
conversion under | ||
Sections 21 through 26 for which no preceding quarterly call
| ||
report has been filed with the Commissioner, unimpaired capital | ||
and unimpaired
surplus shall be calculated for the first |
calendar quarter on the basis of the
effective date of the | ||
charter, merger, consolidation, or conversion.
| ||
(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09; | ||
revised 4-14-09.)
| ||
(205 ILCS 5/48) (from Ch. 17, par. 359)
| ||
Sec. 48. Secretary's powers; duties. The Secretary shall | ||
have the
powers and authority, and is charged with the duties | ||
and responsibilities
designated in this Act, and a State bank | ||
shall not be subject to any
other visitorial power other than | ||
as authorized by this Act, except those
vested in the courts, | ||
or upon prior consultation with the Secretary, a
foreign bank | ||
regulator with an appropriate supervisory interest in the | ||
parent
or affiliate of a state bank. In the performance of the | ||
Secretary's
duties:
| ||
(1) The Commissioner shall call for statements from all | ||
State banks
as provided in Section 47 at least one time during | ||
each calendar quarter.
| ||
(2) (a) The Commissioner, as often as the Commissioner | ||
shall deem
necessary or
proper, and no less frequently than 18 | ||
months following the preceding
examination, shall appoint a | ||
suitable person or
persons to make an examination of the | ||
affairs of every State bank,
except that for every eligible | ||
State bank, as defined by regulation, the
Commissioner in lieu | ||
of the examination may accept on an alternating basis the
| ||
examination made by the eligible State bank's appropriate |
federal banking
agency pursuant to Section 111 of the Federal | ||
Deposit Insurance Corporation
Improvement Act of 1991, | ||
provided the appropriate federal banking agency has
made such | ||
an examination. A person so appointed shall not be a | ||
stockholder or
officer or employee of
any bank which that | ||
person may be directed to examine, and shall have
powers to | ||
make a thorough examination into all the affairs of the bank | ||
and
in so doing to examine any of the officers or agents or | ||
employees thereof
on oath and shall make a full and detailed | ||
report of the condition of the
bank to the Commissioner. In | ||
making the examination the examiners shall
include an | ||
examination of the affairs of all the affiliates of the bank, | ||
as
defined in subsection (b) of Section 35.2 of this Act, or | ||
subsidiaries of the
bank as shall be
necessary to disclose | ||
fully the conditions of the subsidiaries or
affiliates, the | ||
relations
between the bank and the subsidiaries or affiliates | ||
and the effect of those
relations upon
the affairs of the bank, | ||
and in connection therewith shall have power to
examine any of | ||
the officers, directors, agents, or employees of the
| ||
subsidiaries or affiliates
on oath. After May 31, 1997, the | ||
Commissioner may enter into cooperative
agreements
with state | ||
regulatory authorities of other states to provide for | ||
examination of
State bank branches in those states, and the | ||
Commissioner may accept reports
of examinations of State bank | ||
branches from those state regulatory authorities.
These | ||
cooperative agreements may set forth the manner in which the |
other state
regulatory authorities may be compensated for | ||
examinations prepared for and
submitted to the Commissioner.
| ||
(b) After May 31, 1997, the Commissioner is authorized to | ||
examine, as often
as the Commissioner shall deem necessary or | ||
proper, branches of out-of-state
banks. The Commissioner may | ||
establish and may assess fees to be paid to the
Commissioner | ||
for examinations under this subsection (b). The fees shall be
| ||
borne by the out-of-state bank, unless the fees are borne by | ||
the state
regulatory authority that chartered the out-of-state | ||
bank, as determined by a
cooperative agreement between the | ||
Commissioner and the state regulatory
authority that chartered | ||
the out-of-state bank.
| ||
(2.5) Whenever any State bank, any subsidiary or affiliate | ||
of a State
bank, or after May 31, 1997, any branch of an | ||
out-of-state bank causes to
be performed, by contract or | ||
otherwise, any bank services
for itself, whether on or off its | ||
premises:
| ||
(a) that performance shall be subject to examination by | ||
the Commissioner
to the same extent as if services were | ||
being performed by the bank or, after
May 31, 1997, branch | ||
of the out-of-state bank itself
on its own premises; and
| ||
(b) the bank or, after May 31, 1997, branch of the | ||
out-of-state bank
shall notify the Commissioner of the | ||
existence of a service
relationship. The notification | ||
shall be submitted with the first statement
of condition | ||
(as required by Section 47 of this Act) due after the |
making
of the service contract or the performance of the | ||
service, whichever occurs
first. The Commissioner shall be | ||
notified of each subsequent contract in
the same manner.
| ||
For purposes of this subsection (2.5), the term "bank | ||
services" means
services such as sorting and posting of checks | ||
and deposits, computation
and posting of interest and other | ||
credits and charges, preparation and
mailing of checks, | ||
statements, notices, and similar items, or any other
clerical, | ||
bookkeeping, accounting, statistical, or similar functions
| ||
performed for a State bank, including but not limited to | ||
electronic data
processing related to those bank services.
| ||
(3) The expense of administering this Act, including the | ||
expense of
the examinations of State banks as provided in this | ||
Act, shall to the extent
of the amounts resulting from the fees | ||
provided for in paragraphs (a),
(a-2), and (b) of this | ||
subsection (3) be assessed against and borne by the
State | ||
banks:
| ||
(a) Each bank shall pay to the Secretary a Call Report | ||
Fee which
shall be paid in quarterly installments equal
to | ||
one-fourth of the sum of the annual fixed fee of $800, plus | ||
a variable
fee based on the assets shown on the quarterly | ||
statement of condition
delivered to the Secretary in | ||
accordance with Section 47 for the
preceding quarter | ||
according to the following schedule: 16¢ per $1,000 of
the | ||
first $5,000,000 of total assets, 15¢ per $1,000 of the | ||
next
$20,000,000 of total assets, 13¢ per $1,000 of the |
next $75,000,000 of
total assets, 9¢ per $1,000 of the next | ||
$400,000,000 of total assets, 7¢
per $1,000 of the next | ||
$500,000,000 of total assets, and 5¢ per $1,000 of
all | ||
assets in excess of $1,000,000,000, of the State bank. The | ||
Call Report
Fee shall be calculated by the Secretary and | ||
billed to the banks for
remittance at the time of the | ||
quarterly statements of condition
provided for in Section | ||
47. The Secretary may require payment of the fees
provided | ||
in this Section by an electronic transfer of funds or an | ||
automatic
debit of an account of each of the State banks. | ||
In case more than one
examination of any
bank is deemed by | ||
the Secretary to be necessary in any examination
frequency | ||
cycle specified in subsection 2(a) of this Section,
and is | ||
performed at his direction, the Secretary may
assess a | ||
reasonable additional fee to recover the cost of the | ||
additional
examination; provided, however, that an | ||
examination conducted at the request
of the State Treasurer | ||
pursuant to the Uniform Disposition of Unclaimed
Property | ||
Act shall not be deemed to be an additional examination | ||
under this
Section.
In lieu
of the method and amounts set | ||
forth in this paragraph (a) for the calculation
of the Call | ||
Report Fee, the Secretary may specify by
rule that the Call | ||
Report Fees provided by this Section may be assessed
| ||
semiannually or some other period and may provide in the | ||
rule the formula to
be
used for calculating and assessing | ||
the periodic Call Report Fees to be paid by
State
banks.
|
(a-1) If in the opinion of the Commissioner an | ||
emergency exists or
appears likely, the Commissioner may | ||
assign an examiner or examiners to
monitor the affairs of a | ||
State bank with whatever frequency he deems
appropriate, | ||
including but not limited to a daily basis. The reasonable
| ||
and necessary expenses of the Commissioner during the | ||
period of the monitoring
shall be borne by the subject | ||
bank. The Commissioner shall furnish the
State bank a | ||
statement of time and expenses if requested to do so within | ||
30
days of the conclusion of the monitoring period.
| ||
(a-2) On and after January 1, 1990, the reasonable and | ||
necessary
expenses of the Commissioner during examination | ||
of the performance of
electronic data processing services | ||
under subsection (2.5) shall be
borne by the banks for | ||
which the services are provided. An amount, based
upon a | ||
fee structure prescribed by the Commissioner, shall be paid | ||
by the
banks or, after May 31, 1997, branches of | ||
out-of-state banks receiving the
electronic data | ||
processing services along with the
Call Report Fee assessed | ||
under paragraph (a) of this
subsection (3).
| ||
(a-3) After May 31, 1997, the reasonable and necessary | ||
expenses of the
Commissioner during examination of the | ||
performance of electronic data
processing services under | ||
subsection (2.5) at or on behalf of branches of
| ||
out-of-state banks shall be borne by the out-of-state | ||
banks, unless those
expenses are borne by the state |
regulatory authorities that chartered the
out-of-state | ||
banks, as determined by cooperative agreements between the
| ||
Commissioner and the state regulatory authorities that | ||
chartered the
out-of-state banks.
| ||
(b) "Fiscal year" for purposes of this Section 48 is | ||
defined as a
period beginning July 1 of any year and ending | ||
June 30 of the next year.
The Commissioner shall receive | ||
for each fiscal year, commencing with the
fiscal year | ||
ending June 30, 1987, a contingent fee equal to the lesser | ||
of
the aggregate of the fees paid by all State banks under | ||
paragraph (a) of
subsection (3) for that year, or the | ||
amount, if any, whereby the aggregate
of the administration | ||
expenses, as defined in paragraph (c), for that
fiscal year | ||
exceeds the sum of the aggregate of the fees payable by all
| ||
State banks for that year under paragraph (a) of subsection | ||
(3),
plus any amounts transferred into the Bank and Trust | ||
Company Fund from the
State Pensions Fund for that year,
| ||
plus all
other amounts collected by the Commissioner for | ||
that year under any
other provision of this Act, plus the | ||
aggregate of all fees
collected for that year by the | ||
Commissioner under the Corporate Fiduciary
Act, excluding | ||
the receivership fees provided for in Section 5-10 of the
| ||
Corporate Fiduciary Act, and the Foreign Banking Office | ||
Act.
The aggregate amount of the contingent
fee thus | ||
arrived at for any fiscal year shall be apportioned | ||
amongst,
assessed upon, and paid by the State banks and |
foreign banking corporations,
respectively, in the same | ||
proportion
that the fee of each under paragraph (a) of | ||
subsection (3), respectively,
for that year bears to the | ||
aggregate for that year of the fees collected
under | ||
paragraph (a) of subsection (3). The aggregate amount of | ||
the
contingent fee, and the portion thereof to be assessed | ||
upon each State
bank and foreign banking corporation,
| ||
respectively, shall be determined by the Commissioner and | ||
shall be paid by
each, respectively, within 120 days of the | ||
close of the period for which
the contingent fee is | ||
computed and is payable, and the Commissioner shall
give 20 | ||
days advance notice of the amount of the contingent fee | ||
payable by
the State bank and of the date fixed by the | ||
Commissioner for payment of
the fee.
| ||
(c) The "administration expenses" for any fiscal year | ||
shall mean the
ordinary and contingent expenses for that | ||
year incident to making the
examinations provided for by, | ||
and for otherwise administering, this Act,
the Corporate | ||
Fiduciary Act, excluding the expenses paid from the
| ||
Corporate Fiduciary Receivership account in the Bank and | ||
Trust Company
Fund, the Foreign Banking Office Act,
the | ||
Electronic Fund Transfer Act,
and the Illinois Bank | ||
Examiners'
Education Foundation Act, including all | ||
salaries and other
compensation paid for personal services | ||
rendered for the State by
officers or employees of the | ||
State, including the Commissioner and the
Deputy |
Commissioners, all expenditures for telephone and | ||
telegraph
charges, postage and postal charges, office | ||
stationery, supplies and
services, and office furniture | ||
and equipment, including typewriters and
copying and | ||
duplicating machines and filing equipment, surety bond
| ||
premiums, and travel expenses of those officers and | ||
employees, employees,
expenditures or charges for the | ||
acquisition, enlargement or improvement
of, or for the use | ||
of, any office space, building, or structure, or
| ||
expenditures for the maintenance thereof or for furnishing | ||
heat, light,
or power with respect thereto, all to the | ||
extent that those expenditures
are directly incidental to | ||
such examinations or administration.
The Commissioner | ||
shall not be required by paragraphs (c) or (d-1) of this
| ||
subsection (3) to maintain in any fiscal year's budget | ||
appropriated reserves
for accrued vacation and accrued | ||
sick leave that is required to be paid to
employees of the | ||
Commissioner upon termination of their service with the
| ||
Commissioner in an amount that is more than is reasonably | ||
anticipated to be
necessary for any anticipated turnover in | ||
employees, whether due to normal
attrition or due to | ||
layoffs, terminations, or resignations.
| ||
(d) The aggregate of all fees collected by the | ||
Secretary under
this Act, the Corporate Fiduciary Act,
or | ||
the Foreign Banking Office Act on
and after July 1, 1979, | ||
shall be paid promptly after receipt of the same,
|
accompanied by a detailed statement thereof, into the State | ||
treasury and
shall be set apart in a special fund to be | ||
known as the "Bank and Trust
Company Fund", except as | ||
provided in paragraph (c) of subsection (11) of
this | ||
Section. All earnings received from investments of funds in | ||
the Bank
and
Trust Company Fund shall be deposited in the | ||
Bank and Trust Company Fund
and may be used for the same | ||
purposes as fees deposited in that Fund. The
amount from | ||
time to time deposited into the Bank and
Trust Company Fund | ||
shall be used: (i) to offset the ordinary administrative
| ||
expenses of the Secretary as defined in
this Section or | ||
(ii) as a credit against fees under paragraph (d-1) of this | ||
subsection (3). Nothing in this amendatory Act of 1979 | ||
shall prevent
continuing the practice of paying expenses | ||
involving salaries, retirement,
social security, and | ||
State-paid insurance premiums of State officers by
| ||
appropriations from the General Revenue Fund. However, the | ||
General Revenue
Fund shall be reimbursed for those payments | ||
made on and after July 1, 1979,
by an annual transfer of | ||
funds from the Bank and Trust Company Fund. Moneys in the | ||
Bank and Trust Company Fund may be transferred to the | ||
Professions Indirect Cost Fund, as authorized under | ||
Section 2105-300 of the Department of Professional | ||
Regulation Law of the Civil Administrative Code of | ||
Illinois.
| ||
Notwithstanding provisions in the State Finance Act, |
as now or hereafter amended, or any other law to the | ||
contrary, the sum of $18,788,847 shall be transferred from | ||
the Bank and Trust Company Fund to the Financial | ||
Institutions Settlement of 2008 Fund on the effective date | ||
of this amendatory Act of the 95th General Assembly, or as | ||
soon thereafter as practical. | ||
Notwithstanding provisions in the State Finance Act, | ||
as now or hereafter amended, or any other law to the | ||
contrary, the Governor may, during any fiscal year through | ||
January 10, 2011, from time to time direct the State | ||
Treasurer and Comptroller to transfer a specified sum not | ||
exceeding 10% of the revenues to be deposited into the Bank | ||
and Trust Company Fund during that fiscal year from that | ||
Fund to the General Revenue Fund in order to help defray | ||
the State's operating costs for the fiscal year. | ||
Notwithstanding provisions in the State Finance Act, as now | ||
or hereafter amended, or any other law to the contrary, the | ||
total sum transferred during any fiscal year through | ||
January 10, 2011, from the Bank and Trust Company Fund to | ||
the General Revenue Fund pursuant to this provision shall | ||
not exceed during any fiscal year 10% of the revenues to be | ||
deposited into the Bank and Trust Company Fund during that | ||
fiscal year. The State Treasurer and Comptroller shall | ||
transfer the amounts designated under this Section as soon | ||
as may be practicable after receiving the direction to | ||
transfer from the Governor.
|
(d-1) Adequate funds shall be available in the Bank and | ||
Trust
Company Fund to permit the timely payment of | ||
administration expenses. In
each fiscal year the total | ||
administration expenses shall be deducted from
the total | ||
fees collected by the Commissioner and the remainder | ||
transferred
into the Cash Flow Reserve Account, unless the | ||
balance of the Cash Flow
Reserve Account prior to the | ||
transfer equals or exceeds
one-fourth of the total initial | ||
appropriations from the Bank and Trust
Company Fund for the | ||
subsequent year, in which case the remainder shall be
| ||
credited to State banks and foreign banking corporations
| ||
and applied against their fees for the subsequent
year. The | ||
amount credited to each State bank and foreign banking | ||
corporation
shall be in the same proportion as the
Call | ||
Report Fees paid by each for the year bear to the total | ||
Call Report
Fees collected for the year. If, after a | ||
transfer to the Cash Flow Reserve
Account is made or if no | ||
remainder is available for transfer, the balance
of the | ||
Cash Flow Reserve Account is less than one-fourth of the | ||
total
initial appropriations for the subsequent year and | ||
the amount transferred
is less than 5% of the total Call | ||
Report Fees for the year, additional
amounts needed to make | ||
the transfer equal to 5% of the total Call Report
Fees for | ||
the year shall be apportioned amongst, assessed upon, and
| ||
paid by the State banks and foreign banking corporations
in | ||
the same proportion that the Call Report Fees of each,
|
respectively, for the year bear to the total Call Report | ||
Fees collected for
the year. The additional amounts | ||
assessed shall be transferred into the
Cash Flow Reserve | ||
Account. For purposes of this paragraph (d-1), the
| ||
calculation of the fees collected by the Commissioner shall | ||
exclude the
receivership fees provided for in Section 5-10 | ||
of the Corporate Fiduciary Act.
| ||
(e) The Commissioner may upon request certify to any | ||
public record
in his keeping and shall have authority to | ||
levy a reasonable charge for
issuing certifications of any | ||
public record in his keeping.
| ||
(f) In addition to fees authorized elsewhere in this | ||
Act, the
Commissioner
may, in connection with a review, | ||
approval, or provision of a service, levy a
reasonable | ||
charge to recover the cost of the review, approval, or | ||
service.
| ||
(4) Nothing contained in this Act shall be construed to | ||
limit the
obligation relative to examinations and reports of | ||
any State bank, deposits
in which are to any extent insured by | ||
the United States or any agency
thereof, nor to limit in any | ||
way the powers of the Commissioner with
reference to | ||
examinations and reports of that bank.
| ||
(5) The nature and condition of the assets in or investment | ||
of any
bonus, pension, or profit sharing plan for officers or | ||
employees of every
State bank or, after May 31, 1997, branch of | ||
an out-of-state bank shall be
deemed to be included in the |
affairs of that State
bank or branch of an out-of-state bank | ||
subject to examination by the
Commissioner under the
provisions | ||
of subsection (2) of this Section, and if the Commissioner
| ||
shall find from an examination that the condition of or | ||
operation
of the investments or assets of the plan is unlawful, | ||
fraudulent, or
unsafe, or that any trustee has abused his | ||
trust, the Commissioner
shall, if the situation so found by the | ||
Commissioner shall not be
corrected to his satisfaction within | ||
60 days after the Commissioner has
given notice to the board of | ||
directors of the State bank or out-of-state
bank of his
| ||
findings, report the facts to the Attorney General who shall | ||
thereupon
institute proceedings against the State bank or | ||
out-of-state bank, the
board of directors
thereof, or the | ||
trustees under such plan as the nature of the case may require.
| ||
(6) The Commissioner shall have the power:
| ||
(a) To promulgate reasonable rules for the purpose of
| ||
administering the provisions of this Act.
| ||
(a-5) To impose conditions on any approval issued by | ||
the Commissioner
if he determines that the conditions are | ||
necessary or appropriate. These
conditions shall be | ||
imposed in writing and shall continue
in effect for the | ||
period prescribed by the Commissioner.
| ||
(b) To issue orders
against any person, if the | ||
Commissioner has
reasonable cause to believe that an unsafe | ||
or unsound banking practice
has occurred, is occurring, or | ||
is about to occur, if any person has violated,
is |
violating, or is about to violate any law, rule, or written
| ||
agreement with the Commissioner, or
for the purpose of | ||
administering the provisions of
this Act and any rule | ||
promulgated in accordance with this Act.
| ||
(b-1) To enter into agreements with a bank establishing | ||
a program to
correct the condition of the bank or its | ||
practices.
| ||
(c) To appoint hearing officers to execute any of the | ||
powers granted to
the Commissioner under this Section for | ||
the purpose of administering this
Act and any rule | ||
promulgated in accordance with this Act
and otherwise to | ||
authorize, in writing, an officer or employee of the Office
| ||
of
Banks and Real Estate to exercise his powers under this | ||
Act.
| ||
(d) To subpoena witnesses, to compel their attendance, | ||
to administer
an oath, to examine any person under oath, | ||
and to require the production of
any relevant books, | ||
papers, accounts, and documents in the course of and
| ||
pursuant to any investigation being conducted, or any | ||
action being taken,
by the Commissioner in respect of any | ||
matter relating to the duties imposed
upon, or the powers | ||
vested in, the Commissioner under the provisions of
this | ||
Act or any rule promulgated in accordance with this Act.
| ||
(e) To conduct hearings.
| ||
(7) Whenever, in the opinion of the Secretary Commissioner , | ||
any director,
officer, employee, or agent of a State bank
or |
any subsidiary or bank holding company of the bank
or, after | ||
May 31, 1997, of any
branch of an out-of-state bank
or any | ||
subsidiary or bank holding company of the bank
shall have | ||
violated any law,
rule, or order relating to that bank
or any | ||
subsidiary or bank holding company of the bank, shall have
| ||
obstructed or impeded any examination or investigation by the | ||
Secretary Commissioner , shall have engaged in an unsafe or
| ||
unsound practice in conducting the business of that bank
or any | ||
subsidiary or bank holding company of the bank,
or shall have
| ||
violated any law or engaged or participated in any unsafe or | ||
unsound practice
in connection with any financial institution | ||
or other business entity such that
the character and fitness of | ||
the director, officer, employee, or agent does not
assure | ||
reasonable promise of safe and sound operation of the State | ||
bank, the
Secretary Commissioner
may issue an order of removal.
| ||
If, in the opinion of the Secretary Commissioner , any former | ||
director, officer,
employee,
or agent of a State bank
or any | ||
subsidiary or bank holding company of the bank, prior to the
| ||
termination of his or her service with
that bank
or any | ||
subsidiary or bank holding company of the bank, violated any | ||
law,
rule, or order relating to that
State bank
or any | ||
subsidiary or bank holding company of the bank, obstructed or | ||
impeded
any examination or investigation by the Secretary | ||
Commissioner , engaged in an unsafe or unsound practice in | ||
conducting the
business of that bank
or any subsidiary or bank | ||
holding company of the bank,
or violated any law or engaged or |
participated in any
unsafe or unsound practice in connection | ||
with any financial institution or
other business entity such | ||
that the character and fitness of the director,
officer, | ||
employee, or agent would not have assured reasonable promise of | ||
safe
and sound operation of the State bank, the Secretary | ||
Commissioner may issue an order
prohibiting that person from
| ||
further
service with a bank
or any subsidiary or bank holding | ||
company of the bank
as a director, officer, employee, or agent. | ||
An order
issued pursuant to this subsection shall be served | ||
upon the
director,
officer, employee, or agent. A copy of the | ||
order shall be sent to each
director of the bank affected by | ||
registered mail. The person affected by
the action may request | ||
a hearing before the State Banking Board within 10
days after | ||
receipt of the order. The hearing shall be held by
the Board | ||
within 30 days after the request has been received by the | ||
Board.
The Board shall make a determination approving, | ||
modifying, or disapproving
the order of the Commissioner as its | ||
final administrative decision. If a
hearing is held by the | ||
Board, the Board shall make its determination within
60 days | ||
from the conclusion of the hearing. Any person affected by a
| ||
decision of the Board under this subsection (7) of Section 48 | ||
of this Act
may have the decision reviewed only under and in | ||
accordance with the
Administrative Review Law and the rules | ||
adopted pursuant thereto. A copy of
the order shall also be | ||
served upon the bank of which he is a director,
officer, | ||
employee, or agent, whereupon he shall cease to be a director,
|
officer, employee, or agent of that bank. The Secretary | ||
Commissioner may
institute a civil action against the director, | ||
officer, or agent of the
State bank or, after May 31, 1997, of | ||
the branch of the out-of-state bank
against whom any order | ||
provided for by this subsection (7) of
this Section 48 has been | ||
issued, and against the State bank or, after May 31,
1997, | ||
out-of-state bank, to enforce
compliance with or to enjoin any | ||
violation of the terms of the order.
Any person who has been | ||
the subject of an order of removal
or
an order of prohibition | ||
issued by the Secretary Commissioner under
this subsection or | ||
Section 5-6 of the Corporate Fiduciary Act may not
thereafter | ||
serve as director, officer, employee, or agent of any State | ||
bank
or of any branch of any out-of-state bank,
or of any | ||
corporate fiduciary, as defined in Section 1-5.05 of the
| ||
Corporate
Fiduciary Act, or of any other entity that is subject | ||
to licensure or
regulation by the Division of Banking | ||
Commissioner or the Office of Banks and Real Estate unless
the | ||
Secretary Commissioner has granted prior approval in writing.
| ||
For purposes of this paragraph (7), "bank holding company" | ||
has the
meaning prescribed in Section 2 of the Illinois Bank | ||
Holding Company Act of
1957.
| ||
(8) The Commissioner may impose civil penalties of up to | ||
$10,000 against
any person for each violation of any provision | ||
of this Act, any rule
promulgated in accordance with this Act, | ||
any order of the Commissioner, or
any other action which in the | ||
Commissioner's discretion is an unsafe or
unsound banking |
practice.
| ||
(9) The Commissioner may impose civil penalties of up to | ||
$100
against any person for the first failure to comply with | ||
reporting
requirements set forth in the report of examination | ||
of the bank and up to
$200 for the second and subsequent | ||
failures to comply with those reporting
requirements.
| ||
(10) All final administrative decisions of the | ||
Commissioner hereunder
shall be subject to judicial review | ||
pursuant to the provisions of the
Administrative Review Law. | ||
For matters involving administrative review,
venue shall be in | ||
either Sangamon County or Cook County.
| ||
(11) The endowment fund for the Illinois Bank Examiners' | ||
Education
Foundation shall be administered as follows:
| ||
(a) (Blank).
| ||
(b) The Foundation is empowered to receive voluntary | ||
contributions,
gifts, grants, bequests, and donations on | ||
behalf of the Illinois Bank
Examiners' Education | ||
Foundation from national banks and other persons for
the | ||
purpose of funding the endowment of the Illinois Bank | ||
Examiners'
Education Foundation.
| ||
(c) The aggregate of all special educational fees | ||
collected by the
Secretary Commissioner and property | ||
received by the Secretary Commissioner on behalf of the
| ||
Illinois Bank Examiners' Education Foundation under this | ||
subsection
(11) on or after June 30, 1986, shall be either | ||
(i) promptly paid after
receipt of the same, accompanied by |
a detailed statement thereof, into the
State Treasury and | ||
shall be set apart in a special fund to be known as "The
| ||
Illinois Bank Examiners' Education Fund" to be invested by | ||
either the
Treasurer of the State of Illinois in the Public | ||
Treasurers' Investment
Pool or in any other investment he | ||
is authorized to make or by the Illinois
State Board of | ||
Investment as the State Banking Board of Illinois board of | ||
trustees of the Illinois Bank
Examiners' Education | ||
Foundation may direct or (ii) deposited into an account
| ||
maintained in a commercial bank or corporate fiduciary in | ||
the name of the
Illinois Bank Examiners' Education | ||
Foundation pursuant to the order and
direction of the Board | ||
of Trustees of the Illinois Bank Examiners' Education
| ||
Foundation.
| ||
(12) (Blank).
| ||
(Source: P.A. 94-91, eff. 7-1-05; 95-1047, eff. 4-6-09.)
| ||
(205 ILCS 5/78) (from Ch. 17, par. 390)
| ||
Sec. 78. Board of banks and trust companies; creation, | ||
members, appointment.
There is created a Board which shall be | ||
known as the State Banking Board of
Illinois which shall | ||
consist of the Director of Banking Commissioner , who shall be | ||
its chairman,
and 11 16 additional members . The Board shall be | ||
comprised of individuals interested in the banking industry. | ||
Two members shall be from State banks having total assets of | ||
not more than $75,000,000 at the time of their appointment; 2 |
members shall be from State banks having total assets of more | ||
than $75,000,000, but not more than $150,000,000 at the time of | ||
their appointment; 2 members shall be from State banks having | ||
total assets of more than $150,000,000, but not more than | ||
$500,000,000 at the time of their appointment; 2 members shall | ||
be from State banks having total assets of more than | ||
$500,000,000, but not more than $2,000,000,000 at the time of | ||
their appointment, and one member shall be from a State bank | ||
having total assets of more than $2,000,000,000 at the time of | ||
his or her appointment. There shall be 2 public members, | ||
neither of whom shall be an officer or director of or owner, | ||
whether directly or indirectly, of more than 5% of the | ||
outstanding capital stock of any bank. divided into 3 classes
| ||
designated Class A members, Class B members, and Class C
| ||
members who are appointed by the Governor by and with the | ||
advice and consent
of the Senate and made up as follows:
| ||
Class A shall consist of 4 persons, none of whom shall be | ||
an officer
or director of or owner, whether direct or indirect, | ||
of more than 5% of the
outstanding capital stock of any bank.
| ||
Class B shall consist of 10 persons who at the time of | ||
their respective
appointments shall have had not less than 10 | ||
years
banking experience. Of the 10
Class B members, 2 shall be | ||
from State banks having total
assets of not more than | ||
$20,000,000 at the time of
their appointment, 2
shall be from | ||
State banks having total assets of more than
$20,000,000 but | ||
not more than $50,000,000 at the time of their
appointment, 2 |
shall be from State banks having total
assets of more than | ||
$50,000,000, but not more than $125,000,000 at the
time of | ||
their appointment, one shall be from a
State bank having total | ||
assets of more than $125,000,000 but not more than
$250,000,000 | ||
at the time of appointment, one shall be from a State bank
| ||
having total assets of more than $250,000,000 but not more than
| ||
$1,000,000,000 at the time of appointment, one shall be from a | ||
State bank
having total assets of more than $1,000,000,000 at | ||
the time of appointment
and one shall be from a foreign banking | ||
corporation certificated pursuant
to the Foreign Banking | ||
Office Act.
| ||
Class C shall consist of 2 persons who shall be at-large | ||
members
representing the banking industry generally.
| ||
(Source: P.A. 91-798, eff. 7-9-00.)
| ||
(205 ILCS 5/79) (from Ch. 17, par. 391)
| ||
Sec. 79. Board, terms of office. The terms of office of the | ||
Class A and Class B members of the State Banking Board of | ||
Illinois shall be 4 years, except that the initial Board | ||
appointments shall be staggered with the Governor initially | ||
appointing, with advice and consent of the Senate, 3 members to | ||
serve 2-year terms, 4 members to serve 3-year terms, and 4 | ||
members to serve 4-year terms. Members shall continue to serve | ||
on the Board until their replacement is appointed and | ||
qualified. Vacancies shall be filled by appointment by the | ||
Governor with advice and consent of the Senate. Board of
Banks |
and Trust Companies who are in office on the effective date of | ||
this
Amendatory Act of 1985 shall expire on December 31, 1985.
| ||
The terms of office of Class A, Class B, and Class C members of
| ||
the State Banking Board shall be
as follows:
| ||
(a) The terms of office of all Class A and Class B members | ||
of the
State Banking Board shall begin on January 1, 1986.
| ||
(b) The persons first appointed as the Class A members of | ||
the State Banking Board
shall have the following terms as | ||
designated by the Governor; one person
for a term of one year, | ||
one person for a term of 2 years, one
person
for a term of 3 | ||
years and one person for a term of 4
years. Thereafter, the | ||
term of office of each Class
A member shall be 4 years, except | ||
that an appointment to fill a vacancy
shall be for the | ||
unexpired term of the member whose term is being filled.
| ||
(c) The persons first appointed as Class B members of the | ||
State Banking Board shall
have the following terms as | ||
designated by the Governor; one member for a
term of one year, | ||
3 members for a term of 2 years,
3 members for
a term of 3 | ||
years, and 3 members for a term of 4 years.
Thereafter, the | ||
term of office of each Class B
member shall be 4 years, except | ||
that an appointment to fill a vacancy
shall be for the | ||
unexpired term of the member whose term is being filled.
| ||
(c-5) The initial term of office of each Class C member of | ||
the State
Banking Board appointed pursuant to this amendatory | ||
Act of the 91st General
Assembly shall expire on January 1, | ||
2004. Thereafter, the term of office of
each Class C member |
shall be 4 years, except that an appointment to fill a
vacancy | ||
shall be for the unexpired term of the member whose term is | ||
being
filled.
| ||
(d) No Class A, Class B, or Class C State Banking Board
| ||
member shall serve
more than 2 full 4-year terms of office.
| ||
(e) The term of office of a State Banking Board member | ||
shall terminate
automatically when the member no longer meets | ||
the qualifications for the
member's appointment to the Board | ||
provided that an increase or decrease in the
asset size of the | ||
member's bank during the member's term of office on the State
| ||
Banking Board shall not result in the termination of the | ||
member's term of
office.
| ||
(Source: P.A. 90-301, eff. 8-1-97; 91-798, eff. 7-9-00.)
| ||
(205 ILCS 5/80) (from Ch. 17, par. 392)
| ||
Sec. 80. Board; powers. The Board shall have the following | ||
powers in
addition to any others that may be granted to it by | ||
law:
| ||
(a) (Blank). To make, alter, and amend rules and | ||
regulations proposed for
adoption by the Commissioner with | ||
respect to the following matters:
| ||
(i) The scope and nature of showings to be furnished | ||
and evidence to
be presented in connection with the | ||
granting of charters of new banks,
and in connection with | ||
the approval by the Commissioner of mergers,
conversions, | ||
consolidations and changes of location, and the forms upon
|
which any of such showings may be made.
| ||
(ii) The steps to be taken and the showings to be | ||
furnished in
connection with voluntary dissolutions under | ||
Sections 68 to 74,
inclusive, of this Act, and the forms | ||
upon which such showing are to be
made.
| ||
(iii) The form, content and nature of the reports to be | ||
furnished to
the Commissioner under Section 47 of this Act, | ||
and the definition of the
scope of examinations and the | ||
data to be furnished in connection with
examinations by the | ||
Commissioner under subsection (2)
and subsection (5) of | ||
Section 48 of this Act.
| ||
(b) To review, consider , and make recommendations to the | ||
Director of Banking Commissioner
upon any banking matters.
| ||
(c) (Blank). To require the Commissioner to report | ||
periodically to the Board
on any banking matters, including the | ||
following:
| ||
(i) Data with respect to banks whose condition or | ||
practices are
being critically considered or reviewed by | ||
the Commissioner pursuant to
Section 51 of this Act, and | ||
data with respect to banks to which any
notice has been | ||
given by the Commissioner pursuant to said Section 51;
and
| ||
(ii) The extent and nature of all disciplinary action | ||
taken by the
Commissioner against any bank or any officer | ||
or director thereof, and
information with respect to the | ||
manner or extent of the remedial action,
if any, taken by | ||
the criticized bank or director or officer; and
|
(iii) The extent and nature of all action taken by the | ||
Commissioner
under or pursuant to Section 52 of this Act; | ||
and
| ||
(iv) The extent and nature of all action taken by the | ||
Commissioner
under or pursuant to Section 31 of this Act.
| ||
(d) (Blank). To require the Commissioner to furnish the | ||
Board reports in
respect of the granting or of the denial of | ||
new charters, mergers,
changes of location, conversions or | ||
consolidations, including the
findings made and the basis for | ||
the action taken by the Commissioner in
connection therewith.
| ||
(e) To review, consider , and submit to the Director of | ||
Banking Commissioner and to the
Governor proposals for | ||
amendments to this Act or for changes in or
additions to the | ||
administration thereof which in the opinion of the
Board are | ||
necessary or desirable in order to assure the safe and sound
| ||
conduct of the banking business.
| ||
(f) To require the Secretary Commissioner to furnish the | ||
Board space for
meetings to be held by the Board as well as to | ||
require the Secretary Commissioner
to provide such clerical and | ||
technical assistance as the Board may
require.
| ||
(g) To adopt its own by-laws with respect to Board meetings | ||
and
procedures. Such by-laws shall provide that:
| ||
(i) A majority of the whole Board constitutes a quorum.
| ||
(ii) A majority of the quorum shall constitute | ||
effective action
except that a vote of a majority of the | ||
whole Board shall be necessary
for the approval of rules |
and regulations proposed for adoption by the
Commissioner | ||
under Section 80(a), (i), (ii) and (iii) of this Act and
| ||
shall be necessary for recommendations made to the Director | ||
of Banking Commissioner and to
the Governor with regard to | ||
proposed amendments to this Act or to the
administrative | ||
practices hereunder.
| ||
(iii) The Board shall meet at least once in each | ||
calendar year and upon
the call of the Director of Banking | ||
Commissioner or a majority of the Board. The
Director of | ||
Banking Commissioner or a majority of the Board may call | ||
such special or additional
meetings as may be deemed | ||
necessary or desirable.
| ||
(h) (Blank). To make rules to regulate the method of | ||
selecting candidates for
consideration by the Governor to fill | ||
a vacancy in the Office of the
Commissioner and the deputy | ||
commissioners.
| ||
(i) (Blank). To make rules to regulate the method of | ||
selecting candidates for
consideration by the Governor to fill | ||
a vacancy in the office of any of
the 10 Class B members of the | ||
Board.
| ||
(j) (Blank). To make rules to regulate the conduct of | ||
hearings under subsection
(7) of Section 48 of this Act.
| ||
(k) (Blank). To subpoena witnesses, to compel their | ||
attendance, to administer an
oath, to examine any person under | ||
oath and to require the production of any
relevant books, | ||
papers, accounts and documents in the course of and
pursuant to |
any hearing being conducted under subsection (7) of
Section 48 | ||
of this Act.
| ||
(l) (Blank). To appoint hearing officers to conduct | ||
hearings under subsection (7)
of Section 48 of this Act.
| ||
(m) To authorize the transfer of funds from the Illinois | ||
Bank Examiners' Education Fund to the Bank and Trust Company | ||
Fund. Any amount transferred shall be retransferred to the | ||
Illinois Bank Examiners' Education Fund from the Bank and Trust | ||
Company Fund within 3 years. | ||
(n) To maintain and direct the investments of the Illinois | ||
Bank Examiners' Education Fund. | ||
(o) To evaluate various courses, programs, curricula, and | ||
schools of continuing education and professional training that | ||
are available from within the United States for State banking | ||
department examination personnel and develop a program known as | ||
the Illinois Bank Examiners' Education Program. The Board shall | ||
determine which courses, programs, curricula, and schools will | ||
be included in the Program to be funded by the Foundation. | ||
(Source: P.A. 89-508, eff. 7-3-96.)
| ||
(205 ILCS 5/82) (from Ch. 17, par. 394)
| ||
Sec. 82. Commissioner, board; civil liability. Neither the | ||
Secretary, Director of Banking, Commissioner, any deputy | ||
commissioner, any member of the
Board of Banks and Trust | ||
Companies, any member of the State Banking Board
of Illinois, | ||
nor any examiner, assistant examiner or
other employee of the |
Division of Banking Commissioner's office shall be subject to | ||
any civil
liability or penalty, whether for damages or | ||
otherwise, on account of or
for any action taken or omitted to | ||
be taken in their respective official
capacities, except when | ||
such acts or omissions to act are corrupt or
malicious or | ||
unless such action is taken or omitted to be taken not in good
| ||
faith and without reasonable grounds.
| ||
(Source: P.A. 85-204.)
| ||
Section 15. The Illinois Bank Holding Company Act of 1957 | ||
is amended by changing Sections 2 and 3.074 as follows:
| ||
(205 ILCS 10/2) (from Ch. 17, par. 2502)
| ||
Sec. 2. Unless the context requires otherwise:
| ||
(a) "Bank" means any national banking association or any | ||
bank, banking
association or savings bank, whether organized | ||
under the laws of Illinois,
another state, the United States, | ||
the District of Columbia, any territory of
the United States, | ||
Puerto Rico, Guam, American Samoa or the Virgin Islands,
which | ||
(1) accepts deposits that the depositor has a legal right to | ||
withdraw on
demand by check or other negotiable order and (2) | ||
engages in the business of
making commercial loans. "Bank" does | ||
not include any organization operating
under Sections 25 or 25 | ||
(a) of the Federal Reserve Act, or any organization
which does | ||
not do business within the United States except as an incident | ||
to
its activities outside the United States or any foreign |
bank.
| ||
(b) "Bank holding company" means any company that controls | ||
or has control
over any bank or over any company that is or | ||
becomes a bank holding company by
virtue of this Act.
| ||
(c) "Banking office" means the principal office of a bank, | ||
any branch
of a bank, or any other office at which a bank | ||
accepts deposits, provided,
however, that "banking office" | ||
shall not mean:
| ||
(1) unmanned automatic teller machines, point of sale | ||
terminals or other
similar unmanned electronic banking | ||
facilities at which deposits may be
accepted; or
| ||
(2) offices located outside the United States.
| ||
(d) "Cause to be chartered", with respect to a specified | ||
bank, means the
acquisition of control of such bank prior to | ||
the time it commences to
engage in the banking business.
| ||
(e) "Commissioner" means the Commissioner of Banks and Real | ||
Estate
or a person authorized by the Commissioner, the Office | ||
of Banks and Real Estate
Act, or this Act to act in the | ||
Commissioner's stead , except that beginning on the effective | ||
date of this amendatory Act of the 96th General Assembly, all | ||
references in this Act to the Commissioner of Banks and Real | ||
Estate are deemed, in appropriate contexts, to be references to | ||
the Secretary of Financial and Professional Regulation .
| ||
(f) "Community" means the contiguous area served by the | ||
banking offices
of a bank, but need not be limited or expanded | ||
to conform to the geographic
boundaries of units of local |
government.
| ||
(g) "Company" means any corporation, business trust, | ||
voting trust,
association, partnership, joint venture, similar | ||
organization or any other
trust unless by its terms it must | ||
terminate within 25 years or not later
than 21 years and 10 | ||
months after the death of individuals living on the
effective | ||
date of the trust, but shall not include (1) an individual or | ||
(2)
any corporation the majority of the shares of which are | ||
owned by the United
States or by any state or any corporation | ||
or community chest fund,
organized and operated exclusively for | ||
religious, charitable, scientific,
literary or educational | ||
purposes, no part of the net earnings of which
inure to the | ||
benefit of any private shareholder or individual and no
| ||
substantial part of the activities of which is carrying on | ||
propaganda or
otherwise attempting to influence legislation.
| ||
(h) A company "controls or has control over" a bank or | ||
company if (1) it
directly or indirectly owns or controls or | ||
has the power to vote, 25% or
more of the voting shares of any | ||
class of voting securities of such bank or
company or (2) it | ||
controls in any manner the election of a majority of the
| ||
directors or trustees of such bank or company or (3) a trustee | ||
holds for
the benefit of its shareholders, members or | ||
employees, 25% or more of the
voting shares of such bank or | ||
company or (4) it directly or indirectly
exercises a | ||
controlling influence over the management or policies of such
| ||
bank or company that is a bank holding company and the Board of |
Governors
of the Federal Reserve System has so determined under | ||
the federal Bank
Holding Company Act. In determining whether | ||
any company controls or has
control over a bank or company: (i) | ||
shares owned or controlled by any
subsidiary of a company shall | ||
be deemed to be indirectly owned or
controlled by such company; | ||
(ii) shares held or controlled, directly or
indirectly, by a | ||
trustee or trustees for the benefit of a company, the
| ||
shareholders or members of a company or the employees (whether | ||
exclusively
or not) of a company, shall be deemed to be | ||
controlled by such company; and
(iii) shares transferred, | ||
directly or indirectly, by any bank holding
company (or by any | ||
company which, but for such transfer, would be a bank
holding | ||
company) to any transferee that is indebted
to the transferor | ||
or that has one or more officers, directors, trustees or
| ||
beneficiaries in common with or subject to control by the | ||
transferor, shall
be deemed to be indirectly owned or | ||
controlled by the transferor unless
the Board of Governors of | ||
the Federal Reserve System has determined, under
the federal | ||
Bank Holding Company Act, that the transferor is not in fact
| ||
capable of controlling the transferee. Notwithstanding the | ||
foregoing, no
company shall be deemed to have control of or | ||
over a bank or bank holding
company (A) by virtue of its | ||
ownership or control of shares in a fiduciary
capacity arising | ||
in the ordinary course of its business; (B) by virtue of
its | ||
ownership or control of shares acquired by it in connection | ||
with its
underwriting of securities which are held only for |
such period of time as
will permit the sale thereof upon a | ||
reasonable basis; (C) by virtue of its
holding any shares as | ||
collateral taken in the ordinary course of securing a
debt or | ||
other obligation; (D) by virtue of its ownership or control of | ||
shares
acquired in the ordinary course of collecting a debt or | ||
other obligation
previously contracted in good faith, until 5 | ||
years after the date acquired; or
(E) by virtue of its voting | ||
rights with respect to shares of any bank or bank
holding | ||
company acquired in the course of a proxy solicitation in the | ||
case of a
company formed and operated for the sole purpose of | ||
participating in a proxy
solicitation.
| ||
(h-5) "Division of Banking" means the Division of Banking | ||
of the Department of Financial and Professional Regulation.
| ||
(i) "Federal Bank Holding Company Act" means the federal | ||
Bank Holding
Company Act of 1956, as now or hereafter amended.
| ||
(j) "Foreign bank" means any company organized under the | ||
laws of a
foreign country which engages in the business of | ||
banking or any subsidiary
or affiliate of any such company, | ||
organized under such laws. "Foreign
bank" includes, without | ||
limitation, foreign merchant banks and other
foreign | ||
institutions that engage in banking activities usual in | ||
connection
with the business of banking in the countries where | ||
such foreign
institutions are organized or operating.
| ||
(k) "Home state" means the home state of a foreign bank as | ||
determined
pursuant to the federal International Banking Act of | ||
1978.
|
(l) "Illinois bank" means a bank:
| ||
(1) that is organized under the laws of this State or | ||
of the United States; and
| ||
(2) whose main banking premises is located in Illinois.
| ||
(m) "Illinois bank holding company" means a bank holding | ||
company:
| ||
(1) whose principal place of business is Illinois; and
| ||
(2) that is not directly or indirectly controlled by | ||
another bank
holding company whose principal place of | ||
business is a state other than
Illinois or by a foreign | ||
bank whose Home State is a state other than Illinois.
| ||
An out of state bank holding company that acquires
control | ||
of one or more
Illinois banks or Illinois bank holding | ||
companies pursuant to Sections
3.061 or 3.071 shall not be | ||
deemed an Illinois bank holding company.
| ||
(n) "Main banking premises" means the location that is | ||
designated in a
bank's charter as its main office and that is | ||
within the state in which the
total deposits held by all of the | ||
banking offices of such bank are the
largest, as shown in the | ||
most recent reports of condition or similar
reports filed by | ||
such bank with state or federal regulatory authorities.
| ||
(o) "Out of state bank" means a bank:
| ||
(1) that is not an Illinois bank; and
| ||
(2) whose main banking premises is located in a state | ||
other
than Illinois.
| ||
(p) "Out of state bank holding company" means a
bank |
holding company:
| ||
(1) that is not an Illinois bank holding company;
| ||
(2) whose principal place of business is a state other
| ||
than Illinois the laws of which expressly authorize the | ||
acquisition by an
Illinois bank holding company of a bank | ||
or bank holding company in that
state under qualifications | ||
and conditions which are not unduly restrictive,
as | ||
determined by the Secretary Commissioner , when compared to | ||
those imposed by the
laws of Illinois.
| ||
(q) "Principal place of business" means,
with respect to a | ||
bank holding company, the state in which the total
deposits | ||
held by all of the banking offices of all of the bank | ||
subsidiaries
of such bank holding company are the largest, as | ||
shown in the most recent
reports of condition or similar | ||
reports filed by the bank holding company's
bank subsidiaries | ||
with state or federal regulatory authorities. | ||
(q-5) "Secretary" means the Secretary of Financial and | ||
Professional Regulation, or a person authorized by the | ||
Secretary or by this Act to act in the Secretary's stead.
| ||
(r) "State" or "states" when used in this Act means any | ||
State of the
United States, the District of Columbia, any | ||
territory of the United
States, Puerto Rico, Guam, American | ||
Samoa or the Virgin Islands.
| ||
(s) "Subsidiary", with respect to a specified bank holding | ||
company,
means any bank or company controlled by such bank | ||
holding company.
|
(Source: P.A. 89-508, eff. 7-3-96.)
| ||
(205 ILCS 10/3.074) (from Ch. 17, par. 2510.04)
| ||
Sec. 3.074. Powers; administrative review.
| ||
(a) The Secretary Commissioner shall have the power and | ||
authority:
| ||
(1) to promulgate reasonable procedural rules for the | ||
purposes
of
administering the provisions of this Act. The | ||
Secretary Commissioner shall specify
the form of any | ||
application, report or document that is required to be
| ||
filed with the Secretary Commissioner pursuant to this Act;
| ||
(2) to issue orders for the purpose of administering | ||
the
provisions of
this Act and any rule promulgated in | ||
accordance with this Act;
| ||
(3) to appoint hearing officers to execute any of the | ||
powers
granted to
the Secretary Commissioner under this | ||
Section for the purpose of administering this
Act or any | ||
rule promulgated in accordance with this Act; and
| ||
(4) to subpoena witnesses, to compel their attendance, | ||
to
administer an
oath, to examine any person under oath and | ||
to require the production of any
relevant books, papers, | ||
accounts and documents in the course of and
pursuant to any | ||
investigation or hearing being conducted or any action
| ||
being taken by the Secretary Commissioner in respect to any | ||
matter relating to the
duties imposed upon or the powers | ||
vested in the Secretary Commissioner under the
provisions |
of this Act or any rule promulgated in accordance with this
| ||
Act.
| ||
(b) Whenever, in the opinion of the Secretary Commissioner , | ||
any
director,
officer, employee, or agent of any bank holding | ||
company or subsidiary or
affiliate of
that company shall have | ||
violated any law, rule, or order relating to that bank
holding | ||
company or subsidiary or affiliate of that company, shall have
| ||
obstructed or
impeded any examination or investigation by the | ||
Secretary Commissioner , shall have
engaged in an unsafe or | ||
unsound practice in conducting the business
of that bank | ||
holding company or subsidiary or affiliate of that company, or
| ||
shall have
violated any law or engaged or participated in any | ||
unsafe or unsound
practice in connection with any financial | ||
institution or other business
entity such that the character | ||
and fitness of the director, officer,
employee, or agent does | ||
not assure reasonable promise of safe and sound
operation of | ||
the bank holding company, the
Secretary Commissioner may issue | ||
an order of removal. If, in the opinion of the Secretary
| ||
Commissioner , any former director, officer, employee, or agent | ||
of a bank
holding company or subsidiary or affiliate of that | ||
company, prior to the
termination of his or her service with | ||
that holding company or subsidiary or
affiliate of that | ||
company, violated any law, rule, or order relating to that
bank | ||
holding company or subsidiary or affiliate of that company, | ||
obstructed
or impeded any examination or investigation by the | ||
Secretary Commissioner , engaged
in an unsafe or unsound |
practice in conducting the business of that bank
holding
| ||
company or subsidiary or affiliate of that company, or violated | ||
any law or
engaged
or participated in any unsafe or unsound | ||
practice in connection with any
financial institution or other | ||
business entity such that the character
and fitness of the | ||
director, officer, employee, or agent would not have
assured | ||
reasonable promise of safe and sound operation of the bank
| ||
holding company, the Secretary Commissioner may issue an order | ||
prohibiting that
person from further service with a bank | ||
holding company or subsidiary or
affiliate of that company as a | ||
director, officer, employee, or agent.
| ||
An order
issued
pursuant to this subsection shall be served | ||
upon the director, officer,
employee, or agent. A copy of the | ||
order shall be sent to each director of
the bank holding | ||
company affected by registered mail. The person affected
by the | ||
action may request a hearing before the State Banking Board | ||
within
10 days after receipt of the order. The hearing shall be | ||
held by the State
Banking Board within 30 days after the | ||
request has been received by the State
Banking
Board. The State | ||
Banking Board shall make a determination approving,
modifying, | ||
or
disapproving the order of the Commissioner as its final | ||
administrative
decision.
If a hearing is held by the State | ||
Banking Board, the State Banking Board shall
make its | ||
determination
within 60 days from the conclusion of the | ||
hearing. Any person affected by a
decision of the State Banking | ||
Board under this subsection
may have the decision reviewed only |
under and in accordance with the
Administrative
Review Law and | ||
the rules adopted pursuant thereto. A copy of the order
shall | ||
also be served upon the bank holding company of which he is a | ||
director,
officer,
employee, or agent, whereupon he shall cease | ||
to be a director, officer,
employee, or agent of that bank | ||
holding company.
| ||
The Secretary Commissioner may
institute a
civil action | ||
against the director, officer, employee, or agent of the bank
| ||
holding
company, against whom
any order provided for by this | ||
subsection has been
issued, to enforce compliance with or to | ||
enjoin any violation of the terms
of the order.
| ||
Any person who has been the subject of an order of removal
| ||
or an order of prohibition issued by the Secretary Commissioner | ||
under this subsection,
subdivision (7) of Section 48 of the | ||
Illinois Banking Act, or
Section 5-6 of the Corporate Fiduciary | ||
Act may not thereafter serve as
director, officer, employee, or | ||
agent of any holding company, State bank, or
branch
of any | ||
out-of-state bank, of any corporate fiduciary, as defined in
| ||
Section 1-5.05 of the Corporate Fiduciary Act, or of any other | ||
entity
that is subject to licensure or regulation by the | ||
Division of Banking Commissioner or the
Office of Banks and | ||
Real Estate unless the Secretary Commissioner has granted
prior | ||
approval in writing.
| ||
(c) All final administrative decisions of the Secretary
| ||
Commissioner under
this
Act shall be subject to judicial review | ||
pursuant to provisions of the
Administrative Review Law. For |
matters involving administrative review,
venue shall be in | ||
either Sangamon County or Cook County.
| ||
(Source: P.A. 92-483, eff. 8-23-01.)
| ||
Section 20. The Corporate Fiduciary Act is amended by | ||
changing Sections 1-5.03, 5-6, and 5-8 and by adding Sections | ||
1-5.07a and 1-5.09a as follows:
| ||
(205 ILCS 620/1-5.03) (from Ch. 17, par. 1551-5.03)
| ||
Sec. 1-5.03.
"Commissioner" means the Commissioner of | ||
Banks and Real
Estate or a person authorized by the | ||
Commissioner, the Office of Banks and Real
Estate Act, or this | ||
Act to act in the Commissioner's stead , except that beginning | ||
on the effective date of this amendatory Act of the 96th | ||
General Assembly, all references in this Act to the | ||
Commissioner of Banks and Real Estate are deemed, in | ||
appropriate contexts, to be references to the Secretary of | ||
Financial and Professional Regulation .
| ||
(Source: P.A. 89-508, eff. 7-3-96.)
| ||
(205 ILCS 620/1-5.07a new) | ||
Sec. 1-5.07a. Division of Banking. "Division of Banking" | ||
means the Division of Banking of the Department of Financial | ||
and Professional Regulation. | ||
(205 ILCS 620/1-5.09a new) |
Sec. 1-5.09a. Secretary. "Secretary" means the Secretary | ||
of Financial and Professional Regulation, or a person | ||
authorized by the Secretary or by this Act to act in the | ||
Secretary's stead.
| ||
(205 ILCS 620/5-6) (from Ch. 17, par. 1555-6)
| ||
Sec. 5-6. Removal orders. Whenever, in the opinion of the | ||
Secretary Commissioner ,
any director, officer, employee, or | ||
agent of a corporate fiduciary
or subsidiary or corporate | ||
parent of the corporate fiduciary
shall have violated any law, | ||
rule, or order relating to the corporate
fiduciary
or | ||
subsidiary or corporate parent of the corporate fiduciary, | ||
shall have
engaged in an unsafe or unsound practice in | ||
conducting
the
business of the corporate fiduciary
or | ||
subsidiary or corporate parent of the corporate fiduciary, or | ||
shall
have violated any law or
engaged or participated in any | ||
unsafe or unsound practice in connection with
any financial | ||
institution or other business entity such that the character | ||
and
fitness of the director, officer, employee, or agent does | ||
not assure reasonable
promise of safe and sound operation of | ||
the corporate fiduciary
or subsidiary or corporate parent of | ||
the corporate fiduciary, the Secretary
Commissioner may issue | ||
an order of
removal.
If in the opinion of the Secretary | ||
Commissioner , any former director, officer,
employee, or agent | ||
of a corporate fiduciary
or subsidiary or corporate parent of | ||
the corporate fiduciary, prior to the
termination of his
or her |
service with the corporate fiduciary
or subsidiary or corporate | ||
parent of the corporate fiduciary, violated any
law, rule, or | ||
order
relating to the corporate fiduciary
or subsidiary or | ||
corporate parent of the corporate fiduciary
or engaged in an | ||
unsafe or unsound practice
in conducting the business of the | ||
corporate fiduciary
or subsidiary or corporate parent of the | ||
corporate fiduciary
or violated any law or
engaged or | ||
participated in any unsafe or unsound practice in connection | ||
with
any financial institution or other business entity such | ||
that the character and
fitness of the director, officer, | ||
employee, or agent would not have assured
reasonable promise of | ||
safe and sound operation of the corporate fiduciary
or | ||
subsidiary or corporate parent of the corporate fiduciary,
the
| ||
Secretary Commissioner may issue
an order prohibiting that | ||
person from further service with a corporate
fiduciary
or | ||
subsidiary or corporate parent of the corporate fiduciary
as a | ||
director, officer, employee, or agent. An order issued pursuant
| ||
to this Section shall be served upon the
director, officer, | ||
employee, or
agent. A copy of the order shall be sent to each | ||
director of the corporate
fiduciary
affected by personal | ||
service, certified mail return receipt
requested, or any other | ||
method that provides proof of service and receipt. The
person | ||
affected by the action may request a hearing before the
State | ||
Banking Board of Illinois, hereafter "the Board", within 10 | ||
days after
receipt of the order of removal or prohibition. The | ||
hearing shall be held
by the Board
according to the same |
procedures used pursuant to Section 48 of the Illinois
Banking | ||
Act, and the hearing shall be held within 30 days after the | ||
request has
been received by the Board. After concluding the | ||
hearing, the Board shall make
a determination approving, | ||
modifying, or disapproving the order of the
Commissioner as its | ||
final administrative decision. A copy of the order shall
be | ||
served upon the corporate fiduciary
of which the person is a
| ||
director, officer, employee, or agent, whereupon the person | ||
shall cease to be a
director,
officer, employee, or agent of | ||
the corporate fiduciary. Any person who has
been removed or | ||
prohibited by an order of the Secretary Commissioner under this
| ||
Section or subsection
(7) of Section 48 of the Illinois Banking | ||
Act may not thereafter serve as
director, officer, employee, or | ||
agent of any State bank or corporate fiduciary,
or of any other | ||
entity that is subject to licensure or regulation by the | ||
Division of Banking
Commissioner or the Office of Banks and | ||
Real Estate unless the Secretary Commissioner
has granted prior | ||
approval in writing. The Secretary Commissioner may institute a | ||
civil
action against the
director,
officer, employee, or agent | ||
subject to an order issued under this Section and
against the | ||
corporate fiduciary
to enforce compliance with or to enjoin any
| ||
violation of the terms of the order.
| ||
(Source: P.A. 92-483, eff. 8-23-01.)
| ||
(205 ILCS 620/5-8) (from Ch. 17, par. 1555-8)
| ||
Sec. 5-8.
All final administrative decisions of the
|
Secretary Commissioner, or of the State Banking Board of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Illinois where
this Act provides a hearing before such Board to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
review a
decision of the Commissioner, shall be subject to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
review pursuant
to the provisions of the Administrative Review | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Law, as now or
hereafter amended, and the rules adopted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
pursuant thereto.
For matters involving administrative review, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
venue shall be in either
Sangamon County or Cook County.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Source: P.A. 86-754.)
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