Public Act 096-1365
 
SB2996 EnrolledLRB096 16388 MJR 31653 b

    AN ACT concerning financial regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Office of Banks and Real Estate Act is
amended by changing Sections 0.1, 0.2, and 5 as follows:
 
    (20 ILCS 3205/0.1)
    Sec. 0.1. Short title. This Act may be cited as the
Division of Banking Office of Banks and Real Estate Act.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (20 ILCS 3205/0.2)
    Sec. 0.2. Definitions. For the purposes of this Act, unless
the context otherwise requires:
    "Commissioner" means the Secretary of Financial and
Professional Regulation Commissioner of Banks and Real Estate,
or a person authorized by the Secretary Commissioner , the
Division of Banking Act, or by this Act to act in the
Secretary's Commissioner's stead.
    "Division" means the Division of Banking within the
Department of Financial and Professional Regulation.
    "Office" means the Division of Banking within the
Department of Financial and Professional Regulation Office of
Banks and Real Estate.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (20 ILCS 3205/5)  (from Ch. 17, par. 455)
    Sec. 5. Powers. In addition to all the other powers and
duties provided by law, the Commissioner shall have the
following powers:
    (a) To exercise the rights, powers and duties formerly
vested by law in the Director of Financial Institutions under
the Illinois Banking Act.
    (b) To exercise the rights, powers and duties formerly
vested by law in the Department of Financial Institutions under
"An act to provide for and regulate the administration of
trusts by trust companies", approved June 15, 1887, as amended.
    (c) To exercise the rights, powers and duties formerly
vested by law in the Director of Financial Institutions under
"An act authorizing foreign corporations, including banks and
national banking associations domiciled in other states, to act
in a fiduciary capacity in this state upon certain conditions
herein set forth", approved July 13, 1953, as amended.
    (c-5) To exercise all of the rights, powers, and duties
granted to the Director or Secretary under the Illinois Banking
Act, the Corporate Fiduciary Act, the Electronic Fund Transfer
Act, the Illinois Bank Holding Company Act of 1957, the Savings
Bank Act, the Illinois Savings and Loan Act of 1985, the
Savings and Loan Share and Account Act, the Residential
Mortgage License Act of 1987, and the Pawnbroker Regulation
Act.
    (d) Whenever the Commissioner is authorized or required by
law to consider or to make findings regarding the character of
incorporators, directors, management personnel, or other
relevant individuals under the Illinois Banking Act, the
Corporate Fiduciary Act, the Pawnbroker Regulation Act, or at
other times as the Commissioner deems necessary for the purpose
of carrying out the Commissioner's statutory powers and
responsibilities, the Commissioner shall consider criminal
history record information, including nonconviction
information, pursuant to the Criminal Identification Act. The
Commissioner shall, in the form and manner required by the
Department of State Police and the Federal Bureau of
Investigation, cause to be conducted a criminal history record
investigation to obtain information currently contained in the
files of the Department of State Police or the Federal Bureau
of Investigation, provided that the Commissioner need not cause
additional criminal history record investigations to be
conducted on individuals for whom the Commissioner, a federal
bank regulatory agency, or any other government agency has
caused such investigations to have been conducted previously
unless such additional investigations are otherwise required
by law or unless the Commissioner deems such additional
investigations to be necessary for the purposes of carrying out
the Commissioner's statutory powers and responsibilities. The
Department of State Police shall provide, on the Commissioner's
request, information concerning criminal charges and their
disposition currently on file with respect to a relevant
individual. Information obtained as a result of an
investigation under this Section shall be used in determining
eligibility to be an incorporator, director, management
personnel, or other relevant individual in relation to a
financial institution or other entity supervised by the
Commissioner. Upon request and payment of fees in conformance
with the requirements of Section 2605-400 of the Department of
State Police Law (20 ILCS 2605/2605-400), the Department of
State Police is authorized to furnish, pursuant to positive
identification, such information contained in State files as is
necessary to fulfill the request.
    (e) When issuing charters, permits, licenses, or other
authorizations, the Commissioner may impose such terms and
conditions on the issuance as he deems necessary or
appropriate. Failure to abide by those terms and conditions may
result in the revocation of the issuance, the imposition of
corrective orders, or the imposition of civil money penalties.
    (f) If the Commissioner has reasonable cause to believe
that any entity that has not submitted an application for
authorization or licensure is conducting any activity that
would otherwise require authorization or licensure by the
Commissioner, the Commissioner shall have the power to subpoena
witnesses, to compel their attendance, and to require the
production of any relevant books, papers, accounts, and
documents, and to conduct an examination of the entity in order
to determine whether the entity is subject to authorization or
licensure by the Commissioner or the Division Office of Banks
and Real Estate. If the Secretary determines that the entity is
subject to authorization or licensure by the Secretary, then
the Secretary shall have the power to issue orders against or
take any other action, including initiating a receivership
against the unauthorized or unlicensed entity.
    (g) The Commissioner may, through the Attorney General,
request the circuit court of any county to issue an injunction
to restrain any person from violating the provisions of any Act
administered by the Commissioner.
    (h) Whenever the Commissioner is authorized to take any
action or required by law to consider or make findings, the
Commissioner may delegate or appoint, in writing, an officer or
employee of the Division Office of Banks and Real Estate to
take that action or make that finding.
    (i) Whenever the Secretary determines that it is in the
public's interest, he or she may publish any cease and desist
order or other enforcement action issued by the Division.
(Source: P.A. 91-239, eff. 1-1-00; 92-483, eff. 8-23-01.)
 
    Section 7. The Illinois Bank Examiners' Education
Foundation Act is amended by changing Sections 3.01, 4, and 5
as follows:
 
    (20 ILCS 3210/3.01)  (from Ch. 17, par. 403.1)
    Sec. 3.01. "Board" means the State Banking Board of
Illinois as established under the provisions of the Illinois
Banking Act Board of Trustees of the Illinois Bank Examiners'
Education Foundation created by this Act.
(Source: P.A. 84-1127.)
 
    (20 ILCS 3210/4)  (from Ch. 17, par. 404)
    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 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 administering its official duties under this Act. 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.
(Source: P.A. 84-1127.)
 
    (20 ILCS 3210/5)  (from Ch. 17, par. 405)
    Sec. 5. The Foundation shall be governed by the a Board of
Trustees. The Board shall consist of the following trustees:
the Commissioner, who shall be its chairman; one Class A member
and three Class B members from the State Banking Board of
Illinois, appointed by the Governor.
    For carrying out their official duties under this Act, the
Board members 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 reimbursed for all reasonable and necessary
expenditures incurred in the performance of said their official
duties.
(Source: P.A. 84-1127.)
 
    Section 10. The Illinois Bank Examiners' Education
Foundation Act is amended by changing Section 3.02 and by
adding Section 3.025 as follows:
 
    (20 ILCS 3210/3.02)  (from Ch. 17, par. 403.2)
    Sec. 3.02. "Commissioner" means the Secretary of Financial
and Professional Regulation Commissioner of Banks and Real
Estate or a person authorized by the Secretary Commissioner,
the Division of Banking Office of Banks and Real Estate Act, or
this Act to act in the Secretary's Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (20 ILCS 3210/3.025 new)
    Sec. 3.025. Division. "Division" means the Division of
Banking within the Department of Financial and Professional
Regulation.
 
    Section 15. The Illinois Banking Act is amended by changing
Sections 13, 32, 40, 48, 51, and 52 as follows:
 
    (205 ILCS 5/13)  (from Ch. 17, par. 320)
    Sec. 13. Issuance of charter.
    (a) When the directors have organized as provided in
Section 12 of this Act, and the capital stock and the preferred
stock, if any, together with a surplus of not less than 50% of
the capital, has been all fully paid in and a record of the
same filed with the Commissioner, the Commissioner or some
competent person of the Commissioner's appointment shall make a
thorough examination into the affairs of the proposed bank, and
if satisfied (i) that all the requirements of this Act have
been complied with, (ii) that no intervening circumstance has
occurred to change the Commissioner's findings made pursuant to
Section 10 of this Act, and (iii) that the prior involvement by
any stockholder who will own a sufficient amount of stock to
have control, as defined in Section 18 of this Act, of the
proposed bank with any other financial institution, whether as
stockholder, director, officer, or customer, was conducted in a
safe and sound manner, upon payment into the Commissioner's
office of the reasonable expenses of the examination, as
determined by the Commissioner, the Commissioner shall issue a
charter authorizing the bank to commence business as authorized
in this Act. All charters issued by the Commissioner or any
predecessor agency which chartered State banks, including any
charter outstanding as of September 1, 1989, shall be
perpetual. For the 2 years after the Commissioner has issued a
charter to a bank, the bank shall request and obtain from the
Commissioner prior written approval before it may change senior
management personnel or directors.
    The original charter, duly certified by the Commissioner,
or a certified copy shall be evidence in all courts and places
of the existence and authority of the bank to do business. Upon
the issuance of the charter by the Commissioner, the bank shall
be deemed fully organized and may proceed to do business. The
Commissioner may, in the Commissioner's discretion, withhold
the issuing of the charter when the Commissioner has reason to
believe that the bank is organized for any purpose other than
that contemplated by this Act. The Commissioner shall revoke
the charter and order liquidation in the event that the bank
does not commence a general banking business within one year
from the date of the issuance of the charter, unless a request
has been submitted, in writing, to the Commissioner for an
extension and the request has been approved. After commencing a
general banking business, a bank may change its name by filing
written notice with the Commissioner at least 30 days prior to
the effective date of such change. A bank chartered under this
Act may change its main banking premises by filing written
application with the Commissioner, on forms prescribed by the
Commissioner, provided (i) the change shall not be a removal to
a new location without complying with the capital requirements
of Section 7 and of subsection (1) of Section 10 of this Act;
(ii) the Commissioner approves the relocation or change; and
(iii) the bank complies with any applicable federal law or
regulation. The application shall be deemed to be approved if
the Commissioner has not acted on the application within 30
days after receipt of the application, unless within the 30-day
time frame the Commissioner informs the bank that an extension
of time is necessary prior to the Commissioner's action on the
application.
    (b) (1) The Commissioner may also issue a charter to a bank
    that is owned exclusively by other depository institutions
    or depository institution holding companies and is
    organized to engage exclusively in providing services to or
    for other financial institutions, their holding companies,
    and the officers, directors, and employees of such
    institutions and companies, and in providing services at
    the request of other financial institutions or their
    holding companies (also referred to as a "bankers' bank").
    The bank may also provide products and services to its
    officers, directors, and employees.
        (2) A bank chartered pursuant to paragraph (1) shall,
    except as otherwise specifically determined or limited by
    the Commissioner in an order or pursuant to a rule, be
    vested with the same rights and privileges and subject to
    the same duties, restrictions, penalties, and liabilities
    now or hereafter imposed under this Act.
    (c) A bank chartered under this Act shall after November 1,
1985, and an out-of-state bank that merges with a State bank
and establishes or maintains a branch in this State after May
31, 1997, shall obtain from and, at all times while it accepts
or retains deposits, maintain with the Federal Deposit
Insurance Corporation, or such other instrumentality of or
corporation chartered by the United States, deposit insurance
as authorized under federal law.
    (d) (i) A bank that has a banking charter issued by the
    Commissioner under this Act may, pursuant to a written
    purchase and assumption agreement, transfer substantially
    all of its assets to another State bank or national bank in
    consideration, in whole or in part, for the transferee
    banks' assumption of any part or all of its liabilities.
    Such a transfer shall in no way be deemed to impair the
    charter of the transferor bank or cause the transferor bank
    to forfeit any of its rights, powers, interests,
    franchises, or privileges as a State bank, nor shall any
    voluntary reduction in the transferor bank's activities
    resulting from the transfer have any such effect; provided,
    however, that a State bank that transfers substantially all
    of its assets pursuant to this subsection (d) and following
    the transfer does not accept deposits and make loans, shall
    not have any rights, powers, interests, franchises, or
    privileges under subsection (15) of Section 5 of this Act
    until the bank has resumed accepting deposits and making
    loans.
        (ii) The fact that a State bank does not resume
    accepting deposits and making loans for a period of 24
    months commencing on September 11, 1989 or on a date of the
    transfer of substantially all of a State bank's assets,
    whichever is later, or such longer period as the
    Commissioner may allow in writing, may be the basis for a
    finding by the Commissioner under Section 51 of this Act
    that the bank is unable to continue operations.
        (iii) The authority provided by subdivision (i) of this
    subsection (d) shall terminate on May 31, 1997, and no bank
    that has transferred substantially all of its assets
    pursuant to this subsection (d) shall continue in existence
    after May 31, 1997.
(Source: P.A. 95-924, eff. 8-26-08.)
 
    (205 ILCS 5/32)  (from Ch. 17, par. 339)
    Sec. 32. Basic loaning limits. The liabilities outstanding
at one time to a state bank of a person for money borrowed,
including the liabilities of a partnership or joint venture in
the liabilities of the several members thereof, shall not
exceed 25% of the amount of the unimpaired capital and
unimpaired surplus of the bank.
    The liabilities to any state bank of a person may exceed
25% of the unimpaired capital and unimpaired surplus of the
bank, provided that (i) the excess amount from time to time
outstanding is fully secured by readily marketable collateral
having a market value, as determined by reliable and
continuously available quotations, at least equal to the excess
amount outstanding; and (ii) the total liabilities shall not
exceed 30% of the unimpaired capital and unimpaired surplus of
the bank.
    The following shall not be considered as money borrowed
within the meaning of this Section:
        (1) The purchase or discount of bills of exchange drawn
    in good faith against actually existing values.
        (2) The purchase or discount of commercial or business
    paper actually owned by the person negotiating the same.
        (3) The purchase of or loaning money in exchange for
    evidences of indebtedness which shall be secured by
    mortgage or trust deed upon productive real estate the
    value of which, as ascertained by the oath of 2 qualified
    appraisers, neither of whom shall be an officer, director,
    or employee of the bank or of any subsidiary or affiliate
    of the bank, is double the amount of the principal debt
    secured at the time of the original purchase of evidence of
    indebtedness or loan of money and which is still double the
    amount of the principal debt secured at the time of any
    renewal of the indebtedness or loan, and which mortgage or
    trust deed is shown, either by a guaranty policy of a title
    guaranty company approved by the Commissioner or by a
    registrar's certificate of title in any county having
    adopted the provisions of the Registered Titles (Torrens)
    Act, or by the opinion of an attorney-at-law, to be a first
    lien upon the real estate therein described, and real
    estate shall not be deemed to be encumbered within the
    meaning of this subsection (3) by reason of the existence
    of instruments reserving rights-of-way, sewer rights and
    rights in wells, building restrictions or other
    restrictive covenants, nor by reason of the fact it is
    subject to lease under which rents or profits are reserved
    by the owners.
        (4) The purchase of marketable investment securities.
        (5) The liability to a state bank of a person who is an
    accommodation party to, or guarantor of payment for, any
    evidence of indebtedness of another person who obtains a
    loan from or discounts paper with or sells paper to the
    state bank; but the total liability to a state bank of a
    person as an accommodation party or guarantor of payment in
    respect of such evidences of indebtedness shall not exceed
    25% of the amount of the unimpaired capital and unimpaired
    surplus of the bank; provided however that the liability of
    an accommodation party to paper excepted under subsection 2
    of this Section shall not be included in the computation of
    this limitation.
        (6) The liability to a state bank of a person, who as a
    guarantor, guarantees collection of the obligation or
    indebtedness of another person.
    The total liabilities of any one person, for money
borrowed, or otherwise, shall not exceed 25% of the deposits of
the bank, and those total liabilities shall at no time exceed
50% of the amount of the unimpaired capital and unimpaired
surplus of the bank. Absent an actual unremedied breach, the
obligation or responsibility for breach of warranties or
representations, express or implied, of a person transferring
negotiable or non-negotiable paper to a bank without recourse
and without guaranty of payment, shall not be included in
determining the amount of liabilities of the person to the bank
for borrowed money or otherwise; and in the event of and to the
extent of an unremedied breach, the amount remaining unpaid for
principal and interest on the paper in respect of which the
unremedied breach exists shall thereafter for the purpose of
determining whether subsequent transactions giving rise to
additional liability of the person to the state bank for
borrowed money or otherwise are within the limitations of
Sections 32 through 34 of this Act, be included in computing
the amount of liabilities of the person for borrowed money or
otherwise.
    The liability of a person to a state bank on account of
acceptances made or issued by the state bank on behalf of the
person shall be included in the computation of the total
liabilities of the person for money borrowed except to the
extent the acceptances grow out of transactions of the
character described in subsection (6) of Section 34 of this Act
and are otherwise within the limitations of that subsection;
provided nevertheless that any such excepted acceptances
acquired by the state bank which accepted the same shall be
included in the computation of the liabilities of the person to
the state bank for money borrowed.
    The Secretary may adopt rules to address the funding by
banks of any loan commitment, when such funding would involve
additional extensions of credit to be made after the unimpaired
capital and unimpaired surplus of the bank have decreased and
the Secretary determines that such decrease in unimpaired
capital and unimpaired surplus would cause the additional
extensions of credit to result in an unsafe and unsound
condition.
(Source: P.A. 92-336, eff. 8-10-01; 92-573, eff. 6-26-02.)
 
    (205 ILCS 5/40)  (from Ch. 17, par. 350)
    Sec. 40. Prohibited activities. The Commissioner, deputy
commissioners, and employees of the Office of Banks and Real
Estate shall be subject to the restrictions provided in Section
2.5 of the Division of Banking Office of Banks and Real Estate
Act including, without limitation, the restrictions on (i)
owning shares of stock or holding any other equity interest in
an entity regulated under this Act or in any corporation or
company that owns or controls an entity regulated under this
Act; (ii) being an officer, director, employee, or agent of an
entity regulated under this Act; and (iii) obtaining a loan or
accepting a gratuity from an entity regulated under this Act.
(Source: P.A. 89-208, eff. 9-29-95; 89-508, eff. 7-3-96.)
 
    (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, communication equipment and services,
    office furnishings 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 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
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 Commissioner may issue an order of removal. If, in
the opinion of the 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 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 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 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
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 Commissioner or the Office of Banks and Real Estate unless
the 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
$100,000 $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 Commissioner and property received by the
    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 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).
    (13) The Secretary may borrow funds from the General
Revenue Fund on behalf of the Bank and Trust Company Fund if
the Director of Banking certifies to the Governor that there is
an economic emergency affecting banking that requires a
borrowing to provide additional funds to the Bank and Trust
Company Fund. The borrowed funds shall be paid back within 3
years and shall not exceed the total funding appropriated to
the Agency in the previous year.
(Source: P.A. 94-91, eff. 7-1-05; 95-1047, eff. 4-6-09.)
 
    (205 ILCS 5/51)  (from Ch. 17, par. 363)
    Sec. 51. Capital impairment, etc.; correction.
    (a) If the Commissioner with respect to a State bank shall
find:
        (1) its capital is impaired or it is otherwise in an
    unsound condition; or
        (2) its business is being conducted in an unlawful,
    including, without limitation, in violation of any
    provisions of State or federal law this Act, or in a
    fraudulent or unsafe manner; or
        (3) it is unable to continue operations; or
        (4) its examination has been obstructed or impeded; or
        (5) that losses have occurred or are likely to occur
    that have or will deplete all or substantially all of the
    State bank's capital;
the Commissioner may give notice to the board of directors of
or his or her finding or findings. If the situation so found by
the Commissioner shall not be corrected to his satisfaction
within a period of at least 60 sixty but no more than 180 one
hundred and eighty days after receipt of such notice, which
period shall be determined by the Commissioner and set forth in
the notice, the Commissioner at the termination of said period
may shall take possession and control of the bank and its
assets as in this Act provided for the purpose of examination,
reorganization or liquidation through receivership.
    (b) If the Commissioner has given notice to the board of
directors of his findings, as provided in subsection (a), and
the time period prescribed in that notice has expired, the
Commissioner may extend the time period prescribed in that
notice for such period as the Commissioner deems appropriate.
(Source: P.A. 92-483, eff. 8-23-01.)
 
    (205 ILCS 5/52)  (from Ch. 17, par. 364)
    Sec. 52. Capital impairment, etc.; emergency. If, in
addition to a finding as provided in Section 51, the
Commissioner shall be of the opinion and shall find that an
emergency exists which may result in the inability of the bank
to continue in its operations, meet the demands of its
depositors, or pay its obligations in the normal course of
business serious losses to the depositors, he may, in his
discretion, without having given the notice provided for in
Section 51, and whether or not proceedings under Section 51
have been instituted or are then pending, forthwith take
possession and control of the bank and its assets for the
purpose of examination, reorganization or liquidation through
receivership. For purposes of this Section, an emergency
includes, but is not limited to, when the bank is in an unsafe
or unsound condition that precludes continued operations or
when the interests of the bank's depositors are prejudiced.
(Source: Laws 1965, p. 2020.)
 
    Section 20. 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 Secretary of Financial and
Professional Regulation Commissioner of Banks and Real Estate
or a person authorized by the Secretary Commissioner, the
Division of Banking Office of Banks and Real Estate Act, or
this Act to act in the Secretary's Commissioner's stead.
    (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" means the Division of Banking within 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 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.
    (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 Commissioner shall have the power and authority:
        (1) to promulgate reasonable procedural rules for the
    purposes of administering the provisions of this Act. The
    Commissioner shall specify the form of any application,
    report or document that is required to be filed with the
    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 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 Commissioner in respect to 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; and
        (5) to do any other act authorized to the Commissioner
    under the Division of Banking Act.
    (b) Whenever, in the opinion of the 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
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 Commissioner may issue an order
of removal. If, in the opinion of the 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 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 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 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 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
Commissioner or the Office of Banks and Real Estate unless the
Commissioner has granted prior approval in writing.
    (c) All final administrative decisions of the 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 25. The Illinois Savings and Loan Act of 1985 is
amended by changing Sections 1-10.04, 3-7, 7-1, 7-3, 7-4, 7-5,
7-20, 7-22, 10-1, and 11-1 and by adding Sections 1-10.065,
10-15, 10-20, 10-25, 10-30, 10-35, 10-40, 10-45, 10-50, 10-55,
10-60, 10-65, 10-70, 10-75, 10-80, 10-85, 10-90, 10-95, and
10-100 as follows:
 
    (205 ILCS 105/1-10.04)  (from Ch. 17, par. 3301-10.04)
    Sec. 1-10.04. "Commissioner": the Secretary of Financial
and Professional Regulation Commissioner of Banks and Real
Estate or some person authorized by the Secretary Commissioner,
the Division of Banking Office of Banks and Real Estate Act, or
this Act to act in the Secretary's Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 105/1-10.065 new)
    Sec. 1-10.065. Division. "Division" means the Division of
Banking within the Department of Financial and Professional
Regulation.
 
    (205 ILCS 105/3-7)  (from Ch. 17, par. 3303-7)
    Sec. 3-7. Bonds of officers and employees.
    (a) Every person appointed or elected to any position
requiring the receipt, payment, management or use of money
belonging to an association, or whose duties permit him to have
access to or custody of any of its money or securities or whose
duties permit him regularly to make entries in the books or
other records of the association, before assuming his duties
shall become bonded in some trust or company authorized to
issue bonds in this state, or in a fidelity insurance company
licensed to do business in this State. Each such bond shall be
on a form or forms as the Commissioner shall require and in
such amount as the board of directors shall fix and approve.
Each such bond, payable to the association, shall be an
indemnity for any loss the association may sustain in money or
other property through any dishonest or criminal act or
omission by any person required to be bonded, committed either
alone or in concert with others. Such bond shall be in the form
and amount prescribed by the Commissioner, who may at any time
require one or more additional bonds. A true copy of every
bond, including all riders and endorsements executed
subsequent to the effective date of the bond, shall be filed at
all times with the Commissioner. Each bond shall provide that a
cancellation thereof either by the surety or by the insured
shall not become effective unless and until 30 days notice in
writing first shall have been given to the Commissioner, unless
he shall have approved such cancellation earlier.
    (b) Nothing contained herein shall preclude the
Commissioner from proceeding against an association as
provided in this Act should he believe that it is being
conducted in an unsafe manner in that the form or amount of
bonds so fixed and approved by the board of directors is
inadequate to give reasonable protection to the association.
(Source: P.A. 85-1271.)
 
    (205 ILCS 105/7-1)  (from Ch. 17, par. 3307-1)
    Sec. 7-1. Office of the Commissioner of Savings and
Residential Finance abolished. The Office of the Commissioner
of Savings and Residential Finance is abolished and its
functions are transferred to the Office of Banks and Real
Estate as provided in the Division of Banking Office of Banks
and Real Estate Act.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 105/7-3)  (from Ch. 17, par. 3307-3)
    Sec. 7-3. Personnel, records, files, actions and duties,
etc.
    (a) The Secretary shall appoint, subject to applicable
provisions of the Personnel Code, a supervisor, such examiners,
employees, experts and special assistants as may be necessary
to carry out effectively this Act. The Secretary shall require
each supervisor, examiner, expert and special assistant
employed or appointed by him to give bond, with security to be
approved by the Secretary, not less in any case than $15,000,
conditioned for the faithful discharge of his duties. The
premium on such bond shall be paid by the Secretary from funds
appropriated for that purpose. The bond, along with
verification of payment of the premium on such bond, shall be
filed in the office of the Secretary of State.
    (b) The Secretary shall have the following duties and
powers:
        (1) To exercise the rights, powers and duties set forth
    in this Act or in any other related Act;
        (2) To establish such regulations as may be reasonable
    or necessary to accomplish the purposes of this Act;
        (3) To direct and supervise all the administrative and
    technical activities of this office and create an Advisory
    Committee which upon request will make recommendations to
    him;
        (4) To make an annual report regarding the work of his
    office as he may consider desirable to the Governor, or as
    the Governor may request;
        (5) To cause a suit to be filed in his name to enforce
    any law of this State that applies to an association,
    subsidiary of an association, or holding company operating
    under this Act and shall include the enforcement of any
    obligation of the officers, directors or employees of any
    association;
        (6) To prescribe a uniform manner in which the books
    and records of every association are to be maintained; and
        (7) To establish reasonable and rationally based fee
    structures for each association and holding company
    operating under this Act and for their service corporations
    and subsidiaries, which fees shall include but not be
    limited to annual fees, application fees, regular and
    special examination fees, and such other fees as the
    Secretary establishes and demonstrates to be directly
    resultant from his responsibilities under this Act and as
    are directly attributable to individual entities operating
    under this Act. The Secretary may require payment of the
    fees under this Act by an electronic transfer of funds or
    an automatic debit of an account of each of the
    associations.
(Source: P.A. 95-1047, eff. 4-6-09.)
 
    (205 ILCS 105/7-4)  (from Ch. 17, par. 3307-4)
    Sec. 7-4. Prohibited activities. The Commissioner, deputy
commissioners, and employees of the Office of Banks and Real
Estate shall be subject to the restrictions provided in Section
2.5 of the Division of Banking Office of Banks and Real Estate
Act including, without limitation, the restrictions on (i)
owning shares of stock or holding any other equity interest in
an entity regulated under this Act or in any corporation or
company that owns or controls an entity regulated under this
Act; (ii) being an officer, director, employee, or agent of an
entity regulated under this Act; and (iii) obtaining a loan or
accepting a gratuity from an entity regulated under this Act.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 105/7-5)  (from Ch. 17, par. 3307-5)
    Sec. 7-5. Examination.
    (a) The Commissioner, at least once every 18 months, but
more often if he deems it necessary or expedient, with or
without previous notice, shall cause an examination to be made
of the affairs of every association, including any holding
company and subsidiary thereof. If an association or holding
company has not been audited at least once in the preceding 12
months in accordance with this Act, the examination shall
include an audit by licensed public accountants employed or
appointed by the Commissioner. Such examination shall be made
by competent examiners appointed for that purpose who are not
officers or agents of, or in any manner interested in, any
association or holding company which they examine, except that
they may be holders of withdrawable capital. Notwithstanding
any other provision of this Act, every eligible association, as
defined by regulation, or, if not so defined, to an equivalent
extent as would be permitted in the case of a State bank, the
Secretary, in lieu of the examination, may accept on an
alternating basis the examination made by the appropriate
federal banking regulator, or its successor, pursuant to the
federal Home Owners' Loan Act, provided the appropriate federal
banking regulator, or its successor, has made an examination.
    (b) The officers, agents or directors of any such
association or holding company shall cause the books of the
association or holding company to be opened for inspection by
the Commissioner or his examiners and otherwise assist in such
examination when requested; and for the purpose of examination,
the examiner in charge thereof shall have power to administer
oaths and to examine under oath any officers, employees, agents
or directors of such association or holding company and such
other witnesses as he deems necessary relative to the business
of the association or holding company.
    (c) The Commissioner shall make a report of each
examination to the board of directors of the association or
holding company examined, which report shall be read by each
director, who will then execute a signed affidavit to be filed
and preserved by the association or holding company
acknowledging that he has read the Commissioner's report. If
the affairs of the association or holding company are not being
conducted in accordance with this Act, the Commissioner shall
require the directors, officers or employees to take any
necessary corrective action. If the necessary corrective
action is not made, the Commissioner may issue a formal order
to the directors of the association or holding company
delivered either personally or by registered or certified mail,
specifying a date which may be immediate or may be at a later
date for the performance by the association or holding company
of the corrective action. Such order or any part thereof shall
be subject to Sections 7-24 through 7-27 of this Act. If the
formal order of the Commissioner in whole or in part contains a
finding that the business of the association or holding company
is being conducted in a fraudulent, illegal or unsafe manner,
or that the violation thereof or the continuance by the
association or holding company of the practice to be corrected
could cause insolvency or substantial dissipation of assets or
earnings or the impairment of its capital, such order or part
thereof shall be complied with promptly on and after the
effective date thereof until modified or withdrawn by the
Commissioner, the Board, or modified or terminated by a circuit
court. The Commissioner may apply to the circuit court of the
county in which the association or holding company is located
for enforcement of any such order requiring prompt compliance.
If no hearing has been requested within the time specified by
this Act, the Commissioner may, at any time within 90 days
after the effective date of the order, institute suit in the
Circuit Court of Sangamon County or the circuit court of the
county in which the association or holding company is located
to compel the directors, officers or employees to make the
required corrective action. Such court shall, after due process
of law, adjudicate the question and enter the proper order or
orders and enforce them. In the interests of the members of the
association or holding company, the Commissioner may prepare a
statement of the condition of the association or holding
company and may mail the statement to the members or may
require a single publication thereof.
(Source: P.A. 85-335.)
 
    (205 ILCS 105/7-20)  (from Ch. 17, par. 3307-20)
    Sec. 7-20. Board of Savings Institutions; appointment. The
Savings and Loan Board is hereby redesignated the Board of
Savings Institutions. The Board shall be composed of 7 persons
appointed by the Governor. Four persons shall represent the
public interest. Three persons shall have been engaged actively
in savings and loan or savings bank management in this State
for at least 5 years immediately prior to appointment. Each
member of the Board shall be reimbursed for ordinary and
necessary expenses incurred in attending the meetings of the
Board receive compensation of $50 per day for each day actually
and necessarily consumed in the performance of the duties of
office, plus necessary expenses incurred in the performance of
those duties. The members of the Board serving immediately
before the effective date of this amendatory Act of 1996 shall
continue to serve for the balance of their respective terms.
Members shall be appointed for 4-year terms to expire on the
third Monday in January. Except as otherwise provided in this
Section, members of the Board shall serve until their
respective successors are appointed and qualified. A member who
tenders a written resignation shall serve only until the
resignation is accepted by the Chairman. A member who fails to
attend 3 consecutive Board meetings without an excused absence
shall no longer serve as a member. The Governor shall fill any
vacancy by the appointment of a member for the unexpired term
in the same manner as in the making of original appointments.
(Source: P.A. 89-508, eff. 7-3-96; 89-603, eff. 8-2-96.)
 
    (205 ILCS 105/7-22)  (from Ch. 17, par. 3307-22)
    Sec. 7-22. Board of Savings Institutions; powers. The
Board shall have the following powers:
    (a) To advise the Governor and Secretary on all matters
relating to the regulation of savings and loan associations and
savings banks; consider, hold public or private hearings and
act upon appeals from any order, decision or action of the
Commissioner by any aggrieved person except as otherwise
specifically provided in this Act or the Savings Bank Act;
    (b) (Blank) To advise the Governor and the Commissioner
upon appointments and employment of personnel in connection
with the supervision of savings and loan associations and
savings banks; and
    (c) To advise the Governor on legislation proposed to amend
this Act, the Savings Bank Act, or any related Act.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 105/10-1)  (from Ch. 17, par. 3310-1)
    Sec. 10-1. Appointment of a receiver following taking of
custody Commissioner to appoint receiver. If the Commissioner,
after taking custody of an association, the Secretary
determines that the appointment of a receiver is appropriate,
then the Secretary shall follow the provisions regarding
receivership outlined under this Article under the Section of
this Act concerning Commissioner's Authority to Take Custody,
finds that any one or more of the reasons for taking custody
continues to exist through the period of his custody, then he
shall appoint any qualified person, firm or corporation as
receiver or coreceiver of such association or trust for the
purpose of liquidation. In the case of an insured association,
he may appoint the insurance corporation or its nominee as such
receiver or as a coreceiver; and the insurance corporation may
be permitted to serve without bond. The receiver shall take
possession of and title to the books, records and assets of
every description of the association or trust.
(Source: P.A. 84-543.)
 
    (205 ILCS 105/10-15 new)
    Sec. 10-15. Secretary's proceedings exclusive. Except by
the authority of the Secretary, represented by the Attorney
General, or the Federal Deposit Insurance Corporation pursuant
to the Federal Deposit Insurance Act, no complaint shall be
filed or proceedings commenced in any court for the dissolution
of, the winding up of the affairs of, or the appointment of a
receiver for any association on the grounds that:
        (1) it is insolvent;
        (2) its capital is impaired or it is otherwise in an
    unsound condition;
        (3) its business is being conducted in an unlawful,
    fraudulent, or unsafe manner;
        (4) it is unable to continue operations; or
        (5) its examination has been obstructed or impaired.
 
    (205 ILCS 105/10-20 new)
    Sec. 10-20. Capital impairment; correction.
    (a) If the Secretary, with respect to an association,
finds:
        (1) its capital is impaired or it is otherwise in an
    unsound condition;
        (2) its business is being conducted in an unlawful
    manner, including without limitation in violation of any
    provision of this Act, or in a fraudulent or unsafe manner;
        (3) it is unable to continue operations; or
        (4) its examination has been obstructed or impeded;
then the Secretary may give notice to the board of directors of
his or her finding or findings. If the situation so found by
the Secretary shall not be corrected to his or her satisfaction
within a period of at least 60 but no more than 180 days after
receipt of that notice, which period shall be determined by the
Secretary and set forth in the notice, then the Secretary, at
the termination of that period, may take possession and control
of the association and its assets as provided for in this Act
provided for the purpose of examination, reorganization or
liquidation through receivership.
    (b) If the Secretary has given notice to the board of
directors of his or her findings, as provided in subsection (a)
of this Section, and the time period prescribed in that notice
has expired, then the Secretary may extend the time period
prescribed in that notice for such period as the Secretary
deems appropriate.
 
    (205 ILCS 105/10-25 new)
    Sec. 10-25. Capital impairment; emergency. If, in addition
to a finding as provided in Section 10-20 of this Act, the
Secretary is of the opinion and finds that an emergency exists
that may result in serious losses to the depositors or the
inability of the association to continue in operations, meet
the demands of its depositors, or pay its obligations in the
normal course of business, he or she may, in his or her
discretion, without having given the notice provided for in
Section 10-20 of this Act, and whether or not proceedings under
Section 10-20 of this Act have been instituted or are then
pending, take possession and control of the association and its
assets for the purpose of examination, reorganization, or
liquidation through receivership.
 
    (205 ILCS 105/10-30 new)
    Sec. 10-30. Secretary's possession; power. The Secretary
may take possession and control of an association and its
assets by posting upon the premises a notice reciting that the
Secretary is assuming possession pursuant to this Act and the
time when his or her possession shall be deemed to commence,
which time shall not pre-date the posting of the notice.
Promptly after taking possession and control of an association,
if the Federal Deposit Insurance Corporation is not appointed
as receiver, the Secretary shall file a copy of the notice
posted upon the premises in the circuit court in the county in
which the association is located, and thereupon the clerk of
such court shall note the filing of the notice upon the records
of the court, and shall enter such cause as a court action upon
the dockets of such court under the name and style of "In the
matter of the possession and control of the Secretary of
(insert the name of such association)", and thereupon the court
wherein such cause is docketed shall be vested with
jurisdiction to hear and determine all issues and matters
pertaining to or connected with the Secretary's possession and
control of such association as provided in this Act, and such
further issues and matters pertaining to or connected with the
Secretary's possession and control as may be submitted to such
court for its adjudication by the Secretary. When the Secretary
has taken possession and control of an association and its
assets, he or she shall be vested with the full powers of
management and control, including without limitation the
following:
        (1) the power to continue or to discontinue the
    business;
        (2) the power to stop or to limit the payment of its
    obligations; provided, however, with respect to a
    qualified financial contract between any party and an
    association or a branch or agency of which the Secretary
    has taken possession and control, which party has a
    perfected security interest in collateral or other valid
    lien or security interest in collateral enforceable
    against third parties pursuant to a security arrangement
    related to that qualified financial contract, the party may
    retain all of the collateral and upon repudiation or
    termination of that qualified financial contract in
    accordance with its terms apply the collateral in
    satisfaction of any claims secured by the collateral; in no
    event shall the total amount so applied exceed the global
    net payment obligation, if any;
        (3) the power to collect and to use its assets and to
    give valid receipts and acquittances;
        (4) the power to employ and to pay any necessary
    assistants;
        (5) the power to execute any instrument in the name of
    the association;
        (6) the power to commence, defend, and conduct in its
    name any action or proceeding in which it may be a party;
        (7) the power, upon the order of the court, to sell and
    convey its assets in whole or in part, and to sell or
    compound bad or doubtful debts upon such terms and
    conditions as may be fixed in such order;
        (8) the power, upon the order of the court, to make and
    to carry out agreements with other associations or with the
    United States or any agency thereof that shall insure the
    association's deposits, in whole or in part, for the
    payment or assumption of the association's liabilities, in
    whole or in part, and to transfer assets and to make
    guaranties, in whole or in part, and to transfer assets and
    to make guaranties in connection therewith;
        (9) the power, upon the order of the court, to borrow
    money in the name of the association and to pledge its
    assets as security for the loan;
        (10) the power to terminate his or her possession and
    control by restoring the association to its board of
    directors;
        (11) the power to reorganize the association as
    provided in this Act;
        (12) the power to appoint a receiver and to order
    liquidation of the association as provided in this Act; and
        (13) the power, upon the order of the court and without
    the appointment of a receiver, to determine that the
    association has been closed for the purpose of liquidation
    without adequate provision being made for payment of its
    depositors, and thereupon the association shall be deemed
    to have been closed on account of inability to meet the
    demands of its depositors.
    As soon as practical after taking possession, the Secretary
shall make his or her examination of the condition of the
association and an inventory of the assets. Unless the time
shall be extended by order of the court, and unless the
Secretary shall have otherwise settled the affairs of an
association pursuant to the provisions of this Act, at the
termination of 30 days after the time of taking possession and
control of an association for the purpose of examination,
reorganization, or liquidation through receivership, the
Secretary shall either terminate his or her possession and
control by restoring the association to its board of directors
or appoint a receiver and order the liquidation of the
association as provided in this Act. All necessary and
reasonable expenses of the Secretary's possession and control
and of its reorganization shall be borne by the association and
may be paid by the Secretary from its assets. If the Federal
Deposit Insurance Corporation is appointed by the Secretary as
receiver of an association, or the Federal Deposit Insurance
Corporation takes possession of the association, then the
receivership proceedings and the powers and duties of the
Federal Deposit Insurance Corporation shall be governed by the
Federal Deposit Insurance Act and regulations promulgated
under that Act rather than the provisions of this Act.
 
    (205 ILCS 105/10-35 new)
    Sec. 10-35. Secretary's possession; limitation of actions.
Except when the Federal Deposit Insurance Corporation has taken
possession of the association or is acting as receiver, if the
Secretary has taken possession and control of an association
and its assets, then there shall be a postponement until 6
months after the commencement of the possession of the date
upon which any period of limitation fixed by a statute or
agreement would otherwise expire on a claim or right of action
of the association, or upon which an appeal must be taken or a
pleading or other document must be filed by the association in
any pending action or proceeding. No judgment, lien, levy,
attachment, or other similar legal process shall be enforced
upon or satisfied in whole or in part from any asset of the
association while it is in the possession of the Secretary,
except upon the order of the court referred to in Section 10-30
entered in due course pursuant to Section 10-90 of this Act.
The provisions of this Section shall continue to apply and
shall govern notwithstanding the appointment of and the
possession by a receiver pursuant to Section 10-55 of this Act.
 
    (205 ILCS 105/10-40 new)
    Sec. 10-40. Reorganization. The Secretary, while in
possession and control of an association and its assets, after
according a hearing to interested parties as he or she may
determine and upon the order of the court, may propose a
reorganization plan. Such reorganization plan shall become
effective only (1) when the requirements of Section 10-45 are
satisfied, and (2) when, after reasonable notice of such
reorganization, as the case may require (A) depositors and
other creditors of such association representing at least 75%
in amount of its total deposits and other liabilities as shown
by the books of the association, (B) stockholders owning at
least two-thirds of its outstanding capital stock as shown by
the books of the association, or (C) both depositors and other
creditors representing at least 75% in amount of the total
deposits and other liabilities and stockholders owning at least
two-thirds of its outstanding capital stock as shown by the
books of the association, shall have consented in writing to
the plan of reorganization; provided, however, that claims of
depositors or other creditors that will be satisfied in full on
demand under the provisions of the plan of reorganization shall
not be included among the total deposits and other liabilities
of the association in determining the 75% required under this
Section. When such reorganization becomes effective, all
books, records, and assets of the association shall be disposed
of in accordance with the provisions of the plan, and the
affairs of the association shall be conducted by its board of
directors in the manner provided by the plan and under the
conditions, restrictions, and limitations prescribed by the
Secretary. In any reorganization approved and effective as
provided in this Section, all depositors and other creditors
and stockholders of the association, whether or not they shall
have consented to such plan of reorganization, shall be fully
and in all respects subject to and bound by its provisions, and
claims of all depositors and other creditors shall be treated
as if they have consented to the plan of reorganization. A
department, agency, or political subdivision of this State
holding a claim that will not be paid in full is authorized to
participate in a plan of reorganization as any other creditor
and shall be subject to and bound by its provisions as any
other creditor.
 
    (205 ILCS 105/10-45 new)
    Sec. 10-45. Requirements of reorganization plan. A plan of
reorganization for an association shall not be proposed under
this Act unless:
        (1) the plan is feasible and fair to all classes of
    depositors, creditors and stockholders;
        (2) the face amount of the interest accorded to any
    class of depositors, creditors, and stockholders under the
    plan does not exceed the value of the assets upon
    liquidation less the full amount of the claims of all prior
    classes, subject, however, to any fair adjustment for new
    capital that any class will pay in under the plan;
        (3) the plan assures the removal of any director,
    officer, or employee responsible for any unsound or
    unlawful action or the existence of an unsound condition;
        (4) any merger or consolidation provided by the plan
    conforms to the requirements of this Act; and
        (5) any reorganized association provided by the plan
    conforms to the requirements of this Act for the
    organization of an association.
 
    (205 ILCS 105/10-50 new)
    Sec. 10-50. Reorganization; emergency. Whenever, in the
course of reorganization, supervening conditions render the
plan of reorganization unfair or its execution impractical, the
Secretary may modify the plan, provided the modification is
with the written consent of the depositors and other creditors
representing at least 75% in amount of the total deposits and
other liabilities that are impaired or lessened by the
modification, or may, provided the Federal Deposit Insurance
has not been appointed, appoint a receiver for liquidation as
provided in this Act.
 
    (205 ILCS 105/10-55 new)
    Sec. 10-55. Appointment of receiver; court proceeding.
    (a) If the Secretary determines, which determination may be
made at the time of or any time subsequent to his or her taking
possession and control of an association and its assets, that
no practical possibility exists to reorganize the association
after reasonable efforts have been made and that it should be
liquidated through receivership, then the Secretary shall
appoint a receiver and require of the receiver a bond and
security as the Secretary deems proper, and the Secretary,
represented by the Attorney General, shall, if the Federal
Deposit Insurance Corporation is not acting as receiver, file a
complaint for the dissolution or winding up of the affairs of
an association in the circuit court of the county where such
association is located.
    (b) Unless the Federal Deposit Insurance Corporation is
acting as receiver for the association, the Secretary, upon
taking possession and control of an association and its assets,
may and, if he or she has not previously done so, shall,
immediately upon filing a complaint for dissolution, make an
examination of the affairs of the trust department of the
association or appoint a corporate fiduciary or other suitable
person to make the examination as the Secretary's agent. The
examination shall be conducted in accordance with and pursuant
to the authority granted under Section 5-2 of the Corporate
Fiduciary Act and the corporate fiduciary or other suitable
person conducting the examination shall have and may exercise
on behalf of the Secretary all of the powers and authority
granted to the Secretary. The report of examination shall, to
the extent reasonably possible, identify those governing
instruments with specific instructions concerning the
appointment of a successor fiduciary. A copy of the report
shall be filed in any dissolution proceeding filed by the
Secretary. The reasonable fees and necessary expenses of the
examining corporate fiduciary or other suitable person, as
approved by the Secretary or as recommended by the Secretary
and approved by the court if a dissolution proceeding has been
filed, shall be borne by the subject association and shall have
the same priority for payment as the reasonable and necessary
expenses of the Secretary in conducting an examination.
    As soon as reasonably can be done, the Secretary, if he or
she deems it advisable, shall seek the advice and instruction
of the court concerning the removal of the corporate fiduciary
as to all of its fiduciary accounts and the appointment of a
successor fiduciary, which may be the examining corporate
fiduciary, to take over and administer all of the fiduciary
accounts being administered by the trust department of the
association. The corporate fiduciary or other suitable person
appointed to make the examination shall make a proper
accounting, in the manner and scope as determined by the
Secretary to be practical and advisable under the
circumstances, on behalf of the trust department of the
association and no guardian ad litem need be appointed to
review the accounting.
 
    (205 ILCS 105/10-60 new)
    Sec. 10-60. Notice of receivership. Upon appointing a
receiver, other than the Federal Deposit Insurance
Corporation, and upon the filing of a complaint for the
dissolution or winding up of the affairs of an association, the
Secretary shall cause notice to be given in that newspaper as
he or she directs once each week for 12 consecutive weeks
calling on all persons who may have claims against such
association to present the same to such receiver and to make
legal proof thereof and notifying all such persons and all to
whom it may concern of the filing of a complaint for the
dissolution or winding up of the affairs of the association and
stating the name and location of the court. All persons who may
have claims against the association and the receiver to whom
the persons have presented their claims may present them to the
clerk of the court, and the allowance or disallowance of the
claims by the court in connection with the proceedings shall be
deemed an adjudication in a court of competent jurisdiction.
 
    (205 ILCS 105/10-65 new)
    Sec. 10-65. Receiver's powers; duties. Other than the
Federal Deposit Insurance Corporation, which shall derive its
powers and perform its duties pursuant to the Federal Deposit
Insurance Act and regulations promulgated thereunder, the
receiver for an association, under the direction of the
Secretary, shall have the power and authority and is charged
with the duties and responsibilities as follows:
        (1) He or she shall take possession of and, for the
    purpose of the receivership, the title to the books,
    records, and assets of every description of the
    association.
        (2) He or she shall proceed to collect all debts, dues,
    and claims belonging to the association.
        (3) He or she shall file with the Secretary a copy of
    each report that he or she makes to the court, together
    with other reports and records as the Secretary may
    require.
        (4) He or she shall have authority to sue and defend in
    his or her own name with respect to the affairs, assets,
    claims, debts, and choses in action of the association.
        (5) He or she shall have authority, and it shall be his
    or her duty, to surrender to the customers of such
    association their private papers and valuables left with
    the association for safekeeping, upon satisfactory proof
    of ownership.
        (6) He or she shall have authority to redeem or take
    down collateral hypothecated by the association to secure
    its notes or other evidence of indebtedness whenever the
    Secretary deems it to the best interest of the creditors of
    the association to do so.
        (7) Whenever he or she finds it necessary in his or her
    opinion to use and employ money of the association in order
    to protect fully and benefit the association, by the
    purchase or redemption of any property, real or personal,
    in which the association may have any rights by reason of
    any bond, mortgage, assignment, or other claim thereto, he
    or she may certify the facts together with his or her
    opinions as to the value of the property involved, and the
    value of the equity the association may have in the
    property to the Secretary, together with a request for the
    right and authority to use and employ so much of the money
    of the association as may be necessary to purchase the
    property, or to redeem the same from a sale if there was a
    sale, and if such request is granted, the receiver may use
    so much of the money of the association as the Secretary
    may have authorized to purchase the property at such sale.
        (8) He or she shall deposit daily all moneys collected
    by him or her in any state or national association selected
    by the Secretary, who may require of (and the association
    so selected may furnish) the depository satisfactory
    securities or satisfactory surety bond for the safekeeping
    and prompt payment of the money so deposited. The deposits
    shall be made in the name of the Secretary in trust for the
    association and be subject to withdrawal upon his or her
    order or upon the order of persons as the Secretary may
    designate. The moneys may be deposited without interest,
    unless otherwise agreed. However, if any interest was paid
    by such depository, it shall accrue to the benefit of the
    particular trust to which the deposit belongs.
        (9) He or she shall do such things and take steps from
    time to time under the direction and approval of the
    Secretary as may reasonably appear to be necessary to
    conserve the association's assets and secure the best
    interests of the creditors of the association.
        (10) He or she shall record any judgment of dissolution
    entered in a dissolution proceeding and then deliver to the
    Secretary a certified copy thereof, together with all books
    of accounts and ledgers of the association for
    preservation.
 
    (205 ILCS 105/10-70 new)
    Sec. 10-70. Receiver's powers; court directions. Upon the
order of the court where the Secretary's complaint for the
dissolution or winding up of the affairs of the association was
filed, the receiver for the association shall have the power
and authority and is charged with the duties and
responsibilities as follows:
        (1) He or she may sell and compound all bad and
    doubtful debts on such terms as the court shall direct.
        (2) He or she may sell the real and personal property
    of the association on such terms as the court shall direct.
        (3) He or she may petition the court for the authority
    to borrow money, and to pledge the assets of the
    association as security therefor, whereupon the practice
    and procedure shall be as follows:
            (A) Upon the filing of the petition, the court
        shall set a date for the hearing of the petition and
        shall prescribe the form and manner of the notice to be
        given to the officers, stockholders, creditors, or
        other persons interested in such association.
            (B) Upon a hearing, any officer, stockholder,
        creditor, or person interested shall have the right to
        be heard.
            (C) If the court grants such authority, then the
        receiver may borrow money and issue evidences of
        indebtedness therefor and may secure the payment of
        such loan by the mortgage, pledge, transfer in trust,
        or hypothecation of any or all property and assets of
        such association, whether real, personal, or mixed,
        superior to any charge thereon for the expenses of
        liquidation.
            (D) Loans may be obtained in such amounts upon such
        terms and conditions and with provisions for repayment
        as may be deemed necessary or expedient.
            (E) Loans may be obtained for the purpose of
        facilitating liquidation, protecting or preserving the
        assets, expediting the making of distributions to
        depositors and other creditors, providing for the
        expenses of administration and liquidation, and in
        aiding in the reopening or reorganization of such
        association or its merger or consolidation with
        another association, or in the sale of its assets.
            (F) The receiver shall be under no personal
        obligation to repay any such loan and shall have
        authority to take any action necessary or proper to
        consummate such loan and to provide for the repayment
        thereof, and may, when required, give bond for the
        faithful performance of all undertakings in connection
        therewith.
            (G) Prior to petitioning the court for authority to
        make any loan, the receiver may make application for or
        negotiate any loan subject to obtaining an order of the
        court approving the same.
        (4) He or she may make and carry out agreements with
    other associations or with the United States or any agency
    thereof that has insured the association's deposits, in
    whole or in part, for the payment or assumption of the
    association's liabilities, in whole or in part, and he or
    she may transfer assets and make guaranties in connection
    therewith.
        (5) After the expiration of 12 weeks after the first
    publication of the Secretary's notice as provided in
    Section 10-60, he or she shall file with the court a
    correct list of all creditors of the association, as shown
    by its books, who have not presented their claims and the
    amount of their respective claims after allowing all just
    credits, deductions and set-offs as shown by the books of
    the association. Claims filed shall be deemed proven,
    unless objections are filed thereto by a party or parties
    interested therein within the time fixed by the court.
        (6) At the termination of his or her administration, he
    or she shall petition the court for the entry of a judgment
    of dissolution. After a hearing upon notice as the court
    may prescribe, the court may enter a judgment of
    dissolution whereupon the association's charter is
    terminated.
    The provisions of this Section do not apply to the Federal
Deposit Insurance Corporation as receiver, which shall derive
its powers and perform its duties pursuant to the Federal
Deposit Insurance Act.
 
    (205 ILCS 105/10-75 new)
    Sec. 10-75. Change of receiver. At any time after a
receiver, other than the Federal Deposit Insurance
Corporation, is appointed by the Secretary, whenever
two-thirds of the creditors of an association petition the
Secretary for the appointment of any person nominated by them
as receiver, who is a reputable person and a resident of the
county in which such association is located, it shall be the
duty of the Secretary to make such appointment and all rights
and duties of his or her predecessor shall at once devolve upon
such appointee. The Secretary may remove any receiver appointed
by him or her, except the Federal Deposit Insurance Corporation
or such receiver as shall have been appointed through
nomination by the creditors. Such a receiver may be removed by
the court upon a petition for his or her removal filed by the
Secretary after hearing had upon such notice as the court may
prescribe. Upon the death, inability to act, resignation, or
removal of a receiver, the Secretary may appoint his or her
successor and, upon such appointment, all rights and duties of
his predecessor shall at once devolve upon such appointee.
 
    (205 ILCS 105/10-80 new)
    Sec. 10-80. Insured deposits; subrogation. The right of an
agency of the United States insuring deposits to be subrogated
to the rights of depositors upon payment of their claim shall
not be less extensive than the law of the United States
requires as a condition of the authority to issue insurance or
make the payment.
 
    (205 ILCS 105/10-85 new)
    Sec. 10-85. Expenses and fees. All expenses of a
receivership, including reasonable receiver's and attorney's
fees, approved by the Secretary shall be paid out of the assets
of the association. All expenses of any preliminary or other
examination into the condition of any such association or
receivership and all expenses incident to and in connection
with the possession and control of the association and its
assets for the purpose of examination, reorganization, or
liquidation through receivership shall be paid out of the
assets of that association. The payment authorized under this
Section may be made by the Secretary with moneys and property
of the association in his or her possession and control and
shall have priority over all claims.
 
    (205 ILCS 105/10-90 new)
    Sec. 10-90. Dividends; dissolution. From time to time
during a receivership other than a receivership conducted by
the Federal Deposit Insurance Corporation, the Secretary shall
make and pay from moneys of the association a ratable dividend
on all claims as may be proved to his or her satisfaction or
adjudicated by the court. Claims so proven or adjudicated shall
bear interest at the rate of 3% per annum from the date of the
appointment of the receiver to the date of payment, but all
dividends on a claim shall be applied first to principal. In
computing the amount of any dividend to be paid, if the
Secretary deems it desirable in the interests of economy of
administration and to the interest of the association and its
creditors, he or she may pay up to the amount of $10 of each
claim or unpaid portion thereof in full. As the proceeds of the
assets of the association are collected in the course of
liquidation, the Secretary shall make and pay further dividends
on all claims previously proven or adjudicated. After one year
from the entry of a judgment of dissolution, all unclaimed
dividends shall be remitted to the State Treasurer in
accordance with the Uniform Disposition of Unclaimed Property
Act, together with a list of all unpaid claimants, their last
known addresses, and the amounts unpaid.
 
    (205 ILCS 105/10-95 new)
    Sec. 10-95. Validation of dividends; destruction of
records. In all cases where the Secretary, prior to this
Section taking effect, has made ratable dividends of money on
claims that have been proven to the satisfaction of the
Secretary or adjudicated in any court of this State, the
dividends are hereby ratified and confirmed and made valid and
legal in all respects. All records of receiverships heretofore
and hereafter received by the Secretary or by a receiver
appointed by the Secretary shall be held by the Secretary or
such receiver for the period of 2 years after the close of the
receivership and, at the termination of the 2-year period, may
then be destroyed.
 
    (205 ILCS 105/10-100 new)
    Sec. 10-100. Judicial review. Whenever the Secretary shall
have taken possession and control of an association and its
assets for the purpose of examination, reorganization, or
liquidation through receivership, or whenever the Secretary
shall have appointed a receiver for an association, other than
the Federal Deposit Insurance Corporation, and filed a
complaint for the dissolution or for the winding up of the
affairs of an association, and the association denies the
grounds for such actions, it may, at any time within 10 days,
apply to the Circuit Court of Sangamon County, Illinois, to
enjoin further proceedings in the premises; and such court
shall cite the Secretary to show cause why further proceedings
should not be enjoined, and if the court shall find that such
grounds do not exist, the court shall make an order enjoining
the Secretary and any receiver acting under his or her
direction from all further proceedings on account of such
alleged grounds, provided that neither the 10 days allowed by
this Section for judicial review nor the pendency of any
proceedings for judicial review shall operate to defer, delay,
impede, or prevent the payment or acquisition by the Federal
Deposit Insurance Corporation of the deposit liabilities of the
association that are insured by the Federal Deposit Insurance
Corporation, and during said period allowed for judicial review
and during the pendency of any proceedings for judicial review
under this Section, the Secretary or, as the case may be, the
receiver shall make available to the Federal Deposit Insurance
Corporation the facilities in or of the association and books,
records, and other relevant data of the association as may be
necessary or appropriate to enable the Federal Deposit
Insurance Corporation to pay out or to acquire the insured
deposit liabilities of the association, and said Federal
Deposit Insurance Corporation and its directors, officers,
agents, and employees, and the Secretary and his agents and
employees, including the receiver, if any, shall be free from
any liability to the association and its stockholders and
creditors for or on account of any matter or thing in this
proviso referred to or provided for.
 
    (205 ILCS 105/11-1)  (from Ch. 17, par. 3311-1)
    Sec. 11-1. Offenses and penalties. Any person who violates
the provisions of Sections 3-9, 3-10, 5-11 or 5-12 (b) of this
Act is guilty of a Business Offense.
    The Commissioner, in addition to any other powers granted
in this Act, shall have the power and authority to impose civil
penalties of up to $100,000 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 that in the Commissioner's discretion is an unsafe
or unsound banking practice.
(Source: P.A. 86-137.)
 
    Section 30. The Savings Bank Act is amended by changing
Sections 1003, 1007.30, 4009, 9001, 9002, 9003, 9004, and 11006
by changing the heading to Article 10, and by adding Sections
1007.57, 10011, 10015, 10020, 10025, 10030, 10035, 10040,
10045, 10050, 10055, 10060, 10065, 10070, 10075, 10080, 10085,
10090, 10095, and 10100 as follows:
 
    (205 ILCS 205/1003)  (from Ch. 17, par. 7301-3)
    Sec. 1003. Administration. This Act shall be administered
by the Commissioner of Banks and Real Estate as provided in the
Division of Banking Office of Banks and Real Estate Act.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 205/1007.30)  (from Ch. 17, par. 7301-7.30)
    Sec. 1007.30. "Commissioner" means the Secretary of
Financial and Professional Regulation Commissioner of Banks
and Real Estate or a person authorized by the Secretary
Commissioner, the Division of Banking Office of Banks and Real
Estate Act, or this Act to act in the Secretary's
Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 205/1007.57 new)
    Sec. 1007.57. Division. "Division" means the Division of
Banking within the Department of Financial and Professional
Regulation.
 
    (205 ILCS 205/4009)  (from Ch. 17, par. 7304-9)
    Sec. 4009. Bonds of officers and directors.
    (a) Every person appointed or elected to any position
requiring the receipt, payment, management, or use of money
belonging to a savings bank or whose duties permit or require
access to or custody of any of the savings bank's money or
securities or whose duties permit the regular making of entries
in the books or other records of the savings bank shall become
bonded in some trust or company authorized to issue bonds in
this State or in a fidelity insurance company licensed to do
business in this State before assuming any duties. Each bond
shall be on a form or forms as the Commissioner shall require
and in the amount as the board of directors shall fix and
approve. Each bond, payable to the savings bank, shall be an
indemnity for any loss the savings bank may sustain in money or
other property through any dishonest or criminal act or
omission by any person required to be bonded, committed either
alone or in concert with others. The bond shall be in the form
and amount prescribed by the Commissioner, who may at any time
require one or more additional bonds. A true copy of every
bond, including all riders and endorsements executed
subsequent to the effective date of the bond, shall be filed at
all times with the Commissioner. Each bond shall provide that a
cancellation thereof either by the surety or by the insured
shall not become effective unless and until 30 days notice in
writing first shall have been given to the Commissioner, unless
he shall have approved the cancellation earlier.
    (b) Nothing contained in this Section shall preclude the
Commissioner from proceeding against a savings bank as provided
in this Act should he believe that it is being conducted in an
unsafe manner in that the form or amount of bonds so fixed and
approved by the board of directors is inadequate to give
reasonable protection to the savings bank.
(Source: P.A. 86-1213.)
 
    (205 ILCS 205/9001)  (from Ch. 17, par. 7309-1)
    Sec. 9001. Personnel, records, files, actions, and duties.
    The Commissioner shall appoint, subject to applicable
provisions of the Personnel Code, a supervisor, examiners,
employees, experts, and special assistants as may be necessary
to effectively carry out this Act. The Commissioner shall
require each supervisor, examiner, expert, and special
assistant employed or appointed by him to give bond, with
security to be approved by the Commissioner, not in any case
less than $15,000, conditioned upon the faithful discharge of
their duties. The premium on the bond shall be paid by the
Commissioner from funds appropriated for that purpose. The
bond, along with verification of payment of the premium on the
bond, shall be filed in the office of the Secretary of State.
(Source: P.A. 86-1213.)
 
    (205 ILCS 205/9002)  (from Ch. 17, par. 7309-2)
    Sec. 9002. Powers of Secretary. The Secretary shall have
the following powers and duties:
    (1) To exercise the rights, powers, and duties set forth in
this Act or in any related Act.
    (2) To establish regulations as may be reasonable or
necessary to accomplish the purposes of this Act.
    (3) To make an annual report regarding the work of his
office under this Act as he may consider desirable to the
Governor, or as the Governor may request.
    (4) To cause a suit to be filed in his name to enforce any
law of this State that applies to savings banks, their service
corporations, subsidiaries, affiliates, or holding companies
operating under this Act, including the enforcement of any
obligation of the officers, directors, agents, or employees of
any savings bank.
    (5) To prescribe a uniform manner in which the books and
records of every savings bank are to be maintained.
    (6) To establish a reasonable fee structure for savings
banks and holding companies operating under this Act and for
their service corporations and subsidiaries. The fees shall
include, but not be limited to, annual fees, application fees,
regular and special examination fees, and other fees as the
Secretary establishes and demonstrates to be directly
resultant from the Secretary's responsibilities under this Act
and as are directly attributable to individual entities
operating under this Act. The aggregate of all fees collected
by the Secretary on and after the effective date of this Act
shall be paid promptly after receipt of the same, accompanied
by a detailed statement thereof, into the Savings and
Residential Finance Regulatory Fund subject to the provisions
of Section 7-19.1 of the Illinois Savings and Loan Act of 1985
including without limitation the provision for credits against
regulatory fees. The amounts deposited into the Fund shall be
used for the ordinary and contingent expenses of the Office of
Banks and Real Estate. Nothing in this Act shall prevent
continuing the practice of paying expenses involving salaries,
retirement, social security, and State-paid insurance of State
officers by appropriation from the General Revenue Fund. The
Secretary may require payment of the fees under this Act by an
electronic transfer of funds or an automatic debit of an
account of each of the savings banks.
(Source: P.A. 95-1047, eff. 4-6-09.)
 
    (205 ILCS 205/9003)  (from Ch. 17, par. 7309-3)
    Sec. 9003. Prohibited activities. The Commissioner, deputy
commissioners, and employees of the Office of Banks and Real
Estate shall be subject to the restrictions provided in Section
2.5 of the Division of Banking Office of Banks and Real Estate
Act including, without limitation, the restrictions on (i)
owning shares of stock or holding any other equity interest in
an entity regulated under this Act or in any corporation or
company that owns or controls an entity regulated under this
Act; (ii) being an officer, director, employee, or agent of an
entity regulated under this Act; and (iii) obtaining a loan or
accepting a gratuity from an entity regulated under this Act.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 205/9004)  (from Ch. 17, par. 7309-4)
    Sec. 9004. Examination.
    (a) At least once every 18 months or more often if it is
deemed necessary or expedient, the Commissioner shall examine
the books, records, operations, and affairs of each savings
bank operating under this Act. In the course of the
examination, the Commissioner shall also examine in the same
manner all entities, companies, and individuals which or whom
the Commissioner determines may have a relationship with the
savings bank or any subsidiary or entity affiliated with it, if
the relationship may adversely affect the affairs, activities,
and safety and soundness of the savings bank, including: (i)
companies controlled by the savings bank; (ii) entities,
including companies controlled by the company, individual, or
individuals that control the savings bank; and (iii) the
company or other entity which controls or owns the savings
bank. For purposes of this subsection, the Commissioner shall
deem it necessary or expedient to conduct an examination more
often than every 18 months if a required report from a savings
bank indicates a material change in financial condition or a
material violation of a law or regulation. In that event, the
Commissioner shall initiate an examination within 30 days of
receipt of that information. In the event that the condition is
grounds for taking custody of the savings bank under Section
10001 of this Act, the examination shall be initiated
immediately. Notwithstanding any other provision of this Act,
every savings bank, as defined by rule, or, if not defined, to
the same extent as would be permitted in the case of a State
bank, the Secretary, in lieu of the examination, may accept on
an alternating basis the examination made by the eligible
savings 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 an examination.
    (b) The Commissioner shall examine to determine:
        (1) Quality of financial condition, including safety
    and soundness and investment and loan quality.
        (2) Compliance with this Act and other applicable
    statutes and regulations.
        (3) Quality of management policies.
        (4) Overall safety and soundness of the savings bank,
    its parent, subsidiaries, and affiliates.
        (5) Remedial actions required to correct and to restore
    compliance with applicable statutes, regulations, and
    proper business policies.
    (c) The Commissioner shall promulgate regulations to
implement and administer this Section.
    (d) If a savings bank, its holding company, or any of its
corporate subsidiaries has not been audited at least once in
the 12 months prior to the Commissioner's examination, the
Commissioner shall cause an audit of the savings bank's books
and records to be made by an independent licensed public
accountant selected by the Commissioner from a list composed of
certified public accountants who have experience in savings
bank audits. The cost of the audit shall be paid for by the
entity being audited.
    (e) The Commissioner or the Commissioner's examiners or
other formally designated agents are authorized to administer
oaths and to examine and to take and preserve testimony under
oath as to anything in the affairs or ownership of any savings
bank or institution or affiliate thereof.
(Source: P.A. 86-1213.)
 
    (205 ILCS 205/Art. 10 heading)
ARTICLE 10. Involuntary Liquidation Custody and
Conservatorship

 
    (205 ILCS 205/10011 new)
    Sec. 10011. Appointment of a receiver following taking of
custody. If, following the taking of custody of a savings bank,
the Secretary determines that the appointment of a receiver is
appropriate, then the provisions of this Article shall apply.
 
    (205 ILCS 205/10015 new)
    Sec. 10015. Secretary's proceedings exclusive. Except by
the authority of the Secretary, represented by the Attorney
General, or the Federal Deposit Insurance Corporation pursuant
to the Federal Deposit Insurance Act, no complaint shall be
filed or proceedings commenced in any court for the dissolution
of, the winding up of the affairs of, or the appointment of a
receiver for any savings bank on the grounds that:
        (1) it is insolvent;
        (2) its capital is impaired or it is otherwise in an
    unsound condition;
        (3) its business is being conducted in an unlawful,
    fraudulent or unsafe manner;
        (4) it is unable to continue operations; or
        (5) its examination has been obstructed or impaired.
 
    (205 ILCS 205/10020 new)
    Sec. 10020. Capital impairment; correction.
        (a) If the Secretary, with respect to a savings bank,
shall find:
        (1) its capital is impaired or it is otherwise in an
    unsound condition;
        (2) its business is being conducted in an unlawful
    manner, including, without limitation, in violation of any
    provisions of this Act, or in a fraudulent or unsafe
    manner;
        (3) it is unable to continue operations; or
        (4) its examination has been obstructed or impeded;
then the Secretary may give notice to the board of directors of
his or her finding or findings. If the situation so found by
the Secretary shall not be corrected to his or her satisfaction
within a period of at least 60 but no more than 180 days after
receipt of the notice, which period shall be determined by the
Secretary and set forth in the notice, then the Secretary, at
the termination of that period, may take possession and control
of the savings bank and its assets as provided for in this Act
for the purpose of examination, reorganization, or liquidation
through receivership.
    (b) If the Secretary has given notice to the board of
directors of his or her findings, as provided in subsection
(a), and the time period prescribed in that notice has expired,
the Secretary may extend the time period prescribed in that
notice for such period as the Secretary deems appropriate.
 
    (205 ILCS 205/10025 new)
    Sec. 10025. Capital impairment; emergency. If, in addition
to a finding as provided in Section 10020 of this Act, the
Secretary is of the opinion and finds that an emergency exists
that may result in serious losses to the depositors or the
inability of the savings bank to continue in operations, meet
the demands of its depositors, or pay its obligations in the
normal course of business, he or she may, in his or her
discretion, without having given the notice provided for in
Section 10020, and whether or not proceedings under Section
10020 have been instituted or are then pending, take possession
and control of the savings bank and its assets for the purpose
of examination, reorganization, or liquidation through
receivership.
 
    (205 ILCS 205/10030 new)
    Sec. 10030. Secretary's possession; power. The Secretary
may take possession and control of a savings bank and its
assets by posting upon the premises a notice reciting that the
Secretary is assuming possession pursuant to this Act and the
time when his or her possession shall be deemed to commence,
which time shall not pre-date the posting of the notice.
Promptly after taking possession and control of a savings bank,
if the Federal Deposit Insurance Corporation is not appointed
as receiver, the Secretary shall file a copy of the notice
posted upon the premises in the circuit court in the county in
which the savings bank is located, and thereupon the clerk of
such court shall note the filing of the notice upon the records
of the court, and shall enter such cause as a court action upon
the dockets of such court under the name and style of "In the
matter of the possession and control of the Secretary of
(insert the name of such savings bank)", and thereupon the
court wherein the cause is docketed shall be vested with
jurisdiction to hear and determine all issues and matters
pertaining to or connected with the Secretary's possession and
control of the savings bank as provided in this Act, and such
further issues and matters pertaining to or connected with the
Secretary's possession and control as may be submitted to the
court for its adjudication by the Secretary. When the Secretary
has taken possession and control of a savings bank and its
assets, then he or she shall be vested with the full powers of
management and control, including without limitation the
following:
        (1) the power to continue or to discontinue the
    business;
        (2) the power to stop or to limit the payment of its
    obligations; provided, however with respect to a qualified
    financial contract between any party and a savings bank or
    a branch or agency of which the Secretary has taken
    possession and control, which party has a perfected
    security interest in collateral or other valid lien or
    security interest in collateral enforceable against third
    parties pursuant to a security arrangement related to that
    qualified financial contract, the party may retain all of
    the collateral and upon repudiation or termination of that
    qualified financial contract in accordance with its terms
    apply the collateral in satisfaction of any claims secured
    by the collateral; in no event shall the total amount so
    applied exceed the global net payment obligation, if any;
        (3) the power to collect and to use its assets and to
    give valid receipts and acquittances therefore;
        (4) the power to employ and to pay any necessary
    assistants;
        (5) the power to execute any instrument in the name of
    the savings bank;
        (6) the power to commence, defend, and conduct in its
    name any action or proceeding in which it may be a party;
        (7) the power, upon the order of the court, to sell and
    convey its assets in whole or in part, and to sell or
    compound bad or doubtful debts upon terms and conditions as
    may be fixed in such order;
        (8) the power, upon the order of the court, to make and
    to carry out agreements with other savings banks or with
    the United States or any agency thereof that shall insure
    the savings bank's deposits, in whole or in part, for the
    payment or assumption of the savings bank's liabilities, in
    whole or in part, and to transfer assets and to make
    guaranties, in whole or in part, and to transfer assets and
    to make guaranties in connection therewith;
        (9) the power, upon the order of the court, to borrow
    money in the name of the savings bank and to pledge its
    assets as security for the loan;
        (10) the power to terminate his or her possession and
    control by restoring the savings bank to its board of
    directors;
        (11) the power to reorganize the savings bank as
    provided in this Act;
        (12) the power to appoint a receiver and to order
    liquidation of the savings bank as provided in this Act;
    and
        (13) the power, upon the order of the court and without
    the appointment of a receiver, to determine that the
    savings bank has been closed for the purpose of liquidation
    without adequate provision being made for payment of its
    depositors, and thereupon the savings bank shall be deemed
    to have been closed on account of inability to meet the
    demands of its depositors.
    As soon as practical after taking possession, the Secretary
shall make his or her examination of the condition of the
savings bank and an inventory of the assets. Unless the time
shall be extended by order of the court, and unless the
Secretary shall have otherwise settled the affairs of a savings
bank pursuant to the provisions of this Act, at the termination
of 30 days from the time of taking possession and control of a
savings bank for the purpose of examination, reorganization or
liquidation through receivership, the Secretary shall either
terminate his or her possession and control by restoring the
savings bank to its board of directors or appoint a receiver
and order the liquidation of the savings bank as provided in
this Act. All necessary and reasonable expenses of the
Secretary's possession and control and of its reorganization
shall be borne by the savings bank and may be paid by the
Secretary from its assets. If the Federal Deposit Insurance
Corporation is appointed by the Secretary as receiver of a
savings bank, or the Federal Deposit Insurance Corporation
takes possession of the savings bank, the receivership
proceedings and the powers and duties of the Federal Deposit
Insurance Corporation shall be governed by the Federal Deposit
Insurance Act and regulations promulgated under that Act rather
than the provisions of this Act.
 
    (205 ILCS 205/10035 new)
    Sec. 10035. Secretary's possession; limitation of actions.
Except when the Federal Deposit Insurance Corporation has taken
possession of the savings bank or is acting as receiver, if the
Secretary has taken possession and control of a savings bank
and its assets, there shall be a postponement until 6 months
after the commencement of the possession of the date upon which
any period of limitation fixed by a statute or agreement would
otherwise expire on a claim or right of action of the savings
bank, or upon which an appeal must be taken or a pleading or
other document must be filed by the savings bank in any pending
action or proceeding. No judgment, lien, levy, attachment, or
other similar legal process shall be enforced upon or satisfied
in whole or in part from any asset of the savings bank while it
is in the possession of the Secretary, except upon the order of
the court referred to in Section 10030 entered in due course
pursuant to Section 10090 of this Act. The provisions of this
Section shall continue to apply and shall govern
notwithstanding the appointment of and the possession by a
receiver pursuant to Section 10055 of this Act.
 
    (205 ILCS 205/10040 new)
    Sec. 10040. Reorganization. The Secretary, while in
possession and control of a savings bank and its assets, after
according a hearing to interested parties as he or she may
determine and upon the order of the court, may propose a
reorganization plan. The reorganization plan shall become
effective only (1) when the requirements of Section 10045 are
satisfied, and (2) when, after reasonable notice of such
reorganization, as the case may require (A) depositors and
other creditors of such savings bank representing at least 75%
in amount of its total deposits and other liabilities as shown
by the books of the savings bank, (B) stockholders owning at
least two-thirds of its outstanding capital stock as shown by
the books of the savings bank, or (C) both depositors and other
creditors representing at least 75% in amount of the total
deposits and other liabilities and stockholders owning at least
two-thirds of its outstanding capital stock as shown by the
books of the savings bank, shall have consented in writing to
the plan of reorganization; provided, however, that claims of
depositors or other creditors that will be satisfied in full on
demand under the provisions of the plan of reorganization shall
not be included among the total deposits and other liabilities
of the savings bank in determining the 75% required under this
Section. When such reorganization becomes effective, all
books, records, and assets of the savings bank shall be
disposed of in accordance with the provisions of the plan and
the affairs of the savings bank shall be conducted by its board
of directors in the manner provided by the plan and under the
conditions, restrictions, and limitations prescribed by the
Secretary. In any reorganization approved and effective as
provided in this Section, all depositors and other creditors
and stockholders of the savings bank, whether or not they shall
have consented to the plan of reorganization, shall be fully
and in all respects subject to and bound by its provisions, and
claims of all depositors and other creditors shall be treated
as if they have consented to the plan of reorganization. A
department, agency, or political subdivision of this State
holding a claim that will not be paid in full is authorized to
participate in a plan of reorganization as any other creditor
and shall be subject to and bound by its provisions as any
other creditor.
 
    (205 ILCS 205/10045 new)
    Sec. 10045. Requirements of reorganization plan. A plan of
reorganization for a savings bank shall not be proposed under
this Act unless all of the following are met:
        (1) the plan is feasible and fair to all classes of
    depositors, creditors and stockholders;
        (2) the face amount of the interest accorded to any
    class of depositors, creditors and stockholders under the
    plan does not exceed the value of the assets upon
    liquidation less the full amount of the claims of all prior
    classes, subject, however, to any fair adjustment for new
    capital that any class will pay in under the plan;
        (3) the plan assures the removal of any director,
    officer, or employee responsible for any unsound or
    unlawful action or the existence of an unsound condition;
        (4) any merger or consolidation provided by the plan
    conforms to the requirements of this Act; and
        (5) any reorganized savings bank provided by the plan
    conforms to the requirements of this Act for the
    organization of a savings bank.
 
    (205 ILCS 205/10050 new)
    Sec. 10050. Reorganization; emergency. Whenever, in the
course of reorganization, supervening conditions render the
plan of reorganization unfair or its execution impractical, the
Secretary may modify the plan, provided the modification is
with the written consent of the depositors and other creditors
representing at least 75% in amount of the total deposits and
other liabilities which are impaired or lessened by the
modification, or may, provided the Federal Deposit Insurance
has not been appointed, appoint a receiver for liquidation as
provided in this Act.
 
    (205 ILCS 205/10055 new)
    Sec. 10055. Appointment of receiver; court proceeding.
    (a) If the Secretary determines, which determination may be
made at the time of or any time subsequent to his or her taking
possession and control of a savings bank and its assets, that
no practical possibility exists to reorganize the savings bank
after reasonable efforts have been made and that it should be
liquidated through receivership, then the Secretary shall
appoint a receiver and require of the receiver the bond and
security as the Secretary deems proper, and the Secretary,
represented by the Attorney General, shall, if the Federal
Deposit Insurance Corporation is not acting as receiver, file a
complaint for the dissolution or winding up of the affairs of
the savings bank in the circuit court of the county where such
savings bank is located.
    (b) Unless the Federal Deposit Insurance Corporation is
acting as receiver for the savings bank, the Secretary, upon
taking possession and control of a savings bank and its assets,
may and, if he or she has not previously done so, shall,
immediately upon filing a complaint for dissolution, make an
examination of the affairs of the trust department of the
savings bank or appoint a corporate fiduciary or other suitable
person to make the examination as the Secretary's agent. The
examination shall be conducted in accordance with and pursuant
to the authority granted under Section 5-2 of the Corporate
Fiduciary Act, as now or hereafter amended, and the corporate
fiduciary or other suitable person conducting the examination
shall have and may exercise on behalf of the Secretary all of
the powers and authority granted to the Secretary thereunder.
The report of examination shall, to the extent reasonably
possible, identify those governing instruments with specific
instructions concerning the appointment of a successor
fiduciary. A copy of the report shall be filed in any
dissolution proceeding filed by the Secretary. The reasonable
fees and necessary expenses of the examining corporate
fiduciary or other suitable person, as approved by the
Secretary or as recommended by the Secretary and approved by
the court if a dissolution proceeding has been filed, shall be
borne by the subject savings bank and shall have the same
priority for payment as the reasonable and necessary expenses
of the Secretary in conducting an examination.
    As soon as reasonably can be done, the Secretary, if he or
she deems it advisable, shall seek the advice and instruction
of the court concerning the removal of the corporate fiduciary
as to all of its fiduciary accounts and the appointment of a
successor fiduciary, which may be the examining corporate
fiduciary, to take over and administer all of the fiduciary
accounts being administered by the trust department of the
savings bank. The corporate fiduciary or other suitable person
appointed to make the examination shall make a proper
accounting, in the manner and scope as determined by the
Secretary to be practical and advisable under the
circumstances, on behalf of the trust department of the savings
bank and no guardian ad litem need be appointed to review the
accounting.
 
    (205 ILCS 205/10060 new)
    Sec. 10060. Notice of receivership. Upon appointing a
receiver, other than the Federal Deposit Insurance
Corporation, and upon the filing of a complaint for the
dissolution or winding up of the affairs of a savings bank, the
Secretary shall cause notice to be given in such newspaper as
he or she directs once each week for twelve consecutive weeks
calling on all persons who may have claims against such savings
bank to present the same to the receiver and to make legal
proof thereof and notifying all such persons and all to whom it
may concern of the filing of a complaint for the dissolution or
winding up of the affairs of the savings bank and stating the
name and location of said court. All persons who may have
claims against such savings bank and the receiver to whom the
persons have presented their claims may present them to the
clerk of the court, and the allowance or disallowance of the
claims by the court in connection with such proceedings shall
be deemed an adjudication in a court of competent jurisdiction.
 
    (205 ILCS 205/10065 new)
    Sec. 10065. Receiver's powers; duties. Other than the
Federal Deposit Insurance Corporation, which shall derive its
powers and perform its duties pursuant to the Federal Deposit
Insurance Act and regulations promulgated thereunder, the
receiver for a savings bank, under the direction of the
Secretary, shall have the power and authority and is charged
with the duties and responsibilities as follows:
        (1) He or she shall take possession of and, for the
    purpose of the receivership, the title to the books,
    records, and assets of every description of the savings
    bank.
        (2) He or she shall proceed to collect all debts, dues
    and claims belonging to the savings bank.
        (3) He or she shall file with the Secretary a copy of
    each report that he or she makes to the court, together
    with such other reports and records as the Secretary may
    require.
        (4) He or she shall have authority to sue and defend in
    his or her own name with respect to the affairs, assets,
    claims, debts, and choses in action of the savings bank.
        (5) He or she shall have authority, and it shall be his
    or her duty, to surrender to the customers of such savings
    bank their private papers and valuables left with the
    savings bank for safekeeping, upon satisfactory proof of
    ownership.
        (6) He or she shall have authority to redeem or take
    down collateral hypothecated by the savings bank to secure
    its notes or other evidence of indebtedness whenever the
    Secretary deems it to the best interest of the creditors of
    the savings bank to do so.
        (7) Whenever he or she finds it necessary in his or her
    opinion to use and employ money of the savings bank, in
    order to protect fully and benefit the savings bank, by the
    purchase or redemption of any property, real or personal,
    in which the savings bank may have any rights by reason of
    any bond, mortgage, assignment, or other claim thereto, he
    or she may certify the facts together with his or her
    opinions as to the value of the property involved, and the
    value of the equity the savings bank may have in the
    property to the Secretary, together with a request for the
    right and authority to use and employ so much of the money
    of the savings bank as may be necessary to purchase the
    property, or to redeem the same from a sale if there was a
    sale, and if the request is granted, the receiver may use
    so much of the money of the savings bank as the Secretary
    may have authorized to purchase the property at such sale.
        (8) He or she shall deposit daily all monies collected
    by him or her in any savings bank selected by the
    Secretary, who may require of (and the savings bank so
    selected may furnish) such depository satisfactory
    securities or satisfactory surety bond for the safekeeping
    and prompt payment of the money so deposited. The deposits
    shall be made in the name of the Secretary in trust for the
    savings bank and be subject to withdrawal upon his or her
    order or upon the order of such persons as the Secretary
    may designate. Such monies may be deposited without
    interest, unless otherwise agreed. However, if any
    interest was paid by such depository, it shall accrue to
    the benefit of the particular trust to which the deposit
    belongs.
        (9) He or she shall do things and take such steps from
    time to time under the direction and approval of the
    Secretary as may reasonably appear to be necessary to
    conserve the savings bank's assets and secure the best
    interests of the creditors of the savings bank.
        (10) He or she shall record any judgment of dissolution
    entered in a dissolution proceeding and thereupon deliver
    to the Secretary a certified copy thereof, together with
    all books of accounts and ledgers of the savings bank for
    preservation.
 
    (205 ILCS 205/10070 new)
    Sec. 10070. Receiver's powers; court directions. Upon the
order of the court wherein the Secretary's complaint for the
dissolution or winding up of the affairs of the savings bank
was filed, the receiver for the savings bank shall have the
power and authority and is charged with the duties and
responsibilities as follows:
        (1) He or she may sell and compound all bad and
    doubtful debts on terms as the court shall direct.
        (2) He or she may sell the real and personal property
    of the savings bank on such terms as the court shall
    direct.
        (3) He or she may petition the court for the authority
    to borrow money, and to pledge the assets of the savings
    bank as security therefor, whereupon the practice and
    procedure shall be as follows:
            (A) Upon the filing of the petition, the court
        shall set a date for the hearing of the petition and
        shall prescribe the form and manner of the notice to be
        given to the officers, stockholders, creditors, or
        other persons interested in such savings bank.
            (B) Upon such hearing, any officer, stockholder,
        creditor, or person interested shall have the right to
        be heard.
            (C) If the court grants such authority, then the
        receiver may borrow money and issue evidences of
        indebtedness therefor and may secure the payment of
        such loan by the mortgage, pledge, transfer in trust,
        or hypothecation of any or all property and assets of
        such savings bank, whether real, personal, or mixed,
        superior to any charge thereon for the expenses of
        liquidation.
            (D) The loan may be obtained in such amounts upon
        such terms and conditions, and with provisions for
        repayment as may be deemed necessary or expedient.
            (E) The loan may be obtained for the purpose of
        facilitating liquidation, protecting or preserving the
        assets, expediting the making of distributions to
        depositors and other creditors, providing for the
        expenses of administration and liquidation, and aiding
        in the reopening or reorganization of such savings bank
        or its merger or consolidation with another savings
        bank, or in the sale of its assets.
            (F) The receiver shall be under no personal
        obligation to repay any such loan and shall have
        authority to take any action necessary or proper to
        consummate such loan and to provide for the repayment
        thereof, and may, when required, give bond for the
        faithful performance of all undertakings in connection
        therewith.
            (G) Prior to petitioning the court for authority to
        make any such loan, the receiver may make application
        for or negotiate any loan subject to obtaining an order
        of the court approving the same.
        (4) He or she may make and carry out agreements with
    other savings banks or with the United States or any agency
    thereof that has insured the savings bank's deposits, in
    whole or in part, for the payment or assumption of the
    savings bank's liabilities, in whole or in part, and he or
    she may transfer assets and make guaranties in connection
    therewith.
        (5) After the expiration of 12 weeks after the first
    publication of the Secretary's notice as provided in
    Section 10060, he or she shall file with the court a
    correct list of all creditors of the savings bank, as shown
    by its books, who have not presented their claims and the
    amount of their respective claims after allowing all just
    credits, deductions and set-offs as shown by the books of
    the savings bank. Claims that are filed shall be deemed
    proven, unless objections are filed thereto by a party or
    parties interested therein within such time as is fixed by
    the court.
        (6) At the termination of his or her administration, he
    or she shall petition the court for the entry of a judgment
    of dissolution. After a hearing upon such notice as the
    court may prescribe, the court may enter a judgment of
    dissolution whereupon the savings bank's charter is
    terminated. The provisions of this Section do not apply to
    the Federal Deposit Insurance Corporation as receiver,
    which shall derive its powers and perform its duties
    pursuant to the Federal Deposit Insurance Act.
 
    (205 ILCS 205/10075 new)
    Sec. 10075. Change of receiver. At any time after a
receiver, other than the Federal Deposit Insurance
Corporation, is appointed by the Secretary, whenever
two-thirds of the creditors of a savings bank petition the
Secretary for the appointment of any person nominated by them
as receiver, who is a reputable person and a resident of the
county in which such savings bank is located, it shall be the
duty of the Secretary to make such appointment and all rights
and duties of his or her predecessor shall at once devolve upon
such appointee. The Secretary may remove any receiver appointed
by him or her, except the Federal Deposit Insurance Corporation
or such receiver as shall have been appointed through
nomination by the creditors. Such a receiver may be removed by
the court upon a petition for his or her removal filed by the
Secretary after hearing had upon such notice as the court may
prescribe. Upon the death, inability to act, resignation, or
removal of a receiver the Secretary may appoint his or her
successor and, upon the appointment, all rights and duties of
his or her predecessor shall at once devolve upon such
appointee.
 
    (205 ILCS 205/10080 new)
    Sec. 10080. Insured deposits; subrogation. The right of an
agency of the United States insuring deposits to be subrogated
to the rights of depositors upon payment of their claim shall
not be less extensive than the law of the United States
requires as a condition of the authority to issue such
insurance or make such payment.
 
    (205 ILCS 205/10085 new)
    Sec. 10085. Expenses and fees. All expenses of a
receivership, including reasonable receiver's and attorney's
fees approved by the Secretary shall be paid out of the assets
of the savings bank. All expenses of any preliminary or other
examination into the condition of any such savings bank or
receivership and all expenses incident to and in connection
with the possession and control of the bank and its assets for
the purpose of examination, reorganization, or liquidation
through receivership shall be paid out of the assets of the
savings bank. The payment authorized under this Section may be
made by the Secretary with moneys and property of the bank in
his or her possession and control and shall have priority over
all claims.
 
    (205 ILCS 205/10090 new)
    Sec. 10090. Dividends; dissolution. From time to time
during a receivership other than a receivership conducted by
the Federal Deposit Insurance Corporation, the Secretary shall
make and pay from moneys of the savings bank a ratable dividend
on all claims as may be proved to his or her satisfaction or
adjudicated by the court. Claims so proven or adjudicated shall
bear interest at the rate of 3% per annum from the date of the
appointment of the receiver to the date of payment, but all
dividends on a claim shall be applied first to principal. In
computing the amount of any dividend to be paid, if the
Secretary deems it desirable in the interests of economy of
administration and to the interest of the savings bank and its
creditors, he or she may pay up to the amount of $10 of each
claim or unpaid portion thereof in full. As the proceeds of the
assets of the savings bank are collected in the course of
liquidation, the Secretary shall make and pay further dividends
on all claims previously proven or adjudicated. After one year
from the entry of a judgment of dissolution, all unclaimed
dividends shall be remitted to the State Treasurer in
accordance with the Uniform Disposition of Unclaimed Property
Act, as now or hereafter amended, together with a list of all
unpaid claimants, their last known addresses and the amounts
unpaid.
 
    (205 ILCS 205/10095 new)
    Sec. 10095. Validation of dividends; destruction of
records. In all cases where the Secretary, prior to this
Section taking effect, has made ratable dividends of money on
claims that have been proven to the satisfaction of the
Secretary or adjudicated in any court of this State, such
dividends are hereby ratified and confirmed and made valid and
legal in all respects. All records of receiverships heretofore
and hereafter received by the Secretary or by a receiver
appointed by the Secretary shall be held by the Secretary or
the receiver for the period of 2 years after the close of the
receivership and, at the termination of the 2-year period, may
then be destroyed.
 
    (205 ILCS 205/10100 new)
    Sec. 10100. Judicial review. Whenever the Secretary shall
have taken possession and control of a savings bank and its
assets for the purpose of examination, reorganization, or
liquidation through receivership, or whenever the Secretary
shall have appointed a receiver for a savings bank, other than
the Federal Deposit Insurance Corporation, and filed a
complaint for the dissolution or for the winding up of the
affairs of a savings bank, and the savings bank denies the
grounds for such actions, it may, at any time within 10 days,
apply to the Circuit Court of Sangamon County, Illinois, to
enjoin further proceedings in the premises; and such court
shall cite the Secretary to show cause why further proceedings
should not be enjoined, and if the court shall find that the
grounds do not exist, the court shall make an order enjoining
the Secretary and any receiver acting under his or her
direction from all further proceedings on account of such
alleged grounds, provided that neither the 10 days allowed by
this Section 10100 for judicial review nor the pendency of any
proceedings for judicial review shall operate to defer, delay,
impede, or prevent the payment or acquisition by the Federal
Deposit Insurance Corporation of the deposit liabilities of the
savings bank that are insured by the Federal Deposit Insurance
Corporation, and during the period allowed for judicial review
and during the pendency of any proceedings for judicial review
under this Section 10100, the Secretary or, as the case may be,
the receiver shall make available to the Federal Deposit
Insurance Corporation such facilities in or of the savings bank
and the books, records, and other relevant data of the savings
bank as may be necessary or appropriate to enable the Federal
Deposit Insurance Corporation to pay out or to acquire the
insured deposit liabilities of the savings bank, and said
Federal Deposit Insurance Corporation and its directors,
officers, agents, and employees, and the Secretary and his
agents and employees, including the receiver, if any, shall be
free from any liability to the savings bank and its
stockholders and creditors for or on account of any matter or
thing in this proviso referred to or provided for.
 
    (205 ILCS 205/11006)  (from Ch. 17, par. 7311-6)
    Sec. 11006. Civil penalties. The Commissioner, in addition
to any other powers granted in this Act, shall have the power
and authority to:
        (1) Impose civil penalties of up to $100,000 $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 that in
    the Commissioner's discretion, is an unsafe or unsound
    banking practice.
        (2) 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.
(Source: P.A. 86-1213.)
 
    Section 35. The Pawnbroker Regulation Act is amended by
changing Sections 0.05 and 1 and by adding Sections 5.5 and 12
as follows:
 
    (205 ILCS 510/0.05)
    Sec. 0.05. Administration of Act.
    (a) This Act shall be administered by the Commissioner of
Banks and Real Estate, 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, who
shall have all of the following powers and duties in
administering this Act:
        (1) To promulgate reasonable rules for the purpose of
    administering the provisions of 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.
        (2.5) To order restitution to consumers suffering
    damages resulting from violations of this Act, rules
    promulgated in accordance with this Act, or other laws or
    regulations related to the operation of a pawnshop.
        (3) To appoint hearing officers and to hire employees
    or to contract with appropriate persons 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.
        (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 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.
        (5) To conduct hearings.
        (6) To impose civil penalties graduated up to $1,000
    against any person for each violation of any provision of
    this Act, any rule promulgated in accordance with this Act,
    or any order of the Commissioner based upon the seriousness
    of the violation.
        (6.5) To initiate, through the Attorney General,
    injunction proceedings whenever it appears to the
    Commissioner that any person, whether licensed under this
    Act or not, is engaged or about to engage in an act or
    practice that constitutes or will constitute a violation of
    this Act or any rule prescribed under the authority of this
    Act. The Commissioner may, in his or her discretion,
    through the Attorney General, apply for an injunction, and
    upon a proper showing, any circuit court may enter a
    permanent or preliminary injunction or a temporary
    restraining order without bond to enforce this Act in
    addition to the penalties and other remedies provided for
    in this Act.
        (7) To issue a cease and desist order and, for
    violations of this Act, any order issued by the
    Commissioner pursuant to this Act, any rule promulgated in
    accordance with this Act, or any other applicable law in
    connection with the operation of a pawnshop, to suspend a
    license issued under this Act for up to 30 days.
        (8) To determine compliance with applicable law and
    rules related to the operation of pawnshops and to verify
    the accuracy of reports filed with the Commissioner, the
    Commissioner, not more than one time every 2 years, may,
    but is not required to, conduct a routine examination of a
    pawnshop, and in addition, the Commissioner may examine the
    affairs of any pawnshop at any time if the Commissioner has
    reasonable cause to believe that unlawful or fraudulent
    activity is occurring, or has occurred, therein.
        (9) In response to a complaint, to address any
    inquiries to any pawnshop in relation to its affairs, and
    it shall be the duty of the pawnshop to promptly reply in
    writing to such inquiries. The Commissioner may also
    require reports or information from any pawnshop at any
    time the Commissioner may deem desirable.
        (10) To revoke a license issued under this Act if the
    Commissioner determines that (a) a licensee has been
    convicted of a felony in connection with the operations of
    a pawnshop; (b) a licensee knowingly, recklessly, or
    continuously violated this Act or State or federal law or
    regulation, a rule promulgated in accordance with this Act,
    or any order of the Commissioner; (c) a fact or condition
    exists that, if it had existed or had been known at the
    time of the original application, would have justified
    license refusal; or (d) the licensee knowingly submits
    materially false or misleading documents with the intent to
    deceive the Commissioner or any other party; or (e) the
    licensee is unable or ceases to continue to operate the
    pawnshop.
        (10.2) To remove or prohibit the employment of any
    officer, director, employee, or agent of the pawnshop who
    engages in or has engaged in unlawful activities that
    relate to the operation of a pawnshop.
        (10.7) To prohibit the hiring of employees who have
    been convicted of a financial crime or any crime involving
    breach of trust who do not meet exceptions as established
    by rule of the Secretary.
        (11) Following license revocation, to take possession
    and control of a pawnshop for the purpose of examination,
    reorganization, or liquidation through receivership and to
    appoint a receiver, which may be the Commissioner, a
    pawnshop, or another suitable person.
    (b) After consultation with local law enforcement
officers, the Attorney General, and the industry, the
Commissioner may by rule require that pawnbrokers operate video
camera surveillance systems to record photographic
representations of customers and retain the tapes produced for
up to 30 days.
    (c) Pursuant to rule, the Commissioner shall issue licenses
on an annual or multi-year basis for operating a pawnshop. Any
person currently operating or who has operated a pawnshop in
this State during the 2 years preceding the effective date of
this amendatory Act of 1997 shall be issued a license upon
payment of the fee required under this Act. New applicants
shall meet standards for a license as established by the
Commissioner. Except with the prior written consent of the
Commissioner, no individual, either a new applicant or a person
currently operating a pawnshop, may be issued a license to
operate a pawnshop if the individual has been convicted of a
felony or of any criminal offense relating to dishonesty or
breach of trust in connection with the operations of a
pawnshop. The Commissioner shall establish license fees. The
fees shall not exceed the amount reasonably required for
administration of this Act. It shall be unlawful to operate a
pawnshop without a license issued by the Commissioner.
    (d) In addition to license fees, the Commissioner may, by
rule, establish fees in connection with a review, approval, or
provision of a service, and levy a reasonable charge to recover
the cost of the review, approval, or service (such as a change
in control, change in location, or renewal of a license). The
Commissioner may also levy a reasonable charge to recover the
cost of an examination if the Commissioner determines that
unlawful or fraudulent activity has occurred. The Commissioner
may require payment of the fees and charges provided in this
Act by certified check, money order, an electronic transfer of
funds, or an automatic debit of an account.
    (e) The Pawnbroker Regulation Fund is established as a
special fund in the State treasury. Moneys collected under this
Act shall be deposited into the Fund and used for the
administration of this Act. In the event that General Revenue
Funds are appropriated to the Office of the Commissioner of
Banks and Real Estate for the initial implementation of this
Act, the Governor may direct the repayment from the Pawnbroker
Regulation Fund to the General Revenue Fund of such advance in
an amount not to exceed $30,000. The Governor may direct this
interfund transfer at such time as he deems appropriate by
giving appropriate written notice. Moneys in the Pawnbroker
Regulation 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.
    (f) The Commissioner may, by rule, require all pawnshops to
provide for the expenses that would arise from the
administration of the receivership of a pawnshop under this Act
through the assessment of fees, the requirement to pledge
surety bonds, or such other methods as determined by the
Commissioner.
    (g) All final administrative decisions of the Commissioner
under this Act 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.
(Source: P.A. 94-91, eff. 7-1-05.)
 
    (205 ILCS 510/1)  (from Ch. 17, par. 4651)
    Sec. 1. (a) Every individual or business entity which lends
money on the deposit or pledge of physically delivered personal
property, other than property the ownership of which is subject
to a legal dispute, securities, printed evidence of
indebtedness or printed evidence of ownership of the personal
property, or who deals in the purchase of such property on the
condition of selling the property back again at a stipulated
price, shall be held and is hereby declared and defined to be a
pawnbroker. The business of a pawnbroker does not include the
lending of money on deposit or pledge of title to property.
    (b) The Secretary may require employees of pawnshops who
have the authority to act in a managerial capacity to obtain a
license from the Department. For the purposes of this Section,
"managerial capacity" shall mean the ability to direct the
operations or activities of the pawnshop. If the Secretary
determines a pawnshop employee's duties and responsibilities
or other factors amount to acting in a managerial capacity, the
Secretary may require licensing. The license shall be valid for
2 years. The Secretary may by rule specify the form of the
application for licensure, fees to be imposed and conditions
for licensure. The licensed employees shall report their places
of employment to the Secretary.
(Source: P.A. 90-602, eff. 7-1-98.)
 
    (205 ILCS 510/5.5 new)
    Sec. 5.5. Replacement of articles or property; insurance.
In the event that any articles or property pledged are lost or
rendered inoperable, the pawnbroker shall replace the articles
or property with identical articles or property, except that if
the pawnbroker cannot reasonably obtain identical articles or
property, the pawnbroker shall replace the articles or property
with like articles or property.
    No pawnbroker shall conduct business in this State, unless
the pawnbroker maintains insurance coverage covering all
hazards equal to at least 2 times the aggregate value of the
outstanding loans for items held in pawn. Such insurance shall
be obtained from an insurance company authorized to do business
in Illinois.
    The pawnbroker shall file a copy of proof of insurance
coverage with the Secretary. A pawnbroker or an insurance
company shall not cancel the insurance coverage except upon
notice to the Secretary by certified mail, return receipt
requested. The cancellation is not effective prior to 30 days
after the Secretary receives the notice.
 
    (205 ILCS 510/12 new)
    Sec. 12. Hold order.
    (a) For the purposes of this Section, "hold order" means a
written legal instrument issued to a pawnbroker by a law
enforcement officer commissioned by the law enforcement agency
of the municipality or county that licenses and regulates the
pawnbroker, ordering the pawnbroker to retain physical
possession of pledged goods in the possession of the pawnbroker
or property purchased by and in the possession of the
pawnbroker and not to return, sell, or otherwise dispose of
such property as such property is believed to be
misappropriated goods.
    (b) Upon written notice from a law enforcement officer
indicating that property in the possession of a pawnbroker and
subject to a hold order is needed for the purpose of furthering
a criminal investigation and prosecution, the pawnbroker shall
release the property subject to the hold order to the custody
of the law enforcement officer for such purpose and the officer
shall provide a written acknowledgment that the property has
been released to the officer. The release of the property to
the custody of the law enforcement officer shall not be
considered a waiver or release of the pawnbroker's property
rights or interest in the property. Upon completion of the
criminal investigation, the property shall be returned to the
pawnbroker who consented to its release; except that, if the
law enforcement officer has not completed the criminal
investigation within 120 days after its release, the officer
shall immediately return the property to the pawnbroker or
obtain and furnish to the pawnbroker a warrant for the
continued custody of the property.
    The pawnbroker shall not release or dispose of the property
except pursuant to a court order or the expiration of the
holding period of the hold order, including all extensions.
    In cases where criminal charges have been filed and the
property may be needed as evidence, the prosecuting attorney
shall notify the pawnbroker in writing. The notice shall
contain the case number, the style of the case, and a
description of the property. The pawnbroker shall hold such
property until receiving notice of the disposition of the case
from the prosecuting attorney. The prosecuting attorney shall
notify the pawnbroker and claimant in writing within 15 days
after the disposition of the case.
 
    Section 40. The Banking Emergencies Act is amended by
changing Sections 1 and 2 as follows:
 
    (205 ILCS 610/1)  (from Ch. 17, par. 1001)
    Sec. 1. Definitions. As used in this Act, unless the
context otherwise requires:
    (1) "Commissioner" means the officer of this State
designated by law to exercise supervision over banks and trust
companies, and any other person lawfully exercising such
powers, 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.
    (2) "Bank" includes commercial banks, savings banks,
savings and loan associations, trust companies, and any branch
thereof lawfully carrying on the business of banking and, to
the extent that the provisions hereof are not inconsistent with
and do not infringe upon paramount Federal law, also includes
national banks and federal savings banks.
    (3) "Officers" means the person or persons designated by
the board of directors, to act for the bank in carrying out the
provisions of this Act or, in the absence of any such
designation or of the officer or officers so designated, the
president or any other officer currently in charge of the bank
or of the office or offices in question.
    (4) "Office" means any place at which a bank transacts its
business or conducts operations related to its business.
    (5) "Emergency" means any condition or occurrence which may
interfere physically with the conduct of normal business
operations at one or more or all of the offices of a bank, or
which poses an imminent or existing threat to the safety or
security of persons or property, or both at one or more or all
of the offices of a bank. Without limiting the generality of
the foregoing, an emergency may arise as a result of any one or
more of the following: natural disasters; civil strife; power
failures; computer failures; interruption of communication
facilities; robbery or attempted robbery.
    (6) "Division" means the Division of Banking within the
Department of Financial and Professional Regulation.
(Source: P.A. 92-483, eff. 8-23-01; 92-651, eff. 7-11-02.)
 
    (205 ILCS 610/2)  (from Ch. 17, par. 1002)
    Sec. 2. Power of Commissioner.
    (a) Whenever the Commissioner is notified by any officer of
a bank or by any other means becomes aware that an emergency
exists, or is impending, he may, by proclamation, authorize all
banks in the State of Illinois to close or alter the hours at
any or all of their offices, or if only a bank or banks, or
offices thereof, in a particular area or areas of the State of
Illinois are affected by the emergency or impending emergency,
the Commissioner may authorize only the affected bank, banks,
or offices thereof, to close. The office or offices so closed
may remain closed until the Commissioner declares, by further
proclamation, that the emergency or impending emergency has
ended. The Commissioner during an emergency or while an
impending emergency exists, which affects, or may affect, a
particular bank or banks, or a particular office or offices
thereof, but not banks located in the area generally of the
said county or municipality, may authorize the particular bank
or banks, or office or offices so affected, to close. The
office or offices so closed shall remain closed until the
Commissioner is notified by a bank officer of the closed bank
that the emergency has ended. The Commissioner shall notify, at
such time, the officers of the bank that one or more offices,
heretofore closed because of the emergency, should reopen and,
in either event, for such further time thereafter as may
reasonably be required to reopen.
    (b) Whenever the Secretary Commissioner becomes aware that
an emergency exists, or is impending, he or she may, by
proclamation, waive any requirements to the notices,
applications, or reports required to be filed and authorize any
bank organized under the laws of this State, of another state,
or of the United States, to open and operate offices in this
State, notwithstanding any other laws of this State to the
contrary. Any office or offices opened in accordance with this
subsection may remain open until the Commissioner declares, by
further proclamation, that the emergency or impending
emergency has ended. The Department of Financial and
Professional Regulation may shall adopt rules to implement this
subsection (b).
(Source: P.A. 95-77, eff. 8-13-07.)
 
    Section 45. The Electronic Fund Transfer Act is amended by
changing Section 10 as follows:
 
    (205 ILCS 616/10)
    Sec. 10. Definitions. For purposes of this Act, the words
and phrases defined in this Section shall have the meanings
ascribed to them unless the context requires otherwise.
Whenever the terms "network" and "switch" are used, they shall
be deemed interchangeable unless, from the context and facts,
the intention is plain to apply only to one type of entity.
    "Access device" means a card, code, or other means of
access to an account, or any combination thereof, that may be
used by a customer to initiate an electronic fund transfer at a
terminal.
    "Account" means a demand deposit, savings deposit, share,
member, or other customer asset account held by a financial
institution.
    An "affiliate" of, or a person "affiliated" with, a
specified person, means a person that directly, or indirectly
through one or more intermediaries, controls, is controlled by,
or is under common control with, the person specified.
    "Commissioner" means the Secretary of Financial and
Professional Regulation Commissioner of Banks and Real Estate
or a person authorized by the Secretary Commissioner, the
Division of Banking Office of Banks and Real Estate Act, or
this Act to act in the Secretary's Commissioner's stead.
    "Division" means the Division of Banking within the
Department of Financial and Professional Regulation.
    "Electronic fund transfer" means a transfer of funds, other
than a transaction originated by check, draft, or similar paper
instrument, that is initiated through a terminal for the
purpose of ordering, instructing, or authorizing a financial
institution to debit or credit an account.
    "Financial institution" means a bank established under the
laws of this or any other state or established under the laws
of the United States, a savings and loan association or savings
bank established under the laws of this or any other state or
established under the laws of the United States, a credit union
established under the laws of this or any other state or
established under the laws of the United States, or a licensee
under the Consumer Installment Loan Act or the Sales Finance
Agency Act.
    "Interchange transaction" means an electronic fund
transfer that results in exchange of data and settlement of
funds between 2 or more unaffiliated financial institutions.
    "Network" means an electronic information communication
and processing system that processes interchange transactions.
    "Person" means a natural person, corporation, unit of
government or governmental subdivision or agency, trust,
estate, partnership, cooperative, or association.
    "Seller of goods and services" means a business entity
other than a financial institution.
    "Switch" means an electronic information and communication
processing facility that processes interchange transactions on
behalf of a network. This term does not include an electronic
information and communication processing company (1) that is
owned by a bank holding company or an affiliate of a bank
holding company and used solely for transmissions among
affiliates of the bank holding company or (2) to the extent
that the facility, by virtue of a contractual relationship, is
used solely for transmissions among affiliates of a bank
holding company, regardless of whether the facility is an
affiliate of the bank holding company or operates as a switch
with respect to one or more networks under an independent
contractual relationship.
    "Terminal" means an electronic device through which a
consumer may initiate an interchange transaction. This term
does not include (1) a telephone, (2) an electronic device
located in a personal residence, (3) a personal computer or
other electronic device used primarily for personal, family, or
household purposes, (4) an electronic device owned or operated
by a seller of goods and services unless the device is
connected either directly or indirectly to a financial
institution and is operated in a manner that provides access to
an account by means of a personal and confidential code or
other security mechanism (other than signature), (5) an
electronic device that is not accessible to persons other than
employees of a financial institution or affiliate of a
financial institution, or (6) an electronic device that is
established by a financial institution on a proprietary basis
that is identified as such and that cannot be accessed by
customers of other financial institutions. The Commissioner
may issue a written rule that excludes additional electronic
devices from the definition of the term "terminal".
(Source: P.A. 89-310, eff. 1-1-96; 89-508, eff. 7-3-96.)
 
    Section 50. The Corporate Fiduciary Act is amended by
changing Sections 1-5.03, 5-1, and 5-10 and by adding Section
1-5.075 as follows:
 
    (205 ILCS 620/1-5.03)  (from Ch. 17, par. 1551-5.03)
    Sec. 1-5.03. "Commissioner" means the Secretary of
Financial and Professional Regulation Commissioner of Banks
and Real Estate or a person authorized by the Secretary
Commissioner, the Division of Banking Office of Banks and Real
Estate Act, or this Act to act in the Secretary's
Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 620/1-5.075 new)
    Sec. 1-5.075. Division. "Division" means the Division of
Banking within the Department of Financial and Professional
Regulation.
 
    (205 ILCS 620/5-1)  (from Ch. 17, par. 1555-1)
    Sec. 5-1. Commissioner's powers. The Commissioner of Banks
and Real Estate shall have the following powers and authority
and is charged with the duties and responsibilities designated
in this Act:
    (a) To promulgate, in accordance with the Illinois
Administrative Procedure Act, reasonable rules for the purpose
of administering the provisions of this Act and for the purpose
of incorporating by reference rules promulgated by the Federal
Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System, the Office of the Comptroller of the
Currency, the Office of Thrift Supervision, or their successors
that pertain to corporate fiduciaries, including, but not
limited to, standards for the operation and conduct of the
affairs of corporate fiduciaries;
    (b) To issue orders for the purpose of administering the
provisions of this Act and any rule promulgated in accordance
with this Act;
    (c) To appoint hearing officers to conduct hearings held
pursuant to 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;
    (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 or regulation
promulgated in accordance with this Act;
    (e) To conduct hearings;
    (f) To promulgate the form and content of any applications
required under this Act;
    (g) To impose civil penalties of up to $100,000 $10,000
against any person or corporate fiduciary 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 a detriment
or impediment to accepting or executing trusts; and
    (h) To address any inquiries to any corporate fiduciary, or
the officers thereof, in relation to its doings and conditions,
or any other matter connected with its affairs, and it shall be
the duty of any corporate fiduciary or person so addressed, to
promptly reply in writing to such inquiries. The Commissioner
may also require reports from any corporate fiduciary at any
time he may deem desirable.
(Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
 
    (205 ILCS 620/5-10)  (from Ch. 17, par. 1555-10)
    Sec. 5-10. Fees; receivership account.
    (a) There shall be paid to the Commissioner by every
corporate fiduciary including each trust company, bank,
savings and loan association, and savings bank to which this
Act shall apply, reasonable fees that the Commissioner shall
assess to recover the costs of administration, certification,
examination and supervision of trusts authorized under this
Act.
    (b) In addition to the fees authorized in subsection (a) of
this Section the Commissioner shall assess reasonable
receivership fees and establish a Non-insured Institutions
Receivership Corporate Fiduciary Receivership account in the
Bank and Trust Company Fund to provide for the expenses that
arise from the administration of the receivership of a
corporate fiduciary under this Act. The aggregate of such
assessments shall be paid into the Non-insured Institutions
Receivership Corporate Fiduciary Receivership account in the
Bank and Trust Company Fund. The assessments for this account
shall be levied until the sum of $4,000,000 has been deposited
into the account from assessments authorized herein, whereupon
the Non-insured Institutions Receivership Corporate Fiduciary
Receivership account assessment shall be abated. If a
receivership of a corporate fiduciary under this Act requires
expenditures from this account, assessments may be
reinstituted until the balance in the Non-insured Institutions
Receivership Corporate Fiduciary Receivership account arising
from assessments is restored to $4,000,000.
    (c) The Commissioner may, by rule, establish a reasonable
manner of assessing the receivership assessments under this
Section.
(Source: P.A. 92-485, eff. 8-23-01.)
 
    Section 55. The Residential Mortgage License Act of 1987 is
amended by changing Section 4-2 as follows:
 
    (205 ILCS 635/4-2)  (from Ch. 17, par. 2324-2)
    Sec. 4-2. Examination; prohibited activities.
    (a) The business affairs of a licensee under this Act shall
be examined for compliance with this Act as often as the
Commissioner deems necessary and proper. The Commissioner
shall promulgate rules with respect to the frequency and manner
of examination. The Commissioner shall appoint a suitable
person to perform such examination. The Commissioner and his
appointees may examine the entire books, records, documents,
and operations of each licensee and its subsidiary, affiliate,
or agent, and may examine any of the licensee's or its
subsidiary's, affiliate's, or agent's officers, directors,
employees and agents under oath. For purposes of this Section,
"agent" includes service providers such as accountants,
closing services providers, providers of outsourced services
such as call centers, marketing consultants, and loan
processors, even if exempt from licensure under this Act. This
Section does not apply to an attorney's privileged work product
or communications.
    (b) The Commissioner shall prepare a sufficiently detailed
report of each licensee's examination, shall issue a copy of
such report to each licensee's principals, officers, or
directors and shall take appropriate steps to ensure correction
of violations of this Act.
    (c) Affiliates of a licensee shall be subject to
examination by the Commissioner on the same terms as the
licensee, but only when reports from, or examination of a
licensee provides for documented evidence of unlawful activity
between a licensee and affiliate benefiting, affecting or
deriving from the activities regulated by this Act.
    (d) The expenses of any examination of the licensee and
affiliates shall be borne by the licensee and assessed by the
Commissioner as established by regulation.
    (e) Upon completion of the examination, the Commissioner
shall issue a report to the licensee. All confidential
supervisory information, including the examination report and
the work papers of the report, shall belong to the
Commissioner's office and may not be disclosed to anyone other
than the licensee, law enforcement officials or other
regulatory agencies that have an appropriate regulatory
interest as determined by the Commissioner, or to a party
presenting a lawful subpoena to the Office of the Commissioner.
The Commissioner may immediately appeal to the court of
jurisdiction the disclosure of such confidential supervisory
information and seek a stay of the subpoena pending the outcome
of the appeal. Reports required of licensees by the
Commissioner under this Act and results of examinations
performed by the Commissioner under this Act shall be the
property of only the Commissioner, but may be shared with the
licensee. Access under this Act to the books and records of
each licensee shall be limited to the Commissioner and his
agents as provided in this Act and to the licensee and its
authorized agents and designees. No other person shall have
access to the books and records of a licensee under this Act.
Any person upon whom a demand for production of confidential
supervisory information is made, whether by subpoena, order, or
other judicial or administrative process, must withhold
production of the confidential supervisory information and
must notify the Commissioner of the demand, at which time the
Commissioner is authorized to intervene for the purpose of
enforcing the limitations of this Section or seeking the
withdrawal or termination of the attempt to compel production
of the confidential supervisory information. The Commissioner
may impose any conditions and limitations on the disclosure of
confidential supervisory information that are necessary to
protect the confidentiality of such information. Except as
authorized by the Commissioner, no person obtaining access to
confidential supervisory information may make a copy of the
confidential supervisory information. The Commissioner may
condition a decision to disclose confidential supervisory
information on entry of a protective order by the court or
administrative tribunal presiding in the particular case or on
a written agreement of confidentiality. In a case in which a
protective order or agreement has already been entered between
parties other than the Commissioner, the Commissioner may
nevertheless condition approval for release of confidential
supervisory information upon the inclusion of additional or
amended provisions in the protective order. The Commissioner
may authorize a party who obtained the records for use in one
case to provide them to another party in another case, subject
to any conditions that the Commissioner may impose on either or
both parties. The requestor shall promptly notify other parties
to a case of the release of confidential supervisory
information obtained and, upon entry of a protective order,
shall provide copies of confidential supervisory information
to the other parties.
    (f) The Commissioner, deputy commissioners, and employees
of the Office of Banks and Real Estate shall be subject to the
restrictions provided in Section 2.5 of the Division of Banking
Office of Banks and Real Estate Act including, without
limitation, the restrictions on (i) owning shares of stock or
holding any other equity interest in an entity regulated under
this Act or in any corporation or company that owns or controls
an entity regulated under this Act; (ii) being an officer,
director, employee, or agent of an entity regulated under this
Act; and (iii) obtaining a loan or accepting a gratuity from an
entity regulated under this Act.
    (g) After the initial examination for those licensees whose
only mortgage activity is servicing fewer than 1,000 Illinois
residential loans, the examination required in subsection (a)
may be waived upon submission of a letter from the licensee's
independent certified auditor that the licensee serviced fewer
than 1,000 Illinois residential loans during the year in which
the audit was performed.
(Source: P.A. 96-112, eff. 7-31-09.)
 
    Section 60. The Foreign Banking Office Act is amended by
changing Sections 2.01 and 17 and by adding Section 2.08 as
follows:
 
    (205 ILCS 645/2.01)  (from Ch. 17, par. 2703)
    Sec. 2.01. "Commissioner" means the Secretary of Financial
and Professional Regulation Commissioner of Banks and Real
Estate or a person authorized by the Secretary Commissioner,
the Division of Banking Office of Banks and Real Estate Act, or
this Act to act in the Secretary's Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 645/2.08 new)
    Sec. 2.08. Division. "Division" means the Division of
Banking within the Department of Financial and Professional
Regulation.
 
    (205 ILCS 645/17)  (from Ch. 17, par. 2724)
    Sec. 17. Fees; examination; receivership. Upon applying
for a certificate of authority to open and maintain a banking
office, a foreign banking corporation shall pay to the
Commissioner an application fee equivalent to the reasonable
expenses of examination for a charter payable by a State bank
under Section 13 of the Illinois Banking Act.
    In addition, a foreign banking corporation holding a
certificate of authority and maintaining a banking office shall
be subject to examination and other fees (comparable to those
payable by a State bank) imposed by the Commissioner pursuant
to Section 48 of the Illinois Banking Act based on the assets
of such foreign banking corporation located in the State of
Illinois.
    (b) In addition to the fees authorized in subsection (a) of
this Section, the Secretary shall assess reasonable
receivership fees and establish a Non-insured Institutions
Receivership account in the Bank and Trust Company Fund to
provide for the expenses that arise from the administration of
the receivership of a foreign banking corporation under this
Act. The aggregate of such assessments shall be paid into the
Non-insured Institutions Receivership account in the Bank and
Trust Company Fund. The assessments for this account shall be
levied until the sum of $4,000,000 has been deposited into the
account from assessments authorized herein, whereupon the
Non-insured Institutions Receivership account assessment shall
be abated. If a receivership of a non-insured institution under
this Act requires expenditures from this account, then
assessments may be reinstituted until the balance in the
Non-insured Institutions Receivership account arising from
assessments is restored to $4,000,000.
    (c) The Secretary may by rule establish a reasonable manner
of assessing the receivership assessments under this Section.
(Source: P.A. 88-271; 89-208, eff. 6-1-97.)
 
    Section 65. The Foreign Bank Representative Office Act is
amended by changing Section 2 as follows:
 
    (205 ILCS 650/2)  (from Ch. 17, par. 2852)
    Sec. 2. Definitions. As used in this Act, unless the
context requires otherwise:
    (a) "Commissioner" means the Secretary of Financial and
Professional Regulation Commissioner of Banks and Real Estate
or a person authorized by the Secretary Commissioner, the
Division of Banking Office of Banks and Real Estate Act, or
this Act to act in the Secretary's Commissioner's stead.
    (b) "Foreign bank" means (1) a bank or trust company which
is organized under the laws of any state or territory of the
United States, including the District of Columbia, other than
the State of Illinois; (2) a national bank having its principal
place of business in any state or territory of the United
States, including the District of Columbia, other than the
State of Illinois; or (3) a bank or trust company organized and
operating under the laws of a country other than the United
States of America.
    (c) "Representative office" means an office in the State of
Illinois at which a foreign bank engages in representational
functions but does not conduct a commercial banking business.
    (d) "Division" means the Division of Banking within the
Department of Financial and Professional Regulation.
(Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
 
    Section 70. The Financial Institution Activity Reporting
Act is amended by changing Section 10.25 and by adding Section
10.33 as follows:
 
    (205 ILCS 680/10.25)  (from Ch. 17, par. 7401-10.25)
    Sec. 10.25. Commissioner. "Commissioner" means the
Secretary of Financial and Professional Regulation
Commissioner of Banks and Real Estate or a person authorized by
the Secretary Commissioner, the Division of Banking Office of
Banks and Real Estate Act, or this Act to act in the
Secretary's Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)
 
    (205 ILCS 680/10.33 new)
    Sec. 10.33. Division. "Division" means the Division of
Banking within the Department of Financial and Professional
Regulation.
 
    Section 75. The Real Estate Regulation Transfer Act is
amended by changing Sections 5, 10, and 15 as follows:
 
    (225 ILCS 456/5)
    Sec. 5. Transfer of powers.
    (a) On July 1, 1995, All the rights, powers, and duties
vested by the Real Estate License Act of 1983, the Land Sales
Registration Act of 1989, and the Illinois Real Estate
Time-Share Act in the Department of Professional Regulation
shall be transferred to the Office of the Commissioner of
Savings and Residential Finance to be hereafter known as the
Office of the Commissioner of Savings, Real Estate Professions,
and Mortgage Finance. Wherever, in the Real Estate License Act
of 1983, the Land Sales Registration Act of 1989, or the
Illinois Real Estate Time-Share Act, there is a reference to
the Department of Professional Regulation or to an officer,
employee, or agent of the Illinois Department of Professional
Regulation, that reference, beginning July 1, 1995, means the
Office of the Commissioner of Savings, Real Estate Professions,
and Mortgage Finance or an officer, employee, or agent of the
Office of the Commissioner of Savings, Real Estate Professions,
and Mortgage Finance.
    (b) All books, records, property (real and personal),
pending business, and funds pertaining to the rights, powers,
and duties transferred from the Department of Professional
Regulation under this Act and in the custody of the Department
of Professional Regulation on July 1, 1995 shall be delivered
and transferred to the Office of the Commissioner of Savings,
Real Estate Professions, and Mortgage Finance. All officers and
employees of the Department of Professional Regulation on July
1, 1995 who devoted substantially all of their time to tasks
performed in connection with the Real Estate License Act of
1983, the Land Sales Registration Act of 1989, or the Illinois
Real Estate Time-Share Act shall on that date become officers
and employees of the Office of the Commissioner of Savings,
Real Estate Professions, and Mortgage Finance. Notwithstanding
the preceding sentence, no rights of State employees under the
Personnel Code, the Illinois Pension Code or any pension,
retirement, or annuity plan, or any collective bargaining
agreement or other contract or agreement are affected by the
transfer of rights, powers, and duties under this Act.
    (c) The provisions of subsections (a) and (b) of this
Section are superseded by the applicable transfer and savings
provisions of the Division of Banking Office of Banks and Real
Estate Act.
(Source: P.A. 89-23, eff. 7-1-95; 89-508, eff. 7-3-96.)
 
    (225 ILCS 456/10)
    Sec. 10. Savings provisions.
    (a) Beginning July 1, 1995, the rights, powers, and duties
transferred by this Act to the Office of the Commissioner of
Savings, Real Estate Professions, and Mortgage Finance shall be
vested in and shall be exercised by the Office of the
Commissioner of Savings, Real Estate Professions, and Mortgage
Finance subject to the provisions of this Act. Each act done in
exercise of those rights, powers, and the duties shall have the
same legal effect as if done by the Department of Professional
Regulation.
    (b) Beginning July 1, 1995, every person, corporation, or
other entity shall be subject to the same obligations and
duties and any penalties, civil or criminal, arising from those
obligations and duties, and shall have the same rights arising
from the exercise of rights, powers, and duties by the Office
of the Commissioner of Savings, Real Estate Professions, and
Mortgage Finance as if those rights, powers, and duties have
been exercised by the Department of Professional Regulation or
an officer, employee, or agent of the Department of
Professional Regulation.
    (c) Beginning July 1, 1995, every officer and employee of
the Office of the Commissioner of Savings, Real Estate
Professions, and Mortgage Finance shall, for any offense, be
subject to the same penalty or penalties, civil or criminal, as
are prescribed by existing law for the same offense by any
officer or employee of the Department of Professional
Regulation whose powers or duties were transferred under this
Act.
    (d) Whenever reports or notices are now required to be made
or given or papers or documents furnished or served by any
person to or upon the Department of Professional Regulation in
relation to the powers or duties transferred by this Act, those
reports or notices shall, on and after July 1, 1995, be made,
given, furnished, or served in the same manner to or upon the
Office of the Commissioner of Savings, Real Estate Professions,
and Mortgage Finance.
    (e) This Act does not affect any act done, ratified, or
cancelled, or any right occurring or established, or any action
or proceeding had or commenced in an administrative, civil, or
criminal cause before July 1, 1995, by the Department of
Professional Regulation under the Real Estate License Act of
1983, the Land Sales Registration Act of 1989, or the Illinois
Real Estate Time-Share Act, and those actions or proceedings
may be prosecuted and continued by the Office of the
Commissioner of Savings, Real Estate Professions, and Mortgage
Finance.
    (f) This Act does affect any license, certificate, permit,
or other form of licensure or authorization issued by the
Department of Professional Regulation in the exercise of a
right, power, or duty that has been transferred to the Office
of the Commissioner of Savings, Real Estate Professions, and
Mortgage Finance under this Act and all such licenses,
certificates, permits, or other form of licensure or
authorization shall continue to be valid under the terms and
conditions of the Acts under which they were issued or granted
and shall become those of the Office of the Commissioner of
Savings, Real Estate Professions, and Mortgage Finance.
    (g) The rules adopted by the Department of Professional
Regulation relating to the powers and or duties transferred to
the Office of the Commissioner of Savings, Real Estate
Professions, and Mortgage Finance under this Act are not
affected by this Act, except that on July 1, 1995, those rules
become the rules of the Office of the Commissioner of Savings,
Real Estate Professions, and Mortgage Finance.
    (h) The provisions of subsections (a) through (g) of this
Section are superseded by the applicable transfer and savings
provisions of the Division of Banking Office of Banks and Real
Estate Act.
(Source: P.A. 89-23, eff. 7-1-95; 89-508, eff. 7-3-96.)
 
    (225 ILCS 456/15)
    Sec. 15. Transfer of appropriations. Appropriations to the
Department of Professional Regulation from the Real Estate
License Administration Fund and the Real Estate Appraisal
Administration Fund for State fiscal year 1996 for the purpose
of administering and enforcing the Real Estate License Act of
1983, the Land Sales Registration Act of 1989, and the Illinois
Real Estate Time-Share Act shall be transferred to the Office
of the Commissioner of Savings, Real Estate Professions, and
Mortgage Finance to be used to conduct those same activities
for that fiscal year.
    The other provisions of this Section are superseded by the
applicable transfer provisions of the Division of Banking
Office of Banks and Real Estate Act.
(Source: P.A. 89-23, eff. 7-1-95; 89-508, eff. 7-3-96.)
 
    (205 ILCS 105/10-2 rep.)
    (205 ILCS 105/10-3 rep.)
    (205 ILCS 105/10-4 rep.)
    (205 ILCS 105/10-5 rep.)
    (205 ILCS 105/10-6 rep.)
    (205 ILCS 105/10-7 rep.)
    Section 90. The Illinois Savings and Loan Act of 1985 is
amended by repealing Sections 10-2, 10-3, 10-4, 10-5, 10-6, and
10-7.
 
    (205 ILCS 205/9005 rep.)
    (205 ILCS 205/9007 rep.)
    (205 ILCS 205/10001 rep.)
    (205 ILCS 205/10002 rep.)
    (205 ILCS 205/10003 rep.)
    (205 ILCS 205/10004 rep.)
    (205 ILCS 205/10005 rep.)
    (205 ILCS 205/10006 rep.)
    (205 ILCS 205/10007 rep.)
    (205 ILCS 205/10008 rep.)
    Section 95. The Savings Bank Act is amended by repealing
Sections 9005, 9007, 10001, 10002, 10003, 10004, 10005, 10006,
10007, and 10008.
 
    (205 ILCS 680/Act rep.)
    Section 100. The Financial Institution Activity Reporting
Act is repealed.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.