Public Act 099-0362
Public Act 0362 99TH GENERAL ASSEMBLY
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Public Act 099-0362
| | SB1861 Enrolled | LRB099 11039 MGM 31419 b |
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| AN ACT concerning regulation.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Illinois Banking Act is amended by changing | Sections 5 and 14.1 as follows:
| (205 ILCS 5/5) (from Ch. 17, par. 311)
| Sec. 5. General corporate powers. A bank organized under | this Act
or subject hereto shall be a body corporate and | politic and shall,
without specific mention thereof in the | charter, have all the powers
conferred by this Act and the | following additional general corporate
powers:
| (1) To sue and be sued, complain, and defend in its | corporate name.
| (2) To have a corporate seal, which may be altered at | pleasure, and
to use the same by causing it or a facsimile | thereof to be impressed or
affixed or in any manner | reproduced, provided that the affixing of a
corporate
seal | to an instrument shall not give the instrument additional | force or effect,
or change the construction thereof, and | the use of a corporate seal is not
mandatory.
| (3) To make, alter, amend, and repeal bylaws, not | inconsistent with
its charter or with law, for the | administration of the affairs of the bank.
If this Act does |
| not provide specific guidance in matters of corporate
| governance, the provisions of the Business Corporation Act | of 1983 may be
used if so provided in the bylaws, and if | the bank is a limited liability
company, the provisions of | the Limited Liability Company Act shall be used.
| (4) To elect or appoint and remove officers and agents | of the bank
and define their duties and fix their | compensation.
| (5) To adopt and operate reasonable bonus plans, | profit-sharing
plans, stock-bonus plans, stock-option | plans, pension plans and similar
incentive plans for its | directors, officers and employees.
| (5.1) To manage, operate and administer a fund for the | investment of funds
by a public agency or agencies, | including any unit of local government or
school district, | or any person. The fund for a public agency shall invest in
| the same type of investments and be subject to the same | limitations provided
for the investment of public funds. | The fund for public agencies shall
maintain a separate | ledger showing the amount of investment for each public
| agency in the fund. "Public funds" and "public agency" as | used in this Section
shall have the meanings ascribed to | them in Section 1 of the Public Funds
Investment Act.
| (6) To make reasonable donations for the public welfare | or for charitable,
scientific, religious or educational | purposes.
|
| (7) To borrow or incur an obligation; and to pledge its | assets:
| (a) to secure its borrowings, its lease of personal | or real property or
its other nondeposit obligations;
| (b) to enable it to act as agent for the sale of | obligations of the
United States;
| (c) to secure deposits of public money of the | United States,
whenever required by the laws of the | United States, including without
being limited to, | revenues and funds the deposit of which is subject to
| the control or regulation of the United States or any | of its officers,
agents, or employees and Postal | Savings funds;
| (d) to secure deposits of public money of any state | or of any
political corporation or subdivision thereof
| including, without being limited to, revenues and | funds the deposit of which
is subject to the control or | regulation of any state or of any political
corporation | or subdivisions thereof or of any of their officers, | agents, or
employees;
| (e) to secure deposits of money whenever required | by the National
Bankruptcy Act;
| (f) (blank); and
| (g) to secure trust funds commingled with the | bank's funds, whether
deposited by the bank or an | affiliate of the bank, pursuant to Section 2-8 of
the |
| Corporate Fiduciary Act.
| (8) To own, possess, and carry as assets all or part of | the real
estate necessary in or with which to do its | banking business, either
directly or indirectly through | the ownership of all or part of the
capital stock, shares | or interests in any corporation, association,
trust | engaged in holding any part or parts or all of the bank
| premises, engaged in such business and in conducting a safe
| deposit business in the premises or part of them, or | engaged in any activity
that the bank is permitted to | conduct in a subsidiary pursuant to paragraph
(12) of this | Section 5.
| (9) To own, possess, and carry as assets other real | estate to
which it may obtain title in the collection of | its debts or that was
formerly used as a part of the bank | premises, but title to
any real estate except as herein | permitted shall not be retained by the
bank, either | directly or by or through a subsidiary, as permitted by
| subsection (12) of this Section for a total period of more | than 10
years
after acquiring title, either directly or | indirectly.
| (10) To do any act, including the acquisition of stock, | necessary to
obtain insurance of its deposits, or part | thereof, and any act necessary
to obtain a guaranty, in | whole or in part, of any of its loans or
investments by the | United States or any agency thereof, and any act
necessary |
| to sell or otherwise dispose of any of its loans or
| investments to the United States or any agency thereof, and | to acquire
and hold membership in the Federal Reserve | System.
| (11) Notwithstanding any other provisions of this Act | or any
other law, to do any act
and to own, possess, and | carry as assets property of the character,
including stock, | that is at the time authorized or permitted to
national | banks by an Act of Congress, but subject always to the same
| limitations and restrictions as are applicable to national | banks by the
pertinent federal law and subject to | applicable provisions of the
Financial Institutions | Insurance Sales Law.
| (12) To own, possess, and carry as assets stock of one | or more
corporations that is, or are, engaged in one or | more of the
following businesses:
| (a) holding title to and administering assets | acquired
as a result of the collection or liquidating | of loans, investments, or
discounts; or
| (b) holding title to and administering personal | property acquired by
the bank, directly or indirectly | through a subsidiary, for the
purpose of leasing to | others, provided the lease or leases and the
investment | of the bank, directly or through a subsidiary, in that
| personal property otherwise comply with Section 35.1 | of this Act; or
|
| (c) carrying on or administering any of the | activities excepting the
receipt of deposits or the | payment of checks or other orders for the
payment of | money in which a bank may engage in carrying on its | general
banking business; provided, however, that | nothing contained in this
paragraph (c) shall be deemed | to permit a bank organized under this Act or
subject | hereto to do, either directly or indirectly through any
| subsidiary, any act, including the making of any loan | or investment, or to
own, possess, or carry as assets | any property that if done by or owned,
possessed, or | carried by the State bank would be in violation of or
| prohibited by any provision of this Act.
| The provisions of this subsection (12) shall not apply | to and shall not
be deemed to limit the powers of a State | bank with respect to the
ownership, possession, and | carrying of stock that a State bank is permitted to
own, | possess, or carry under this Act.
| Any bank intending to establish a subsidiary under this | subsection
(12) shall give written notice to the | Commissioner 60 days prior to the
subsidiary's commencing | of business or, as the case may be, prior to
acquiring | stock in a corporation that has already commenced business. | After
receiving the notice, the Commissioner may waive or | reduce the balance of the
60 day notice period. The
| Commissioner may specify the form of the notice, may |
| designate the types of subsidiaries not subject to this | notice requirement, and may promulgate rules
and | regulations to administer this subsection (12).
| (13) To accept for payment at a future date not | exceeding one year
from the date of acceptance, drafts | drawn upon it by its customers; and
to issue, advise, or | confirm letters of credit authorizing the holders
thereof | to draw drafts upon it or its correspondents.
| (14) To own and lease personal property acquired by the | bank at the
request of a prospective lessee and upon the | agreement of that person to
lease the personal property | provided that the lease, the agreement
with respect | thereto, and the amount of the investment of the bank in
| the property comply with Section 35.1 of this Act.
| (15)(a) To establish and maintain, in addition to the | main
banking premises, branches offering any banking | services permitted at the main
banking premises of a State | bank.
| (b) To establish and maintain, after May 31, 1997, | branches in
another state that may conduct any activity in | that state that is authorized or
permitted for any bank | that has a banking charter issued by that state, subject
to | the same limitations and restrictions that are applicable | to banks chartered
by that state.
| (16) (Blank).
| (17) To establish and maintain terminals, as |
| authorized by the
Electronic Fund Transfer Act.
| (18) To establish and maintain temporary service | booths at any
International Fair held in this State which | is approved by the United
States Department of Commerce, | for the duration of the international fair
for the sole | purpose of providing a convenient place for foreign trade
| customers at the fair to exchange their home countries' | currency into
United States currency or the converse. This | power shall not be construed
as establishing a new place or | change of location for the bank providing
the service | booth.
| (19) To indemnify its officers, directors, employees, | and
agents, as authorized for corporations under Section | 8.75 of the
Business Corporation Act of 1983.
| (20) To own, possess, and carry as assets stock of, or | be or become a
member of, any corporation, mutual company, | association, trust, or other
entity formed exclusively for | the purpose of providing directors' and
officers' | liability and bankers' blanket bond insurance or | reinsurance
to and for the benefit of the stockholders, | members, or beneficiaries, or their
assets or businesses, | or their officers, directors, employees, or agents, and
not | to or for the benefit of any other person or entity or the | public
generally.
| (21) To make debt or equity investments in corporations | or projects,
whether for profit or not for profit, designed |
| to promote the development
of the community and its | welfare, provided that the aggregate investment in
all of | these corporations and in all of these projects does not | exceed 10% of
the
unimpaired capital and unimpaired surplus | of the bank and provided that
this
limitation shall not | apply to creditworthy loans by the bank to those
| corporations or projects. Upon written application to the | Commissioner, a
bank may make an investment that would, | when aggregated with all other
such investments, exceed 10% | of the unimpaired capital and
unimpaired
surplus of the
| bank. The Commissioner may approve the investment if he is | of the opinion
and finds that the proposed investment will | not have a material adverse
effect on the safety and | soundness of the bank.
| (22) To own, possess, and carry as assets the stock of | a corporation
engaged in the ownership or operation of a | travel agency or to operate a
travel agency as a part of | its business.
| (23) With respect to affiliate facilities:
| (a) to conduct at affiliate facilities for and on | behalf of another
commonly owned bank, if so
authorized | by the other bank, all transactions that the other bank | is
authorized or permitted to perform; and
| (b) to authorize a commonly owned bank to conduct | for and on behalf of
it any of the transactions it is | authorized or permitted to perform at one or
more
|
| affiliate facilities.
| Any bank intending to conduct or to authorize a | commonly owned bank to
conduct at an affiliate facility any | of the transactions specified in this
paragraph (23) shall | give written notice to the Commissioner at least 30
days | before any such transaction is conducted at the affiliate | facility.
| (24) To act as the agent for any fire, life, or other | insurance company
authorized by the State of Illinois, by | soliciting and selling insurance and
collecting premiums | on policies issued by such company; and to
receive for | services so rendered such fees or commissions as may be | agreed upon
between the bank and the insurance company for | which it may act as
agent; provided, however, that no such | bank shall in any case assume or
guarantee the payment of | any premium on insurance policies issued through its
agency | by its principal; and provided further, that the bank shall | not
guarantee the truth of any statement made by an assured | in filing his
application for insurance.
| (25) Notwithstanding any other provisions of this Act | or any other law,
to offer any product or service that is | at the time authorized or permitted to
any insured savings | association or out-of-state bank by applicable law,
| provided that powers
conferred only by this subsection | (25):
| (a) shall always be subject to the same limitations |
| and restrictions that
are applicable to the insured | savings association or out-of-state bank for
the | product or service by
such applicable law;
| (b) shall be subject to applicable provisions of | the Financial
Institutions Insurance Sales Law;
| (c) shall not include the right to own or conduct a | real estate brokerage
business for which a license | would be required under the laws of this State;
and
| (d) shall not be construed to include the | establishment or maintenance of
a branch, nor shall | they be construed to limit the establishment or | maintenance
of a branch pursuant to subsection (11).
| Not less than 30 days before engaging in any activity | under the authority
of this subsection, a bank shall | provide written notice to the Commissioner of
its intent to | engage in the activity. The notice shall indicate the | specific
federal or state law, rule, regulation, or | interpretation the bank intends to
use as authority to | engage in the activity.
| (26) Nothing in this Section shall be construed to | require the filing of a notice or application for approval | with the United States Office of the Comptroller of the | Currency or a bank supervisor of another state as a | condition to the right of a State bank to exercise any of | the powers conferred by this Section in this State. | (Source: P.A. 98-44, eff. 6-28-13.)
|
| (205 ILCS 5/14.1) (from Ch. 17, par. 321.1)
| Sec. 14.1. Quasi-Reorganization of Capital Upon a Change in | Control.
| (a) For the purposes of declaring dividends pursuant to | Section 14(8)(b) of
this Act upon a change in control, if a | bank:
| (1) incurs a change in ownership of more than 50% of its | voting stock; and
| (2) has a deficit in its net profits then on hand at the | time of such
change in ownership; and
| (3) receives the prior written approval of the Secretary | Commissioner; such bank
may restate its asset and liability | accounts to fair value for the purpose
of reorganizing the | capital accounts of the bank so that net profits then
on hand | are restated to zero; provided that in no event may total | capital
be increased as a result of a capital reorganization | made pursuant to this Section.
| (b) A bank may reorganize its capital accounts pursuant to | item (3) of subsection (a) of this Section without a change in | control to the same extent and in the same manner authorized | for national banks, subject to the same limitations and | restrictions as are applicable to national banks, upon | receiving the prior written approval of the Secretary. | (Source: P.A. 87-841.)
| Section 99. Effective date. This Act takes effect upon |
Effective Date: 8/13/2015
|
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