Public Act 099-0362
 
SB1861 EnrolledLRB099 11039 MGM 31419 b


  
    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 
becoming law.


Effective Date:  8/13/2015