Public Act 90-0270
SB646 Enrolled LRB9002634JSmg
AN ACT to amend the Savings Bank Act by changing Sections
1008 and 8012 and adding Section 1007.115.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Savings Bank Act is amended by changing
Sections 1008 and 8012 and adding Section 1007.115 as
(205 ILCS 205/1007.115 new)
Sec. 1007.115. Federal association. "Federal
association" means a savings and loan association or savings
bank incorporated under the federal Home Owners Loan Act of
1993, as now or hereafter amended, whose principal business
office is located within this State.
(205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
Sec. 1008. General corporate powers.
(a) A savings bank operating under this Act shall be a
body corporate and politic and shall have all of the specific
powers conferred by this Act and in addition thereto, the
following general powers:
(1) To sue and be sued, complain, and defend in its
corporate name and to have a common seal, which it may
alter or renew at pleasure.
(2) To obtain and maintain insurance by a deposit
insurance corporation as defined in this Act.
(3) To act as a fiscal agent for the United States,
the State of Illinois or any department, branch, arm, or
agency of the State or any unit of local government or
school district in the State, when duly designated for
that purpose, and as agent to perform reasonable
functions as may be required of it.
(4) To become a member of or deal with any
corporation or agency of the United States or the State
of Illinois, to the extent that the agency assists in
furthering or facilitating its purposes or powers and to
that end to purchase stock or securities thereof or
deposit money therewith, and to comply with any other
conditions of membership or credit.
(5) To make donations in reasonable amounts for the
public welfare or for charitable, scientific, religious,
or educational purposes.
(6) To adopt and operate reasonable insurance,
bonus, profit sharing, and retirement plans for officers
and employees and for directors including, but not
limited to, advisory, honorary, and emeritus directors,
who are not officers or employees.
(7) To reject any application for membership; to
retire deposit accounts by enforced retirement as
provided in this Act and the bylaws; and to limit the
issuance of, or payments on, deposit accounts, subject,
however, to contractual obligations.
(8) To purchase stock in service corporations and
to invest in any form of indebtedness of any service
corporation as defined in this Act, subject to
regulations of the Commissioner.
(9) To purchase stock of a corporation whose
principal purpose is to operate a safe deposit company or
escrow service company.
(10) To exercise all the powers necessary to
qualify as a trustee or custodian under federal or State
law, provided that the authority to accept and execute
trusts is subject to the provisions of the Corporate
Fiduciary Act and to the supervision of those activities
by the Commissioner of Banks and Real Estate.
(12) To establish, maintain, and operate terminals
as authorized by the Electronic Fund Transfer Act. The
establishment, maintenance, operation, and location of
those terminals shall be subject to the approval of the
(13) Pledge its assets:
(A) to enable it to act as agent for the sale
of obligations of the United States;
(B) to secure deposits;
(C) to secure deposits of money whenever
required by the National Bankruptcy Act;
(D) to qualify under Section 2-9 of the
Corporate Fiduciary Act; and
(E) to secure trust funds commingled with the
savings bank's funds, whether deposited by the
savings bank or an affiliate of the savings bank, as
required under Section 2-8 of the Corporate
(14) To accept for payment at a future date not to
exceed one year from the date of acceptance, drafts drawn
upon it by its customers; and to issue, advise, or
confirm letters of credit authorizing holders thereof to
draw drafts upon it or its correspondents.
(15) Subject to the regulations of the
Commissioner, to own and lease personal property acquired
by the savings bank at the request of a prospective
lessee and, upon the agreement of that person, to lease
the personal property.
(16) To establish temporary service booths at any
International Fair in this State that is approved by the
United States Department of Commerce for the duration of
the international fair for the purpose of providing a
convenient place for foreign trade customers to exchange
their home countries' currency into United States
currency or the converse. To provide temporary periodic
service to persons residing in a bona fide nursing home,
senior citizens' retirement home, or long-term care
facility. These powers shall not be construed as
establishing a new place or change of location for the
savings bank providing the service booth.
(17) To indemnify its officers, directors,
employees, and agents, as authorized for corporations
under Section 8.75 of the Business Corporations Act of
(18) To provide data processing services to others
on a for-profit basis.
(19) To utilize any electronic technology to
provide customers with home banking services.
(20) Subject to the regulations of the
Commissioner, to enter into an agreement to act as a
(21) Subject to the regulations of the
Commissioner, to issue credit cards, extend credit
therewith, and otherwise engage in or participate in
credit card operations.
(22) To purchase for its own account shares of
stock of a bankers' bank, described in Section 13(b)(1)
of the Illinois Banking Act, on the same terms and
conditions as a bank may purchase such shares. In no
event shall the total amount of such stock held by a
an association in such bankers' bank exceed
10% of its capital and surplus (including undivided
profits) and in no event shall a savings bank an
association acquire more than 5% of any class of voting
securities of such bankers' bank.
(23) To become a member of the Federal Home Loan
Bank Board and to have the powers granted to a savings
association organized under the Illinois Savings and Loan
Act of 1985 or the laws of the United States, subject to
regulations of the Commissioner.
(b) If this Act fails to provide specific guidance in
matters of corporate governance, the provisions of the
Business Corporation Act of 1983 may be used.
(Source: P.A. 88-112; 88-481; 88-670, eff. 12-2-94; 89-74,
eff. 6-30-95; 89-310, eff. 1-1-96; 89-317, eff. 8-11-95;
89-355, eff. 8-17-95; 89-508, eff. 7-3-96; 89-603, eff.
8-2-96; 89-626, eff. 8-9-96; revised 9-9-96.)
(205 ILCS 205/8012) (from Ch. 17, par. 7308-12)
Sec. 8012. Conversion of an existing depository
institution to a savings bank.
(a) Except as provided in subsection (b), an existing
depository institution may become an Illinois savings bank
(1) Applying to the Commissioner of Banks and Real
Estate for an Illinois savings bank charter.
(2) Obtaining insurance of accounts from a deposit
(3) Complying with the provisions of this Act and
the rules and regulations of the Commissioner, except
that any requirements of publication, notice, and public
hearing are hereby waived.
(4) Paying all outstanding bills for supervisory
fees, examination fees, membership fees, other fees,
penalties, and assessments associated with its original
(5) Recording a savings bank charter in the county
of its company headquarters.
(6) Giving notice to its original chartering
authority and surrendering its charter to its chartering
authority upon approval of the Commissioner.
(b) A federal association required by a law of the
United States to convert to a national bank or to a
depository institution chartered under the laws of the State
of Illinois that elects to become a savings bank may apply
for an expedited process under this subsection. Upon filing
with the Commissioner a certified copy of the conversion
registration statement filed with the appropriate federal
regulatory agency and a certificate issued by that federal
regulatory agency showing that the federal association has
complied with the provisions of federal law, the Commissioner
shall issue a savings bank charter to the converting federal
association, provided the converting federal association:
(i) furnishes evidence of insurance of accounts
from a deposit insurance corporation;
(ii) complies with the provisions of this Act and
the rules of the Commissioner, except that any
requirements of publication notice and public hearing are
(iii) records the savings bank charter in the
county of its principal place of business.
(c) A federal savings association that converts to a
savings bank under subsection (b) of this Section shall not
be required to pay any application fees in connection with
(Source: P.A. 89-508, eff. 7-3-96.)
Section 99. Effective date. This Act takes effect upon