Public Act 90-0270 of the 90th General Assembly

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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.
         (11)  (Blank).
         (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
         Fiduciary Act.
         (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
    savings bank 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
    insurance corporation.
         (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
    waived; and
         (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
the conversion.
(Source: P.A. 89-508, eff. 7-3-96.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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