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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| date of this amendatory Act of the 95th General Assembly for |
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| expenses related to medical assistance under the Illinois |
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| Public Aid Code, the Children's Health Insurance Program Act, |
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| the Covering ALL KIDS Health Insurance Act, and the Senior |
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| Citizens and Disabled Persons Property Tax Relief and |
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| Pharmaceutical Assistance Act. The Department of Health and |
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| Family Services must submit all necessary and proper |
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| documentation to the Comptroller for administration of this |
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| Fund. |
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| Section 10. The Illinois Banking Act is amended by changing |
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| Sections 2 and 48 and by adding Section 48.05 as follows:
|
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| (205 ILCS 5/2) (from Ch. 17, par. 302)
|
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| Sec. 2. General definitions. In this Act, unless the |
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| context otherwise
requires, the following words and phrases |
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| shall have the following meanings:
|
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| "Accommodation party" shall have the meaning ascribed to |
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| that term in
Section 3-419 of the Uniform Commercial Code.
|
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| "Action" in the sense of a judicial proceeding includes |
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| recoupments,
counterclaims, set-off, and any other proceeding |
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| in which
rights are determined.
|
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| "Affiliate facility" of a bank means a main banking |
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| premises or branch
of another commonly owned bank.
The main |
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| banking premises or any branch of a bank
may be an "affiliate |
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| facility" with respect to one or more other commonly owned
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| banks.
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| "Appropriate federal banking agency" means the Federal |
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| Deposit Insurance
Corporation, the Federal Reserve Bank of |
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| Chicago, or the Federal Reserve Bank
of St. Louis, as |
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| determined by federal law.
|
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| "Bank" means any person doing a banking business whether |
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| subject to the
laws of this or any other jurisdiction.
|
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| A "banking house", "branch", "branch bank" or "branch
|
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| office" shall mean any place of business of a bank at which |
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| deposits are
received, checks paid, or loans made, but shall |
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| not include any place at
which only records thereof are made, |
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| posted, or kept. A place of business
at which deposits are |
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| received, checks paid, or loans made shall not be
deemed to be |
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| a branch, branch bank, or branch office if the place of
|
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| business is adjacent to and connected with the main banking |
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| premises, or if
it is separated from the main banking premises |
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| by not more than an alley;
provided always that (i) if the |
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| place of business is separated by an alley
from the main |
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| banking premises there is a connection between the two by
|
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| public or private way or by subterranean or overhead passage, |
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| and (ii) if
the place of business is in a building not wholly |
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| occupied by the bank, the
place of business shall not be within |
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| any office or room in which any other
business or service of |
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| any kind or nature other than the business of the
bank is |
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| conducted or carried on. A place of business at which deposits |
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| are
received, checks paid, or loans made shall not be deemed to |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| be a branch,
branch bank, or branch office (i) of any bank if |
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| the place is a terminal established and maintained in |
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| accordance with
paragraph
(17) of Section 5 of this Act, or |
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| (ii) of a commonly owned bank
by virtue of
transactions |
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| conducted at that place on behalf of the other commonly owned |
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| bank
under paragraph (23) of Section 5 of this Act if the place |
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| is an affiliate
facility with respect to the other bank.
|
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| "Branch of an out-of-state bank" means a branch established |
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| or maintained in
Illinois by an out-of-state bank as a result |
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| of a merger between an Illinois
bank and the out-of-state bank |
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| that occurs on or after May 31, 1997, or any
branch established |
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| by the out-of-state bank following the merger.
|
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| "Bylaws" means the bylaws of a bank that are adopted by the |
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| bank's board of
directors or shareholders for the regulation |
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| and management of the bank's
affairs. If the bank operates as a |
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| limited liability company, however, "bylaws"
means the |
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| operating
agreement of the bank.
|
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| "Call report fee" means the fee to be paid to the
|
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| Commissioner by each State bank pursuant to paragraph (a) of |
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| subsection (3)
of Section 48 of this Act.
|
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| "Capital" includes the aggregate of outstanding capital |
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| stock and
preferred stock.
|
23 |
| "Cash flow reserve account" means the account within the |
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| books and records
of the Commissioner of Banks and Real Estate |
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| used to
record funds designated to maintain a reasonable Bank |
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| and Trust Company Fund
operating balance to meet agency |
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| obligations on a timely basis.
|
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| "Charter" includes the original charter and all amendments |
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| thereto
and articles of merger or consolidation.
|
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| "Commissioner" means the Commissioner of Banks and Real |
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| Estate , except that beginning on the effective date of this |
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| amendatory Act of the 95th General Assembly, all references in |
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| this Act to the Commissioner of Banks and Real Estate are |
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| deemed, in appropriate contexts, to be references to the |
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| Secretary of Financial and Professional Regulation or a person
|
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| authorized by the Commissioner, the Office of Banks and Real |
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| Estate
Act, or this Act to act in the Commissioner's stead .
|
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| "Commonly owned banks" means 2 or more banks that each |
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| qualify as a bank
subsidiary of the same bank holding company |
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| pursuant to Section 18 of the
Federal Deposit Insurance Act; |
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| "commonly owned bank" refers to one of a group
of commonly |
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| owned banks but only with respect to one or more of the other |
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| banks
in the same group.
|
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| "Community" means a city, village, or incorporated town and |
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| also includes
the area served by the banking offices of a bank, |
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| but need not be limited or
expanded to conform to the |
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| geographic boundaries of units of local
government.
|
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| "Company" means a corporation, limited liability company, |
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| partnership,
business trust,
association, or similar |
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| organization and, unless specifically excluded,
includes a |
25 |
| "State bank" and a "bank".
|
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| "Consolidating bank" means a party to a consolidation.
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| "Consolidation" takes place when 2 or more banks, or a |
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| trust company and
a bank, are extinguished and by the same |
3 |
| process a new bank is created,
taking over the assets and |
4 |
| assuming the liabilities of the banks or trust
company passing |
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| out of existence.
|
6 |
| "Continuing bank" means a merging bank, the charter of |
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| which becomes the
charter of the resulting bank.
|
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| "Converting bank" means a State bank converting to become a |
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| national
bank, or a national bank converting to become a State |
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| bank.
|
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| "Converting trust company" means a trust company |
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| converting to become a
State bank.
|
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| "Court" means a court of competent jurisdiction.
|
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| "Director" means a member of the board of directors of a |
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| bank. In the case
of a manager-managed limited liability |
16 |
| company, however, "director" means a
manager of
the bank and, |
17 |
| in the case of a member-managed limited liability company,
|
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| "director" means a member of the bank. The term "director" does |
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| not include an
advisory director, honorary director, director |
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| emeritus, or similar person,
unless the person is otherwise |
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| performing
functions similar to those of a member of the board |
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| of directors.
|
23 |
| "Eligible depository institution" means an insured savings |
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| association
that is in default, an insured savings association |
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| that is in danger of
default, a State or national bank that is |
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| in default or a State or
national bank that is in danger of |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| default, as those terms are defined in this
Section, or a new |
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| bank as that term defined in Section 11(m) of the Federal
|
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| Deposit Insurance Act or a bridge bank as that term is defined |
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| in Section 11(n)
of the Federal Deposit Insurance Act or a new |
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| federal savings association
authorized under Section |
6 |
| 11(d)(2)(f) of the Federal Deposit Insurance Act.
|
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| "Fiduciary" means trustee, agent, executor, administrator, |
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| committee,
guardian for a minor or for a person under legal |
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| disability, receiver,
trustee in bankruptcy, assignee for |
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| creditors, or any holder of similar
position of trust.
|
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| "Financial institution" means a bank, savings and loan |
12 |
| association,
credit union, or any licensee under the Consumer |
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| Installment Loan Act or
the Sales Finance Agency Act and, for |
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| purposes of Section 48.3, any
proprietary network, funds |
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| transfer corporation, or other entity providing
electronic |
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| funds transfer services, or any corporate fiduciary, its
|
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| subsidiaries, affiliates, parent company, or contractual |
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| service provider
that is examined by the Commissioner.
|
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| "Foundation" means the Illinois Bank Examiners' Education |
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| Foundation.
|
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| "General obligation" means a bond, note, debenture, |
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| security, or other
instrument evidencing an obligation of the |
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| government entity that is the
issuer that is supported by the
|
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| full available resources of the issuer, the principal and |
25 |
| interest of which
is payable in whole or in part by taxation.
|
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| "Guarantee" means an undertaking or promise to answer for |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| payment of
another's debt or performance of another's duty, |
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| liability, or obligation
whether "payment guaranteed" or |
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| "collection guaranteed".
|
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| "In danger of default" means a State or national bank, a |
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| federally chartered
insured savings association or an Illinois |
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| state chartered insured savings
association with respect to |
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| which the Commissioner or the appropriate
federal banking |
8 |
| agency has advised the Federal Deposit Insurance
Corporation |
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| that:
|
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| (1) in the opinion of the Commissioner or the |
11 |
| appropriate federal
banking agency,
|
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| (A) the State or national bank or insured savings |
13 |
| association is not
likely to be able to meet the |
14 |
| demands of the State or national bank's or
savings |
15 |
| association's obligations in the normal course of |
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| business; and
|
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| (B) there is no reasonable prospect that the State |
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| or national bank or
insured savings association will be |
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| able to meet those demands or pay those
obligations |
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| without federal assistance; or
|
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| (2) in the opinion of the Commissioner or the |
22 |
| appropriate federal
banking agency,
|
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| (A) the State or national bank or insured savings |
24 |
| association has
incurred or is likely to incur losses |
25 |
| that will deplete all or substantially
all of its |
26 |
| capital; and
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| (B) there is no reasonable prospect that the |
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| capital of the State
or national bank or insured |
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| savings association will be replenished without
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| federal assistance.
|
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| "In default" means, with respect to a State or national |
6 |
| bank or an insured
savings association, any adjudication or |
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| other official determination by any
court of competent |
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| jurisdiction, the Commissioner, the appropriate federal
|
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| banking agency, or other public authority pursuant to which a |
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| conservator, receiver,
or other legal custodian is appointed |
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| for a State or national bank or an
insured savings association.
|
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| "Insured savings association" means any federal savings |
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| association chartered
under Section 5 of the federal Home |
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| Owners' Loan Act and any State savings
association chartered |
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| under the Illinois Savings and Loan Act of 1985 or a
|
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| predecessor Illinois statute, the deposits of which are insured |
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| by the Federal
Deposit Insurance Corporation. The term also |
18 |
| includes a savings bank organized
or operating under the |
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| Savings Bank Act.
|
20 |
| "Insured savings association in recovery" means an insured |
21 |
| savings
association that is not an eligible depository |
22 |
| institution and that does
not meet the minimum capital |
23 |
| requirements applicable with respect to the
insured savings |
24 |
| association.
|
25 |
| "Issuer" means for purposes of Section 33 every person who |
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| shall have
issued or proposed to issue any security; except |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| that (1) with respect to
certificates of deposit, voting trust |
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| certificates, collateral-trust
certificates, and certificates |
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| of interest or shares in an unincorporated
investment trust not |
4 |
| having a board of directors (or persons performing
similar |
5 |
| functions), "issuer" means the person or persons performing the
|
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| acts and assuming the duties of depositor or manager pursuant |
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| to the
provisions of the trust, agreement, or instrument under |
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| which the
securities are issued; (2) with respect to trusts |
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| other than those
specified in clause (1) above, where the |
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| trustee is a corporation
authorized to accept and execute |
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| trusts, "issuer" means the entrusters,
depositors, or creators |
12 |
| of the trust and any manager or committee charged
with the |
13 |
| general direction of the affairs of the trust pursuant to the
|
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| provisions of the agreement or instrument creating the trust; |
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| and (3) with
respect to equipment trust certificates or like |
16 |
| securities, "issuer" means
the person to whom the equipment or |
17 |
| property is or is to be leased or
conditionally sold.
|
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| "Letter of credit" and "customer" shall have the meanings |
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| ascribed to
those terms in Section 5-102 of the Uniform |
20 |
| Commercial Code.
|
21 |
| "Main banking premises" means the location that is |
22 |
| designated in a
bank's charter as its main office.
|
23 |
| "Maker or obligor" means for purposes of Section 33 the |
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| issuer of a
security, the promisor in a debenture or other debt |
25 |
| security, or the
mortgagor or grantor of a trust deed or |
26 |
| similar conveyance of a security
interest in real or personal |
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LRB095 18312 MJR 51775 a |
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| property.
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| "Merged bank" means a merging bank that is not the |
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| continuing, resulting,
or surviving bank in a consolidation or |
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| merger.
|
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| "Merger" includes consolidation.
|
6 |
| "Merging bank" means a party to a bank merger.
|
7 |
| "Merging trust company" means a trust company party to a |
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| merger with
a State bank.
|
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| "Mid-tier bank holding company" means a corporation that |
10 |
| (a) owns 100% of
the issued and outstanding shares of each |
11 |
| class of stock of a State bank, (b)
has no other subsidiaries, |
12 |
| and (c) 100% of the issued and outstanding shares of
the |
13 |
| corporation are owned by a parent bank holding company.
|
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| "Municipality" means any municipality, political |
15 |
| subdivision, school
district, taxing district, or agency.
|
16 |
| "National bank" means a national banking association |
17 |
| located in this
State and after May 31, 1997, means a national |
18 |
| banking association without
regard to its location.
|
19 |
| "Out-of-state bank" means a bank chartered under the laws |
20 |
| of a state other
than Illinois, a territory of the United |
21 |
| States, or the District of Columbia.
|
22 |
| "Parent bank holding company" means a corporation that is a |
23 |
| bank holding
company as that term is defined in the Illinois |
24 |
| Bank Holding Company Act of
1957 and owns 100% of the issued |
25 |
| and outstanding shares of a mid-tier bank
holding company.
|
26 |
| "Person" means an individual, corporation, limited |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| liability company,
partnership, joint
venture, trust, estate, |
2 |
| or unincorporated association.
|
3 |
| "Public agency" means the State of Illinois, the various |
4 |
| counties,
townships,
cities, towns, villages, school |
5 |
| districts, educational service regions, special
road |
6 |
| districts, public water supply districts, fire protection |
7 |
| districts,
drainage districts, levee districts, sewer |
8 |
| districts, housing authorities, the
Illinois Bank Examiners' |
9 |
| Education Foundation, the Chicago Park District, and
all other |
10 |
| political corporations or subdivisions of the State of |
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| Illinois,
whether now or hereafter created, whether herein |
12 |
| specifically mentioned or
not, and shall also include any other
|
13 |
| state or any political corporation or subdivision of another |
14 |
| state.
|
15 |
| "Public funds" or "public money" means
current operating |
16 |
| funds, special funds, interest and sinking funds, and funds
of |
17 |
| any kind or character belonging to, in the custody of, or |
18 |
| subject to the
control or regulation of the United States or a |
19 |
| public agency. "Public funds"
or "public money" shall include |
20 |
| funds held by any of the officers, agents, or
employees of the |
21 |
| United States or of a public agency in the course of their
|
22 |
| official duties and, with respect to public money of the United |
23 |
| States, shall
include Postal Savings funds.
|
24 |
| "Published" means, unless the context requires otherwise, |
25 |
| the publishing
of the notice or instrument referred to in some |
26 |
| newspaper of general
circulation in the community in which the |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| bank is located at least once
each week for 3 successive weeks. |
2 |
| Publishing shall be accomplished by, and
at the expense of, the |
3 |
| bank required to publish. Where publishing is
required, the |
4 |
| bank shall submit to the Commissioner that evidence of the
|
5 |
| publication as the Commissioner shall deem appropriate.
|
6 |
| "Qualified financial contract" means any security |
7 |
| contract,
commodity contract, forward contract, including spot |
8 |
| and
forward foreign exchange contracts, repurchase agreement, |
9 |
| swap agreement, and
any
similar agreement, any option to enter |
10 |
| into any such agreement, including any
combination of the |
11 |
| foregoing, and any master agreement for such agreements.
A |
12 |
| master agreement, together with all supplements thereto, shall |
13 |
| be treated
as one qualified financial contract. The contract, |
14 |
| option, agreement, or
combination of contracts, options, or |
15 |
| agreements shall be reflected upon the
books, accounts, or |
16 |
| records of the bank, or a party to the contract shall
provide |
17 |
| documentary evidence of such agreement.
|
18 |
| "Recorded" means the filing or recording of the notice or |
19 |
| instrument
referred to in the office of the Recorder of the |
20 |
| county wherein
the bank is located.
|
21 |
| "Resulting bank" means the bank resulting from a merger or |
22 |
| conversion.
|
23 |
| "Secretary" means the Secretary of Financial and |
24 |
| Professional Regulation, or a person authorized by the |
25 |
| Secretary or by this Act to act in the Secretary's stead. |
26 |
| "Securities" means stocks, bonds, debentures, notes, or |
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| other similar
obligations.
|
2 |
| "Stand-by letter of credit" means a letter of credit under |
3 |
| which drafts
are payable upon the condition the customer has |
4 |
| defaulted in performance of
a duty, liability, or obligation.
|
5 |
| "State bank" means any banking corporation that has a |
6 |
| banking charter
issued by the Commissioner under
this Act.
|
7 |
| "State Banking Board" means the State Banking Board of |
8 |
| Illinois.
|
9 |
| "Subsidiary" with respect to a specified company means a |
10 |
| company that is
controlled by the specified company. For |
11 |
| purposes of paragraphs (8) and (12)
of Section 5 of this Act, |
12 |
| "control" means the exercise of operational or
managerial |
13 |
| control of a corporation by the bank, either alone or together |
14 |
| with
other affiliates of the bank.
|
15 |
| "Surplus" means the aggregate of (i) amounts paid in excess |
16 |
| of the par
value of capital stock and preferred stock; (ii) |
17 |
| amounts contributed other
than for capital stock and preferred |
18 |
| stock and allocated to the surplus
account; and (iii) amounts |
19 |
| transferred from undivided profits.
|
20 |
| "Tier 1 Capital" and "Tier 2 Capital" have the meanings |
21 |
| assigned to those
terms in regulations promulgated for the |
22 |
| appropriate federal banking agency of
a state bank, as those |
23 |
| regulations are now or hereafter amended.
|
24 |
| "Trust company" means a limited liability company or |
25 |
| corporation
incorporated in this State for the
purpose of |
26 |
| accepting and executing trusts.
|
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| "Undivided profits" means undistributed earnings less |
2 |
| discretionary
transfers to surplus.
|
3 |
| "Unimpaired capital and unimpaired surplus", for the |
4 |
| purposes of paragraph
(21) of Section 5 and Sections 32, 33, |
5 |
| 34, 35.1, 35.2, and 47 of this Act means
the sum of the state |
6 |
| bank's Tier 1 Capital and Tier 2 Capital plus such other
|
7 |
| shareholder equity as may be included by
regulation of the |
8 |
| Commissioner. Unimpaired capital and unimpaired surplus
shall |
9 |
| be calculated on the basis of the date of the last quarterly |
10 |
| call report
filed with the Commissioner preceding the date of |
11 |
| the transaction for which the
calculation is made, provided |
12 |
| that: (i) when a material event occurs after the
date of the |
13 |
| last quarterly call report filed with the Commissioner that |
14 |
| reduces
or increases the bank's unimpaired capital and |
15 |
| unimpaired surplus by 10% or
more, then the unimpaired capital |
16 |
| and unimpaired surplus shall be calculated
from the date of the |
17 |
| material
event for a transaction conducted after the date of |
18 |
| the material event; and
(ii) if the Commissioner determines for |
19 |
| safety and soundness reasons that a
state bank should calculate |
20 |
| unimpaired capital and unimpaired surplus more
frequently than |
21 |
| provided by this paragraph, the Commissioner may by written
|
22 |
| notice direct the bank to calculate unimpaired capital and |
23 |
| unimpaired surplus
at a more frequent interval. In the case of |
24 |
| a state bank newly chartered under
Section 13 or a state bank |
25 |
| resulting from a merger, consolidation, or
conversion under |
26 |
| Sections 21 through 26 for which no preceding quarterly call
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09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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| report has been filed with the Commissioner, unimpaired capital |
2 |
| and unimpaired
surplus shall be calculated for the first |
3 |
| calendar quarter on the basis of the
effective date of the |
4 |
| charter, merger, consolidation, or conversion.
|
5 |
| (Source: P.A. 92-483, eff. 8-23-01; 93-561, eff. 1-1-04.)
|
6 |
| (205 ILCS 5/48) (from Ch. 17, par. 359)
|
7 |
| Sec. 48. Secretary's Commissioner's powers; duties. The |
8 |
| Secretary Commissioner shall have the
powers and authority, and |
9 |
| is charged with the duties and responsibilities
designated in |
10 |
| this Act, and a State bank shall not be subject to any
other |
11 |
| visitorial power other than as authorized by this Act, except |
12 |
| those
vested in the courts, or upon prior consultation with the |
13 |
| Secretary Commissioner , a
foreign bank regulator with an |
14 |
| appropriate supervisory interest in the parent
or affiliate of |
15 |
| a state bank. In the performance of the Secretary's |
16 |
| Commissioner's
duties:
|
17 |
| (1) The Commissioner shall call for statements from all |
18 |
| State banks
as provided in Section 47 at least one time during |
19 |
| each calendar quarter.
|
20 |
| (2) (a) The Commissioner, as often as the Commissioner |
21 |
| shall deem
necessary or
proper, and no less frequently than 18 |
22 |
| months following the preceding
examination, shall appoint a |
23 |
| suitable person or
persons to make an examination of the |
24 |
| affairs of every State bank,
except that for every eligible |
25 |
| State bank, as defined by regulation, the
Commissioner in lieu |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| of the examination may accept on an alternating basis the
|
2 |
| examination made by the eligible State bank's appropriate |
3 |
| federal banking
agency pursuant to Section 111 of the Federal |
4 |
| Deposit Insurance Corporation
Improvement Act of 1991, |
5 |
| provided the appropriate federal banking agency has
made such |
6 |
| an examination. A person so appointed shall not be a |
7 |
| stockholder or
officer or employee of
any bank which that |
8 |
| person may be directed to examine, and shall have
powers to |
9 |
| make a thorough examination into all the affairs of the bank |
10 |
| and
in so doing to examine any of the officers or agents or |
11 |
| employees thereof
on oath and shall make a full and detailed |
12 |
| report of the condition of the
bank to the Commissioner. In |
13 |
| making the examination the examiners shall
include an |
14 |
| examination of the affairs of all the affiliates of the bank, |
15 |
| as
defined in subsection (b) of Section 35.2 of this Act, or |
16 |
| subsidiaries of the
bank as shall be
necessary to disclose |
17 |
| fully the conditions of the subsidiaries or
affiliates, the |
18 |
| relations
between the bank and the subsidiaries or affiliates |
19 |
| and the effect of those
relations upon
the affairs of the bank, |
20 |
| and in connection therewith shall have power to
examine any of |
21 |
| the officers, directors, agents, or employees of the
|
22 |
| subsidiaries or affiliates
on oath. After May 31, 1997, the |
23 |
| Commissioner may enter into cooperative
agreements
with state |
24 |
| regulatory authorities of other states to provide for |
25 |
| examination of
State bank branches in those states, and the |
26 |
| Commissioner may accept reports
of examinations of State bank |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| branches from those state regulatory authorities.
These |
2 |
| cooperative agreements may set forth the manner in which the |
3 |
| other state
regulatory authorities may be compensated for |
4 |
| examinations prepared for and
submitted to the Commissioner.
|
5 |
| (b) After May 31, 1997, the Commissioner is authorized to |
6 |
| examine, as often
as the Commissioner shall deem necessary or |
7 |
| proper, branches of out-of-state
banks. The Commissioner may |
8 |
| establish and may assess fees to be paid to the
Commissioner |
9 |
| for examinations under this subsection (b). The fees shall be
|
10 |
| borne by the out-of-state bank, unless the fees are borne by |
11 |
| the state
regulatory authority that chartered the out-of-state |
12 |
| bank, as determined by a
cooperative agreement between the |
13 |
| Commissioner and the state regulatory
authority that chartered |
14 |
| the out-of-state bank.
|
15 |
| (2.5) Whenever any State bank, any subsidiary or affiliate |
16 |
| of a State
bank, or after May 31, 1997, any branch of an |
17 |
| out-of-state bank causes to
be performed, by contract or |
18 |
| otherwise, any bank services
for itself, whether on or off its |
19 |
| premises:
|
20 |
| (a) that performance shall be subject to examination by |
21 |
| the Commissioner
to the same extent as if services were |
22 |
| being performed by the bank or, after
May 31, 1997, branch |
23 |
| of the out-of-state bank itself
on its own premises; and
|
24 |
| (b) the bank or, after May 31, 1997, branch of the |
25 |
| out-of-state bank
shall notify the Commissioner of the |
26 |
| existence of a service
relationship. The notification |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| shall be submitted with the first statement
of condition |
2 |
| (as required by Section 47 of this Act) due after the |
3 |
| making
of the service contract or the performance of the |
4 |
| service, whichever occurs
first. The Commissioner shall be |
5 |
| notified of each subsequent contract in
the same manner.
|
6 |
| For purposes of this subsection (2.5), the term "bank |
7 |
| services" means
services such as sorting and posting of checks |
8 |
| and deposits, computation
and posting of interest and other |
9 |
| credits and charges, preparation and
mailing of checks, |
10 |
| statements, notices, and similar items, or any other
clerical, |
11 |
| bookkeeping, accounting, statistical, or similar functions
|
12 |
| performed for a State bank, including but not limited to |
13 |
| electronic data
processing related to those bank services.
|
14 |
| (3) The expense of administering this Act, including the |
15 |
| expense of
the examinations of State banks as provided in this |
16 |
| Act, shall to the extent
of the amounts resulting from the fees |
17 |
| provided for in paragraphs (a),
(a-2), and (b) of this |
18 |
| subsection (3) be assessed against and borne by the
State |
19 |
| banks:
|
20 |
| (a) Each bank shall pay to the Secretary Commissioner a |
21 |
| Call Report Fee which
shall be paid in quarterly |
22 |
| installments equal
to one-fourth of the sum of the annual |
23 |
| fixed fee of $800, plus a variable
fee based on the assets |
24 |
| shown on the quarterly statement of condition
delivered to |
25 |
| the Secretary Commissioner in accordance with Section 47 |
26 |
| for the
preceding quarter according to the following |
|
|
|
09500SB2513ham002 |
- 20 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| schedule: 16¢ per $1,000 of
the first $5,000,000 of total |
2 |
| assets, 15¢ per $1,000 of the next
$20,000,000 of total |
3 |
| assets, 13¢ per $1,000 of the next $75,000,000 of
total |
4 |
| assets, 9¢ per $1,000 of the next $400,000,000 of total |
5 |
| assets, 7¢
per $1,000 of the next $500,000,000 of total |
6 |
| assets, and 5¢ per $1,000 of
all assets in excess of |
7 |
| $1,000,000,000, of the State bank. The Call Report
Fee |
8 |
| shall be calculated by the Secretary Commissioner and |
9 |
| billed to the banks for
remittance at the time of the |
10 |
| quarterly statements of condition
provided for in Section |
11 |
| 47. The Secretary Commissioner may require payment of the |
12 |
| fees
provided in this Section by an electronic transfer of |
13 |
| funds or an automatic
debit of an account of each of the |
14 |
| State banks. In case more than one
examination of any
bank |
15 |
| is deemed by the Secretary Commissioner to be necessary in |
16 |
| any examination
frequency cycle specified in subsection |
17 |
| 2(a) of this Section,
and is performed at his direction, |
18 |
| the Secretary Commissioner may
assess a reasonable |
19 |
| additional fee to recover the cost of the additional
|
20 |
| examination; provided, however, that an examination |
21 |
| conducted at the request
of the State Treasurer pursuant to |
22 |
| the Uniform Disposition of Unclaimed
Property Act shall not |
23 |
| be deemed to be an additional examination under this
|
24 |
| Section.
In lieu
of the method and amounts set forth in |
25 |
| this paragraph (a) for the calculation
of the Call Report |
26 |
| Fee, the Secretary Commissioner may specify by
rule that |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| the Call Report Fees provided by this Section may be |
2 |
| assessed
semiannually or some other period and may provide |
3 |
| in the rule the formula to
be
used for calculating and |
4 |
| assessing the periodic Call Report Fees to be paid by
State
|
5 |
| banks.
|
6 |
| (a-1) If in the opinion of the Commissioner an |
7 |
| emergency exists or
appears likely, the Commissioner may |
8 |
| assign an examiner or examiners to
monitor the affairs of a |
9 |
| State bank with whatever frequency he deems
appropriate, |
10 |
| including but not limited to a daily basis. The reasonable
|
11 |
| and necessary expenses of the Commissioner during the |
12 |
| period of the monitoring
shall be borne by the subject |
13 |
| bank. The Commissioner shall furnish the
State bank a |
14 |
| statement of time and expenses if requested to do so within |
15 |
| 30
days of the conclusion of the monitoring period.
|
16 |
| (a-2) On and after January 1, 1990, the reasonable and |
17 |
| necessary
expenses of the Commissioner during examination |
18 |
| of the performance of
electronic data processing services |
19 |
| under subsection (2.5) shall be
borne by the banks for |
20 |
| which the services are provided. An amount, based
upon a |
21 |
| fee structure prescribed by the Commissioner, shall be paid |
22 |
| by the
banks or, after May 31, 1997, branches of |
23 |
| out-of-state banks receiving the
electronic data |
24 |
| processing services along with the
Call Report Fee assessed |
25 |
| under paragraph (a) of this
subsection (3).
|
26 |
| (a-3) After May 31, 1997, the reasonable and necessary |
|
|
|
09500SB2513ham002 |
- 22 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| expenses of the
Commissioner during examination of the |
2 |
| performance of electronic data
processing services under |
3 |
| subsection (2.5) at or on behalf of branches of
|
4 |
| out-of-state banks shall be borne by the out-of-state |
5 |
| banks, unless those
expenses are borne by the state |
6 |
| regulatory authorities that chartered the
out-of-state |
7 |
| banks, as determined by cooperative agreements between the
|
8 |
| Commissioner and the state regulatory authorities that |
9 |
| chartered the
out-of-state banks.
|
10 |
| (b) "Fiscal year" for purposes of this Section 48 is |
11 |
| defined as a
period beginning July 1 of any year and ending |
12 |
| June 30 of the next year.
The Commissioner shall receive |
13 |
| for each fiscal year, commencing with the
fiscal year |
14 |
| ending June 30, 1987, a contingent fee equal to the lesser |
15 |
| of
the aggregate of the fees paid by all State banks under |
16 |
| paragraph (a) of
subsection (3) for that year, or the |
17 |
| amount, if any, whereby the aggregate
of the administration |
18 |
| expenses, as defined in paragraph (c), for that
fiscal year |
19 |
| exceeds the sum of the aggregate of the fees payable by all
|
20 |
| State banks for that year under paragraph (a) of subsection |
21 |
| (3),
plus any amounts transferred into the Bank and Trust |
22 |
| Company Fund from the
State Pensions Fund for that year,
|
23 |
| plus all
other amounts collected by the Commissioner for |
24 |
| that year under any
other provision of this Act, plus the |
25 |
| aggregate of all fees
collected for that year by the |
26 |
| Commissioner under the Corporate Fiduciary
Act, excluding |
|
|
|
09500SB2513ham002 |
- 23 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| the receivership fees provided for in Section 5-10 of the
|
2 |
| Corporate Fiduciary Act, and the Foreign Banking Office |
3 |
| Act.
The aggregate amount of the contingent
fee thus |
4 |
| arrived at for any fiscal year shall be apportioned |
5 |
| amongst,
assessed upon, and paid by the State banks and |
6 |
| foreign banking corporations,
respectively, in the same |
7 |
| proportion
that the fee of each under paragraph (a) of |
8 |
| subsection (3), respectively,
for that year bears to the |
9 |
| aggregate for that year of the fees collected
under |
10 |
| paragraph (a) of subsection (3). The aggregate amount of |
11 |
| the
contingent fee, and the portion thereof to be assessed |
12 |
| upon each State
bank and foreign banking corporation,
|
13 |
| respectively, shall be determined by the Commissioner and |
14 |
| shall be paid by
each, respectively, within 120 days of the |
15 |
| close of the period for which
the contingent fee is |
16 |
| computed and is payable, and the Commissioner shall
give 20 |
17 |
| days advance notice of the amount of the contingent fee |
18 |
| payable by
the State bank and of the date fixed by the |
19 |
| Commissioner for payment of
the fee.
|
20 |
| (c) The "administration expenses" for any fiscal year |
21 |
| shall mean the
ordinary and contingent expenses for that |
22 |
| year incident to making the
examinations provided for by, |
23 |
| and for otherwise administering, this Act,
the Corporate |
24 |
| Fiduciary Act, excluding the expenses paid from the
|
25 |
| Corporate Fiduciary Receivership account in the Bank and |
26 |
| Trust Company
Fund, the Foreign Banking Office Act,
the |
|
|
|
09500SB2513ham002 |
- 24 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| Electronic Fund Transfer Act,
and the Illinois Bank |
2 |
| Examiners'
Education Foundation Act, including all |
3 |
| salaries and other
compensation paid for personal services |
4 |
| rendered for the State by
officers or employees of the |
5 |
| State, including the Commissioner and the
Deputy |
6 |
| Commissioners, all expenditures for telephone and |
7 |
| telegraph
charges, postage and postal charges, office |
8 |
| stationery, supplies and
services, and office furniture |
9 |
| and equipment, including typewriters and
copying and |
10 |
| duplicating machines and filing equipment, surety bond
|
11 |
| premiums, and travel expenses of those officers and |
12 |
| employees, employees,
expenditures or charges for the |
13 |
| acquisition, enlargement or improvement
of, or for the use |
14 |
| of, any office space, building, or structure, or
|
15 |
| expenditures for the maintenance thereof or for furnishing |
16 |
| heat, light,
or power with respect thereto, all to the |
17 |
| extent that those expenditures
are directly incidental to |
18 |
| such examinations or administration.
The Commissioner |
19 |
| shall not be required by paragraphs (c) or (d-1) of this
|
20 |
| subsection (3) to maintain in any fiscal year's budget |
21 |
| appropriated reserves
for accrued vacation and accrued |
22 |
| sick leave that is required to be paid to
employees of the |
23 |
| Commissioner upon termination of their service with the
|
24 |
| Commissioner in an amount that is more than is reasonably |
25 |
| anticipated to be
necessary for any anticipated turnover in |
26 |
| employees, whether due to normal
attrition or due to |
|
|
|
09500SB2513ham002 |
- 25 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| layoffs, terminations, or resignations.
|
2 |
| (d) The aggregate of all fees collected by the |
3 |
| Secretary Commissioner under
this Act, the Corporate |
4 |
| Fiduciary Act,
or the Foreign Banking Office Act on
and |
5 |
| after July 1, 1979, shall be paid promptly after receipt of |
6 |
| the same,
accompanied by a detailed statement thereof, into |
7 |
| the State treasury and
shall be set apart in a special fund |
8 |
| to be known as the "Bank and Trust
Company Fund", except as |
9 |
| provided in paragraph (c) of subsection (11) of
this |
10 |
| Section. All earnings received from investments of funds in |
11 |
| the Bank
and
Trust Company Fund shall be deposited in the |
12 |
| Bank and Trust Company Fund
and may be used for the same |
13 |
| purposes as fees deposited in that Fund. The
amount from |
14 |
| time to time deposited into the Bank and
Trust Company Fund |
15 |
| shall be used : (i) to offset the ordinary administrative
|
16 |
| expenses of the Secretary Commissioner of Banks and Real |
17 |
| Estate as defined in
this Section or (ii) as a credit |
18 |
| against fees under paragraph (d-1) of this subsection (3) . |
19 |
| Nothing in this amendatory Act of 1979 shall prevent
|
20 |
| continuing the practice of paying expenses involving |
21 |
| salaries, retirement,
social security, and State-paid |
22 |
| insurance premiums of State officers by
appropriations |
23 |
| from the General Revenue Fund. However, the General Revenue
|
24 |
| Fund shall be reimbursed for those payments made on and |
25 |
| after July 1, 1979,
by an annual transfer of funds from the |
26 |
| Bank and Trust Company Fund. Moneys in the Bank and Trust |
|
|
|
09500SB2513ham002 |
- 26 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| Company Fund may be transferred to the Professions Indirect |
2 |
| Cost Fund, as authorized under Section 2105-300 of the |
3 |
| Department of Professional Regulation Law of the Civil |
4 |
| Administrative Code of Illinois.
|
5 |
| Notwithstanding provisions in the State Finance Act, |
6 |
| as now or hereafter amended, or any other law to the |
7 |
| contrary, the sum of $18,788,847 shall be transferred from |
8 |
| the Bank and Trust Company Fund to the Financial |
9 |
| Institutions Settlement of 2008 Fund on the effective date |
10 |
| of this amendatory Act of the 95th General Assembly, or as |
11 |
| soon thereafter as practical. |
12 |
| Notwithstanding provisions in the State Finance Act, |
13 |
| as now or hereafter amended, or any other law to the |
14 |
| contrary, the Governor may, during any fiscal year through |
15 |
| January 10, 2011, from time to time direct the State |
16 |
| Treasurer and Comptroller to transfer a specified sum not |
17 |
| exceeding 10% of the revenues to be deposited into the Bank |
18 |
| and Trust Company Fund during that fiscal year from that |
19 |
| Fund to the General Revenue Fund in order to help defray |
20 |
| the State's operating costs for the fiscal year. |
21 |
| Notwithstanding provisions in the State Finance Act, as now |
22 |
| or hereafter amended, or any other law to the contrary, the |
23 |
| total sum transferred during any fiscal year through |
24 |
| January 10, 2011, from the Bank and Trust Company Fund to |
25 |
| the General Revenue Fund pursuant to this provision shall |
26 |
| not exceed during any fiscal year 10% of the revenues to be |
|
|
|
09500SB2513ham002 |
- 27 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| deposited into the Bank and Trust Company Fund during that |
2 |
| fiscal year. The State Treasurer and Comptroller shall |
3 |
| transfer the amounts designated under this Section as soon |
4 |
| as may be practicable after receiving the direction to |
5 |
| transfer from the Governor.
|
6 |
| (d-1) Adequate funds shall be available in the Bank and |
7 |
| Trust
Company Fund to permit the timely payment of |
8 |
| administration expenses. In
each fiscal year the total |
9 |
| administration expenses shall be deducted from
the total |
10 |
| fees collected by the Commissioner and the remainder |
11 |
| transferred
into the Cash Flow Reserve Account, unless the |
12 |
| balance of the Cash Flow
Reserve Account prior to the |
13 |
| transfer equals or exceeds
one-fourth of the total initial |
14 |
| appropriations from the Bank and Trust
Company Fund for the |
15 |
| subsequent year, in which case the remainder shall be
|
16 |
| credited to State banks and foreign banking corporations
|
17 |
| and applied against their fees for the subsequent
year. The |
18 |
| amount credited to each State bank and foreign banking |
19 |
| corporation
shall be in the same proportion as the
Call |
20 |
| Report Fees paid by each for the year bear to the total |
21 |
| Call Report
Fees collected for the year. If, after a |
22 |
| transfer to the Cash Flow Reserve
Account is made or if no |
23 |
| remainder is available for transfer, the balance
of the |
24 |
| Cash Flow Reserve Account is less than one-fourth of the |
25 |
| total
initial appropriations for the subsequent year and |
26 |
| the amount transferred
is less than 5% of the total Call |
|
|
|
09500SB2513ham002 |
- 28 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| Report Fees for the year, additional
amounts needed to make |
2 |
| the transfer equal to 5% of the total Call Report
Fees for |
3 |
| the year shall be apportioned amongst, assessed upon, and
|
4 |
| paid by the State banks and foreign banking corporations
in |
5 |
| the same proportion that the Call Report Fees of each,
|
6 |
| respectively, for the year bear to the total Call Report |
7 |
| Fees collected for
the year. The additional amounts |
8 |
| assessed shall be transferred into the
Cash Flow Reserve |
9 |
| Account. For purposes of this paragraph (d-1), the
|
10 |
| calculation of the fees collected by the Commissioner shall |
11 |
| exclude the
receivership fees provided for in Section 5-10 |
12 |
| of the Corporate Fiduciary Act.
|
13 |
| (e) The Commissioner may upon request certify to any |
14 |
| public record
in his keeping and shall have authority to |
15 |
| levy a reasonable charge for
issuing certifications of any |
16 |
| public record in his keeping.
|
17 |
| (f) In addition to fees authorized elsewhere in this |
18 |
| Act, the
Commissioner
may, in connection with a review, |
19 |
| approval, or provision of a service, levy a
reasonable |
20 |
| charge to recover the cost of the review, approval, or |
21 |
| service.
|
22 |
| (4) Nothing contained in this Act shall be construed to |
23 |
| limit the
obligation relative to examinations and reports of |
24 |
| any State bank, deposits
in which are to any extent insured by |
25 |
| the United States or any agency
thereof, nor to limit in any |
26 |
| way the powers of the Commissioner with
reference to |
|
|
|
09500SB2513ham002 |
- 29 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| examinations and reports of that bank.
|
2 |
| (5) The nature and condition of the assets in or investment |
3 |
| of any
bonus, pension, or profit sharing plan for officers or |
4 |
| employees of every
State bank or, after May 31, 1997, branch of |
5 |
| an out-of-state bank shall be
deemed to be included in the |
6 |
| affairs of that State
bank or branch of an out-of-state bank |
7 |
| subject to examination by the
Commissioner under the
provisions |
8 |
| of subsection (2) of this Section, and if the Commissioner
|
9 |
| shall find from an examination that the condition of or |
10 |
| operation
of the investments or assets of the plan is unlawful, |
11 |
| fraudulent, or
unsafe, or that any trustee has abused his |
12 |
| trust, the Commissioner
shall, if the situation so found by the |
13 |
| Commissioner shall not be
corrected to his satisfaction within |
14 |
| 60 days after the Commissioner has
given notice to the board of |
15 |
| directors of the State bank or out-of-state
bank of his
|
16 |
| findings, report the facts to the Attorney General who shall |
17 |
| thereupon
institute proceedings against the State bank or |
18 |
| out-of-state bank, the
board of directors
thereof, or the |
19 |
| trustees under such plan as the nature of the case may require.
|
20 |
| (6) The Commissioner shall have the power:
|
21 |
| (a) To promulgate reasonable rules for the purpose of
|
22 |
| administering the provisions of this Act.
|
23 |
| (a-5) To impose conditions on any approval issued by |
24 |
| the Commissioner
if he determines that the conditions are |
25 |
| necessary or appropriate. These
conditions shall be |
26 |
| imposed in writing and shall continue
in effect for the |
|
|
|
09500SB2513ham002 |
- 30 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| period prescribed by the Commissioner.
|
2 |
| (b) To issue orders
against any person, if the |
3 |
| Commissioner has
reasonable cause to believe that an unsafe |
4 |
| or unsound banking practice
has occurred, is occurring, or |
5 |
| is about to occur, if any person has violated,
is |
6 |
| violating, or is about to violate any law, rule, or written
|
7 |
| agreement with the Commissioner, or
for the purpose of |
8 |
| administering the provisions of
this Act and any rule |
9 |
| promulgated in accordance with this Act.
|
10 |
| (b-1) To enter into agreements with a bank establishing |
11 |
| a program to
correct the condition of the bank or its |
12 |
| practices.
|
13 |
| (c) To appoint hearing officers to execute any of the |
14 |
| powers granted to
the Commissioner under this Section for |
15 |
| the purpose of administering this
Act and any rule |
16 |
| promulgated in accordance with this Act
and otherwise to |
17 |
| authorize, in writing, an officer or employee of the Office
|
18 |
| of
Banks and Real Estate to exercise his powers under this |
19 |
| Act.
|
20 |
| (d) To subpoena witnesses, to compel their attendance, |
21 |
| to administer
an oath, to examine any person under oath, |
22 |
| and to require the production of
any relevant books, |
23 |
| papers, accounts, and documents in the course of and
|
24 |
| pursuant to any investigation being conducted, or any |
25 |
| action being taken,
by the Commissioner in respect of any |
26 |
| matter relating to the duties imposed
upon, or the powers |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| vested in, the Commissioner under the provisions of
this |
2 |
| Act or any rule promulgated in accordance with this Act.
|
3 |
| (e) To conduct hearings.
|
4 |
| (7) Whenever, in the opinion of the Commissioner, any |
5 |
| director,
officer, employee, or agent of a State bank
or any |
6 |
| subsidiary or bank holding company of the bank
or, after May |
7 |
| 31, 1997, of any
branch of an out-of-state bank
or any |
8 |
| subsidiary or bank holding company of the bank
shall have |
9 |
| violated any law,
rule, or order relating to that bank
or any |
10 |
| subsidiary or bank holding company of the bank, shall have
|
11 |
| obstructed or impeded any examination or investigation by the |
12 |
| Commissioner, shall have engaged in an unsafe or
unsound |
13 |
| practice in conducting the business of that bank
or any |
14 |
| subsidiary or bank holding company of the bank,
or shall have
|
15 |
| violated any law or engaged or participated in any unsafe or |
16 |
| unsound practice
in connection with any financial institution |
17 |
| or other business entity such that
the character and fitness of |
18 |
| the director, officer, employee, or agent does not
assure |
19 |
| reasonable promise of safe and sound operation of the State |
20 |
| bank, the
Commissioner
may issue an order of removal.
If, in |
21 |
| the opinion of the Commissioner, any former director, officer,
|
22 |
| employee,
or agent of a State bank
or any subsidiary or bank |
23 |
| holding company of the bank, prior to the
termination of his or |
24 |
| her service with
that bank
or any subsidiary or bank holding |
25 |
| company of the bank, violated any law,
rule, or order relating |
26 |
| to that
State bank
or any subsidiary or bank holding company of |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| the bank, obstructed or impeded
any examination or |
2 |
| investigation by the Commissioner, engaged in an unsafe or |
3 |
| unsound practice in conducting the
business of that bank
or any |
4 |
| subsidiary or bank holding company of the bank,
or violated any |
5 |
| law or engaged or participated in any
unsafe or unsound |
6 |
| practice in connection with any financial institution or
other |
7 |
| business entity such that the character and fitness of the |
8 |
| director,
officer, employee, or agent would not have assured |
9 |
| reasonable promise of safe
and sound operation of the State |
10 |
| bank, the Commissioner may issue an order
prohibiting that |
11 |
| person from
further
service with a bank
or any subsidiary or |
12 |
| bank holding company of the bank
as a director, officer, |
13 |
| employee, or agent. An order
issued pursuant to this subsection |
14 |
| shall be served upon the
director,
officer, employee, or agent. |
15 |
| A copy of the order shall be sent to each
director of the bank |
16 |
| affected by registered mail. The person affected by
the action |
17 |
| may request a hearing before the State Banking Board within 10
|
18 |
| days after receipt of the order. The hearing shall be held by
|
19 |
| the Board within 30 days after the request has been received by |
20 |
| the Board.
The Board shall make a determination approving, |
21 |
| modifying, or disapproving
the order of the Commissioner as its |
22 |
| final administrative decision. If a
hearing is held by the |
23 |
| Board, the Board shall make its determination within
60 days |
24 |
| from the conclusion of the hearing. Any person affected by a
|
25 |
| decision of the Board under this subsection (7) of Section 48 |
26 |
| of this Act
may have the decision reviewed only under and in |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| accordance with the
Administrative Review Law and the rules |
2 |
| adopted pursuant thereto. A copy of
the order shall also be |
3 |
| served upon the bank of which he is a director,
officer, |
4 |
| employee, or agent, whereupon he shall cease to be a director,
|
5 |
| officer, employee, or agent of that bank. The Commissioner may
|
6 |
| institute a civil action against the director, officer, or |
7 |
| agent of the
State bank or, after May 31, 1997, of the branch |
8 |
| of the out-of-state bank
against whom any order provided for by |
9 |
| this subsection (7) of
this Section 48 has been issued, and |
10 |
| against the State bank or, after May 31,
1997, out-of-state |
11 |
| bank, to enforce
compliance with or to enjoin any violation of |
12 |
| the terms of the order.
Any person who has been the subject of |
13 |
| an order of removal
or
an order of prohibition issued by the |
14 |
| Commissioner under
this subsection or Section 5-6 of the |
15 |
| Corporate Fiduciary Act may not
thereafter serve as director, |
16 |
| officer, employee, or agent of any State bank
or of any branch |
17 |
| of any out-of-state bank,
or of any corporate fiduciary, as |
18 |
| defined in Section 1-5.05 of the
Corporate
Fiduciary Act, or of |
19 |
| any other entity that is subject to licensure or
regulation by |
20 |
| the Commissioner or the Office of Banks and Real Estate unless
|
21 |
| the Commissioner has granted prior approval in writing.
|
22 |
| For purposes of this paragraph (7), "bank holding company" |
23 |
| has the
meaning prescribed in Section 2 of the Illinois Bank |
24 |
| Holding Company Act of
1957.
|
25 |
| (8) The Commissioner may impose civil penalties of up to |
26 |
| $10,000 against
any person for each violation of any provision |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| of this Act, any rule
promulgated in accordance with this Act, |
2 |
| any order of the Commissioner, or
any other action which in the |
3 |
| Commissioner's discretion is an unsafe or
unsound banking |
4 |
| practice.
|
5 |
| (9) The Commissioner may impose civil penalties of up to |
6 |
| $100
against any person for the first failure to comply with |
7 |
| reporting
requirements set forth in the report of examination |
8 |
| of the bank and up to
$200 for the second and subsequent |
9 |
| failures to comply with those reporting
requirements.
|
10 |
| (10) All final administrative decisions of the |
11 |
| Commissioner hereunder
shall be subject to judicial review |
12 |
| pursuant to the provisions of the
Administrative Review Law. |
13 |
| For matters involving administrative review,
venue shall be in |
14 |
| either Sangamon County or Cook County.
|
15 |
| (11) The endowment fund for the Illinois Bank Examiners' |
16 |
| Education
Foundation shall be administered as follows:
|
17 |
| (a) (Blank).
|
18 |
| (b) The Foundation is empowered to receive voluntary |
19 |
| contributions,
gifts, grants, bequests, and donations on |
20 |
| behalf of the Illinois Bank
Examiners' Education |
21 |
| Foundation from national banks and other persons for
the |
22 |
| purpose of funding the endowment of the Illinois Bank |
23 |
| Examiners'
Education Foundation.
|
24 |
| (c) The aggregate of all special educational fees |
25 |
| collected by the
Commissioner and property received by the |
26 |
| Commissioner on behalf of the
Illinois Bank Examiners' |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| Education Foundation under this subsection
(11) on or after |
2 |
| June 30, 1986, shall be either (i) promptly paid after
|
3 |
| receipt of the same, accompanied by a detailed statement |
4 |
| thereof, into the
State Treasury and shall be set apart in |
5 |
| a special fund to be known as "The
Illinois Bank Examiners' |
6 |
| Education Fund" to be invested by either the
Treasurer of |
7 |
| the State of Illinois in the Public Treasurers' Investment
|
8 |
| Pool or in any other investment he is authorized to make or |
9 |
| by the Illinois
State Board of Investment as the board of |
10 |
| trustees of the Illinois Bank
Examiners' Education |
11 |
| Foundation may direct or (ii) deposited into an account
|
12 |
| maintained in a commercial bank or corporate fiduciary in |
13 |
| the name of the
Illinois Bank Examiners' Education |
14 |
| Foundation pursuant to the order and
direction of the Board |
15 |
| of Trustees of the Illinois Bank Examiners' Education
|
16 |
| Foundation.
|
17 |
| (12) (Blank).
|
18 |
| (Source: P.A. 94-91, eff. 7-1-05.)
|
19 |
| (205 ILCS 5/48.05 new)
|
20 |
| Sec. 48.05. Regulatory fees. For the fiscal year beginning |
21 |
| July 1, 2007 and every year thereafter, each state bank |
22 |
| regulated by the Department shall pay a regulatory fee to the |
23 |
| Department based upon its total assets as shown by its year-end |
24 |
| Call Report at the following rates: |
25 |
| 19.295¢ per $1,000 of the first $5,000,000 of total |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| assets; |
2 |
| 18.16¢ per $1,000 of the next $20,000,000 of total |
3 |
| assets; |
4 |
| 15.89¢ per $1,000 of the next $75,000,000 of total |
5 |
| assets; |
6 |
| 10.7825¢ per $1,000 of the next $400,000,000 of total |
7 |
| assets; |
8 |
| 8.5125¢ per $1,000 of the next $500,000,000 of total |
9 |
| assets; |
10 |
| 6.2425¢ per $1,000 of the next $19,000,000,000 of total |
11 |
| assets; |
12 |
| 2.27¢ per $1,000 of the next $30,000,000,000 of total |
13 |
| assets; |
14 |
| 1.135¢ per $1,000 of the next $50,000,000,000 of total |
15 |
| assets; and |
16 |
| 0.5675¢ per $1,000 of all assets in excess of |
17 |
| $100,000,000,000 of the state bank. |
18 |
| Section 15. The Illinois Savings and Loan Act of 1985 is |
19 |
| amended by adding Sections 1-10.39 and 7-3.05 and by changing |
20 |
| Sections 7-3 and 7-19.1 as follows: |
21 |
| (205 ILCS 105/1-10.39 new)
|
22 |
| Sec. 1-10.39. Secretary of the Department of Financial and |
23 |
| Professional Regulation. For purposes of this Act, "Secretary" |
24 |
| means the Secretary of the Department of Financial and |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| Professional Regulation, or a person authorized by the |
2 |
| Secretary or by this Act to act in the Secretary's stead.
|
3 |
| (205 ILCS 105/7-3) (from Ch. 17, par. 3307-3)
|
4 |
| Sec. 7-3. Personnel, records, files, actions and
duties, |
5 |
| etc. |
6 |
| (a) The Secretary Commissioner shall appoint, subject to
|
7 |
| applicable provisions of the Personnel Code, a supervisor, such
|
8 |
| examiners, employees, experts and special assistants as may be |
9 |
| necessary
to carry out effectively this Act. The Secretary |
10 |
| Commissioner shall require each
supervisor, examiner, expert |
11 |
| and special assistant employed or appointed
by him to give |
12 |
| bond, with security to be approved by the Secretary |
13 |
| Commissioner ,
not less in any case than $15,000, conditioned |
14 |
| for the faithful
discharge of his duties. The premium on such |
15 |
| bond shall be paid by the Secretary
Commissioner from funds |
16 |
| appropriated for that purpose. The bond, along
with |
17 |
| verification of payment of the premium on such bond, shall be |
18 |
| filed
in the office of the Secretary of State.
|
19 |
| (b) The Secretary Commissioner shall have the following |
20 |
| duties and powers:
|
21 |
| (1) To exercise the rights, powers and duties set forth in |
22 |
| this Act
or in any other related Act;
|
23 |
| (2) To establish such regulations as may be reasonable or |
24 |
| necessary
to accomplish the purposes of this Act;
|
25 |
| (3) To direct and supervise all the administrative and
|
|
|
|
09500SB2513ham002 |
- 38 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| technical activities of this office and create an Advisory |
2 |
| Committee
which upon request will make recommendations to him;
|
3 |
| (4) To make an annual report regarding the work of his |
4 |
| office
as he may consider desirable to the Governor, or as the |
5 |
| Governor may
request;
|
6 |
| (5) To cause a suit to be filed in his name to enforce any |
7 |
| law of
this State that applies to an association, subsidiary of |
8 |
| an association,
or holding company operating under this Act and
|
9 |
| shall include the enforcement of any obligation of the |
10 |
| officers,
directors or employees of any association;
|
11 |
| (6) To prescribe a uniform manner in which the books and |
12 |
| records of
every association are to be maintained; and
|
13 |
| (7) To establish reasonable and rationally based fee |
14 |
| structures for each
association and holding company operating |
15 |
| under this Act and for their
service corporations and |
16 |
| subsidiaries, which fees shall include but not be
limited to |
17 |
| annual fees, application fees, regular and special examination
|
18 |
| fees, and such other fees as the Secretary Commissioner |
19 |
| establishes and demonstrates
to be directly resultant from his |
20 |
| responsibilities under this Act and as
are directly |
21 |
| attributable to individual entities operating under this Act.
|
22 |
| (Source: P.A. 85-313.)
|
23 |
| (205 ILCS 105/7-3.05 new)
|
24 |
| Sec. 7-3.05. Regulatory fees. |
25 |
| (a) For the fiscal year beginning July 1, 2007 and every |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| year thereafter, each association and each service corporation |
2 |
| operating under the provisions of this Act shall pay a fixed |
3 |
| fee of $520, plus a variable fee based on the total assets of |
4 |
| the association or service corporation at the following rates: |
5 |
| 28.75¢ per $1,000 of the first $2,000,000 of total |
6 |
| assets; |
7 |
| 24.97¢ per $1,000 of the next $3,000,000 of total |
8 |
| assets; |
9 |
| 22.70¢ per $1,000 of the next $5,000,000 of total |
10 |
| assets; |
11 |
| 19.295¢ per $1,000 of the next $15,000,000 of total |
12 |
| assets; |
13 |
| 17.025¢ per $1,0000 of the next $25,000,000 of total |
14 |
| assets; |
15 |
| 13.62¢ per $1,000 of the next $50,000,000 of total |
16 |
| assets; |
17 |
| 11.35¢ per $1,000 of the next $400,000,000 of total |
18 |
| assets; |
19 |
| 7.945¢ per $1,000 of the next $500,000,000 of total |
20 |
| assets; and |
21 |
| 5.675¢ per $1,000 of all total assets in excess of |
22 |
| $1,000,000,000 of such association or service corporation. |
23 |
| (b) The Secretary shall receive and there shall be paid to |
24 |
| the Secretary an additional fee as an adjustment to the |
25 |
| supervisory fee, based upon the difference between the total |
26 |
| assets of the association or service corporation as shown by |
|
|
|
09500SB2513ham002 |
- 40 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| its financial report filed with the Secretary for the reporting |
2 |
| period of the calendar year ended December 31 on which the |
3 |
| supervisory fee was based and the total assets of the |
4 |
| association or service corporation as shown by its financial |
5 |
| report filed with the Secretary for the reporting period of the |
6 |
| calendar year ended December 31 in which the quarterly payments |
7 |
| are made according to the following schedule: |
8 |
| 28.75¢ per $1,000 of the first $2,000,000 of total |
9 |
| assets; |
10 |
| 24.97¢ per $1,000 of the next $3,000,000 of total |
11 |
| assets; |
12 |
| 22.70¢ per $1,000 of the next $5,000,000 of total |
13 |
| assets; |
14 |
| 19.295¢ per $1,000 of the next $15,000,000 of total |
15 |
| assets; |
16 |
| 17.025¢ per $1,0000 of the next $25,000,000 of total |
17 |
| assets; |
18 |
| 13.62¢ per $1,000 of the next $50,000,000 of total |
19 |
| assets; |
20 |
| 11.35¢ per $1,000 of the next $400,000,000 of total |
21 |
| assets; |
22 |
| 7.945¢ per $1,000 of the next $500,000,000 of total |
23 |
| assets; and |
24 |
| 5.675¢ per $1,000 of all total assets in excess of |
25 |
| $1,000,000,000 of such association or service corporation. |
26 |
| (c) The Secretary shall receive and there shall be paid to |
|
|
|
09500SB2513ham002 |
- 41 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| the Secretary by each association and each service corporation |
2 |
| a fee of $520 for each approved branch office or facility |
3 |
| office established under the Illinois Administrative Code. The |
4 |
| determination of the fees shall be made annually as of the |
5 |
| close of business of the prior calendar year ended December 31.
|
6 |
| (205 ILCS 105/7-19.1) (from Ch. 17, par. 3307-19.1)
|
7 |
| Sec. 7-19.1. Savings and Residential Finance Regulatory |
8 |
| Fund.
|
9 |
| (a) The aggregate of all fees collected by the Secretary |
10 |
| Commissioner under this Act
shall be paid promptly after |
11 |
| receipt of the same, accompanied by a detailed
statement |
12 |
| thereof, into the State treasury and shall be set apart in the
|
13 |
| Savings and Residential Finance Regulatory Fund, a special fund |
14 |
| hereby created
in the State treasury. The amounts deposited |
15 |
| into the Fund shall be used for
the ordinary and contingent |
16 |
| expenses of the Department of Financial and Professional |
17 |
| Regulation and the Division of Banking, or their successors, in |
18 |
| administering and enforcing the Illinois Savings and Loan Act |
19 |
| of 1985, the Savings Bank Act, and the Residential Mortgage |
20 |
| License Act of 1987 and other laws, rules, and regulations as |
21 |
| may apply to the administration and enforcement of the |
22 |
| foregoing laws, rules, and regulations as amended from time to |
23 |
| time Office of Banks and Real
Estate . Nothing in this Act shall |
24 |
| prevent continuing the practice of paying
expenses involving |
25 |
| salaries, retirement, social security, and State-paid
|
|
|
|
09500SB2513ham002 |
- 42 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| insurance of State officers by appropriation from the General |
2 |
| Revenue Fund.
|
3 |
| (b) Except as otherwise provided in subsection (b-5), |
4 |
| moneys in the Savings and Residential Finance Regulatory Fund |
5 |
| may not
be appropriated, assigned, or transferred to another |
6 |
| State fund. The moneys in
the Fund shall be for the sole |
7 |
| benefit of the institutions assessed.
|
8 |
| (b-5) Moneys in the Savings and Residential Finance |
9 |
| Regulatory Fund may be transferred to the Professions Indirect |
10 |
| Cost Fund, as authorized under Section 2105-300 of the |
11 |
| Department of Professional Regulation Law of the Civil |
12 |
| Administrative Code of Illinois.
|
13 |
| (b-10) Notwithstanding provisions in the State Finance |
14 |
| Act, as now or hereafter amended, or any other law to the |
15 |
| contrary, the sum of $27,481,638 shall be transferred from the |
16 |
| Savings and Residential Finance Regulatory Fund to the |
17 |
| Financial Institutions Settlement of 2008 Fund on the effective |
18 |
| date of this amendatory Act of the 95th General Assembly, or as |
19 |
| soon thereafter as practical. |
20 |
| Notwithstanding provisions in the State Finance Act, as now |
21 |
| or hereafter amended, or any other law to the contrary, the |
22 |
| Governor may, during any fiscal year through January 10, 2011, |
23 |
| from time to time direct the State Treasurer and Comptroller to |
24 |
| transfer a specified sum not exceeding 10% of the revenues to |
25 |
| be deposited into the Savings and Residential Finance |
26 |
| Regulatory Fund during that fiscal year from that Fund to the |
|
|
|
09500SB2513ham002 |
- 43 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| General Revenue Fund in order to help defray the State's |
2 |
| operating costs for the fiscal year. Notwithstanding |
3 |
| provisions in the State Finance Act, as now or hereafter |
4 |
| amended, or any other law to the contrary, the total sum |
5 |
| transferred during any fiscal year through January 10, 2011, |
6 |
| from the Savings and Residential Finance Regulatory Fund to the |
7 |
| General Revenue Fund pursuant to this provision shall not |
8 |
| exceed during any fiscal year 10% of the revenues to be |
9 |
| deposited into the Savings and Residential Finance Regulatory |
10 |
| Fund during that fiscal year. The State Treasurer and |
11 |
| Comptroller shall transfer the amounts designated under this |
12 |
| Section as soon as may be practicable after receiving the |
13 |
| direction to transfer from the Governor. |
14 |
| (c) All
earnings received from investments of funds in the |
15 |
| Savings and Residential
Finance Regulatory Fund shall be |
16 |
| deposited into the Savings and Residential
Finance Regulatory |
17 |
| Fund and may be used for the same purposes as fees
deposited |
18 |
| into that Fund.
|
19 |
| (d) When the balance in the Savings and Residential Finance |
20 |
| Regulatory Fund at the end of a fiscal year apportioned to the |
21 |
| fees collected under the Illinois Savings and Loan Act of 1985 |
22 |
| and the Savings Bank Act exceeds 25% of the total actual |
23 |
| administrative and operational expenses incurred by the State |
24 |
| for that fiscal year in administering and enforcing the |
25 |
| Illinois Savings and Loan Act of 1985 and the Savings Bank Act |
26 |
| and such other laws, rules, and regulations as may apply to the |
|
|
|
09500SB2513ham002 |
- 44 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| administration and enforcement of the foregoing laws, rules, |
2 |
| and regulations, the excess shall be credited to the |
3 |
| appropriate institutions and entities and applied against |
4 |
| their regulatory fees for the subsequent fiscal year. The |
5 |
| amount credited to each institution or entity shall be in the |
6 |
| same proportion that the regulatory fees paid by the |
7 |
| institution or entity for the fiscal year in which the excess |
8 |
| is produced bear to the aggregate amount of all fees collected |
9 |
| by the Secretary under the Illinois Savings and Loan Act of |
10 |
| 1985 and the Savings Bank Act for the same fiscal year. For the |
11 |
| purpose of this Section, "fiscal year" means the period |
12 |
| beginning July 1 of any year and ending June 30 of the next |
13 |
| calendar year. |
14 |
| (Source: P.A. 94-91, eff. 7-1-05.)
|
15 |
| Section 20. The Savings Bank Act is amended by adding |
16 |
| Sections 1007.135 and 9002.5 and by changing Section 9002 as |
17 |
| follows:
|
18 |
| (205 ILCS 205/1007.135 new)
|
19 |
| Sec. 1007.135. Secretary of the Department of Financial and |
20 |
| Professional Regulation. "Secretary" means the Secretary of |
21 |
| the Department of Financial and Professional Regulation, or a |
22 |
| person authorized by the Secretary or by this Act to act in the |
23 |
| Secretary's stead.
|
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| (205 ILCS 205/9002) (from Ch. 17, par. 7309-2)
|
2 |
| Sec. 9002. Powers of Secretary Commissioner . The Secretary |
3 |
| Commissioner shall have the following
powers and duties:
|
4 |
| (1) To exercise the rights, powers, and duties set forth in
|
5 |
| this Act or in any related Act.
|
6 |
| (2) To establish regulations as may be reasonable or
|
7 |
| necessary to accomplish the purposes of this Act.
|
8 |
| (3) To make an annual report regarding the work of his
|
9 |
| office under this Act as he may consider desirable to the
|
10 |
| Governor, or as the Governor may request.
|
11 |
| (4) To cause a suit to be filed in his name to enforce
any |
12 |
| law of this State that applies to savings banks, their service
|
13 |
| corporations, subsidiaries, affiliates, or holding companies
|
14 |
| operating under this Act, including the enforcement of any
|
15 |
| obligation of the officers, directors, agents, or employees of |
16 |
| any
savings bank.
|
17 |
| (5) To prescribe a uniform manner in which the books and
|
18 |
| records of every savings bank are to be maintained.
|
19 |
| (6) To establish a reasonable fee
structure for savings |
20 |
| banks and holding companies operating under
this Act and for |
21 |
| their service corporations and subsidiaries.
The fees shall |
22 |
| include, but not be limited to, annual fees,
application fees, |
23 |
| regular and special examination fees, and other
fees as the |
24 |
| Secretary Commissioner establishes and demonstrates to be
|
25 |
| directly resultant from the Secretary's Commissioner's |
26 |
| responsibilities under
this Act and as are directly |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| attributable to individual entities
operating under this Act. |
2 |
| The aggregate of all fees collected by
the Secretary |
3 |
| Commissioner on and after the effective date of this Act shall
|
4 |
| be paid promptly after receipt of the same, accompanied by a
|
5 |
| detailed statement thereof, into the Savings and Residential |
6 |
| Finance Regulatory
Fund subject to the provisions of Section |
7 |
| 7-19.1 of the Illinois Savings and Loan Act of 1985 including |
8 |
| without limitation the provision for credits against |
9 |
| regulatory fees . The amounts deposited into the Fund shall be |
10 |
| used for the ordinary and
contingent expenses of the Office of |
11 |
| Banks and Real Estate. Nothing
in this Act shall prevent |
12 |
| continuing the practice of paying expenses involving
salaries, |
13 |
| retirement, social security, and State-paid insurance of State
|
14 |
| officers by appropriation from the General Revenue Fund.
|
15 |
| (Source: P.A. 89-508, eff. 7-3-96.)
|
16 |
| (205 ILCS 205/9002.5 new)
|
17 |
| Sec. 9002.5. Regulatory fees. |
18 |
| (a) For the fiscal year beginning July 1, 2007 and every |
19 |
| year thereafter, each savings bank and each service corporation |
20 |
| operating under this Act shall pay a fixed fee of $520, plus a |
21 |
| variable fee based on the total assets of the savings bank or |
22 |
| service corporation at the following rates: |
23 |
| 24.97¢ per $1,000 of the first $2,000,000 of total |
24 |
| assets; |
25 |
| 22.70¢ per $1,000 of the next $3,000,000 of total |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| assets; |
2 |
| 20.43¢ per $1,000 of the next $5,000,000 of total |
3 |
| assets; |
4 |
| 17.025¢ per $1,000 of the next $15,000,000 of total |
5 |
| assets; |
6 |
| 14.755¢ per $1,000 of the next $25,000,000 of total |
7 |
| assets; |
8 |
| 12.485¢ per $1,000 of the next $50,000,000 of total |
9 |
| assets; |
10 |
| 10.215¢ per $1,000 of the next $400,000,000 of total |
11 |
| assets; |
12 |
| 6.81¢ per $1,000 of the next $500,000,000 of total |
13 |
| assets; and |
14 |
| 4.54¢ per $1,000 of all total assets in excess of |
15 |
| $1,000,000,000 of such savings bank or service |
16 |
| corporation. |
17 |
| (b) The Secretary shall receive and there shall be paid to |
18 |
| the Secretary an additional fee as an adjustment to the |
19 |
| supervisory fee, based upon the difference between the total |
20 |
| assets of each savings bank and each service corporation as |
21 |
| shown by its financial report filed with the Secretary for the |
22 |
| reporting period of the calendar year ended December 31 on |
23 |
| which the supervisory fee was based and the total assets of |
24 |
| each savings bank and each service corporation as shown by its |
25 |
| financial report filed with the Secretary for the reporting |
26 |
| period of the calendar year ended December 31 in which the |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| quarterly payments are made according to the following |
2 |
| schedule: |
3 |
| 24.97¢ per $1,000 of the first $2,000,000 of total |
4 |
| assets; |
5 |
| 22.70¢ per $1,000 of the next $3,000,000 of total |
6 |
| assets; |
7 |
| 20.43¢ per $1,000 of the next $5,000,000 of total |
8 |
| assets; |
9 |
| 17.025¢ per $1,000 of the next $15,000,000 of total |
10 |
| assets; |
11 |
| 14.755¢ per $1,000 of the next $25,000,000 of total |
12 |
| assets; |
13 |
| 12.485¢ per $1,000 of the next $50,000,000 of total |
14 |
| assets; |
15 |
| 10.215¢ per $1,000 of the next $400,000,000 of total |
16 |
| assets; |
17 |
| 6.81¢ per $1,000 of the next $500,000,000 of total |
18 |
| assets; and |
19 |
| 4.54¢ per $1,000 of all total assets in excess of |
20 |
| $1,000,000,000 of such savings bank or service |
21 |
| corporation. |
22 |
| (c) The Secretary shall receive and there shall be paid to |
23 |
| the Secretary by each savings bank and each service corporation |
24 |
| a fee of $520 for each approved branch office or facility |
25 |
| office established under the Illinois Administrative Code. The |
26 |
| determination of the fees shall be made annually as of the |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| close of business of the prior calendar year ended December 31. |
2 |
| Section 25. The Illinois Credit Union Act is amended by |
3 |
| changing Sections 1.1 and 12 as follows:
|
4 |
| (205 ILCS 305/1.1) (from Ch. 17, par. 4402)
|
5 |
| Sec. 1.1. Definitions.
|
6 |
| Credit Union - The term "credit union" means
a cooperative, |
7 |
| non-profit association, incorporated under this Act,
under the |
8 |
| laws of the United States of America or under the laws
of |
9 |
| another state, for the purposes of encouraging thrift among
its |
10 |
| members, creating a source of credit at a reasonable rate of
|
11 |
| interest, and providing an opportunity for its members to use
|
12 |
| and control their own money in order to improve their economic |
13 |
| and
social conditions. The membership of a credit union shall |
14 |
| consist
of a group or groups each having a common
bond as set |
15 |
| forth in this Act.
|
16 |
| Common Bond - The term "common bond" refers to groups of |
17 |
| people
who meet one of the following qualifications:
|
18 |
| (1) Persons belonging to a specific association, group |
19 |
| or organization,
such as a church, labor union, club or |
20 |
| society and members of their immediate
families which shall |
21 |
| include any relative by blood or marriage or foster
and |
22 |
| adopted children.
|
23 |
| (2) Persons who reside in a reasonably compact and well |
24 |
| defined
neighborhood or community, and
members of their |
|
|
|
09500SB2513ham002 |
- 50 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| immediate families which shall include any relative
by |
2 |
| blood or marriage or foster and adopted children.
|
3 |
| (3) Persons who have a common employer or who are |
4 |
| members of an
organized labor union or an organized |
5 |
| occupational or professional
group within a defined |
6 |
| geographical area, and members of their
immediate families |
7 |
| which shall include any relative by blood or
marriage or |
8 |
| foster and adopted children.
|
9 |
| Shares - The term "shares" or "share accounts" means any |
10 |
| form of shares
issued by a credit union and established by a |
11 |
| member in accordance with
standards specified by a credit |
12 |
| union, including but not limited to common
shares, share draft |
13 |
| accounts, classes of shares, share certificates,
special |
14 |
| purpose share accounts, shares issued in trust, custodial |
15 |
| accounts,
and individual retirement accounts or other plans |
16 |
| established pursuant to
Section 401(d) or (f) or Section 408(a) |
17 |
| of the Internal Revenue Code, as now
or hereafter amended, or |
18 |
| similar provisions of any tax laws of the United
States that |
19 |
| may hereafter exist.
|
20 |
| Credit Union Organization - The term "credit union |
21 |
| organization" means
any organization established to serve the |
22 |
| needs of credit unions, the business
of which relates to the |
23 |
| daily operations of credit unions.
|
24 |
| Department - The term "Department" means the Illinois |
25 |
| Department of Financial
Institutions.
|
26 |
| Director - The term "Director" means the Director of the |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| Illinois Department
of Financial Institutions , except that |
2 |
| beginning on the effective date of this amendatory Act of the |
3 |
| 95th General Assembly, all references in this Act to the |
4 |
| Director of the Department of Financial Institutions are |
5 |
| deemed, in appropriate contexts, to be references to the |
6 |
| Secretary of Financial and Professional Regulation .
|
7 |
| NCUA - The term "NCUA" means the National Credit Union |
8 |
| Administration, an
agency of the United States Government |
9 |
| charged with the supervision of
credit unions chartered under |
10 |
| the laws of the United States of America.
|
11 |
| Central Credit Union - The term "central credit union" |
12 |
| means a credit union
incorporated primarily to receive shares |
13 |
| from and make loans to credit unions
and Directors, Officers, |
14 |
| committee members and employees of credit unions.
A central |
15 |
| credit union may also accept as members persons who were |
16 |
| members
of credit unions which were liquidated and persons from |
17 |
| occupational groups
not otherwise served by another credit |
18 |
| union.
|
19 |
| Corporate Credit Union - The term "corporate credit union" |
20 |
| means a credit
union which is a cooperative, non-profit |
21 |
| association, the membership of
which is limited primarily to |
22 |
| other credit unions.
|
23 |
| Insolvent - "Insolvent" means the condition that results |
24 |
| when
the total of all liabilities and shares exceeds net assets |
25 |
| of the credit union.
|
26 |
| Danger of insolvency - For purposes of Section 61, a credit |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| union is in
"danger of insolvency" if its net worth to
asset |
2 |
| ratio falls below 2%. In calculating the danger of insolvency |
3 |
| ratio,
secondary
capital shall be excluded. For purposes of |
4 |
| Section 61, a credit union is also
in "danger of
insolvency" if |
5 |
| the Department is unable to
ascertain, upon examination, the |
6 |
| true financial
condition of the credit union.
|
7 |
| Net Worth - "Net worth" means the retained earnings balance |
8 |
| of the credit
union, as determined under generally accepted |
9 |
| accounting principles, and forms
of secondary capital approved |
10 |
| by the Director pursuant to rulemaking.
|
11 |
| Secretary - The term "Secretary" means the Secretary of the |
12 |
| Department of Financial and Professional Regulation, or a |
13 |
| person authorized by the Secretary or this Act to act in the |
14 |
| Secretary's stead. |
15 |
| (Source: P.A. 92-608, eff. 7-1-02.)
|
16 |
| (205 ILCS 305/12) (from Ch. 17, par. 4413) |
17 |
| Sec. 12. Regulatory fees.
|
18 |
| (1) For the fiscal year beginning July 1, 2007, a A credit |
19 |
| union regulated by the Department shall pay a regulatory
fee to |
20 |
| the Department based upon its total assets as shown by its |
21 |
| Year-end
Call Report at the following rates or at a lesser rate |
22 |
| established by the Secretary in a manner proportionately |
23 |
| consistent with the following rates and sufficient to fund the |
24 |
| actual administrative and operational expenses of the Credit |
25 |
| Union Section pursuant to subsection (4) of this Section :
|
|
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 | | TOTAL ASSETS | REGULATORY FEE |
|
2 | | $25,000 or less ................ | $100 |
|
3 | | Over $25,000 and not over
|
|
4 | | $100,000 ....................... | $100 plus $4 per |
| 5 | | $1,000 of assets in excess of |
| 6 | | $25,000 |
|
7 | | Over $100,000 and not over
|
|
8 | | $200,000 ....................... | $400 plus $3 per |
| 9 | | $1,000 of assets in excess of |
| 10 | | $100,000 |
|
11 | | Over $200,000 and not over
|
|
12 | | $500,000 ....................... | $700 plus $2 per |
| 13 | | $1,000 of assets in excess of |
| 14 | | $200,000 |
|
15 | | Over $500,000 and not over
|
|
16 | | $1,000,000 ..................... | $1,300 plus $1.40 |
|
17 | | | per $1,000 of assets in excess |
| 18 | | of $500,000 |
|
19 | | Over $1,000,000 and not
|
|
20 | | over $5,000,000 ................. | $2,000 plus $0.50 |
| 21 | | per $1,000 of assets in |
| 22 | | excess of $1,000,000 |
|
23 | | Over $5,000,000 and not
|
|
24 | | over $30,000,000 ............... | $4,540 $5,080 plus $0.397 $0.44 |
| 25 | | per $1,000 assets |
| 26 | | in excess of $5,000,000 |
|
|
|
|
|
09500SB2513ham002 |
- 54 - |
LRB095 18312 MJR 51775 a |
|
|
1 | | Over $30,000,000 and not over
|
|
2 | | $100,000,000 .................... | $14,471 $16,192 plus $0.34 |
|
3 | | | $0.38 per $1,000 of assets |
| 4 | | in excess of $30,000,000 |
| 5 | | |
|
6 | | Over $100,000,000 and not
|
|
7 | | over $500,000,000 .............. | $38,306 $42,862 plus $0.17 |
|
8 | | | $0.19 per $1,000 of assets |
| 9 | | in excess of $100,000,000 |
|
10 | | Over $500,000,000 .............. | $106,406 $140,625 plus $0.056 |
|
11 | | | $0.075 per $1,000 of assets |
| 12 | | in excess of $500,000,000 |
|
13 |
| (2) The Secretary Director shall review the regulatory fee |
14 |
| schedule in subsection
(1) and the projected earnings on those |
15 |
| fees on an annual
basis
and adjust the fee schedule no more |
16 |
| than 5% annually
if necessary to defray the estimated |
17 |
| administrative and operational expenses of
the Credit Union |
18 |
| Section of the Department as defined in subsection (5). |
19 |
| However, the fee schedule shall not be increased if the amount |
20 |
| remaining in the Credit Union Fund at the end of any fiscal |
21 |
| year is greater than 25% of the total actual and operational |
22 |
| expenses incurred by the State in administering and enforcing |
23 |
| the Illinois Credit Union Act and other laws, rules, and |
24 |
| regulations as may apply to the administration and enforcement |
25 |
| of the foregoing laws, rules, and regulations as amended from |
26 |
| time to time for the preceding fiscal year. The regulatory fee |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| for the next fiscal year shall be calculated by the Secretary |
2 |
| based on the credit union's total assets as of December 31 of |
3 |
| the preceding calendar year. The Secretary Director shall |
4 |
| provide credit
unions with written notice of any adjustment |
5 |
| made in the regulatory fee
schedule.
|
6 |
| (3) Beginning with the calendar quarter commencing on |
7 |
| January 1, 2009 Not later than March 1 of each calendar year , a |
8 |
| credit union shall
pay to the Department a regulatory fee
in |
9 |
| quarterly installments equal to one-fourth of the regulatory |
10 |
| fee due for that calendar year in accordance with the |
11 |
| regulatory fee schedule in
subsection (1), on the basis of |
12 |
| assets as
of the Year-end Call Report of the preceding calendar |
13 |
| year. The total annual regulatory fee shall
not be less than
|
14 |
| $100 or more than $141,875 $187,500 , provided that the
|
15 |
| regulatory fee cap of $141,875 $187,500
shall be adjusted to |
16 |
| incorporate the same percentage increase as the Secretary |
17 |
| Director
makes in the regulatory fee schedule from time to time |
18 |
| under subsection (2).
No regulatory
fee
shall be collected
from |
19 |
| a credit union until it
has been in operation for one year. The |
20 |
| regulatory fee shall be billed to credit unions on a quarterly |
21 |
| basis commencing with the quarter ending March 31, 2009, and it |
22 |
| shall be payable by credit unions on the due date for the Call |
23 |
| Report for the subject quarter.
|
24 |
| (4) The aggregate of all fees collected by the Department |
25 |
| under this
Act
shall be paid promptly after they are received,
|
26 |
| accompanied by a detailed
statement thereof, into the State |
|
|
|
09500SB2513ham002 |
- 56 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| Treasury and shall be set apart in the
Credit Union Fund, a |
2 |
| special fund hereby created in the State treasury.
The amount |
3 |
| from time to time deposited in the Credit Union Fund and shall
|
4 |
| be used to offset the ordinary administrative and operational |
5 |
| expenses of
the Credit Union Section of the Department under
|
6 |
| this Act. All earnings received from investments of funds in |
7 |
| the Credit
Union Fund shall be deposited into the Credit Union |
8 |
| Fund and may be used for
the same purposes as fees deposited |
9 |
| into that Fund.
Moneys deposited in the Credit Union Fund may |
10 |
| be transferred to the Professions Indirect Cost Fund, as |
11 |
| authorized under Section 2105-300 of the Department of |
12 |
| Professional Regulation Law of the Civil Administrative Code of |
13 |
| Illinois.
|
14 |
| Notwithstanding provisions in the State Finance Act, as now |
15 |
| or hereafter amended, or any other law to the contrary, the sum |
16 |
| of $4,404,515 shall be transferred from the Credit Union Fund |
17 |
| to the Financial Institutions Settlement of 2008 Fund as of the |
18 |
| effective date of this amendatory Act of the 95th General |
19 |
| Assembly, or as soon thereafter as practical. |
20 |
| Notwithstanding provisions in the State Finance Act, as now |
21 |
| or hereafter amended, or any other law to the contrary, the |
22 |
| Governor may, during any fiscal year through January 10, 2011, |
23 |
| from time to time direct the State Treasurer and Comptroller to |
24 |
| transfer a specified sum not exceeding 10% of the revenues to |
25 |
| be deposited into the Credit Union Fund during that fiscal year |
26 |
| from that Fund to the General Revenue Fund in order to help |
|
|
|
09500SB2513ham002 |
- 57 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| defray the State's operating costs for the fiscal year. |
2 |
| Notwithstanding provisions in the State Finance Act, as now or |
3 |
| hereafter amended, or any other law to the contrary, the total |
4 |
| sum transferred from the Credit Union Fund to the General |
5 |
| Revenue Fund pursuant to this provision shall not exceed during |
6 |
| any fiscal year 10% of the revenues to be deposited into the |
7 |
| Credit Union Fund during that fiscal year. The State Treasurer |
8 |
| and Comptroller shall transfer the amounts designated under |
9 |
| this Section as soon as may be practicable after receiving the |
10 |
| direction to transfer from the Governor.
|
11 |
| (5) The administrative and operational expenses for any |
12 |
| fiscal calendar
year shall mean the ordinary
and contingent |
13 |
| expenses for that year incidental to making the examinations
|
14 |
| provided for by, and for administering, this Act, including all |
15 |
| salaries
and other compensation paid for personal services |
16 |
| rendered for the State by
officers or employees of the State to |
17 |
| enforce this Act; all expenditures
for telephone and telegraph |
18 |
| charges, postage and postal charges, office
supplies and |
19 |
| services, furniture and equipment, office space and
|
20 |
| maintenance thereof, travel expenses and other necessary |
21 |
| expenses; all to
the extent that such expenditures are directly |
22 |
| incidental to such
examination or administration.
|
23 |
| (6) When the balance in the Credit Union Fund at the end of |
24 |
| a fiscal year exceeds 25% aggregate of all fees collected by |
25 |
| the Department under
this Act
and all earnings thereon for any |
26 |
| calendar year exceeds 150% of the
total
administrative and |
|
|
|
09500SB2513ham002 |
- 58 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| operational
expenses incurred by the State in administering and |
2 |
| enforcing the Illinois Credit Union Act and other laws, rules, |
3 |
| and regulations as may apply to the administration and |
4 |
| enforcement of the foregoing laws, rules, and regulations as |
5 |
| amended from time to time under this Act for that fiscal year, |
6 |
| such excess shall be credited to
credit unions and applied |
7 |
| against their regulatory fees for
the subsequent fiscal year. |
8 |
| The amount credited to each a credit union shall be in the
same |
9 |
| proportion as the regulatory fee paid by such credit union for |
10 |
| the fiscal
calendar year in which the excess is produced bears |
11 |
| to the aggregate amount of all the
fees collected by the |
12 |
| Department
under this Act for the same fiscal year.
|
13 |
| (7) (Blank). Examination fees for the year 2000 statutory |
14 |
| examinations paid
pursuant to the examination fee schedule in |
15 |
| effect at that time shall be
credited toward the regulatory fee |
16 |
| to be assessed the credit union in calendar
year 2001.
|
17 |
| (8) Nothing in this Act shall prohibit the General Assembly |
18 |
| from
appropriating funds to the Department from the General |
19 |
| Revenue Fund for the
purpose of administering this Act.
|
20 |
| (9) For purposes of this Section, "fiscal year" means a |
21 |
| period beginning on July 1 of any calendar year and ending on |
22 |
| June 30 of the next calendar year. |
23 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-652, eff. 1-8-04; 94-91, |
24 |
| eff. 7-1-05.)
|
25 |
| Section 30. The Residential Mortgage License Act of 1987 is |
|
|
|
09500SB2513ham002 |
- 59 - |
LRB095 18312 MJR 51775 a |
|
|
1 |
| amended by changing Sections 1-4, 2-2, 2-6, and 4-11 as |
2 |
| follows:
|
3 |
| (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
|
4 |
| Sec. 1-4. Definitions.
|
5 |
| (a) "Residential real property" or "residential real |
6 |
| estate" shall mean
real property located in this State improved |
7 |
| by a one-to-four family
dwelling used or occupied, wholly or |
8 |
| partly, as the home or residence of
one or more persons and may |
9 |
| refer, subject to regulations of the
Commissioner, to |
10 |
| unimproved real property upon which those kinds dwellings
are |
11 |
| to be constructed.
|
12 |
| (b) "Making a residential mortgage loan" or "funding a |
13 |
| residential mortgage
loan" shall mean for compensation or gain, |
14 |
| either directly or indirectly,
advancing funds or making a |
15 |
| commitment to advance funds to a loan applicant
for a |
16 |
| residential mortgage loan.
|
17 |
| (c) "Soliciting, processing, placing, or negotiating a |
18 |
| residential
mortgage loan" shall mean for compensation or gain, |
19 |
| either directly or
indirectly, accepting or offering to accept |
20 |
| an application for a
residential mortgage loan, assisting or |
21 |
| offering to assist in the
processing of an application for a |
22 |
| residential mortgage loan on behalf of a
borrower, or |
23 |
| negotiating or offering to negotiate the terms or conditions
of |
24 |
| a residential mortgage loan with a lender on behalf of a |
25 |
| borrower
including, but not limited to, the submission of |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
1 |
| credit packages for the
approval of lenders, the preparation of |
2 |
| residential mortgage loan closing
documents, including a |
3 |
| closing in the name of a broker.
|
4 |
| (d) "Exempt person or entity" shall mean the following:
|
5 |
| (1) (i) Any banking organization or foreign banking |
6 |
| corporation
licensed by the Illinois Commissioner of Banks |
7 |
| and Real Estate or the
United States Comptroller of the |
8 |
| Currency to transact business in this
State; (ii) any |
9 |
| national bank, federally chartered savings and loan
|
10 |
| association, federal savings bank, federal credit union; |
11 |
| (iii) any pension
trust, bank trust, or bank trust company; |
12 |
| (iv) any bank, savings and loan
association, savings bank, |
13 |
| or credit union organized under the laws of this
or any |
14 |
| other state; (v) any Illinois Consumer Installment Loan Act |
15 |
| licensee;
(vi) any insurance company authorized to |
16 |
| transact business in this State;
(vii) any entity engaged |
17 |
| solely in commercial mortgage lending; (viii) any
service |
18 |
| corporation of a savings and loan association or savings |
19 |
| bank organized
under the laws of this State or the service |
20 |
| corporation of a federally
chartered savings and loan |
21 |
| association or savings bank having
its principal place of |
22 |
| business in this State, other than a service
corporation |
23 |
| licensed or entitled to reciprocity under the Real Estate
|
24 |
| License Act of 2000; or (ix) any first tier subsidiary of a
|
25 |
| bank, the charter of which is issued under the Illinois |
26 |
| Banking Act
by the Illinois Commissioner of Banks and Real |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
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| Estate,
or the first tier subsidiary of a bank chartered by |
2 |
| the United States
Comptroller of the Currency and that has |
3 |
| its principal place of business
in this State, provided |
4 |
| that the first tier subsidiary is regularly
examined by the |
5 |
| Illinois Commissioner of Banks and Real Estate
or the |
6 |
| Comptroller of the Currency, or a consumer compliance |
7 |
| examination is
regularly conducted by the Federal Reserve |
8 |
| Board.
|
9 |
| (1.5) Any employee of a person or entity mentioned in
|
10 |
| item (1) of this subsection.
|
11 |
| (2) Any person or entity that does not originate
|
12 |
| mortgage loans in the ordinary course of
business making or |
13 |
| acquiring residential mortgage loans
with his or her or its |
14 |
| own funds for his or her or its own investment
without |
15 |
| intent to
make, acquire, or resell more than 10 residential |
16 |
| mortgage loans in
any one calendar year.
|
17 |
| (3) Any person employed by a licensee to assist in the |
18 |
| performance of
the activities regulated by this Act who is |
19 |
| compensated in any manner by
only one licensee.
|
20 |
| (4) Any person licensed pursuant to the Real Estate
|
21 |
| License Act of
2000, who engages only in the taking of |
22 |
| applications and credit
and
appraisal information to |
23 |
| forward to a licensee or an exempt entity under this
Act |
24 |
| and who is compensated by either a licensee or an exempt |
25 |
| entity under this
Act, but is not compensated by either the |
26 |
| buyer (applicant) or the seller.
|
|
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|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
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| (5) Any individual, corporation, partnership, or other |
2 |
| entity that
originates, services, or brokers residential |
3 |
| mortgage loans, as these
activities are defined in this |
4 |
| Act, and who or which receives no
compensation for those |
5 |
| activities, subject to the Commissioner's
regulations with |
6 |
| regard to the nature and amount of compensation.
|
7 |
| (6) A person who prepares supporting documentation for |
8 |
| a residential
mortgage loan application taken by a licensee |
9 |
| and performs ministerial
functions pursuant to specific |
10 |
| instructions of the licensee who neither
requires nor |
11 |
| permits the preparer to exercise his or her discretion or
|
12 |
| judgment; provided that this activity is engaged in |
13 |
| pursuant to a binding,
written agreement between the |
14 |
| licensee and the preparer that:
|
15 |
| (A) holds the licensee fully accountable for the |
16 |
| preparer's action; and
|
17 |
| (B) otherwise meets the requirements of this |
18 |
| Section and this Act, does
not undermine the purposes |
19 |
| of this Act, and is approved by the
Commissioner.
|
20 |
| (e) "Licensee" or "residential mortgage licensee" shall |
21 |
| mean a person,
partnership, association, corporation, or any |
22 |
| other entity who or which is
licensed pursuant to this Act to |
23 |
| engage in the activities regulated by
this Act.
|
24 |
| (f) "Mortgage loan" "residential mortgage loan" or "home
|
25 |
| mortgage loan" shall mean a loan to or for the benefit of any
|
26 |
| natural person made primarily for personal, family, or |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
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| household use,
primarily secured by either a mortgage on |
2 |
| residential real property or
certificates of stock or other |
3 |
| evidence of ownership interests in and
proprietary leases from, |
4 |
| corporations, partnerships, or limited
liability companies |
5 |
| formed for the purpose
of cooperative ownership of residential |
6 |
| real property, all located in Illinois.
|
7 |
| (g) "Lender" shall mean any person, partnership, |
8 |
| association,
corporation, or any other entity who either lends |
9 |
| or invests money in
residential mortgage loans.
|
10 |
| (h) "Ultimate equitable owner" shall mean a person who, |
11 |
| directly
or indirectly, owns or controls an ownership interest |
12 |
| in a corporation,
foreign corporation, alien business |
13 |
| organization, trust, or any other form
of business organization |
14 |
| regardless of whether the person owns or controls
the ownership |
15 |
| interest through one or more persons or one or more proxies,
|
16 |
| powers of attorney, nominees, corporations, associations, |
17 |
| partnerships,
trusts, joint stock companies, or other entities |
18 |
| or devices, or any
combination thereof.
|
19 |
| (i) "Residential mortgage financing transaction" shall |
20 |
| mean the negotiation,
acquisition, sale, or arrangement for or |
21 |
| the offer to negotiate, acquire,
sell, or arrange for, a |
22 |
| residential mortgage loan or residential mortgage
loan |
23 |
| commitment.
|
24 |
| (j) "Personal residence address" shall mean a street |
25 |
| address and shall
not include a post office box number.
|
26 |
| (k) "Residential mortgage loan commitment" shall mean a |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
1 |
| contract for
residential mortgage loan financing.
|
2 |
| (l) "Party to a residential mortgage financing |
3 |
| transaction" shall mean a
borrower, lender, or loan broker in a |
4 |
| residential mortgage financing
transaction.
|
5 |
| (m) "Payments" shall mean payment of all or any of the |
6 |
| following:
principal, interest and escrow reserves for taxes, |
7 |
| insurance and other related
reserves, and reimbursement for |
8 |
| lender advances.
|
9 |
| (n) "Commissioner" shall mean the Commissioner of Banks and |
10 |
| Real Estate , except that beginning on the effective date of |
11 |
| this amendatory Act of the 95th General Assembly, all |
12 |
| references in this Act to the Commissioner of Banks and Real |
13 |
| Estate are deemed, in appropriate contexts, to be references to |
14 |
| the Secretary of Financial and Professional Regulation
or a |
15 |
| person authorized by the Commissioner, the Office of Banks and |
16 |
| Real Estate
Act, or this Act to act in the Commissioner's |
17 |
| stead .
|
18 |
| (o) "Loan brokering", "brokering", or "brokerage service" |
19 |
| shall mean the act
of helping to obtain from another entity, |
20 |
| for a borrower, a loan secured by
residential real estate |
21 |
| situated in Illinois or assisting a borrower in
obtaining a |
22 |
| loan secured by residential real estate situated in Illinois in
|
23 |
| return for consideration to be paid by either the borrower or |
24 |
| the lender
including, but not limited to, contracting for the |
25 |
| delivery of residential
mortgage loans to a third party lender |
26 |
| and soliciting, processing, placing,
or negotiating |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
1 |
| residential mortgage loans.
|
2 |
| (p) "Loan broker" or "broker" shall mean a person, |
3 |
| partnership,
association, corporation, or limited liability |
4 |
| company, other than
those persons, partnerships,
associations, |
5 |
| corporations, or limited liability companies exempted
from |
6 |
| licensing pursuant to Section
1-4, subsection (d), of this Act, |
7 |
| who performs the activities described
in subsections (c) and |
8 |
| (o) of this Section.
|
9 |
| (q) "Servicing" shall mean the collection or remittance for |
10 |
| or the
right or obligation to collect or remit for any lender, |
11 |
| noteowner,
noteholder, or for a licensee's own account, of |
12 |
| payments, interests,
principal, and trust items such as hazard |
13 |
| insurance and taxes on a
residential mortgage loan in |
14 |
| accordance with the terms of the residential
mortgage loan; and |
15 |
| includes loan payment follow-up, delinquency loan
follow-up, |
16 |
| loan analysis and any notifications to the borrower that are
|
17 |
| necessary to enable the borrower to keep the loan current and |
18 |
| in good standing.
|
19 |
| (r) "Full service office" shall mean office and staff in |
20 |
| Illinois
reasonably adequate to handle efficiently |
21 |
| communications, questions, and
other matters relating to any |
22 |
| application for, or an existing home mortgage
secured by |
23 |
| residential real estate situated in Illinois
with respect to |
24 |
| which the licensee is brokering, funding originating,
|
25 |
| purchasing, or servicing. The management and operation of each |
26 |
| full service
office must include observance of good business |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| practices such as adequate,
organized, and accurate books and |
2 |
| records; ample phone lines, hours of
business, staff training |
3 |
| and supervision, and provision for a mechanism to
resolve |
4 |
| consumer inquiries, complaints, and problems. The Commissioner
|
5 |
| shall issue regulations with regard to these requirements and |
6 |
| shall include
an evaluation of compliance with this Section in |
7 |
| his or her periodic
examination of each licensee.
|
8 |
| (s) "Purchasing" shall mean the purchase of conventional or
|
9 |
| government-insured mortgage loans secured by residential real |
10 |
| estate
situated in Illinois from either the lender or from the |
11 |
| secondary market.
|
12 |
| (t) "Borrower" shall mean the person or persons who seek |
13 |
| the services of
a loan broker, originator, or lender.
|
14 |
| (u) "Originating" shall mean the issuing of commitments for |
15 |
| and funding of
residential mortgage loans.
|
16 |
| (v) "Loan brokerage agreement" shall mean a written |
17 |
| agreement in which a
broker or loan broker agrees to do either |
18 |
| of the following:
|
19 |
| (1) obtain a residential mortgage loan for the borrower |
20 |
| or assist the
borrower in obtaining a residential mortgage |
21 |
| loan; or
|
22 |
| (2) consider making a residential mortgage loan to the |
23 |
| borrower.
|
24 |
| (w) "Advertisement" shall mean the attempt by publication,
|
25 |
| dissemination, or circulation to induce, directly or |
26 |
| indirectly,
any person to enter into a residential mortgage |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| loan agreement or
residential mortgage loan brokerage |
2 |
| agreement relative to a
mortgage secured by residential real |
3 |
| estate situated in Illinois.
|
4 |
| (x) "Residential Mortgage Board" shall mean the |
5 |
| Residential Mortgage
Board created in Section 1-5 of this Act.
|
6 |
| (y) "Government-insured mortgage loan" shall mean any |
7 |
| mortgage loan made
on the security of residential real estate |
8 |
| insured by the Department of
Housing and Urban Development or |
9 |
| Farmers Home Loan Administration, or
guaranteed by the Veterans |
10 |
| Administration.
|
11 |
| (z) "Annual audit" shall mean a certified audit of the |
12 |
| licensee's books and
records and systems of internal control |
13 |
| performed by a certified public
accountant in accordance with |
14 |
| generally accepted accounting principles
and generally |
15 |
| accepted auditing standards.
|
16 |
| (aa) "Financial institution" shall mean a savings and loan
|
17 |
| association, savings bank, credit union, or a bank organized |
18 |
| under the
laws of Illinois or a savings and loan association, |
19 |
| savings bank,
credit union or a bank organized under the laws |
20 |
| of the United States and
headquartered in Illinois.
|
21 |
| (bb) "Escrow agent" shall mean a third party, individual or |
22 |
| entity
charged with the fiduciary obligation for holding escrow |
23 |
| funds on a
residential mortgage loan pending final payout of |
24 |
| those funds
in accordance with the terms of the residential |
25 |
| mortgage loan.
|
26 |
| (cc) "Net worth" shall have the meaning ascribed thereto in |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| Section 3-5
of this Act.
|
2 |
| (dd) "Affiliate" shall mean:
|
3 |
| (1) any entity that directly controls or is controlled |
4 |
| by the licensee
and any other company that is directly |
5 |
| affecting activities regulated by
this Act that is |
6 |
| controlled by the company that controls the licensee;
|
7 |
| (2) any entity:
|
8 |
| (A) that is controlled, directly or indirectly, by |
9 |
| a trust or otherwise,
by or for the benefit of |
10 |
| shareholders who beneficially or otherwise
control, |
11 |
| directly or indirectly, by trust or otherwise, the |
12 |
| licensee or any
company that controls the licensee; or
|
13 |
| (B) a majority of the directors or trustees of |
14 |
| which constitute a
majority of the persons holding any |
15 |
| such office with the licensee or any
company that |
16 |
| controls the licensee;
|
17 |
| (3) any company, including a real estate investment |
18 |
| trust, that is
sponsored and advised on a contractual basis |
19 |
| by the licensee or any
subsidiary or affiliate of the |
20 |
| licensee.
|
21 |
| The Commissioner may define by rule and regulation any |
22 |
| terms used
in this Act for the efficient and clear |
23 |
| administration of this Act.
|
24 |
| (ee) "First tier subsidiary" shall be defined by regulation
|
25 |
| incorporating the comparable definitions used by the Office of |
26 |
| the
Comptroller of the Currency and the Illinois Commissioner |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| of Banks
and Real Estate.
|
2 |
| (ff) "Gross delinquency rate" means the quotient |
3 |
| determined by dividing
(1) the sum of (i) the number of |
4 |
| government-insured residential mortgage loans
funded or |
5 |
| purchased by a licensee in the preceding calendar year that are
|
6 |
| delinquent and (ii) the number of conventional residential |
7 |
| mortgage loans
funded or purchased by the licensee in the |
8 |
| preceding calendar year that are
delinquent by (2) the sum of |
9 |
| (i) the number of government-insured residential
mortgage |
10 |
| loans funded or purchased by the licensee in the preceding |
11 |
| calendar
year and (ii) the number of conventional residential |
12 |
| mortgage loans funded or
purchased by the licensee in the |
13 |
| preceding calendar year.
|
14 |
| (gg) "Delinquency rate factor" means the factor set by rule |
15 |
| of the
Commissioner that is multiplied by the average gross |
16 |
| delinquency rate of
licensees, determined annually for the |
17 |
| immediately preceding calendar year, for
the purpose of |
18 |
| determining which licensees shall be examined by the
|
19 |
| Commissioner pursuant to subsection (b) of Section 4-8 of this |
20 |
| Act.
|
21 |
| (hh) "Loan originator" means any natural person who, for |
22 |
| compensation or in
the expectation of compensation, either |
23 |
| directly or indirectly makes, offers to
make, solicits, places, |
24 |
| or negotiates a residential mortgage loan.
|
25 |
| (ii) "Confidential supervisory information" means any |
26 |
| report of examination, visitation, or investigation prepared |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| by the Commissioner under this Act, any report of examination |
2 |
| visitation, or investigation prepared by the state regulatory |
3 |
| authority of another state that examines a licensee, any |
4 |
| document or record prepared or obtained in connection with or |
5 |
| relating to any examination, visitation, or investigation, and |
6 |
| any record prepared or obtained by the Commissioner to the |
7 |
| extent that the record summarizes or contains information |
8 |
| derived from any report, document, or record described in this |
9 |
| subsection. "Confidential supervisory information" does not |
10 |
| include any information or record routinely prepared by a |
11 |
| licensee and maintained in the ordinary course of business or |
12 |
| any information or record that is required to be made publicly |
13 |
| available pursuant to State or federal law or rule.
|
14 |
| (jj) "Secretary" means the Secretary of the Department of |
15 |
| Financial and Professional Regulation, or a person authorized |
16 |
| by the Secretary or by this Act to act in the Secretary's |
17 |
| stead. |
18 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
|
19 |
| (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
|
20 |
| Sec. 2-2. Application process; investigation; fee.
|
21 |
| (a) The Secretary Commissioner shall issue a license upon |
22 |
| completion of all of the
following:
|
23 |
| (1) The filing of an application for license.
|
24 |
| (2) The filing with the Secretary Commissioner of a |
25 |
| listing of judgments entered
against, and bankruptcy |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| petitions by, the license applicant for the
preceding 10 |
2 |
| years.
|
3 |
| (3) The payment, in certified funds, of
investigation |
4 |
| and application fees, the total of which shall be in an
|
5 |
| amount equal to $2,043 $2,700 annually , however, the |
6 |
| Commissioner may
increase the
investigation and |
7 |
| application fees by rule as provided in Section 4-11 .
|
8 |
| (4) Except for a broker applying to renew a license, |
9 |
| the filing of an
audited balance sheet including all |
10 |
| footnotes prepared by a certified public
accountant in |
11 |
| accordance with generally accepted accounting principles |
12 |
| and
generally accepted auditing principles which evidences |
13 |
| that the applicant meets
the net worth requirements of |
14 |
| Section 3-5.
|
15 |
| (5) The filing of proof satisfactory to the |
16 |
| Commissioner that the
applicant, the members thereof if the |
17 |
| applicant is a partnership or
association, the members or |
18 |
| managers thereof that retain any authority or
|
19 |
| responsibility under the operating agreement if the |
20 |
| applicant is a limited
liability company, or the officers |
21 |
| thereof if the applicant
is a corporation have 3 years |
22 |
| experience preceding application
in real estate finance. |
23 |
| Instead of this requirement, the applicant and the
|
24 |
| applicant's officers or members, as applicable, may
|
25 |
| satisfactorily complete a program of education in real |
26 |
| estate finance and
fair lending, as
approved by the |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| Commissioner, prior to receiving the
initial license.
The |
2 |
| Commissioner shall promulgate rules regarding proof of |
3 |
| experience
requirements and educational requirements and |
4 |
| the satisfactory completion of
those requirements. The |
5 |
| Commissioner may establish by rule a list of duly
licensed |
6 |
| professionals and others who may be exempt from this |
7 |
| requirement.
|
8 |
| (6) An investigation of the averments required by |
9 |
| Section 2-4, which
investigation must allow the |
10 |
| Commissioner to issue positive findings stating
that the |
11 |
| financial responsibility, experience, character, and |
12 |
| general fitness
of the license applicant and of the members |
13 |
| thereof if the license applicant is
a partnership or |
14 |
| association, of the officers and directors thereof if the
|
15 |
| license applicant is a corporation, and of the managers and |
16 |
| members that retain
any authority or responsibility under |
17 |
| the operating agreement if the license
applicant is a |
18 |
| limited liability company are such as to command the |
19 |
| confidence
of the community and to warrant belief that the |
20 |
| business will be operated
honestly, fairly and efficiently |
21 |
| within the purpose of this Act. If the
Commissioner shall |
22 |
| not so find, he or she shall not issue such license, and he
|
23 |
| or she shall notify the license applicant of the denial. |
24 |
| The Commissioner may impose conditions on a license if the |
25 |
| Commissioner determines that the conditions are necessary or |
26 |
| appropriate. These conditions shall be imposed in writing and |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| shall continue in effect for the period prescribed by the |
2 |
| Commissioner.
|
3 |
| (b) All licenses shall be issued in duplicate with one copy
|
4 |
| being transmitted to the license applicant and the second being
|
5 |
| retained with the Commissioner.
|
6 |
| Upon receipt of such license, a residential mortgage |
7 |
| licensee shall be
authorized to engage in the business |
8 |
| regulated by this Act. Such license
shall remain in full force |
9 |
| and effect until it expires without renewal, is
surrendered by |
10 |
| the licensee or revoked or suspended as hereinafter provided.
|
11 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
|
12 |
| (205 ILCS 635/2-6) (from Ch. 17, par. 2322-6)
|
13 |
| Sec. 2-6. License issuance and renewal; fee.
|
14 |
| (a) Beginning July 1, 2003, licenses shall be renewed every |
15 |
| year on the
anniversary of the date of issuance of the original |
16 |
| license.
Properly completed renewal application forms and |
17 |
| filing fees must be received
by the Secretary Commissioner 60 |
18 |
| days prior to the renewal date.
|
19 |
| (b) It shall be the responsibility of each licensee to |
20 |
| accomplish renewal
of its license; failure of the licensee to |
21 |
| receive renewal forms absent a
request sent by certified mail |
22 |
| for such forms will not waive said
responsibility. Failure by a |
23 |
| licensee to submit a properly completed
renewal application |
24 |
| form and fees in a timely fashion, absent a written
extension |
25 |
| from the Secretary Commissioner , will result in the assessment |
|
|
|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
|
|
1 |
| of
additional fees, as follows:
|
2 |
| (1) A fee of $567.50 $750 will be assessed to the |
3 |
| licensee 30 days
after the
proper renewal date and $1,135 |
4 |
| $1,500 each month thereafter, until the
license is
either |
5 |
| renewed or expires pursuant to Section 2-6, subsections (c) |
6 |
| and (d),
of this Act.
|
7 |
| (2) Such fee will be assessed without prior notice to |
8 |
| the licensee, but
will be assessed only in cases wherein |
9 |
| the Secretary Commissioner has in his or her
possession |
10 |
| documentation of the licensee's continuing activity for |
11 |
| which
the unrenewed license was issued.
|
12 |
| (c) A license which is not renewed by the date required in |
13 |
| this Section
shall automatically become inactive. No activity |
14 |
| regulated by this Act
shall be conducted by the licensee when a |
15 |
| license becomes inactive. The Commissioner may require the |
16 |
| licensee to provide a plan for the disposition of any |
17 |
| residential mortgage loans not closed or funded when the |
18 |
| license becomes inactive. The Commissioner may allow a licensee |
19 |
| with an inactive license to conduct activities regulated by |
20 |
| this Act for the sole purpose of assisting borrowers in the |
21 |
| closing or funding of loans for which the loan application was |
22 |
| taken from a borrower while the license was active. An
inactive |
23 |
| license may be reactivated by the Commissioner upon payment of |
24 |
| the renewal fee, and payment
of a reactivation fee equal to the |
25 |
| renewal fee.
|
26 |
| (d) A license which is not renewed within one year of |
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|
09500SB2513ham002 |
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LRB095 18312 MJR 51775 a |
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|
1 |
| becoming inactive
shall expire.
|
2 |
| (e) A licensee ceasing an activity or activities regulated |
3 |
| by this Act
and desiring to no longer be licensed shall so |
4 |
| inform the Commissioner in
writing and, at the same time, |
5 |
| convey the license and all other symbols or
indicia of |
6 |
| licensure. The licensee shall include a plan for the withdrawal
|
7 |
| from regulated business, including a timetable for the |
8 |
| disposition of the
business. Upon receipt of such written |
9 |
| notice, the Commissioner shall issue
a certified statement |
10 |
| canceling the license.
|
11 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; 93-1018, |
12 |
| eff. 1-1-05.)
|
13 |
| (205 ILCS 635/4-11) (from Ch. 17, par. 2324-11)
|
14 |
| Sec. 4-11. Costs of Supervision; Examination and |
15 |
| Investigative Fees.
The expenses of administering this Act, |
16 |
| including investigations and
examinations provided for in this |
17 |
| Act shall be borne by and assessed
against entities regulated |
18 |
| by this Act. Subject to the limitations set forth in Section |
19 |
| 2-2 of this Act, the Secretary The Commissioner shall establish
|
20 |
| fees by regulation in at least the following categories:
|
21 |
| (1) application fees;
|
22 |
| (2) investigation of license applicant fees;
|
23 |
| (3) examination fees;
|
24 |
| (4) contingent fees;
|
25 |
| and such other categories as may be required to administer this |