93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6747


 
Introduced 02/09/04, by Eddie Washington
 
SYNOPSIS AS INTRODUCED:
 		
















205 ILCS 205/9015
  from Ch. 17, par. 7309-15


205 ILCS 205/11003
  from Ch. 17, par. 7311-3







    Amends the Savings Bank Act. Provides that a violation of the Investments Article of the Act is deemed to be an unsafe and unsound practice. In provisions pertaining to the Commissioner's ability to remove or prohibit current or former officers, directors, employees, or agents  of a savings bank operating under this Act who are the subject of final orders, adds the Board of Governors of the Federal Reserve, a Federal Reserve Bank, the U.S. Office of Thrift Supervision, the National Credit Union Administration, or other federal financial institution regulators to the list of regulated entities that issue final orders.
















LRB093 18473 SAS 44187 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB6747

LRB093 18473 SAS 44187 b






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    AN ACT concerning financial regulation.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Savings Bank Act is amended  by changing 
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Sections 9015 and 11003 as follows:
 



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    (205 ILCS 205/9015)  (from Ch. 17, par. 7309-15)



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    Sec. 9015. Unsafe and unsound practices; orders of 
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prohibition and removal. 

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    (a) The violation of any of the following provisions of 
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this
Act:  Article 5, Article 6, subsection (b) of Section 4009, 
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Section 7006, Section 9005, and Section 9014 is deemed to be an 
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unsafe and unsound
practice and creates an unsafe and unsound 
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condition in the savings bank.
The savings bank or the 
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institution affiliated party responsible for the
violation may 
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be subject to the assessment of civil money penalties and
other 
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enforcement powers of the Commissioner, as specified in this 
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Article,
in Article 11, and by regulation of the Commissioner.

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    (b) Continued violation of any of those provisions after 
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the
Commissioner issues formal notice to correct shall subject 
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the
directors of the savings bank at fault to immediate removal 
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from
the board and to a permanent order of prohibition from 
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direct or
indirect participation in the affairs of any 
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financial institution
subject to this Act, the Illinois Savings 
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and Loan Act of 1985, or the
Residential Mortgage License Act 
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of 1987.

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    (c) The Commissioner shall promulgate rules and 
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regulations
to implement this Section.

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(Source: P.A. 90-301, eff. 8-1-97.)

 



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    (205 ILCS 205/11003)  (from Ch. 17, par. 7311-3)



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    Sec. 11003. Removal and prohibition authority. 

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    (a) In addition to other provisions of this Act concerning

 


 






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LRB093 18473 SAS 44187 b




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officers and directors, the Commissioner may remove or suspend  
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from any
savings bank operating under this Act any officer, 
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director,
employee, or agent of a savings bank, and the 
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Commissioner may prohibit
participation in the affairs of any 
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savings bank by any current, former, or
prospective officer, 
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director, employee, or agent of a savings bank, if he
finds 
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that:


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        (1) The person or persons have directly or indirectly

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    violated any law, regulation, or order including orders,

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    conditions, and agreements between the savings bank and the

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    Commissioner or between the savings bank and its federal 
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    regulators.


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        (2) The person or persons have breached their fiduciary 
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    or
professional responsibilities to the savings bank.


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        (3) The person or persons have similarly behaved

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    towards any other insured depository institution or 
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    otherwise
regulated entity or that the person or persons 
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    are the subject
of any final order issued by the federal 
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    insurer, the Office
of the Comptroller of the Currency, the 
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    Board of Governors of the Federal Reserve Board,
a Federal 
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    Reserve Bank, the U.S. Office of Thrift Supervision, the 
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    National Credit Union Administration,
a state financial 
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    institutions regulator, the Securities and
Exchange 
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    Commission, other federal or state financial institution 
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    regulators, or by a state or federal court of law.

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    (b) The  Commissioner may serve upon a party a written

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notice of the Commissioner's intention to remove or suspend the

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party from office in the savings bank or to prohibit any

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participation in any manner by the party in the
affairs of any 
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savings bank, if the Commissioner
finds because of
a violation 
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of subsection (a) that:


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        (1) Any savings bank, other insured depository 
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    institution,
or other regulated entity has or probably will 
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    suffer financial
loss or other damage.


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        (2) The interests of savings bank's depositors or other 
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    insured
depository institution's depositors have been or 
 


 






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    could be
prejudiced.


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        (3) The party has received financial gain or other 
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    benefit
by reason of the violation.


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        (4) The violation or breach involves personal 
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    dishonesty on
the part of the party or demonstrates willful 
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    or continuing
disregard by the party for the safety and 
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    soundness of the
savings bank or other insured depository 
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    institution.

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(Source: P.A. 92-483, eff. 8-23-01.)