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1 | AN ACT concerning financial regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Savings Bank Act is amended by changing | ||||||||||||||||||||||||||
5 | Sections 9015 and 11003 as follows:
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6 | (205 ILCS 205/9015) (from Ch. 17, par. 7309-15)
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7 | Sec. 9015. Unsafe and unsound practices; orders of | ||||||||||||||||||||||||||
8 | prohibition and removal.
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9 | (a) The violation of any of the following provisions of | ||||||||||||||||||||||||||
10 | this
Act: Article 5, Article 6, subsection (b) of Section 4009, | ||||||||||||||||||||||||||
11 | Section 7006, Section 9005, and Section 9014 is deemed to be an | ||||||||||||||||||||||||||
12 | unsafe and unsound
practice and creates an unsafe and unsound | ||||||||||||||||||||||||||
13 | condition in the savings bank.
The savings bank or the | ||||||||||||||||||||||||||
14 | institution affiliated party responsible for the
violation may | ||||||||||||||||||||||||||
15 | be subject to the assessment of civil money penalties and
other | ||||||||||||||||||||||||||
16 | enforcement powers of the Commissioner, as specified in this | ||||||||||||||||||||||||||
17 | Article,
in Article 11, and by regulation of the Commissioner.
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18 | (b) Continued violation of any of those provisions after | ||||||||||||||||||||||||||
19 | the
Commissioner issues formal notice to correct shall subject | ||||||||||||||||||||||||||
20 | the
directors of the savings bank at fault to immediate removal | ||||||||||||||||||||||||||
21 | from
the board and to a permanent order of prohibition from | ||||||||||||||||||||||||||
22 | direct or
indirect participation in the affairs of any | ||||||||||||||||||||||||||
23 | financial institution
subject to this Act, the Illinois Savings | ||||||||||||||||||||||||||
24 | and Loan Act of 1985, or the
Residential Mortgage License Act | ||||||||||||||||||||||||||
25 | of 1987.
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26 | (c) The Commissioner shall promulgate rules and | ||||||||||||||||||||||||||
27 | regulations
to implement this Section.
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28 | (Source: P.A. 90-301, eff. 8-1-97.)
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29 | (205 ILCS 205/11003) (from Ch. 17, par. 7311-3)
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30 | Sec. 11003. Removal and prohibition authority.
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31 | (a) In addition to other provisions of this Act concerning
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1 | officers and directors, the Commissioner may remove or suspend | ||||||
2 | from any
savings bank operating under this Act any officer, | ||||||
3 | director,
employee, or agent of a savings bank, and the | ||||||
4 | Commissioner may prohibit
participation in the affairs of any | ||||||
5 | savings bank by any current, former, or
prospective officer, | ||||||
6 | director, employee, or agent of a savings bank, if he
finds | ||||||
7 | that:
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8 | (1) The person or persons have directly or indirectly
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9 | violated any law, regulation, or order including orders,
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10 | conditions, and agreements between the savings bank and the
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11 | Commissioner or between the savings bank and its federal | ||||||
12 | regulators.
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13 | (2) The person or persons have breached their fiduciary | ||||||
14 | or
professional responsibilities to the savings bank.
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15 | (3) The person or persons have similarly behaved
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16 | towards any other insured depository institution or | ||||||
17 | otherwise
regulated entity or that the person or persons | ||||||
18 | are the subject
of any final order issued by the federal | ||||||
19 | insurer, the Office
of the Comptroller of the Currency, the | ||||||
20 | Board of Governors of the Federal Reserve Board ,
a Federal | ||||||
21 | Reserve Bank, the U.S. Office of Thrift Supervision, the | ||||||
22 | National Credit Union Administration,
a state financial | ||||||
23 | institutions regulator, the Securities and
Exchange | ||||||
24 | Commission, other federal or state financial institution | ||||||
25 | regulators, or by a state or federal court of law.
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26 | (b) The Commissioner may serve upon a party a written
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27 | notice of the Commissioner's intention to remove or suspend the
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28 | party from office in the savings bank or to prohibit any
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29 | participation in any manner by the party in the
affairs of any | ||||||
30 | savings bank, if the Commissioner
finds because of
a violation | ||||||
31 | of subsection (a) that:
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32 | (1) Any savings bank, other insured depository | ||||||
33 | institution,
or other regulated entity has or probably will | ||||||
34 | suffer financial
loss or other damage.
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35 | (2) The interests of savings bank's depositors or other | ||||||
36 | insured
depository institution's depositors have been or |
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1 | could be
prejudiced.
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2 | (3) The party has received financial gain or other | ||||||
3 | benefit
by reason of the violation.
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4 | (4) The violation or breach involves personal | ||||||
5 | dishonesty on
the part of the party or demonstrates willful | ||||||
6 | or continuing
disregard by the party for the safety and | ||||||
7 | soundness of the
savings bank or other insured depository | ||||||
8 | institution.
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9 | (Source: P.A. 92-483, eff. 8-23-01.)
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