Sen. Kimberly A. Lightford
Filed: 3/23/2004
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1 | AMENDMENT TO SENATE BILL 2710
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2 | AMENDMENT NO. ______. Amend Senate Bill 2710 on page 1, | ||||||
3 | line 5, by changing "Sections 21.2 and 80" to "Section 21.2"; | ||||||
4 | and | ||||||
5 | on page 2, by replacing line 3 with the following: | ||||||
6 | " reciprocal with Illinois and would be eligible to establish "; | ||||||
7 | and | ||||||
8 | on page 2, line 20, after the semicolon, by inserting " and "; | ||||||
9 | and | ||||||
10 | on page 2, by replacing line 22 with the following: | ||||||
11 | " authority from, or provides notice to, the Commissioner as | ||||||
12 | provided in subsection (b) of this "; and | ||||||
13 | on page 2, by replacing lines 24 through 35 with the following: | ||||||
14 | " (b) Before such out-of-state bank may establish a branch | ||||||
15 | in this State, the out-of-state bank must obtain a certificate | ||||||
16 | of authority from the Commissioner. The out-of-state bank must | ||||||
17 | file an application for a certificate of authority on a form | ||||||
18 | prescribed by the Commissioner. | ||||||
19 | The application for a certificate of authority shall not be | ||||||
20 | required if the state in which the out-of-state bank is | ||||||
21 | chartered permits a state bank to establish a branch in that | ||||||
22 | state without filing an application. An out-of-state bank |
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1 | chartered in such a state may establish a branch in this State | ||||||
2 | pursuant to this Section after providing the Commissioner with | ||||||
3 | written notice. The Commissioner may prescribe the form of such | ||||||
4 | notice and may accept a copy of a notice or application | ||||||
5 | provided by the out-of-state bank to its chartering authority | ||||||
6 | or to its appropriate federal banking agency. "; and | ||||||
7 | on page 3, by deleting lines 1 through 7; and | ||||||
8 | on page 3 by replacing lines 11 through 23 with the following: | ||||||
9 | " shall be made in writing by the Commissioner. The Commissioner | ||||||
10 | shall not make a finding of reciprocity unless the Commissioner | ||||||
11 | determines that the laws of the other state permit a State bank | ||||||
12 | to establish a branch in such other state under terms and | ||||||
13 | conditions that are substantially similar to the provisions of | ||||||
14 | this Section. The Commissioner shall consider, at a minimum, | ||||||
15 | whether the laws of such other state discriminate in any way | ||||||
16 | against a State bank and whether the laws of such other state | ||||||
17 | impose administrative or regulatory burdens that are | ||||||
18 | substantially more restrictive than those imposed by this Act | ||||||
19 | on an out-of-state bank or national bank seeking to establish a | ||||||
20 | branch in this State. "; and | ||||||
21 | on page 3, by replacing lines 33 through 36 with the following: | ||||||
22 | " notice shall be specified by the Commissioner. "; and | ||||||
23 | on page 4, by deleting lines 1 and 2; and | ||||||
24 | on page 4, by replacing lines 5 through 35 with the following:
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25 | "Section 10. The Illinois Bank Holding Company Act of 1957 | ||||||
26 | is amended by changing Section 3.071 as follows:
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27 | (205 ILCS 10/3.071) (from Ch. 17, par. 2510.01)
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1 | Sec. 3.071. Out of state bank holding companies.
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2 | (a) An out of state bank holding company may acquire | ||||||
3 | ownership of more
than 5% of the voting shares of or control of | ||||||
4 | one or more Illinois banks or
Illinois bank holding companies | ||||||
5 | pursuant to a transaction, occurrence or
event that is | ||||||
6 | described in paragraphs (1) through (5) of subsection (a) of
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7 | Section 3.02, provided the acquisition is made in accordance | ||||||
8 | with Sections 3.02
and 3.07 of this Act in accordance with | ||||||
9 | subsection (i) of this Section and
provided the following | ||||||
10 | conditions
are met:
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11 | (1) (Blank).
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12 | (2) An out of state bank holding company seeking to | ||||||
13 | acquire an
Illinois bank or Illinois bank holding company | ||||||
14 | pursuant to subsection (a)
of Section 3.071 shall, if | ||||||
15 | change in control of the bank is governed by
Section 18 of | ||||||
16 | the Illinois Banking Act, file with the Commissioner the | ||||||
17 | application required by that Section containing
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18 | information satisfactory to the Commissioner.
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19 | (b) (Blank).
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20 | (c) (Blank).
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21 | (d) (Blank).
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22 | (e) (Blank).
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23 | (f) (Blank).
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24 | (g) (Blank).
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25 | (h) (Blank).
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26 | (i) (1) An out of state bank holding company which directly | ||||||
27 | or indirectly
controls or has control over an Illinois bank | ||||||
28 | that has existed and continuously
operated as a bank for 5 | ||||||
29 | years or less, may not cause the Illinois bank to
merge | ||||||
30 | with or into, or to have all or substantially all of the | ||||||
31 | assets acquired
by a bank that is an out of state bank.
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32 | (2) For purposes of subsection (i)(1) of this Section, | ||||||
33 | an Illinois bank
that is the resulting bank following a | ||||||
34 | merger involving an Illinois interim
bank shall be |
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1 | considered to have been in existence and continuously | ||||||
2 | operated
during the existence and continuous operation of | ||||||
3 | the Illinois merged bank. As
used in this subsection | ||||||
4 | (i)(2), the words
"resulting bank" and "merged bank" shall | ||||||
5 | have the meanings ascribed to those
words in Section 2 of | ||||||
6 | the Illinois Banking Act. As used in this subsection
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7 | (i)(2), the words "interim bank" shall mean a bank which | ||||||
8 | shall not accept
deposits, make loans, pay checks, or | ||||||
9 | engage in the general business of banking
or any part | ||||||
10 | thereof, and is chartered solely for the purpose of merging | ||||||
11 | with or
acquiring control of, or acquiring all or | ||||||
12 | substantially all of the assets of an
existing Illinois | ||||||
13 | bank.
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14 | (3) The provisions of subsection (i)(1) of this Section | ||||||
15 | shall not apply to
the merger or acquisition of all or | ||||||
16 | substantially all of the assets of an
Illinois bank:
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17 | (i) if the merger or acquisition is part of a | ||||||
18 | purchase or acquisition
with respect to which the | ||||||
19 | Federal Deposit Insurance Corporation provides
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20 | assistance under Section 13(c) of the Federal Deposit | ||||||
21 | Insurance Act; or
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22 | (ii) if the Illinois bank is in default or in | ||||||
23 | danger of default. As
used in this subsection | ||||||
24 | (i)(3)(ii), the words "in default"
and "in danger of | ||||||
25 | default" shall have the meaning ascribed to those words | ||||||
26 | in
Section 2 of the Illinois Banking Act ; or
.
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27 | (iii) if the bank with which the Illinois bank is | ||||||
28 | being merged or that is acquiring all or substantially | ||||||
29 | all of the assets of the Illinois bank has its main | ||||||
30 | banking premises in a state that is deemed to be | ||||||
31 | reciprocal with Illinois and would be eligible to | ||||||
32 | establish a branch pursuant to Section 21.4 of the | ||||||
33 | Illinois Banking Act.
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34 | (Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96; |
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1 | 90-226, eff.
7-25-97; 90-655, eff. 7-30-98.)
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2 | Section 15. The Savings Bank Act is amended by changing | ||||||
3 | Section 1006 and by adding Sections 1006.05 and 1007.130 as | ||||||
4 | follows:
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5 | (205 ILCS 205/1006) (from Ch. 17, par. 7301-6)
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6 | Sec. 1006. Parity.
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7 | (a) Subject to the regulation of the Commissioner and in | ||||||
8 | addition to the
powers granted by this Act, each savings bank | ||||||
9 | operating under this Act shall
possess those powers granted by | ||||||
10 | regulation promulgated under the Federal
Deposit Insurance Act | ||||||
11 | for state savings banks.
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12 | (b) A savings bank may establish branches or offices at | ||||||
13 | which savings or
investments are regularly received or loans | ||||||
14 | approved as follows:
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15 | (1) to the extent branch powers and offices are granted
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16 | to State banks under the Illinois Banking Act;
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17 | (2) within the geographic area defined in Article 2 of | ||||||
18 | this Act
and subject to the provisions of Article 2 of this | ||||||
19 | Act;
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20 | (3) within the same geographic areas or states as those | ||||||
21 | states from
which a holding company is permitted to acquire | ||||||
22 | an Illinois savings bank or
an Illinois savings bank | ||||||
23 | holding company;
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24 | (4) to the same extent that holding companies and | ||||||
25 | savings and loan
associations headquartered outside the | ||||||
26 | State of Illinois are allowed to
operate in Illinois by | ||||||
27 | virtue of Articles 1A and 2B of the Illinois Savings
and | ||||||
28 | Loan Act of 1985;
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29 | (5) as the result of mergers, consolidations, or bulk | ||||||
30 | sales of
facilities in the case of relocations ; and
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31 | (6) to the extent the Commissioner deems states to be | ||||||
32 | reciprocal under the provisions of Section 1006.05 of this |
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1 | Act.
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2 | (c) The Commissioner may adopt regulations that provide for | ||||||
3 | the
establishment of branches as defined by the Commissioner.
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4 | (d) Notwithstanding any other provision of this Act, a | ||||||
5 | savings bank that
purchases or assumes all or any part of the | ||||||
6 | assets or liabilities of a bank,
savings bank, or savings and | ||||||
7 | loan association or merges or consolidates with a
bank, savings | ||||||
8 | bank, or savings and loan association may retain and maintain | ||||||
9 | the
main premises or branches of the former bank, savings bank, | ||||||
10 | or savings and loan
association as branches of the purchasing, | ||||||
11 | merging, or consolidating savings
bank, provided it assumes the | ||||||
12 | deposit liabilities of the bank, savings bank, or
savings and | ||||||
13 | loan association maintained at the main premises or branches.
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14 | (e) A savings bank has any power reasonably incident,
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15 | convenient, or useful
to
the accomplishment of the powers | ||||||
16 | conferred upon
the savings bank by this Act.
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17 | (Source: P.A. 89-74, eff. 6-30-95; 90-301, eff. 8-1-97; 90-665, | ||||||
18 | eff. 7-30-98.)
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19 | (205 ILCS 205/1006.05 new)
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20 | Sec. 1006.05. Out-of-state savings banks establishing | ||||||
21 | branches. | ||||||
22 | (a) No out-of-state savings bank whose main banking | ||||||
23 | premises is located in a state other than Illinois shall | ||||||
24 | establish a branch in this State, other than a branch | ||||||
25 | authorized pursuant to any other provision of this Act, unless: | ||||||
26 | (1) the laws of the state in which such out-of-state | ||||||
27 | savings bank has its main banking premises permit the | ||||||
28 | out-of-state savings bank to establish a branch in this | ||||||
29 | State; | ||||||
30 | (2) the out-of-state savings bank has its main banking | ||||||
31 | premises in a state that permits an Illinois State savings | ||||||
32 | bank to establish a branch in that state pursuant to terms | ||||||
33 | and conditions that are deemed to be reciprocal with the |
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1 | provisions of this Act; and | ||||||
2 | (3) the out-of-state savings bank obtains a | ||||||
3 | certificate of authority from, or provides notice to, the | ||||||
4 | Commissioner as provided in subsection (b) of this Section. | ||||||
5 | (b) Before the out-of-state savings bank may establish a | ||||||
6 | branch in this State, the out-of-state savings bank must obtain | ||||||
7 | a certificate of authority from the Commissioner. The | ||||||
8 | out-of-state savings bank must file an application for a | ||||||
9 | certificate of authority on a form prescribed by the | ||||||
10 | Commissioner. | ||||||
11 | The application for a certificate of authority shall not be | ||||||
12 | required if the state in which the out-of-state savings bank is | ||||||
13 | chartered permits an Illinois State savings bank to establish a | ||||||
14 | branch in that state without filing an application. An | ||||||
15 | out-of-state savings bank chartered in such a state may | ||||||
16 | establish a branch in this State pursuant to this Section after | ||||||
17 | providing the Commissioner with written notice. The | ||||||
18 | Commissioner may prescribe the form of such notice and may | ||||||
19 | accept a copy of a notice or application provided by the | ||||||
20 | out-of-state savings bank to its chartering authority. | ||||||
21 | (c) The determination of whether the laws of the state in | ||||||
22 | which the out-of-state savings bank has its main banking | ||||||
23 | premises are reciprocal with the provisions of this Act shall | ||||||
24 | be made in writing by the Commissioner. The Commissioner shall | ||||||
25 | not make a finding of reciprocity unless the Commissioner | ||||||
26 | determines that the laws of the other state permit an Illinois | ||||||
27 | State savings bank to establish a branch in the other state | ||||||
28 | under terms and conditions that are substantially similar to | ||||||
29 | the provisions of this Section. The Commissioner shall | ||||||
30 | consider, at a minimum, whether the laws of the other state | ||||||
31 | discriminate in any way against an Illinois State savings bank | ||||||
32 | and whether the laws of the other state impose administrative | ||||||
33 | or regulatory burdens that are substantially more restrictive | ||||||
34 | than those imposed by this Act on an out-of-state savings bank |
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1 | seeking to establish a branch in this State. | ||||||
2 | (d) After the out-of-state savings bank lawfully | ||||||
3 | establishes a branch in this State pursuant to the provisions | ||||||
4 | of this Section, the out-of-state savings bank may establish | ||||||
5 | and maintain additional branches in this State to the same | ||||||
6 | extent as an Illinois State savings bank. An out-of-state | ||||||
7 | savings bank shall provide written notice to the Commissioner | ||||||
8 | of its intent to establish an additional branch or additional | ||||||
9 | branches in this State within 30 days after receiving approval | ||||||
10 | from its chartering authority or other appropriate regulatory | ||||||
11 | agency to establish the branch or branches. The form of the | ||||||
12 | notice shall be specified by the Commissioner. | ||||||
13 | (e) A branch of an out-of-state savings bank may not | ||||||
14 | conduct any activity that is not authorized for an Illinois | ||||||
15 | State savings bank.
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16 | (205 ILCS 205/1007.130 new)
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17 | Sec. 1007.130. Out-of-state savings bank. "Out-of-state | ||||||
18 | savings bank" means a savings bank chartered under the laws of | ||||||
19 | a state other than Illinois, a territory of the United States, | ||||||
20 | or the District of Columbia.
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law."; and
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23 | by deleting pages 5 and 6.
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