SB3036 93RD GENERAL ASSEMBLY

LRB093 18472 SAS 44186 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3036

Introduced 2/6/2004, by Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:

20 ILCS 3205/5	from Ch. 17, par. 455
205 ILCS 5/2	from Ch. 17, par. 302
205 ILCS 5/5	from Ch. 17, par. 311
205 ILCS 5/10	from Ch. 17, par. 317
205 ILCS 5/13.5
205 ILCS 5/16.8 new
205 ILCS 5/18	from Ch. 17, par. 325
205 ILCS 5/21.2
205 ILCS 5/46	from Ch. 17, par. 357
205 ILCS 5/48	from Ch. 17, par. 359
205 ILCS 5/49	from Ch. 17, par. 361
205 ILCS 5/71	from Ch. 17, par. 383
205 ILCS 10/3.02	from Ch. 17, par. 2505
205 ILCS 510/0.05
205 ILCS 510/1.8 new
205 ILCS 510/5	from Ch. 17, par. 4655
205 ILCS 510/9.5 new
205 ILCS 620/5-1	from Ch. 17, par. 1555-1
205 ILCS 620/5-9	from Ch. 17, par. 1555-9
205 ILCS 5/9.5 rep.

Amends the Office of Banks and Real Estate Act, the Illinois Banking Act, the Illinois Bank Holding Company Act of 1957, the Pawnbroker Regulation Act, and the Corporate Fiduciary Act. Expands the power of the Commissioner of Banks and Real Estate to deter certain practices of financial institutions, make available to the public any formal enforcement action as defined, and impose other disciplinary actions. Redefines the general corporate powers of banks organized under this Act or subject to this Act to own, possess, and carry as assets stock of one or more corporations. Creates provisions concerning approval of directors and senior executive officers. Provides that no pawnshop shall employ an individual who has been convicted of certain crimes, as defined, without the prior written approval of the Commissioner of Banks and Real Estate. Creates provisions concerning the operation of pawnshops after license revocation, suspension, or denial. Increases certain penalties and fines. Makes other changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT in relation to financial institutions.

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

4		Section 5. The Office of Banks and Real Estate Act is
5		amended by changing Section 5 as follows:
6		(20 ILCS 3205/5) (from Ch. 17, par. 455)
7		Sec. 5. Powers. In addition to all the other powers and
8		duties provided by law, the Commissioner shall have the
9		following powers:
10		(a) To exercise the rights, powers and duties formerly
11		vested by law in the Director of Financial Institutions under
12		the Illinois Banking Act.
13		(b) To exercise the rights, powers and duties formerly
14		vested by law in the Department of Financial Institutions under
15		"An act to provide for and regulate the administration of
16		trusts by trust companies", approved June 15, 1887, as amended.
17		(c) To exercise the rights, powers and duties formerly
18		vested by law in the Director of Financial Institutions under
19		"An act authorizing foreign corporations, including banks and
20		national banking associations domiciled in other states, to act
21		in a fiduciary capacity in this state upon certain conditions
22		herein set forth", approved July 13, 1953, as amended.
23		(d) Whenever the Commissioner is authorized or required by
24		law to consider or to make findings regarding the character of
25		incorporators, directors, management personnel, or other
26		relevant individuals under the Illinois Banking Act, the
27		Corporate Fiduciary Act, the Pawnbroker Regulation Act, or at
28		other times as the Commissioner deems necessary for the purpose
29		of carrying out the Commissioner's statutory powers and
30		responsibilities, the Commissioner shall consider criminal
31		history record information, including nonconviction
32		information, pursuant to the Criminal Identification Act. The

1		Commissioner shall, in the form and manner required by the
2		Department of State Police and the Federal Bureau of
3		Investigation, cause to be conducted a criminal history record
4		investigation to obtain information currently contained in the
5		files of the Department of State Police or the Federal Bureau
6		of Investigation, provided that the Commissioner need not cause
7		additional criminal history record investigations to be
8		conducted on individuals for whom the Commissioner, a federal
9		bank regulatory agency, or any other government agency has
10		caused such investigations to have been conducted previously
11		unless such additional investigations are otherwise required
12		by law or unless the Commissioner deems such additional
13		investigations to be necessary for the purposes of carrying out
14		the Commissioner's statutory powers and responsibilities. The
15		Department of State Police shall provide, on the Commissioner's
16		request, information concerning criminal charges and their
17		disposition currently on file with respect to a relevant
18		individual. Information obtained as a result of an
19		investigation under this Section shall be used in determining
20		eligibility to be an incorporator, director, management
21		personnel, or other relevant individual in relation to a
22		financial institution or other entity supervised by the
23		Commissioner. Upon request and payment of fees in conformance
24		with the requirements of Section 2605-400 of the Department of
25		State Police Law (20 ILCS 2605/2605-400), the Department of
26		State Police is authorized to furnish, pursuant to positive
27		identification, such information contained in State files as is
28		necessary to fulfill the request.
29		(e) When issuing charters, permits, licenses, or other
30		authorizations, the Commissioner may impose such terms and
31		conditions on the issuance as he deems necessary or
32		appropriate. Failure to abide by those terms and conditions may
33		result in the revocation of the issuance, the imposition of
34		corrective orders, or the imposition of civil money penalties.
35		(f) If the Commissioner has reasonable cause to believe
36		that any entity that has not submitted an application for

1		authorization or licensure is conducting any activity that
2		would otherwise require authorization or licensure by the
3		Commissioner, the Commissioner shall have the power to subpoena
4		witnesses, to compel their attendance, and to require the
5		production of any relevant books, papers, accounts, and
6		documents in order to determine whether the entity is subject
7		to authorization or licensure by the Commissioner or the Office
8		of Banks and Real Estate.
9		(g) The Commissioner may, through the Attorney General,
10		request the circuit court of any county to issue an injunction
11		to restrain any person from violating the provisions of any Act
12		administered by the Commissioner.
13		(h) Whenever the Commissioner is authorized to take any
14		action or required by law to consider or make findings, the
15		Commissioner may delegate or appoint, in writing, an officer or
16		employee of the Office of Banks and Real Estate to take that
17		action or make that finding.
18		(i) Whenever the Commissioner issues an Order of
19		Prohibition or Order of Removal under Section 48(7) of the
20		Illinois Banking Act, Section 3.074(b) of the Illinois Bank
21		Holding Company Act of 1957, Section 5-6 of the Corporate
22		Fiduciary Act, or Section 0.05 of the Pawnbroker Regulation
23		Act, which order becomes a final administrative decision under
24		the Administrative Review Law, he or she shall refuse to issue
25		a new license under any of the Acts administered by the
26		Commissioner or shall revoke an outstanding license of a person
27		who is subject to such an order unless that person obtains the
28		Commissioner's prior written approval for maintenance or
29		reissuance of the license.
30		(Source: P.A. 91-239, eff. 1-1-00; 92-483, eff. 8-23-01.)

31		Section 10. The Illinois Banking Act is amended by changing
32		Sections 2, 5, 10, 13.5, 18, 21.2, 46, 48, 49, and 71, and by
33		adding Section 16.8 as follows:
34		(205 ILCS 5/2) (from Ch. 17, par. 302)

1		Sec. 2. General definitions. In this Act, unless the
2		context otherwise requires, the following words and phrases
3		shall have the following meanings:
4		"Accommodation party" shall have the meaning ascribed to
5		that term in Section 3-419 of the Uniform Commercial Code.
6		"Action" in the sense of a judicial proceeding includes
7		recoupments, counterclaims, set-off, and any other proceeding
8		in which rights are determined.
9		"Affiliate facility" of a bank means a main banking
10		premises or branch of another commonly owned bank. The main
11		banking premises or any branch of a bank may be an "affiliate
12		facility" with respect to one or more other commonly owned
13		banks.
14		"Appropriate federal banking agency" means the Federal
15		Deposit Insurance Corporation, the Federal Reserve Bank of
16		Chicago, or the Federal Reserve Bank of St. Louis, as
17		determined by federal law.
18		"Bank" means any person engaged in the business of
19		receiving deposits, other than trust funds, that is
20		incorporated under the laws of this or any other state or which
21		is operating under the Code of Law for the District of
22		Columbia. For purposes of this Section, "trust funds" means
23		funds held in a fiduciary capacity and includes, without being
24		limited to, funds held as trustee, executor, administrator,
25		guardian, or agent doing a banking business whether subject to
26		the laws of this or any other jurisdiction.
27		A "banking house", "branch", "branch bank" or "branch
28		office" shall mean any place of business of a bank at which
29		deposits are received, other than trust funds checks paid, or
30		loans made, but shall not include any place at which only
31		records thereof are made, posted, or kept. A place of business
32		at which deposits are received, other than trust funds, checks
33		paid, or loans made shall not be deemed to be a branch, branch
34		bank, or branch office if the place of business is adjacent to
35		and connected with the main banking premises, or if it is
36		separated from the main banking premises by not more than an

1		alley; provided always that (i) if the place of business is
2		separated by an alley from the main banking premises there is a
3		connection between the two by public or private way or by
4		subterranean or overhead passage, and (ii) if the place of
5		business is in a building not wholly occupied by the bank, the
6		place of business shall not be within any office or room in
7		which any other business or service of any kind or nature other
8		than the business of the bank is conducted or carried on. A
9		place of business at which deposits are received, checks paid,
10		or loans made shall not be deemed to be a branch, branch bank,
11		or branch office (i) of any bank if the place is a terminal
12		established and maintained in accordance with paragraph (17) of
13		Section 5 of this Act, or (ii) of a commonly owned bank by
14		virtue of transactions conducted at that place on behalf of the
15		other commonly owned bank under paragraph (23) of Section 5 of
16		this Act if the place is an affiliate facility with respect to
17		the other bank.
18		"Branch of an out-of-state bank" means a branch established
19		or maintained in Illinois by an out-of-state bank as a result
20		of a merger between an Illinois bank and the out-of-state bank
21		that occurs on or after May 31, 1997, or any branch established
22		by the out-of-state bank following the merger.
23		"Bylaws" means the bylaws of a bank that are adopted by the
24		bank's board of directors or shareholders for the regulation
25		and management of the bank's affairs. If the bank operates as a
26		limited liability company, however, "bylaws" means the
27		operating agreement of the bank.
28		"Call report fee" means the fee to be paid to the
29		Commissioner by each State bank pursuant to paragraph (a) of
30		subsection (3) of Section 48 of this Act.
31		"Composite rating" means the rating assigned to a state
32		bank by the Commissioner or by the state bank's appropriate
33		federal banking agency and accepted by the Commissioner, based
34		on a composite evaluation of individual performance components
35		as defined by the Uniform Financial Institutions Rating System
36		adopted by the Federal Financial Institutions Examination

1		Council, as now or hereafter amended.
2		"Capital" includes the aggregate of outstanding capital
3		stock and preferred stock.
4		"Cash flow reserve account" means the account within the
5		books and records of the Commissioner of Banks and Real Estate
6		used to record funds designated to maintain a reasonable Bank
7		and Trust Company Fund operating balance to meet agency
8		obligations on a timely basis.
9		"Charter" includes the original charter and all amendments
10		thereto and articles of merger or consolidation.
11		"Commissioner" means the Commissioner of Banks and Real
12		Estate or a person authorized by the Commissioner, the Office
13		of Banks and Real Estate Act, or this Act to act in the
14		Commissioner's stead.
15		"Commonly owned banks" means 2 or more banks that each
16		qualify as a bank subsidiary of the same bank holding company
17		pursuant to Section 18 of the Federal Deposit Insurance Act;
18		"commonly owned bank" refers to one of a group of commonly
19		owned banks but only with respect to one or more of the other
20		banks in the same group.
21		"Community" means a city, village, or incorporated town and
22		also includes the area served by the banking offices of a bank,
23		but need not be limited or expanded to conform to the
24		geographic boundaries of units of local government.
25		"Company" means a corporation, limited liability company,
26		partnership, business trust, association, or similar
27		organization and, unless specifically excluded, includes a
28		"State bank" and a "bank".
29		"Consolidating bank" means a party to a consolidation.
30		"Consolidation" takes place when 2 or more banks, or a
31		trust company and a bank, are extinguished and by the same
32		process a new bank is created, taking over the assets and
33		assuming the liabilities of the banks or trust company passing
34		out of existence.
35		"Continuing bank" means a merging bank, the charter of
36		which becomes the charter of the resulting bank.

1		"Converting bank" means a State bank converting to become a
2		national bank, or a national bank converting to become a State
3		bank.
4		"Converting trust company" means a trust company
5		converting to become a State bank.
6		"Court" means a court of competent jurisdiction.
7		"Director" means a member of the board of directors of a
8		bank. In the case of a manager-managed limited liability
9		company, however, "director" means a manager of the bank and,
10		in the case of a member-managed limited liability company,
11		"director" means a member of the bank. The term "director" does
12		not include an advisory director, honorary director, director
13		emeritus, or similar person, unless the person is otherwise
14		performing functions similar to those of a member of the board
15		of directors.
16		"Eligible depository institution" means an insured savings
17		association that is in default, an insured savings association
18		that is in danger of default, a State or national bank that is
19		in default or a State or national bank that is in danger of
20		default, as those terms are defined in this Section, or a new
21		bank as that term defined in Section 11(m) of the Federal
22		Deposit Insurance Act or a bridge bank as that term is defined
23		in Section 11(n) of the Federal Deposit Insurance Act or a new
24		federal savings association authorized under Section
25		11(d)(2)(f) of the Federal Deposit Insurance Act.
26		"Fiduciary" means trustee, agent, executor, administrator,
27		committee, guardian for a minor or for a person under legal
28		disability, receiver, trustee in bankruptcy, assignee for
29		creditors, or any holder of similar position of trust.
30		"Financial institution" means a bank, savings and loan
31		association, credit union, or any licensee under the Consumer
32		Installment Loan Act or the Sales Finance Agency Act and, for
33		purposes of Section 48.3, any proprietary network, funds
34		transfer corporation, or other entity providing electronic
35		funds transfer services, or any corporate fiduciary, its
36		subsidiaries, affiliates, parent company, or contractual

1		service provider that is examined by the Commissioner.
2		"Foundation" means the Illinois Bank Examiners' Education
3		Foundation.
4		"General obligation" means a bond, note, debenture,
5		security, or other instrument evidencing an obligation of the
6		government entity that is the issuer that is supported by the
7		full available resources of the issuer, the principal and
8		interest of which is payable in whole or in part by taxation.
9		"Guarantee" means an undertaking or promise to answer for
10		payment of another's debt or performance of another's duty,
11		liability, or obligation whether "payment guaranteed" or
12		"collection guaranteed".
13		"In danger of default" means a State or national bank, a
14		federally chartered insured savings association or an Illinois
15		state chartered insured savings association with respect to
16		which the Commissioner or the appropriate federal banking
17		agency has advised the Federal Deposit Insurance Corporation
18		that:
19		(1) in the opinion of the Commissioner or the
20		appropriate federal banking agency,
21		(A) the State or national bank or insured savings
22		association is not likely to be able to meet the
23		demands of the State or national bank's or savings
24		association's obligations in the normal course of
25		business; and
26		(B) there is no reasonable prospect that the State
27		or national bank or insured savings association will be
28		able to meet those demands or pay those obligations
29		without federal assistance; or
30		(2) in the opinion of the Commissioner or the
31		appropriate federal banking agency,
32		(A) the State or national bank or insured savings
33		association has incurred or is likely to incur losses
34		that will deplete all or substantially all of its
35		capital; and
36		(B) there is no reasonable prospect that the

1		capital of the State or national bank or insured
2		savings association will be replenished without
3		federal assistance.
4		"In default" means, with respect to a State or national
5		bank or an insured savings association, any adjudication or
6		other official determination by any court of competent
7		jurisdiction, the Commissioner, the appropriate federal
8		banking agency, or other public authority pursuant to which a
9		conservator, receiver, or other legal custodian is appointed
10		for a State or national bank or an insured savings association.
11		"Insured savings association" means any federal savings
12		association chartered under Section 5 of the federal Home
13		Owners' Loan Act and any State savings association chartered
14		under the Illinois Savings and Loan Act of 1985 or a
15		predecessor Illinois statute, the deposits of which are insured
16		by the Federal Deposit Insurance Corporation. The term also
17		includes a savings bank organized or operating under the
18		Savings Bank Act.
19		"Insured savings association in recovery" means an insured
20		savings association that is not an eligible depository
21		institution and that does not meet the minimum capital
22		requirements applicable with respect to the insured savings
23		association.
24		"Issuer" means for purposes of Section 33 every person who
25		shall have issued or proposed to issue any security; except
26		that (1) with respect to certificates of deposit, voting trust
27		certificates, collateral-trust certificates, and certificates
28		of interest or shares in an unincorporated investment trust not
29		having a board of directors (or persons performing similar
30		functions), "issuer" means the person or persons performing the
31		acts and assuming the duties of depositor or manager pursuant
32		to the provisions of the trust, agreement, or instrument under
33		which the securities are issued; (2) with respect to trusts
34		other than those specified in clause (1) above, where the
35		trustee is a corporation authorized to accept and execute
36		trusts, "issuer" means the entrusters, depositors, or creators

1		of the trust and any manager or committee charged with the
2		general direction of the affairs of the trust pursuant to the
3		provisions of the agreement or instrument creating the trust;
4		and (3) with respect to equipment trust certificates or like
5		securities, "issuer" means the person to whom the equipment or
6		property is or is to be leased or conditionally sold.
7		"Letter of credit" and "customer" shall have the meanings
8		ascribed to those terms in Section 5-102 of the Uniform
9		Commercial Code.
10		"Main banking premises" means the location that is
11		designated in a bank's charter as its main office.
12		"Maker or obligor" means for purposes of Section 33 the
13		issuer of a security, the promisor in a debenture or other debt
14		security, or the mortgagor or grantor of a trust deed or
15		similar conveyance of a security interest in real or personal
16		property.
17		"Merged bank" means a merging bank that is not the
18		continuing, resulting, or surviving bank in a consolidation or
19		merger.
20		"Merger" includes consolidation.
21		"Merging bank" means a party to a bank merger.
22		"Merging trust company" means a trust company party to a
23		merger with a State bank.
24		"Mid-tier bank holding company" means a corporation that
25		(a) owns 100% of the issued and outstanding shares of each
26		class of stock of a State bank, (b) has no other subsidiaries,
27		and (c) 100% of the issued and outstanding shares of the
28		corporation are owned by a parent bank holding company.
29		"Municipality" means any municipality, political
30		subdivision, school district, taxing district, or agency.
31		"National bank" means a national banking association
32		located in this State and after May 31, 1997, means a national
33		banking association without regard to its location.
34		"Out-of-state bank" means a bank chartered under the laws
35		of a state other than Illinois, a territory of the United
36		States, or the District of Columbia.

1		"Parent bank holding company" means a corporation that is a
2		bank holding company as that term is defined in the Illinois
3		Bank Holding Company Act of 1957 and owns 100% of the issued
4		and outstanding shares of a mid-tier bank holding company.
5		"Person" means an individual, corporation, limited
6		liability company, partnership, joint venture, trust, estate,
7		or unincorporated association.
8		"Public agency" means the State of Illinois, the various
9		counties, townships, cities, towns, villages, school
10		districts, educational service regions, special road
11		districts, public water supply districts, fire protection
12		districts, drainage districts, levee districts, sewer
13		districts, housing authorities, the Illinois Bank Examiners'
14		Education Foundation, the Chicago Park District, and all other
15		political corporations or subdivisions of the State of
16		Illinois, whether now or hereafter created, whether herein
17		specifically mentioned or not, and shall also include any other
18		state or any political corporation or subdivision of another
19		state.
20		"Public funds" or "public money" means current operating
21		funds, special funds, interest and sinking funds, and funds of
22		any kind or character belonging to, in the custody of, or
23		subject to the control or regulation of the United States or a
24		public agency. "Public funds" or "public money" shall include
25		funds held by any of the officers, agents, or employees of the
26		United States or of a public agency in the course of their
27		official duties and, with respect to public money of the United
28		States, shall include Postal Savings funds.
29		"Published" means, unless the context requires otherwise,
30		the publishing of the notice or instrument referred to in some
31		newspaper of general circulation in the community in which the
32		bank is located at least once each week for 3 successive weeks.
33		Publishing shall be accomplished by, and at the expense of, the
34		bank required to publish. Where publishing is required, the
35		bank shall submit to the Commissioner that evidence of the
36		publication as the Commissioner shall deem appropriate.

1		"Qualified financial contract" means any security
2		contract, commodity contract, forward contract, including spot
3		and forward foreign exchange contracts, repurchase agreement,
4		swap agreement, and any similar agreement, any option to enter
5		into any such agreement, including any combination of the
6		foregoing, and any master agreement for such agreements. A
7		master agreement, together with all supplements thereto, shall
8		be treated as one qualified financial contract. The contract,
9		option, agreement, or combination of contracts, options, or
10		agreements shall be reflected upon the books, accounts, or
11		records of the bank, or a party to the contract shall provide
12		documentary evidence of such agreement.
13		"Recorded" means the filing or recording of the notice or
14		instrument referred to in the office of the Recorder of the
15		county wherein the bank is located.
16		"Resulting bank" means the bank resulting from a merger or
17		conversion.
18		"Securities" means stocks, bonds, debentures, notes, or
19		other similar obligations.
20		"Stand-by letter of credit" means a letter of credit under
21		which drafts are payable upon the condition the customer has
22		defaulted in performance of a duty, liability, or obligation.
23		"State bank" means any banking corporation that has a
24		banking charter issued by the Commissioner under this Act.
25		"State Banking Board" means the State Banking Board of
26		Illinois.
27		"Subsidiary" with respect to a specified company means a
28		company that is controlled by the specified company. For
29		purposes of paragraphs (8) and (12) of Section 5 of this Act,
30		"control" means the exercise of operational or managerial
31		control of a corporation by the bank, either alone or together
32		with other affiliates of the bank.
33		"Surplus" means the aggregate of (i) amounts paid in excess
34		of the par value of capital stock and preferred stock; (ii)
35		amounts contributed other than for capital stock and preferred
36		stock and allocated to the surplus account; and (iii) amounts

1		transferred from undivided profits.
2		"Tier 1 Capital" and "Tier 2 Capital" have the meanings
3		assigned to those terms in regulations promulgated for the
4		appropriate federal banking agency of a state bank, as those
5		regulations are now or hereafter amended.
6		"Trust company" means a limited liability company or
7		corporation incorporated in this State for the purpose of
8		accepting and executing trusts.
9		"Undivided profits" means undistributed earnings less
10		discretionary transfers to surplus.
11		"Unimpaired capital and unimpaired surplus", for the
12		purposes of paragraph (21) of Section 5 and Sections 32, 33,
13		34, 35.1, 35.2, and 47 of this Act means the sum of the state
14		bank's Tier 1 Capital and Tier 2 Capital plus such other
15		shareholder equity as may be included by regulation of the
16		Commissioner. Unimpaired capital and unimpaired surplus shall
17		be calculated on the basis of the date of the last quarterly
18		call report filed with the Commissioner preceding the date of
19		the transaction for which the calculation is made, provided
20		that: (i) when a material event occurs after the date of the
21		last quarterly call report filed with the Commissioner that
22		reduces or increases the bank's unimpaired capital and
23		unimpaired surplus by 10% or more, then the unimpaired capital
24		and unimpaired surplus shall be calculated from the date of the
25		material event for a transaction conducted after the date of
26		the material event; and (ii) if the Commissioner determines for
27		safety and soundness reasons that a state bank should calculate
28		unimpaired capital and unimpaired surplus more frequently than
29		provided by this paragraph, the Commissioner may by written
30		notice direct the bank to calculate unimpaired capital and
31		unimpaired surplus at a more frequent interval. In the case of
32		a state bank newly chartered under Section 13 or a state bank
33		resulting from a merger, consolidation, or conversion under
34		Sections 21 through 26 for which no preceding quarterly call
35		report has been filed with the Commissioner, unimpaired capital
36		and unimpaired surplus shall be calculated for the first

1		calendar quarter on the basis of the effective date of the
2		charter, merger, consolidation, or conversion.
3		(Source: P.A. 92-483, eff. 8-23-01; 93-561, eff. 1-1-04.)
4		(205 ILCS 5/5) (from Ch. 17, par. 311)
5		Sec. 5. General corporate powers. A bank organized under
6		this Act or subject hereto shall be a body corporate and
7		politic and shall, without specific mention thereof in the
8		charter, have all the powers conferred by this Act and the
9		following additional general corporate powers:
10		(1) To sue and be sued, complain, and defend in its
11		corporate name.
12		(2) To have a corporate seal, which may be altered at
13		pleasure, and to use the same by causing it or a facsimile
14		thereof to be impressed or affixed or in any manner reproduced,
15		provided that the affixing of a corporate seal to an instrument
16		shall not give the instrument additional force or effect, or
17		change the construction thereof, and the use of a corporate
18		seal is not mandatory.
19		(3) To make, alter, amend, and repeal bylaws, not
20		inconsistent with its charter or with law, for the
21		administration of the affairs of the bank. If this Act does not
22		provide specific guidance in matters of corporate governance,
23		the provisions of the Business Corporation Act of 1983 may be
24		used if so provided in the bylaws, and if the bank is a limited
25		liability company, the provisions of the Limited Liability
26		Company Act shall be used.
27		(4) To elect or appoint and remove officers and agents of
28		the bank and define their duties and fix their compensation.
29		(5) To adopt and operate reasonable bonus plans,
30		profit-sharing plans, stock-bonus plans, stock-option plans,
31		pension plans and similar incentive plans for its directors,
32		officers and employees.
33		(5.1) To manage, operate and administer a fund for the
34		investment of funds by a public agency or agencies, including
35		any unit of local government or school district, or any person.

1		The fund for a public agency shall invest in the same type of
2		investments and be subject to the same limitations provided for
3		the investment of public funds. The fund for public agencies
4		shall maintain a separate ledger showing the amount of
5		investment for each public agency in the fund. "Public funds"
6		and "public agency" as used in this Section shall have the
7		meanings ascribed to them in Section 1 of the Public Funds
8		Investment Act.
9		(6) To make reasonable donations for the public welfare or
10		for charitable, scientific, religious or educational purposes.
11		(7) To borrow or incur an obligation; and to pledge its
12		assets:
13		(a) to secure its borrowings, its lease of personal or
14		real property or its other nondeposit obligations;
15		(b) to enable it to act as agent for the sale of
16		obligations of the United States;
17		(c) to secure deposits of public money of the United
18		States, whenever required by the laws of the United States,
19		including without being limited to, revenues and funds the
20		deposit of which is subject to the control or regulation of
21		the United States or any of its officers, agents, or
22		employees and Postal Savings funds;
23		(d) to secure deposits of public money of any state or
24		of any political corporation or subdivision thereof
25		including, without being limited to, revenues and funds the
26		deposit of which is subject to the control or regulation of
27		any state or of any political corporation or subdivisions
28		thereof or of any of their officers, agents, or employees;
29		(e) to secure deposits of money whenever required by
30		the National Bankruptcy Act;
31		(f) (blank); and
32		(g) to secure trust funds commingled with the bank's
33		funds, whether deposited by the bank or an affiliate of the
34		bank, pursuant to Section 2-8 of the Corporate Fiduciary
35		Act.
36		(8) To own, possess, and carry as assets all or part of the

1		real estate necessary in or with which to do its banking
2		business, either directly or indirectly through the ownership
3		of all or part of the capital stock, shares or interests in any
4		corporation, association, trust engaged in holding any part or
5		parts or all of the bank premises, engaged in such business and
6		in conducting a safe deposit business in the premises or part
7		of them, or engaged in any activity that the bank is permitted
8		to conduct in a subsidiary pursuant to paragraph (12) of this
9		Section 5.
10		(9) To own, possess, and carry as assets other real estate
11		to which it may obtain title in the collection of its debts or
12		that was formerly used as a part of the bank premises, but
13		title to any real estate except as herein permitted shall not
14		be retained by the bank, either directly or by or through a
15		subsidiary, as permitted by subsection (12) of this Section for
16		a total period of more than 10 years after acquiring title,
17		either directly or indirectly.
18		(10) To do any act, including the acquisition of stock,
19		necessary to obtain insurance of its deposits, or part thereof,
20		and any act necessary to obtain a guaranty, in whole or in
21		part, of any of its loans or investments by the United States
22		or any agency thereof, and any act necessary to sell or
23		otherwise dispose of any of its loans or investments to the
24		United States or any agency thereof, and to acquire and hold
25		membership in the Federal Reserve System.
26		(11) Notwithstanding any other provisions of this Act or
27		any other law, to do any act and to own, possess, and carry as
28		assets property of the character, including stock, that is at
29		the time authorized or permitted to national banks by an Act of
30		Congress, but subject always to the same limitations and
31		restrictions as are applicable to national banks by the
32		pertinent federal law and subject to applicable provisions of
33		the Financial Institutions Insurance Sales Law.
34		(12) To own, possess, and carry as assets stock of one or
35		more corporations that is, or are, engaged in one or more of
36		the following businesses:

1		(a) holding title to and administering assets acquired
2		as a result of the collection or liquidating of loans,
3		investments, or discounts, subject to the following
4		conditions:
5		(i) Holding period. A bank subsidiary may not
6		hold real estate for more than the time period allowed
7		pursuant to subsection (9) of this Section. A bank
8		subsidiary holding securities held in satisfaction of
9		debts previously contracted must divest as soon as
10		possible consistent with obtaining a reasonable
11		return, not to exceed 5 years from the date that
12		ownership of the securities was originally transferred
13		to the bank. In the case of securities held in
14		satisfaction of debts previously contracted, the
15		Commissioner may extend the holding period for up to an
16		additional 5 years if a bank provides a clearly
17		convincing demonstration as to why an additional
18		holding period is needed.
19		(ii) Accounting treatment. A bank shall
20		account for securities held in satisfaction of debts
21		previously contracted in accordance with Generally
22		Accepted Accounting Principles.
23		(iii) Non-speculative purpose. A bank may not
24		hold securities held in satisfaction of debts
25		previously contracted for speculative purposes; or
26		(b) holding title to and administering personal
27		property acquired by the bank, directly or indirectly
28		through a subsidiary, for the purpose of leasing to others,
29		provided the lease or leases and the investment of the
30		bank, directly or through a subsidiary, in that personal
31		property otherwise comply with Section 35.1 of this Act; or
32		(c) carrying on or administering any of the activities
33		excepting the receipt of deposits or the payment of checks
34		or other orders for the payment of money in which a bank
35		may engage in carrying on its general banking business;
36		provided, however, that nothing contained in this

1		paragraph (c) shall be deemed to permit a bank organized
2		under this Act or subject hereto to do, either directly or
3		indirectly through any subsidiary, any act, including the
4		making of any loan or investment, or to own, possess, or
5		carry as assets any property that if done by or owned,
6		possessed, or carried by the State bank would be in
7		violation of or prohibited by any provision of this Act.
8		The provisions of this subsection (12) shall not apply to
9		and shall not be deemed to limit the powers of a State bank
10		with respect to the ownership, possession, and carrying of
11		stock that a State bank is permitted to own, possess, or carry
12		under this Act.
13		Any bank intending to establish a subsidiary under this
14		subsection (12) shall give written notice to the Commissioner
15		60 days prior to the subsidiary's commencing of business or, as
16		the case may be, prior to acquiring stock in a corporation that
17		has already commenced business. After receiving the notice, the
18		Commissioner may waive or reduce the balance of the 60 day
19		notice period. The Commissioner may specify the form of the
20		notice and may promulgate rules and regulations to administer
21		this subsection (12).
22		(13) To accept for payment at a future date not exceeding
23		one year from the date of acceptance, drafts drawn upon it by
24		its customers; and to issue, advise, or confirm letters of
25		credit authorizing the holders thereof to draw drafts upon it
26		or its correspondents.
27		(14) To own and lease personal property acquired by the
28		bank at the request of a prospective lessee and upon the
29		agreement of that person to lease the personal property
30		provided that the lease, the agreement with respect thereto,
31		and the amount of the investment of the bank in the property
32		comply with Section 35.1 of this Act.
33		(15) (a) To establish and maintain, in addition to the main
34		banking premises, branches offering any banking services
35		permitted at the main banking premises of a State bank.
36		(b) To establish and maintain, after May 31, 1997,

1		branches in another state that may conduct any activity in
2		that state that is authorized or permitted for any bank
3		that has a banking charter issued by that state, subject to
4		the same limitations and restrictions that are applicable
5		to banks chartered by that state.
6		(16) (Blank).
7		(17) To establish and maintain terminals, as authorized by
8		the Electronic Fund Transfer Act.
9		(18) To establish and maintain temporary service booths at
10		any International Fair held in this State which is approved by
11		the United States Department of Commerce, for the duration of
12		the international fair for the sole purpose of providing a
13		convenient place for foreign trade customers at the fair to
14		exchange their home countries' currency into United States
15		currency or the converse. This power shall not be construed as
16		establishing a new place or change of location for the bank
17		providing the service booth.
18		(19) To indemnify its officers, directors, employees, and
19		agents, as authorized for corporations under Section 8.75 of
20		the Business Corporation Act of 1983.
21		(20) To own, possess, and carry as assets stock of, or be
22		or become a member of, any corporation, mutual company,
23		association, trust, or other entity formed exclusively for the
24		purpose of providing directors' and officers' liability and
25		bankers' blanket bond insurance or reinsurance to and for the
26		benefit of the stockholders, members, or beneficiaries, or
27		their assets or businesses, or their officers, directors,
28		employees, or agents, and not to or for the benefit of any
29		other person or entity or the public generally.
30		(21) To make debt or equity investments in corporations or
31		projects, whether for profit or not for profit, designed to
32		promote the development of the community and its welfare,
33		provided that the aggregate investment in all of these
34		corporations and in all of these projects does not exceed 10%
35		of the unimpaired capital and unimpaired surplus of the bank
36		and provided that this limitation shall not apply to

1		creditworthy loans by the bank to those corporations or
2		projects. Upon written application to the Commissioner, a bank
3		may make an investment that would, when aggregated with all
4		other such investments, exceed 10% of the unimpaired capital
5		and unimpaired surplus of the bank. The Commissioner may
6		approve the investment if he is of the opinion and finds that
7		the proposed investment will not have a material adverse effect
8		on the safety and soundness of the bank.
9		(22) To own, possess, and carry as assets the stock of a
10		corporation engaged in the ownership or operation of a travel
11		agency or to operate a travel agency as a part of its business.
12		(23) With respect to affiliate facilities:
13		(a) to conduct at affiliate facilities for and on
14		behalf of another commonly owned bank, if so authorized by
15		the other bank, all transactions that the other bank is
16		authorized or permitted to perform; and
17		(b) to authorize a commonly owned bank to conduct for
18		and on behalf of it any of the transactions it is
19		authorized or permitted to perform at one or more affiliate
20		facilities.
21		Any bank intending to conduct or to authorize a commonly
22		owned bank to conduct at an affiliate facility any of the
23		transactions specified in this paragraph (23) shall give
24		written notice to the Commissioner at least 30 days before any
25		such transaction is conducted at the affiliate facility.
26		(24) To act as the agent for any fire, life, or other
27		insurance company authorized by the State of Illinois, by
28		soliciting and selling insurance and collecting premiums on
29		policies issued by such company; and to receive for services so
30		rendered such fees or commissions as may be agreed upon between
31		the bank and the insurance company for which it may act as
32		agent; provided, however, that no such bank shall in any case
33		assume or guarantee the payment of any premium on insurance
34		policies issued through its agency by its principal; and
35		provided further, that the bank shall not guarantee the truth
36		of any statement made by an assured in filing his application

1		for insurance.
2		(25) Notwithstanding any other provisions of this Act or
3		any other law, to offer any product or service that is at the
4		time authorized or permitted to any insured savings association
5		or out-of-state bank by applicable law, provided that powers
6		conferred only by this subsection (25):
7		(a) shall always be subject to the same limitations and
8		restrictions that are applicable to the insured savings
9		association or out-of-state bank for the product or service
10		by such applicable law;
11		(b) shall be subject to applicable provisions of the
12		Financial Institutions Insurance Sales Law;
13		(c) shall not include the right to own or conduct a
14		real estate brokerage business for which a license would be
15		required under the laws of this State; and
16		(d) shall not be construed to include the establishment
17		or maintenance of a branch, nor shall they be construed to
18		limit the establishment or maintenance of a branch pursuant
19		to subsection (11).
20		Not less than 30 days before engaging in any activity under
21		the authority of this subsection, a bank shall provide written
22		notice to the Commissioner of its intent to engage in the
23		activity. The notice shall indicate the specific federal or
24		state law, rule, regulation, or interpretation the bank intends
25		to use as authority to engage in the activity.
26		(Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02;
27		93-561; eff.1-1-04.)
28		(205 ILCS 5/10) (from Ch. 17, par. 317)
29		Sec. 10. Permit to organize.
30		(a) Upon the filing of an application for a permit to
31		organize, the Commissioner shall investigate the truth of the
32		statements therein and shall consider the proposed bank's
33		capital structure, its future earnings prospects, the general
34		character, experience, and qualifications of its proposed
35		management, its proposed plan of operation, and the convenience

1		and needs of the area sought to be served, and notwithstanding
2		the provisions of Section 7 of this Act, the Commissioner shall
3		not approve the application and issue a permit to organize
4		unless he shall be of the opinion and finds:
5		(1) that the proposed capital at least meets the
6		minimum requirements of this Act determined by the
7		Commissioner pursuant to Section 7 of this Act including
8		additional capital necessitated by the circumstances of
9		the proposed bank including its size, scope of operations
10		and market in which it proposes to operate;
11		(2) that the future earnings prospects are favorable;
12		(3) that the general character, experience, and
13		qualifications of its proposed management and its proposed
14		plan of operation are such as to assure reasonable promise
15		of successful, safe and sound operation;
16		(4) (Blank) that the name of the proposed bank is not
17		the same as or deceptively similar to a name reserved with
18		the Commissioner's office under Section 9.5 or to the name
19		of any other bank then operating in this State; and
20		(5) that the convenience and needs of the area sought
21		to be served by the proposed bank will be promoted.
22		(b) The Commissioner shall revoke the permit to organize
23		and order liquidation of any funds collected in the event that
24		the organizers do not obtain a charter from the Commissioner
25		authorizing the bank to commence business within 6 months from
26		the date of the issuance of the permit, unless a request has
27		been submitted, in writing, to the Commissioner for an
28		extension and the request has been approved.
29		(c) The Commissioner may impose such terms and conditions,
30		if any, on the issuance of the permit to organize as the
31		Commissioner deems appropriate and necessary for the
32		organization of the bank.
33		(Source: P.A. 91-452, eff. 1-1-00; 92-483, eff. 8-23-01.)
34		(205 ILCS 5/13.5)
35		Sec. 13.5. Formation and merger of interim banks.

1		(a) An interim bank may be chartered as a State bank for
2		the exclusive purpose of accomplishing a corporate
3		restructuring through merger with an existing State bank,
4		national bank, trust company, or an insured savings
5		association. An interim bank shall be chartered and merged
6		pursuant to the provisions of this Section. The interim bank
7		shall not accept deposits, make loans, pay checks, or engage in
8		the general banking business or any part thereof, and shall not
9		be subject to the provisions of this Act other than those set
10		forth in this Section; provided, however, that if the interim
11		bank becomes the resulting bank in a merger, such resulting
12		bank shall have all of the powers, rights, and duties of a
13		State bank and must comply with all applicable provisions of
14		this Act.
15		(b) An interim State bank may be organized upon application
16		by 5 or more incorporators or by a bank holding company. The
17		application shall be made on forms prescribed by the
18		Commissioner which shall request, at a minimum, the following
19		information:
20		(1) the names and addresses of the incorporators;
21		(2) the proposed name and address of the interim bank;
22		(3) the name and address of all banks with which the
23		interim bank will be merging;
24		(4) a copy of the merger agreement by which the interim
25		bank will be merged with the banks identified in item (3)
26		containing the same information required in merger
27		agreements pursuant to subsection (1) of Section 22 of this
28		Act; and
29		(5) an acknowledgement that the interim bank shall not
30		engage in the general banking business or any part thereof
31		unless and until the interim bank becomes the resulting
32		bank in a merger.
33		(c) The merger agreement must be approved by all of the
34		incorporators of the interim bank and must be approved by the
35		existing State bank with which the interim bank will merge, as
36		required by Section 22 of this Act.

1		(d) Upon receipt of the application to organize the interim
2		bank and the merger agreement submitted pursuant to this
3		Section and Section 22 of this Act, the Commissioner may issue
4		a charter to the interim bank and approve the merger agreement
5		if the Commissioner makes the findings set forth in subsection
6		(3) of Section 22 of this Act. The interim bank's charter shall
7		not take effect until, and shall only be effective for purposes
8		of, the merger.
9		(e) Nothing in this Section affects the obligations of an
10		existing State bank with which the interim bank will merge, or
11		the rights of minority or dissenting shareholders of the
12		existing State bank, in connection with the approval,
13		execution, and accomplishment of a merger agreement as provided
14		elsewhere in this Act.
15		(f) Nothing in this Section affects the obligations of the
16		parties to obtain the Commissioner's approval under Section 18
17		of this Act if the interim bank merger results in a change of
18		control of the resulting bank.
19		(Source: P.A. 92-483, eff. 8-23-01.)
20		(205 ILCS 5/16.8 new)
21		Sec. 16.8. Prior approval required for directors, senior
22		executive officers.
23		(a) A state bank shall obtain the Commissioner's prior
24		written approval before adding an individual to the board of
25		directors or the employing an individual as a senior executive
26		officer of the bank if:
27		(1) the state bank, at its last regular examination,
28		was assigned a Composite Rating of 3, 4, or 5, or
29		(2) the Commissioner determines that such prior
30		approval is appropriate.
31		(b) A state bank may not add an individual to the board of
32		directors or employ an individual as a senior executive officer
33		if the Commissioner issues a notice of disapproval of such
34		addition or employment.
35		(c) The Commissioner may prescribe, by regulation,

1		conditions under which the prior approval requirement of
2		subsection (a) of this Section may be waived in the event of
3		extraordinary circumstances.
4		(d) Waivers issued under subsection (c) shall not affect
5		the authority of the Commissioner to issue notices of
6		disapproval of such additions or employment of such individuals
7		within 30 days after each such waiver.
8		(e) The Commissioner shall issue a notice of disapproval if
9		the competence, experience, character, or integrity of the
10		individual with respect to whom the request for approval is
11		submitted indicates that it would not be in the best interests
12		of the depositors of the depository institution or in the best
13		interest of the public to permit the individual to be employed
14		by, or associated with, the state bank.
15		(205 ILCS 5/18) (from Ch. 17, par. 325)
16		Sec. 18. Change in control.
17		(a) Before a change may occur in the ownership of
18		outstanding stock of any State bank, whether by sale and
19		purchase, gift, bequest or inheritance, or any other means,
20		including the acquisition of stock of the State bank by any
21		bank holding company, which will result in control or a change
22		in the control of the bank or before a change in the control of
23		a holding company having control of the outstanding stock of a
24		State bank whether by sale and purchase, gift, bequest or
25		inheritance, or any other means, including the acquisition of
26		stock of such holding company by any other bank holding
27		company, which will result in control or a change in control of
28		the bank or holding company, or before a transfer of
29		substantially all the assets or liabilities of the State bank,
30		the Commissioner shall be of the opinion and find:
31		(1) that the general character of proposed management
32		or of the person desiring to purchase substantially all the
33		assets or to assume substantially all the liabilities of
34		the State bank, after the change in control, is such as to
35		assure reasonable promise of successful, safe and sound

1		operation;
2		(1.1) that depositors' interests will not be
3		jeopardized by the purchase or assumption and that adequate
4		provision has been made for all liabilities as required for
5		a voluntary liquidation under Section 68 of this Act;
6		(2) that the future earnings prospects of the person
7		desiring to purchase substantially all assets or to assume
8		substantially all the liabilities of the State bank, after
9		the proposed change in control, are favorable;
10		(3) that any prior involvement by the persons proposing
11		to obtain control, to purchase substantially all the
12		assets, or to assume substantially all the liabilities of
13		the State bank or by the proposed management personnel with
14		any other financial institution, whether as stockholder,
15		director, officer or customer, was conducted in a safe and
16		sound manner; and
17		(4) that if the acquisition is being made by a bank
18		holding company, the acquisition is authorized under the
19		Illinois Bank Holding Company Act of 1957.
20		(a-5) In cases where a person acquires stock of a State
21		bank in satisfaction of a debt previously contracted in good
22		faith and the acquisition results in control or a change in
23		control of the State bank, the person shall, within 90 days
24		after the acquisition, file with the Commissioner notice of the
25		change in control containing information enabling the
26		Commissioner to make the findings provided in subsection (a) of
27		this Section.
28		(b) Persons desiring to purchase control of an existing
29		state bank, to purchase substantially all the assets, or to
30		assume substantially all the liabilities of the State bank
31		shall, prior to that purchase, submit to the Commissioner:
32		(1) a statement of financial worth;
33		(2) satisfactory evidence that any prior involvement
34		by the persons and the proposed management personnel with
35		any other financial institution, whether as stockholder,
36		director, officer or customer, was conducted in a safe and

1		sound manner; and
2		(3) such other relevant information as the
3		Commissioner may request to substantiate the findings
4		under subsection (a) of this Section.
5		A person who has submitted information to the Commissioner
6		pursuant to this subsection (b) is under a continuing
7		obligation until the Commissioner takes action on the
8		application to immediately supplement that information if
9		there are any material changes in the information previously
10		furnished or if there are any material changes in any
11		circumstances that may affect the Commissioner's opinion and
12		findings. In addition, a person submitting information under
13		this subsection shall notify the Commissioner of the date when
14		the change in control is finally effected.
15		The Commissioner may impose such terms and conditions on
16		the approval of the change in control application as he deems
17		necessary or appropriate.
18		If an applicant, whose application for a change in control
19		has been approved pursuant to subsection (a) of this Section,
20		fails to effect the change in control within 180 days after the
21		date of the Commissioner's approval, the Commissioner shall
22		revoke that approval unless a request has been submitted, in
23		writing, to the Commissioner for an extension and the request
24		has been approved.
25		(b-1) Any person who obtains ownership of stock of an
26		existing State bank or stock of a holding company that controls
27		the State bank by gift, bequest, or inheritance such that
28		ownership of the stock would constitute control of the State
29		bank or holding company may obtain title and ownership of the
30		stock, but may not exercise management or control of the
31		business and affairs of the bank or vote his or her shares so
32		as to exercise management or control unless and until the
33		Commissioner approves an application for the change of control
34		as provided in subsection (b) of this Section.
35		(c) Whenever a state bank makes a loan or loans, secured,
36		or to be secured, by 25% or more of the outstanding stock of a

1		state bank, the president or other chief executive officer of
2		the lending bank shall promptly report such fact to the
3		Commissioner upon obtaining knowledge of such loan or loans,
4		except that no report need be made in those cases where the
5		borrower has been the owner of record of the stock for a period
6		of one year or more, or the stock is that of a newly organized
7		bank prior to its opening.
8		(d) The reports required by subsections (b) and (c) of this
9		Section 18, other than those relating to a transfer of assets
10		or assumption of liabilities, shall contain the following
11		information to the extent that it is known by the person making
12		the report: (1) the number of shares involved; (2) the names of
13		the sellers (or transferors); (3) the names of the purchasers
14		(or transferees); (4) the names of the beneficial owners if the
15		shares are registered in another name: (5) the purchase price,
16		if applicable; (6) the total number of shares owned by the
17		sellers (or transferors), the purchasers (or transferees) and
18		the beneficial owners both immediately before and after the
19		transaction; and, (7) in the case of a loan, the name of the
20		borrower, the amount of the loan, the name of the bank issuing
21		the stock securing the loan and the number of shares securing
22		the loan. In addition to the foregoing, such reports shall
23		contain such other information which is requested by the
24		Commissioner to inform the Commissioner of the effect of the
25		transaction upon control of the bank whose stock is involved.
26		(d-1) The reports required by subsection (b) of this
27		Section 18 that relate to purchase of assets and assumption of
28		liabilities shall contain the following information to the
29		extent that it is known by the person making the report: (1)
30		the value, amount, and description of the assets transferred;
31		(2) the amount, type, and to whom each type of liabilities are
32		owed; (3) the names of the purchasers (or transferees); (4) the
33		names of the beneficial owners if the shares of a purchaser or
34		transferee are registered in another name; (5) the purchase
35		price, if applicable; and, (6) in the case of a loan obtained
36		to effect a purchase, the name of the borrower, the amount and

1		terms of the loan, and the description of the assets securing
2		the loan. In addition to the foregoing, these reports shall
3		contain any other information that is requested by the
4		Commissioner to inform the Commissioner of the effect of the
5		transaction upon the bank from which assets are purchased or
6		liabilities are transferred.
7		(e) Whenever such a change as described in subsection (a)
8		of this Section 18 occurs, each state bank shall report
9		promptly to the Commissioner any changes or replacement of its
10		chief executive officer or of any director occurring in the
11		next 12 month period, including in its report a statement of
12		the past and current business and professional affiliations of
13		the new chief executive officer or directors.
14		(f) (Blank).
15		(g) (1) Except as otherwise expressly provided in this
16		subsection (g), the Commissioners shall not approve an
17		application for a change in control if upon consummation of
18		the change in control the persons applying for the change
19		in control, including any affiliates of the persons
20		applying, would control 30% or more of the total amount of
21		deposits which are located in this State at insured
22		depository institutions. For purposes of this subsection
23		(g), the words "insured depository institution" shall mean
24		State banks, national banks, and insured savings
25		associations. For purposes of this subsection (g), the word
26		"deposits" shall have the meaning ascribed to that word in
27		Section 3(1) of the Federal Deposit Insurance Act. For
28		purposes of this subsection (g), the total amount of
29		deposits which are considered to be located in this State
30		at insured depository institutions shall equal the sum of
31		all deposits held at the main banking premises and branches
32		in the State of Illinois of State banks, national banks, or
33		insured savings associations. For purposes of this
34		subsection (g), the word "affiliates" shall have the
35		meaning ascribed to that word in Section 35.2 of this Act.
36		(2) Notwithstanding the provisions of subsection

1		(g)(1) of this Section, the Commissioner may approve an
2		application for a change in control for a bank that is in
3		default or in danger of default. Except in those instances
4		in which an application for a change in control is for a
5		bank that is in default or in danger of default, the
6		Commissioner may not approve a change in control which does
7		not meet the requirements of subsection (g)(1) of this
8		Section. The Commissioner may not waive the provisions of
9		subsection (g)(1) of this Section, whether pursuant to
10		Section 3(d) of the federal Bank Holding Company Act of
11		1956 or Section 44(d) of the Federal Deposit Insurance Act,
12		except as expressly provided in this subsection (g)(2).
13		(h) As used in this Section, the term "control" means the
14		power, directly or indirectly, acting through or acting in
15		concert with one or more persons, to direct the management or
16		policies of the bank or to vote 25% or more of the outstanding
17		stock of the bank. If there is any question as to whether a
18		change in control application should be filed, the question
19		shall be resolved in favor of filing the application with the
20		Commissioner.
21		As used in this Section, "substantially all" the assets or
22		liabilities of a State bank means that portion of the assets or
23		liabilities of a State bank such that their purchase or
24		transfer will materially impair the ability of the State bank
25		to continue successful, safe, and sound operations or to
26		continue as a going concern or would cause the bank to lose its
27		federal deposit insurance.
28		As used in this Section, "purchase" includes a transfer by
29		gift, bequest, inheritance, or any other means.
30		As used in this Section, "acting in concert" means knowing
31		participation in a joint activity or parallel action towards a
32		common goal of acquiring control of a state bank, whether or
33		not pursuant to an express agreement.
34		(Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
35		(205 ILCS 5/21.2)

1		Sec. 21.2. Interstate mergers; minimum age requirement.
2		(a) No out of state bank and no national bank whose main
3		banking premises is located in a state other than Illinois
4		shall merge with or into, or shall acquire all or substantially
5		all of the assets of an Illinois bank that has existed and
6		continuously operated as a bank for 5 years or less.
7		(b) For purposes of subsection (a) of this Section, an
8		Illinois bank that is the resulting bank following a merger
9		involving an Illinois interim bank shall be considered to have
10		been in existence and continuously operated during the
11		existence and continuous operation of the Illinois merged bank.
12		As used in this subsection (b), the words "interim bank" shall
13		mean a bank which shall not accept deposits, make loans, pay
14		checks, or engage in the general business of banking or any
15		part thereof, and is chartered solely for the purpose of
16		merging with or acquiring control of, or acquiring all or
17		substantially all of the assets of an existing Illinois bank.
18		(c) The provisions of subsection (a) of the Section shall
19		not apply to the merger or acquisition of all or substantially
20		all of the assets of an Illinois bank:
21		(1) if the merger or acquisition is part of a purchase
22		or acquisition with respect to which the Federal Deposit
23		Insurance Corporation provides assistance under Section
24		13(c) of the Federal Deposit Insurance Act; or
25		(2) if the Illinois bank is in default or in danger of
26		default.
27		(Source: P.A. 90-226, eff. 7-25-97.)
28		(205 ILCS 5/46) (from Ch. 17, par. 357)
29		Sec. 46. Misleading practices and names prohibited;
30		penalty.
31		(a) No person, firm, partnership, or corporation that is
32		not a bank shall transact business in this State in a manner
33		which has a substantial likelihood of misleading the public by
34		implying that the business is a bank, or shall use the word
35		"banc", "bank", "banker", or "banking" in connection with the

1		business. Any person, firm, partnership or corporation
2		violating this Section shall be deemed guilty of a Class A
3		misdemeanor, and the Attorney General or State's Attorney of
4		the county in which any such violation occurs may restrain such
5		violation by a complaint for injunctive relief.
6		(b) If the Commissioner is of the opinion and finds that a
7		person, firm, partnership, or corporation that is not a bank
8		has transacted or intends to transact business in this State in
9		a manner which has a substantial likelihood of misleading the
10		public by implying that the business is a bank, or has used or
11		intends to use the word "banc", "bank", "banker", or "banking"
12		in connection with the business, then the Commissioner may
13		direct that person, firm, partnership, or corporation to cease
14		and desist from transacting the business or using the word
15		"banc", "bank", "banker", or "banking". If that person, firm,
16		partnership, or corporation persists in transacting the
17		business or using the word "banc", "bank", "banker", or
18		"banking", then the Commissioner may impose a civil penalty of
19		up to $10,000 for each violation. Each day that the person,
20		firm, partnership, or corporation continues transacting the
21		business or using the word "banc", "bank", "banker", or
22		"banking" in connection with the business shall constitute a
23		separate violation of these provisions.
24		(c) A person, firm, partnership, or corporation that is not
25		a bank, and is not transacting or intending to transact
26		business in this State in a manner that has a substantial
27		likelihood of misleading the public by implying that such
28		business is a bank, may apply to the Commissioner for
29		permission to use the word "banc", "bank", "banker", or
30		"banking" in connection with the business. If the Commissioner
31		determines that there is no substantial likelihood of
32		misleading the public, and upon such conditions as the
33		Commissioner may impose to prevent the person, firm,
34		partnership, or corporation from holding itself out in a
35		misleading manner, then such person, firm, partnership, or
36		corporation may use the word "banc", "bank", "banker", or

1		"banking".
2		(d) (1) Unless otherwise expressly permitted by law, no
3		person, firm, partnership, or corporation may use the name
4		of an existing bank when marketing to or soliciting
5		business from customers or prospective customers if the
6		reference to the existing bank is made without the consent
7		of the existing bank.
8		(1.5) Unless otherwise expressly permitted by law, no
9		person, firm, partnership, or corporation may use a name
10		similar to that of an existing bank when marketing to or
11		soliciting business from customers or prospective
12		customers if the similar name is used in a manner that
13		could cause a reasonable person to believe that the
14		marketing material or solicitation originated from or is
15		endorsed by the existing bank or that the existing bank is
16		in any other way responsible for the marketing material or
17		solicitation.
18		(2) An existing bank may, in addition to any other
19		remedies available under the law, report an alleged
20		violation of this subsection (d) to the Commissioner. If
21		the Commissioner finds the marketing material or
22		solicitation in question to be in violation of this
23		subsection, the Commissioner may direct the person, firm,
24		partnership, or corporation to cease and desist from using
25		that marketing material or solicitation in Illinois. If
26		that person, firm, partnership, or corporation persists in
27		the use of the marketing material or solicitation, then the
28		Commissioner may impose a civil penalty of up to $10,000
29		for each violation. Each instance in which the marketing
30		material or solicitation is sent to a customer or
31		prospective customer shall constitute a separate violation
32		of these provisions. The Commissioner is authorized to
33		promulgate rules to administer these provisions.
34		(3) (Blank).
35		(Source: P.A. 92-476, eff. 8-23-01; 92-811, eff. 8-21-02.)

1		(205 ILCS 5/48) (from Ch. 17, par. 359)
2		Sec. 48. Commissioner's powers; duties. The Commissioner
3		shall have the powers and authority, and is charged with the
4		duties and responsibilities designated in this Act, and a State
5		bank shall not be subject to any other visitorial power other
6		than as authorized by this Act, except those vested in the
7		courts, or upon prior consultation with the Commissioner, a
8		foreign bank regulator with an appropriate supervisory
9		interest in the parent or affiliate of a state bank. In the
10		performance of the Commissioner's duties:
11		(1) The Commissioner shall call for statements from all
12		State banks as provided in Section 47 at least one time during
13		each calendar quarter.
14		(2) (a) The Commissioner, as often as the Commissioner
15		shall deem necessary or proper, and no less frequently than 18
16		months following the preceding examination, shall appoint a
17		suitable person or persons to make an examination of the
18		affairs of every State bank, except that for every eligible
19		State bank, as defined by regulation, the Commissioner in lieu
20		of the examination may accept on an alternating basis the
21		examination made by the eligible State bank's appropriate
22		federal banking agency pursuant to Section 111 of the Federal
23		Deposit Insurance Corporation Improvement Act of 1991,
24		provided the appropriate federal banking agency has made such
25		an examination. A person so appointed shall not be a
26		stockholder or officer or employee of any bank which that
27		person may be directed to examine, and shall have powers to
28		make a thorough examination into all the affairs of the bank
29		and in so doing to examine any of the officers or agents or
30		employees thereof on oath and shall make a full and detailed
31		report of the condition of the bank to the Commissioner. In
32		making the examination the examiners shall include an
33		examination of the affairs of all the affiliates of the bank,
34		as defined in subsection (b) of Section 35.2 of this Act, or
35		subsidiaries of the bank as shall be necessary to disclose
36		fully the conditions of the subsidiaries or affiliates, the

1		relations between the bank and the subsidiaries or affiliates
2		and the effect of those relations upon the affairs of the bank,
3		and in connection therewith shall have power to examine any of
4		the officers, directors, agents, or employees of the
5		subsidiaries or affiliates on oath. After May 31, 1997, the
6		Commissioner may enter into cooperative agreements with state
7		regulatory authorities of other states to provide for
8		examination of State bank branches in those states, and the
9		Commissioner may accept reports of examinations of State bank
10		branches from those state regulatory authorities. These
11		cooperative agreements may set forth the manner in which the
12		other state regulatory authorities may be compensated for
13		examinations prepared for and submitted to the Commissioner.
14		(b) After May 31, 1997, the Commissioner is authorized to
15		examine, as often as the Commissioner shall deem necessary or
16		proper, branches of out-of-state banks. The Commissioner may
17		establish and may assess fees to be paid to the Commissioner
18		for examinations under this subsection (b). The fees shall be
19		borne by the out-of-state bank, unless the fees are borne by
20		the state regulatory authority that chartered the out-of-state
21		bank, as determined by a cooperative agreement between the
22		Commissioner and the state regulatory authority that chartered
23		the out-of-state bank.
24		(2.5) Whenever any State bank, any subsidiary or affiliate
25		of a State bank, or after May 31, 1997, any branch of an
26		out-of-state bank causes to be performed, by contract or
27		otherwise, any bank services for itself, whether on or off its
28		premises:
29		(a) that performance shall be subject to examination by
30		the Commissioner to the same extent as if services were
31		being performed by the bank or, after May 31, 1997, branch
32		of the out-of-state bank itself on its own premises; and
33		(b) the bank or, after May 31, 1997, branch of the
34		out-of-state bank shall notify the Commissioner of the
35		existence of a service relationship. The notification
36		shall be submitted with the first statement of condition

1		(as required by Section 47 of this Act) due after the
2		making of the service contract or the performance of the
3		service, whichever occurs first. The Commissioner shall be
4		notified of each subsequent contract in the same manner.
5		For purposes of this subsection (2.5), the term "bank
6		services" means services such as sorting and posting of checks
7		and deposits, computation and posting of interest and other
8		credits and charges, preparation and mailing of checks,
9		statements, notices, and similar items, or any other clerical,
10		bookkeeping, accounting, statistical, or similar functions
11		performed for a State bank, including but not limited to
12		electronic data processing related to those bank services.
13		(3) The expense of administering this Act, including the
14		expense of the examinations of State banks as provided in this
15		Act, shall to the extent of the amounts resulting from the fees
16		provided for in paragraphs (a), (a-2), and (b) of this
17		subsection (3) be assessed against and borne by the State
18		banks:
19		(a) Each bank shall pay to the Commissioner a Call
20		Report Fee which shall be paid in quarterly installments
21		equal to one-fourth of the sum of the annual fixed fee of
22		$800, plus a variable fee based on the assets shown on the
23		quarterly statement of condition delivered to the
24		Commissioner in accordance with Section 47 for the
25		preceding quarter according to the following schedule: 16¢
26		per $1,000 of the first $5,000,000 of total assets, 15¢ per
27		$1,000 of the next $20,000,000 of total assets, 13¢ per
28		$1,000 of the next $75,000,000 of total assets, 9¢ per
29		$1,000 of the next $400,000,000 of total assets, 7¢ per
30		$1,000 of the next $500,000,000 of total assets, and 5¢ per
31		$1,000 of all assets in excess of $1,000,000,000, of the
32		State bank. The Call Report Fee shall be calculated and
33		assessed in accordance with a formula prescribed by rule by
34		the Commissioner and billed to the banks for remittance at
35		the time of the quarterly statements of condition provided
36		for in Section 47. The Commissioner may require payment of

1		the fees provided in this Section by an electronic transfer
2		of funds or an automatic debit of an account of each of the
3		State banks. In case more than one examination of any bank
4		is deemed by the Commissioner to be necessary in any
5		examination frequency cycle specified in subsection 2(a)
6		of this Section, and is performed at his direction, the
7		Commissioner may assess a reasonable additional fee to
8		recover the cost of the additional examination; provided,
9		however, that an examination conducted at the request of
10		the State Treasurer pursuant to the Uniform Disposition of
11		Unclaimed Property Act shall not be deemed to be an
12		additional examination under this Section. In lieu of the
13		method and amounts set forth in this paragraph (a) for the
14		calculation of the Call Report Fee, The the Commissioner
15		may specify by rule that the Call Report Fees provided by
16		this Section may be assessed semiannually or some other
17		period and may provide in the rule the formula to be used
18		for calculating and assessing the periodic Call Report Fees
19		to be paid by State banks.
20		(a-1) If in the opinion of the Commissioner an
21		emergency exists or appears likely, the Commissioner may
22		assign an examiner or examiners to monitor the affairs of a
23		State bank with whatever frequency he deems appropriate,
24		including but not limited to a daily basis. The reasonable
25		and necessary expenses of the Commissioner during the
26		period of the monitoring shall be borne by the subject
27		bank. The Commissioner shall furnish the State bank a
28		statement of time and expenses if requested to do so within
29		30 days of the conclusion of the monitoring period.
30		(a-2) On and after January 1, 1990, the reasonable and
31		necessary expenses of the Commissioner during examination
32		of the performance of electronic data processing services
33		under subsection (2.5) shall be borne by the banks for
34		which the services are provided. An amount, based upon a
35		fee structure prescribed by the Commissioner, shall be paid
36		by the banks or, after May 31, 1997, branches of

1		out-of-state banks receiving the electronic data
2		processing services along with the Call Report Fee assessed
3		under paragraph (a) of this subsection (3).
4		(a-3) After May 31, 1997, the reasonable and necessary
5		expenses of the Commissioner during examination of the
6		performance of electronic data processing services under
7		subsection (2.5) at or on behalf of branches of
8		out-of-state banks shall be borne by the out-of-state
9		banks, unless those expenses are borne by the state
10		regulatory authorities that chartered the out-of-state
11		banks, as determined by cooperative agreements between the
12		Commissioner and the state regulatory authorities that
13		chartered the out-of-state banks.
14		(b) "Fiscal year" for purposes of this Section 48 is
15		defined as a period beginning July 1 of any year and ending
16		June 30 of the next year. The Commissioner shall receive
17		for each fiscal year, commencing with the fiscal year
18		ending June 30, 1987, a contingent fee equal to the lesser
19		of the aggregate of the fees paid by all State banks under
20		paragraph (a) of subsection (3) for that year, or the
21		amount, if any, whereby the aggregate of the administration
22		expenses, as defined in paragraph (c), for that fiscal year
23		exceeds the sum of the aggregate of the fees payable by all
24		State banks for that year under paragraph (a) of subsection
25		(3), plus any amounts transferred into the Bank and Trust
26		Company Fund from the State Pensions Fund for that year,
27		plus all other amounts collected by the Commissioner for
28		that year under any other provision of this Act, plus the
29		aggregate of all fees collected for that year by the
30		Commissioner under the Corporate Fiduciary Act, excluding
31		the receivership fees provided for in Section 5-10 of the
32		Corporate Fiduciary Act, and the Foreign Banking Office
33		Act. The aggregate amount of the contingent fee thus
34		arrived at for any fiscal year shall be apportioned
35		amongst, assessed upon, and paid by the State banks and
36		foreign banking corporations, respectively, in the same

1		proportion that the fee of each under paragraph (a) of
2		subsection (3), respectively, for that year bears to the
3		aggregate for that year of the fees collected under
4		paragraph (a) of subsection (3). The aggregate amount of
5		the contingent fee, and the portion thereof to be assessed
6		upon each State bank and foreign banking corporation,
7		respectively, shall be determined by the Commissioner and
8		shall be paid by each, respectively, within 120 days of the
9		close of the period for which the contingent fee is
10		computed and is payable, and the Commissioner shall give 20
11		days advance notice of the amount of the contingent fee
12		payable by the State bank and of the date fixed by the
13		Commissioner for payment of the fee.
14		(c) The "administration expenses" for any fiscal year
15		shall mean the ordinary and contingent expenses for that
16		year incident to making the examinations provided for by,
17		and for otherwise administering, this Act, the Corporate
18		Fiduciary Act, excluding the expenses paid from the
19		Corporate Fiduciary Receivership account in the Bank and
20		Trust Company Fund, the Foreign Banking Office Act, the
21		Electronic Fund Transfer Act, and the Illinois Bank
22		Examiners' Education Foundation Act, including all
23		salaries and other compensation paid for personal services
24		rendered for the State by officers or employees of the
25		State, including the Commissioner and the Deputy
26		Commissioners, all expenditures for telephone and
27		telegraph charges, postage and postal charges, office
28		stationery, supplies and services, and office furniture
29		and equipment, including typewriters and copying and
30		duplicating machines and filing equipment, surety bond
31		premiums, and travel expenses of those officers and
32		employees, employees, expenditures or charges for the
33		acquisition, enlargement or improvement of, or for the use
34		of, any office space, building, or structure, or
35		expenditures for the maintenance thereof or for furnishing
36		heat, light, or power with respect thereto, all to the

1		extent that those expenditures are directly incidental to
2		such examinations or administration. The Commissioner
3		shall not be required by paragraphs (c) or (d-1) of this
4		subsection (3) to maintain in any fiscal year's budget
5		appropriated reserves for accrued vacation and accrued
6		sick leave that is required to be paid to employees of the
7		Commissioner upon termination of their service with the
8		Commissioner in an amount that is more than is reasonably
9		anticipated to be necessary for any anticipated turnover in
10		employees, whether due to normal attrition or due to
11		layoffs, terminations, or resignations.
12		(d) The aggregate of all fees collected by the
13		Commissioner under this Act, the Corporate Fiduciary Act,
14		or the Foreign Banking Office Act on and after July 1,
15		1979, shall be paid promptly after receipt of the same,
16		accompanied by a detailed statement thereof, into the State
17		treasury and shall be set apart in a special fund to be
18		known as the "Bank and Trust Company Fund", except as
19		provided in paragraph (c) of subsection (11) of this
20		Section. All earnings received from investments of funds in
21		the Bank and Trust Company Fund shall be deposited in the
22		Bank and Trust Company Fund and may be used for the same
23		purposes as fees deposited in that Fund. The amount from
24		time to time deposited into the Bank and Trust Company Fund
25		shall be used to offset the ordinary administration
26		administrative expenses of the Commissioner of Banks and
27		Real Estate as defined in this Section. Nothing in this
28		amendatory Act of 1979 shall prevent continuing the
29		practice of paying expenses involving salaries,
30		retirement, social security, and State-paid insurance
31		premiums of State officers by appropriations from the
32		General Revenue Fund. However, the General Revenue Fund
33		shall be reimbursed for those payments made on and after
34		July 1, 1979, by an annual transfer of funds from the Bank
35		and Trust Company Fund.
36		(d-1) Adequate funds shall be available in the Bank and

1		Trust Company Fund to permit the timely payment of
2		administration expenses. In each fiscal year the total
3		administration expenses shall be deducted from the total
4		fees collected by the Commissioner and the remainder
5		transferred into the Cash Flow Reserve Account, unless the
6		balance of the Cash Flow Reserve Account prior to the
7		transfer equals or exceeds one-third one-fourth of the
8		total initial appropriations from the Bank and Trust
9		Company Fund for the subsequent year, in which case the
10		remainder shall be credited to State banks and foreign
11		banking corporations and applied against their fees for the
12		subsequent year. The amount credited to each State bank and
13		foreign banking corporation shall be in the same proportion
14		as the Call Report Fees paid by each for the year bear to
15		the total Call Report Fees collected for the year. If,
16		after a transfer to the Cash Flow Reserve Account is made
17		or if no remainder is available for transfer, the balance
18		of the Cash Flow Reserve Account is less than one-third
19		one-fourth of the total initial appropriations for the
20		subsequent year and the amount transferred is less than 5%
21		of the total Call Report Fees for the year, additional
22		amounts needed to make the transfer equal to 5% of the
23		total Call Report Fees for the year shall be apportioned
24		amongst, assessed upon, and paid by the State banks and
25		foreign banking corporations in the same proportion that
26		the Call Report Fees of each, respectively, for the year
27		bear to the total Call Report Fees collected for the year.
28		The additional amounts assessed shall be transferred into
29		the Cash Flow Reserve Account. For purposes of this
30		paragraph (d-1), the calculation of the fees collected by
31		the Commissioner shall exclude the receivership fees
32		provided for in Section 5-10 of the Corporate Fiduciary
33		Act.
34		(e) The Commissioner may upon request certify to any
35		public record in his keeping and shall have authority to
36		levy a reasonable charge for issuing certifications of any

1		public record in his keeping.
2		(f) In addition to fees authorized elsewhere in this
3		Act, the Commissioner may, in connection with a review,
4		approval, or provision of a service, levy a reasonable
5		charge to recover the cost of the review, approval, or
6		service.
7		(4) Nothing contained in this Act shall be construed to
8		limit the obligation relative to examinations and reports of
9		any State bank, deposits in which are to any extent insured by
10		the United States or any agency thereof, nor to limit in any
11		way the powers of the Commissioner with reference to
12		examinations and reports of that bank.
13		(5) The nature and condition of the assets in or investment
14		of any bonus, pension, or profit sharing plan for officers or
15		employees of every State bank or, after May 31, 1997, branch of
16		an out-of-state bank shall be deemed to be included in the
17		affairs of that State bank or branch of an out-of-state bank
18		subject to examination by the Commissioner under the provisions
19		of subsection (2) of this Section, and if the Commissioner
20		shall find from an examination that the condition of or
21		operation of the investments or assets of the plan is unlawful,
22		fraudulent, or unsafe, or that any trustee has abused his
23		trust, the Commissioner shall, if the situation so found by the
24		Commissioner shall not be corrected to his satisfaction within
25		60 days after the Commissioner has given notice to the board of
26		directors of the State bank or out-of-state bank of his
27		findings, report the facts to the Attorney General who shall
28		thereupon institute proceedings against the State bank or
29		out-of-state bank, the board of directors thereof, or the
30		trustees under such plan as the nature of the case may require.
31		(6) The Commissioner shall have the power:
32		(a) To promulgate reasonable rules for the purpose of
33		administering the provisions of this Act.
34		(a-5) To impose conditions on any approval issued by
35		the Commissioner if he determines that the conditions are
36		necessary or appropriate. These conditions shall be

1		imposed in writing and shall continue in effect for the
2		period prescribed by the Commissioner.
3		(b) To issue orders against any person, if the
4		Commissioner has reasonable cause to believe that an unsafe
5		or unsound banking practice has occurred, is occurring, or
6		is about to occur, if any person has violated, is
7		violating, or is about to violate any law, rule, condition
8		imposed by the Commissioner, or written agreement with the
9		Commissioner, or for the purpose of administering the
10		provisions of this Act and any rule promulgated in
11		accordance with this Act. The Commissioner may make
12		available to the public any formal enforcement action or
13		modification to such formal enforcement action. For
14		purposes of this subsection, "formal enforcement action"
15		means a Order to Cease and Desist, an Order of Prohibition,
16		an Order of Removal, or an Order Assessing a Civil Monetary
17		Penalty.
18		(b-1) To enter into agreements with a bank establishing
19		a program to correct the condition of the bank or its
20		practices.
21		(c) To appoint hearing officers to execute any of the
22		powers granted to the Commissioner under this Section for
23		the purpose of administering this Act and any rule
24		promulgated in accordance with this Act and otherwise to
25		authorize, in writing, an officer or employee of the Office
26		of Banks and Real Estate to exercise his powers under this
27		Act.
28		(d) To subpoena witnesses, to compel their attendance,
29		to administer an oath, to examine any person under oath,
30		and to require the production of any relevant books,
31		papers, accounts, and documents in the course of and
32		pursuant to any investigation being conducted, or any
33		action being taken, by the Commissioner in respect of any
34		matter relating to the duties imposed upon, or the powers
35		vested in, the Commissioner under the provisions of this
36		Act or any rule promulgated in accordance with this Act.

1		(e) To conduct hearings.
2		(7) Whenever, in the opinion of the Commissioner, any
3		director, officer, employee, or agent of a State bank or any
4		subsidiary or bank holding company of the bank or, after May
5		31, 1997, of any branch of an out-of-state bank or any
6		subsidiary or bank holding company of the bank shall have
7		violated any law, rule, or order relating to that bank or any
8		subsidiary or bank holding company of the bank, shall have
9		obstructed or impeded any examination or investigation by the
10		Commissioner, shall have engaged in an unsafe or unsound
11		practice in conducting the business of that bank or any
12		subsidiary or bank holding company of the bank, or shall have
13		violated any law or engaged or participated in any unsafe or
14		unsound practice in connection with any financial institution
15		or other business entity such that the character and fitness of
16		the director, officer, employee, or agent does not assure
17		reasonable promise of safe and sound operation of the State
18		bank, the Commissioner may issue an order of removal. If, in
19		the opinion of the Commissioner, any former director, officer,
20		employee, or agent of a State bank or any subsidiary or bank
21		holding company of the bank, prior to the termination of his or
22		her service with that bank or any subsidiary or bank holding
23		company of the bank, violated any law, rule, or order relating
24		to that State bank or any subsidiary or bank holding company of
25		the bank, obstructed or impeded any examination or
26		investigation by the Commissioner, engaged in an unsafe or
27		unsound practice in conducting the business of that bank or any
28		subsidiary or bank holding company of the bank, or violated any
29		law or engaged or participated in any unsafe or unsound
30		practice in connection with any financial institution or other
31		business entity such that the character and fitness of the
32		director, officer, employee, or agent would not have assured
33		reasonable promise of safe and sound operation of the State
34		bank, the Commissioner may issue an order prohibiting that
35		person from further service with a bank or any subsidiary or
36		bank holding company of the bank as a director, officer,

1		employee, or agent. An order issued pursuant to this subsection
2		shall be served upon the director, officer, employee, or agent.
3		A copy of the order shall be sent to each director of the bank
4		affected by registered mail. The person affected by the action
5		may request a hearing before the State Banking Board within 10
6		days after receipt of the order. The hearing shall be held by
7		the Board within 30 days after the request has been received by
8		the Board. The Board shall make a determination approving,
9		modifying, or disapproving the order of the Commissioner as its
10		final administrative decision. If a hearing is held by the
11		Board, the Board shall make its determination within 60 days
12		from the conclusion of the hearing. Any person affected by a
13		decision of the Board under this subsection (7) of Section 48
14		of this Act may have the decision reviewed only under and in
15		accordance with the Administrative Review Law and the rules
16		adopted pursuant thereto. A copy of the order shall also be
17		served upon the bank of which he is a director, officer,
18		employee, or agent, whereupon he shall cease to be a director,
19		officer, employee, or agent of that bank. The Commissioner may
20		institute a civil action against the director, officer, or
21		agent of the State bank or, after May 31, 1997, of the branch
22		of the out-of-state bank against whom any order provided for by
23		this subsection (7) of this Section 48 has been issued, and
24		against the State bank or, after May 31, 1997, out-of-state
25		bank, to enforce compliance with or to enjoin any violation of
26		the terms of the order. Any person who has been the subject of
27		an order of removal or an order of prohibition issued by the
28		Commissioner under this subsection, Section 3.074(b) of the
29		Illinois Bank Holding Company Act of 1957, or Section 5-6 of
30		the Corporate Fiduciary Act may not thereafter serve as
31		director, officer, employee, or agent of any State bank or of
32		any branch of any out-of-state bank, or of any corporate
33		fiduciary, as defined in Section 1-5.05 of the Corporate
34		Fiduciary Act, or of any other entity that is subject to
35		licensure or regulation by the Commissioner or the Office of
36		Banks and Real Estate unless the Commissioner has granted prior

1		approval in writing.
2		For purposes of this paragraph (7), "bank holding company"
3		has the meaning prescribed in Section 2 of the Illinois Bank
4		Holding Company Act of 1957.
5		(8) The Commissioner may impose civil penalties of up to
6		$100,000 $10,000 against any person for each violation of any
7		provision of this Act, any rule promulgated in accordance with
8		this Act, any order of the Commissioner, any condition imposed
9		by the Commissioner, or any other action which in the
10		Commissioner's discretion is an unsafe or unsound banking
11		practice.
12		(9) The Commissioner may impose civil penalties of up to
13		$100 against any person for the first failure to comply with
14		reporting requirements set forth in the report of examination
15		of the bank and up to $200 for the second and subsequent
16		failures to comply with those reporting requirements.
17		(10) All final administrative decisions of the
18		Commissioner hereunder shall be subject to judicial review
19		pursuant to the provisions of the Administrative Review Law.
20		For matters involving administrative review, venue shall be in
21		either Sangamon County or Cook County.
22		(11) The endowment fund for the Illinois Bank Examiners'
23		Education Foundation shall be administered as follows:
24		(a) (Blank).
25		(b) The Foundation is empowered to receive voluntary
26		contributions, gifts, grants, bequests, and donations on
27		behalf of the Illinois Bank Examiners' Education
28		Foundation from national banks and other persons for the
29		purpose of funding the endowment of the Illinois Bank
30		Examiners' Education Foundation.
31		(c) The aggregate of all special educational fees
32		collected by the Commissioner and property received by the
33		Commissioner on behalf of the Illinois Bank Examiners'
34		Education Foundation under this subsection (11) on or after
35		June 30, 1986, shall be either (i) promptly paid after
36		receipt of the same, accompanied by a detailed statement

1		thereof, into the State Treasury and shall be set apart in
2		a special fund to be known as "The Illinois Bank Examiners'
3		Education Fund" to be invested by either the Treasurer of
4		the State of Illinois in the Public Treasurers' Investment
5		Pool or in any other investment he is authorized to make or
6		by the Illinois State Board of Investment as the board of
7		trustees of the Illinois Bank Examiners' Education
8		Foundation may direct or (ii) deposited into an account
9		maintained in a commercial bank or corporate fiduciary in
10		the name of the Illinois Bank Examiners' Education
11		Foundation pursuant to the order and direction of the Board
12		of Trustees of the Illinois Bank Examiners' Education
13		Foundation.
14		(12) (Blank).
15		(Source: P.A. 91-16, eff. 7-1-99; 92-20, eff. 7-1-01; 92-483,
16		eff. 8-23-01; 92-651, eff. 7-11-02.)
17		(205 ILCS 5/49) (from Ch. 17, par. 361)
18		Sec. 49. False statements; penalty.
19		(a) It is unlawful for any officer, director, or employee
20		of any State bank or subsidiary or holding company of that bank
21		or, after May 31, 1997, branch out of an out-of-state bank
22		subject to examination by the Commissioner or any person filing
23		an application or notice or submitting information in
24		connection with an application or notice with the Commissioner
25		to willfully and knowingly subscribe to or make, or cause to be
26		made, any false statement or false entry with intent to deceive
27		any person or persons authorized to examine into the affairs of
28		the bank or the subsidiary or holding company of that bank, the
29		branch of an out-of-state bank, or the applicant or with intent
30		to deceive the Commissioner or his administrative officers in
31		the performance of their duties under this Act. A person who
32		violates this Section is guilty of a Class 3 felony.
33		(b) Any state bank or officer, director, or employee of any
34		state bank or, after May 31, 1997, branch of an out of state
35		bank subject to examination by the Commissioner who shall

1		refuse access to information or documents requested by the
2		Commissioner pursuant to any investigation being conducted or
3		any action being taken by the Commissioner relating to the
4		duties imposed upon or the powers vested in the Commissioner
5		under the provisions of this Act or any rule promulgated in
6		accordance with this Act, may be subject to disciplinary action
7		pursuant to Section 48 of this Act.
8		(Source: P.A. 92-483, eff. 8-23-01.)
9		(205 ILCS 5/71) (from Ch. 17, par. 383)
10		Sec. 71. Voluntary dissolution; Commissioner's fee. The
11		Commissioner shall be entitled to a fee, which shall be paid at
12		the time of deposit, on all money deposited with him for the
13		account of one dissolving bank. The Commissioner shall
14		establish this fee by rule. of two per cent of the first five
15		thousand dollars and one per cent of all sums in excess of five
16		thousand dollars.
17		(Source: Laws 1965, p. 2020.)

18		Section 15. The Illinois Bank Holding Company Act of 1957
19		is amended by changing Section 3.02 as follows:
20		(205 ILCS 10/3.02) (from Ch. 17, par. 2505)
21		Sec. 3.02. Unlawful acts; exceptions.
22		(a) Except as otherwise provided in this Act, it shall be
23		unlawful:
24		(1) for any action to be taken that causes any company
25		to become a bank holding company as defined in this Act
26		with respect to any Illinois bank;
27		(2) for any action to be taken that causes an Illinois
28		bank to become a subsidiary of a bank holding company;
29		(3) for any bank holding company to acquire direct or
30		indirect ownership or control of any voting shares of an
31		Illinois bank that possesses a charter issued by the
32		Commissioner, unless the holding company complies with the
33		change in control requirements set forth in Section 18 of

1		the Illinois Banking Act;
2		(4) for any bank holding company or subsidiary thereof
3		other than a bank, to acquire all or substantially all of
4		the assets of an Illinois bank;
5		(5) for any bank holding company owning or controlling,
6		as defined in this Act, an Illinois bank to merge or
7		consolidate with any other bank holding company;
8		(6) for any bank holding company that is not well
9		capitalized, as that term is defined in 12 C.F.R. 225.2(r),
10		as now or hereafter amended with a ratio of total capital
11		to total assets of less than 7%, as measured and applied in
12		accordance with regulations of the Board of Governors of
13		the Federal Reserve System in effect on the date of the
14		filing of the application with the Board of Governors of
15		the Federal Reserve System, to acquire direct or indirect
16		ownership or control by purchase of stock, merger,
17		consolidation, acquisition of assets or otherwise, of any
18		Illinois bank or banks if the application for such
19		acquisition is filed on or after July 1, 1986; provided
20		that the requirement total capital to total assets ratio
21		requirements of this paragraph (6) and of the succeeding
22		paragraph (7) that the bank holding company be well
23		capitalized shall be applicable only to a bank holding
24		company which is directly acquiring such direct or indirect
25		control of any Illinois bank or banks and shall not be
26		applicable to any bank holding company of which the
27		acquiring company is a subsidiary; or
28		(7) for any bank holding company that is well
29		capitalized, as that term is defined in 12 C.F.R. 225.2(r),
30		as now or hereafter amended, with a ratio of total capital
31		to total assets equal to or in excess of 7% to acquire
32		direct or indirect control by purchase of stock, merger,
33		consolidation, acquisition of assets or otherwise, of any
34		Illinois bank or banks where such acquisition would result
35		in the bank holding company no longer be will capitalized
36		in a reduction in such bank holding company's ratio of

1		total capital to total assets to less than 7%, where such
2		ratios are measured and applied in accordance with
3		regulations of the Board of Governors of the Federal
4		Reserve System in effect on the date of the filing of the
5		application with the Board of Governors of the Federal
6		Reserve System if the application for such acquisition is
7		filed on or after July 1, 1986.
8
9		(b) Notwithstanding subsection (a) of this Section, a
10		transaction, occurrence or event which is described in
11		paragraphs (1), (2), (4), and (5) of subsection (a) of this
12		Section, and which does not result in a violation of Section
13		3.07 of this Act, shall not be unlawful if:
14		(1) approval of the transaction, occurrence or event by
15		the Board of Governors of the Federal Reserve System is not
16		required by the terms of the federal Bank Holding Company
17		Act; or
18		(2) the transaction, occurrence or event:
19		(A) has been approved by the Board of Governors of
20		the Federal Reserve System by an order, ruling or
21		regulation of that Board made under the federal Bank
22		Holding Company Act, including an assessment of the
23		applicant's record in meeting the convenience and
24		needs of the communities it serves in accordance with
25		the federal Community Reinvestment Act of 1977, and
26		that order, ruling or regulation remains in effect; and
27		(B) is carried out and occurs in compliance with
28		all conditions or restrictions, if any, contained in an
29		order, ruling or regulation of the Board of Governors
30		of the Federal Reserve System referred to in the
31		foregoing subparagraph (A).
32		(Source: P.A. 88-546; 89-567, eff. 7-26-96.)

33		Section 20. The Pawnbroker Regulation Act is amended by
34		changing Sections 0.05 and 5 and by adding Sections 1.8 and 9.5
35		as follows:

1		(205 ILCS 510/0.05)
2		Sec. 0.05. Administration of Act.
3		(a) This Act shall be administered by the Commissioner of
4		Banks and Real Estate who shall have all of the following
5		powers and duties in administering this Act:
6		(1) To promulgate reasonable rules for the purpose of
7		administering the provisions of this Act.
8		(2) To issue orders for the purpose of administering
9		the provisions of this Act and any rule promulgated in
10		accordance with this Act.
11		(3) To appoint hearing officers and to hire employees
12		or to contract with appropriate persons to execute any of
13		the powers granted to the Commissioner under this Section
14		for the purpose of administering this Act and any rule
15		promulgated in accordance with this Act.
16		(4) To subpoena witnesses, to compel their attendance,
17		to administer an oath, to examine any person under oath,
18		and to require the production of any relevant books,
19		papers, accounts, and documents in the course of and
20		pursuant to any investigation being conducted, or any
21		action being taken, by the Commissioner in respect of any
22		matter relating to the duties imposed upon, or the powers
23		vested in, the Commissioner under the provisions of this
24		Act or any rule promulgated in accordance with this Act.
25		(5) To conduct hearings.
26		(6) To impose civil penalties graduated up to $1,000
27		against any person for each violation of any provision of
28		this Act, any rule promulgated in accordance with this Act,
29		or any order of the Commissioner based upon the seriousness
30		of the violation.
31		(6.5) To initiate, through the Attorney General,
32		injunction proceedings whenever it appears to the
33		Commissioner that any person, whether licensed under this
34		Act or not, is engaged or about to engage in an act or
35		practice that constitutes or will constitute a violation of

1		this Act or any rule prescribed under the authority of this
2		Act. The Commissioner may, in his or her discretion,
3		through the Attorney General, apply for an injunction, and
4		upon a proper showing, any circuit court may enter a
5		permanent or preliminary injunction or a temporary
6		restraining order without bond to enforce this Act in
7		addition to the penalties and other remedies provided for
8		in this Act.
9		(7) To issue a cease and desist order and, for
10		violations of this Act, any order issued by the
11		Commissioner pursuant to this Act, any rule promulgated in
12		accordance with this Act, or any other applicable law in
13		connection with the operation of a pawnshop, to suspend a
14		license issued under this Act for up to 30 days.
15		(8) To determine compliance with applicable law and
16		rules related to the operation of pawnshops and to verify
17		the accuracy of reports filed with the Commissioner, the
18		Commissioner, not more than one time every 2 years, may,
19		but is not required to, conduct a routine examination of a
20		pawnshop, and in addition, the Commissioner may examine the
21		affairs of any pawnshop at any time if the Commissioner has
22		reasonable cause to believe that unlawful or fraudulent
23		activity is occurring, or has occurred, therein.
24		(9) In response to a complaint, to address any
25		inquiries to any pawnshop in relation to its affairs, and
26		it shall be the duty of the pawnshop to promptly reply in
27		writing to such inquiries. The Commissioner may also
28		require reports or information from any pawnshop at any
29		time the Commissioner may deem desirable.
30		(10) To revoke a license issued under this Act if the
31		Commissioner determines that (a) a licensee has been
32		convicted of a felony in connection with the operations of
33		a pawnshop; (b) a licensee knowingly, recklessly, or
34		continuously violated this Act, a rule promulgated in
35		accordance with this Act, or any order of the Commissioner;
36		(c) a fact or condition exists that, if it had existed or

1		had been known at the time of the original application,
2		would have justified license refusal; or (d) the licensee
3		knowingly submits materially false or misleading documents
4		with the intent to deceive the Commissioner or any other
5		party; or (e) a licensee has been the subject of an Order
6		of Removal or Order of Prohibition issued by the
7		Commissioner pursuant to subsection (a)(12) of this
8		Section, Section 48(7) of the Illinois Banking Act, Section
9		3.074(b) of the Illinois Bank Holding Company Act of 1957,
10		or Section 5-6 of the Corporate Fiduciary Act and the Order
11		is a final administrative decision under the
12		Administrative Review Law.
13		(11) Following license revocation, to take possession
14		and control of a pawnshop for the purpose of examination,
15		reorganization, or liquidation through receivership and to
16		appoint a receiver, which may be the Commissioner, a
17		pawnshop, or another suitable person.
18		(12) To issue an order of removal, whenever in the
19		opinion of the Commissioner, any director, officer, owner,
20		employee or agent of a pawnshop has violated any law, rule,
21		or order relating to the pawnshop or has violated any law
22		in connection with any other business entity such that the
23		character and fitness of the director, officer, owner,
24		employee, or agent does not assure reasonable promise of
25		operation of the pawnshop in a lawful and fair manner. If,
26		in the opinion of the Commissioner, any former director,
27		officer, owner, employee, or agent of a pawnshop, prior to
28		the termination of his or her service with the pawnshop,
29		violated any law, rule, or order relating to the pawnshop
30		or violated any law in connection with any other business
31		such that the director, officer, owner, employee, or agent
32		would not have assured reasonable promise of operation of
33		the pawnshop in a lawful and fair manner, the Commissioner
34		may issue an order prohibiting that person from further
35		service with a pawnshop as a director, officer, owner,
36		employee, or agent. An order issued pursuant to this

1		Section shall be served upon the director, officer, owner,
2		employee, or agent. An Order of Removal shall also be sent
3		to the pawnshop by personal service, certified mail return
4		receipt requested, or any other method that provides proof
5		of service and receipt. The person affected by the action
6		may request a hearing within 10 days after receipt of the
7		order of removal or prohibition. The hearing shall be held
8		within 30 days after receipt of a request for a hearing in
9		accordance with Part 392 of Title 38 of the Illinois
10		Administrative Code. After concluding the hearing, a
11		hearing officer shall make a recommendation approving,
12		modifying, or disapproving the order of the Commissioner.
13		The Commissioner shall then issue a written determination
14		including the conclusions of law and the findings of fact
15		upon which the determination was made. A copy of the order
16		shall be served upon the pawnshop of which the person is a
17		director, officer, owner, employee, or agent, whereupon
18		the person shall cease to be a director, officer, employee,
19		or agent of the pawnshop or to conduct any business in
20		connection with the pawnshop. Any person who has been
21		removed or prohibited by an order of the Commissioner under
22		this Section may not thereafter serve as director, officer,
23		employee, or agent of any pawnshop or of any other entity
24		that is subject to licensure or regulation by the
25		Commissioner or the Office of Banks and Real Estate unless
26		the Commissioner has granted prior approval in writing. The
27		Commissioner may institute a civil action against the
28		director, officer, owner, employee, or agent subject to an
29		order issued under this Section and against the pawnshop to
30		enforce compliance with or to enjoin any violation of the
31		terms of the order.
32		(b) After consultation with local law enforcement
33		officers, the Attorney General, and the industry, the
34		Commissioner may by rule require that pawnbrokers operate video
35		camera surveillance systems to record photographic
36		representations of customers and retain the tapes produced for

1		up to 30 days.
2		(c) Pursuant to rule, the Commissioner shall issue licenses
3		on an annual or multi-year basis for operating a pawnshop. Any
4		person currently operating or who has operated a pawnshop in
5		this State during the 2 years preceding the effective date of
6		this amendatory Act of 1997 shall be issued a license upon
7		payment of the fee required under this Act. New applicants
8		shall meet standards for a license as established by the
9		Commissioner. Except with the prior written consent of the
10		Commissioner, no individual, either a new applicant or a person
11		currently operating a pawnshop, may be issued a license to
12		operate a pawnshop if the individual has been convicted of a
13		felony or of any criminal offense relating to dishonesty or
14		breach of trust in connection with the operations of a
15		pawnshop. In addition, no new applicant may be issued a license
16		to operate a pawnshop if the individual has been the subject of
17		an Order of Removal or Order of Prohibition issued by the
18		Commissioner pursuant to subsection (a)(12) of this Section,
19		Section 48(7) of the Illinois Banking Act, Section 3.074(b) of
20		the Illinois Bank Holding Company Act of 1957, or Section 5-6
21		of the Corporate Fiduciary Act after the Order becomes a final
22		administrative decision under the Administrative Review Law
23		unless the applicant receives the prior written approval of the
24		Commissioner. The Commissioner shall establish license fees.
25		The fees shall not exceed the amount reasonably required for
26		administration of this Act. It shall be unlawful to operate a
27		pawnshop without a license issued by the Commissioner.
28		(d) In addition to license fees, the Commissioner may, by
29		rule, establish fees in connection with a review, approval, or
30		provision of a service, and levy a reasonable charge to recover
31		the cost of the review, approval, or service (such as a change
32		in control, change in location, or renewal of a license). The
33		Commissioner may also levy a reasonable charge to recover the
34		cost of an examination if the Commissioner determines that
35		unlawful or fraudulent activity has occurred. The Commissioner
36		may require payment of the fees and charges provided in this

1		Act by certified check, money order, an electronic transfer of
2		funds, or an automatic debit of an account.
3		(e) The Pawnbroker Regulation Fund is established as a
4		special fund in the State treasury. Moneys collected under this
5		Act shall be deposited into the Fund and used for the
6		administration of this Act. In the event that General Revenue
7		Funds are appropriated to the Office of the Commissioner of
8		Banks and Real Estate for the initial implementation of this
9		Act, the Governor may direct the repayment from the Pawnbroker
10		Regulation Fund to the General Revenue Fund of such advance in
11		an amount not to exceed $30,000. The Governor may direct this
12		interfund transfer at such time as he deems appropriate by
13		giving appropriate written notice.
14		(f) The Commissioner may, by rule, require all pawnshops to
15		provide for the expenses that would arise from the
16		administration of the receivership of a pawnshop under this Act
17		through the assessment of fees, the requirement to pledge
18		surety bonds, or such other methods as determined by the
19		Commissioner.
20		(g) All final administrative decisions of the Commissioner
21		under this Act shall be subject to judicial review pursuant to
22		the provisions of the Administrative Review Law. For matters
23		involving administrative review, venue shall be in either
24		Sangamon County or Cook County.
25		(Source: P.A. 92-215, eff. 8-2-01.)
26		(205 ILCS 510/1.8 new)
27		Sec. 1.8. Employment of persons convicted of a felony or a
28		breach of trust related to the operation of a pawnshop. Except
29		with the prior written consent of the Commissioner, no pawnshop
30		shall employ an individual who has been convicted of a felony
31		or of any criminal offense relating to dishonesty or breach of
32		trust in connection with the operations of a pawnshop.
33		(205 ILCS 510/5) (from Ch. 17, par. 4655)
34		Sec. 5. Record requirements.

1		(a) Except in municipalities located in counties having
2		3,000,000 or more inhabitants, every pawn and loan broker shall
3		keep a standard record book that has been approved by the
4		sheriff of the county in which the pawnbroker does business. In
5		municipalities in counties with 3,000,000 or more inhabitants,
6		the record book shall be approved by the police department of
7		the municipality in which the pawn or loan broker does
8		business. At the time of each and every loan or taking of a
9		pledge, an accurate account and description, in the English
10		language, of all the goods, articles and other things pawned or
11		pledged, the amount of money, value or thing loaned thereon,
12		the time of pledging the same, the rate of interest to be paid
13		on such loan, and the name and residence of the person making
14		such pawn or pledge shall be printed, typed, or written in ink
15		in the record book. Such entry shall include the serial number
16		or identification number of items received which bear such
17		number. Except for items purchased from dealers possessing a
18		federal employer employee identification number who have
19		provided a receipt to the pawnbroker, every pawnbroker shall
20		also record in his book, an accurate account and description,
21		in the English language, of all goods, articles and other
22		things purchased or received for the purpose of resale or loan
23		collateral by the pawnbroker from any source, not in the course
24		of a pledge or loan, the time of such purchase or receipt and
25		the name and address of the person or business which sold or
26		delivered such goods, articles, or other things to the
27		pawnbroker. No entry in such book shall be erased, mutilated or
28		changed.
29		(b) Every pawnbroker shall require identification to be
30		shown him by each person pledging or pawning any goods,
31		articles or other things to the pawnbroker. If the
32		identification shown is a driver's license or a State
33		identification card issued by the Secretary of State and
34		contains a photograph of the person being identified, only one
35		form of identification must be shown. If the identification
36		shown is not a driver's license or a State identification card

1		issued by the Secretary of State and does not contain a
2		photograph, 2 forms of identification must be shown, and one of
3		the 2 forms of identification must include his or her residence
4		address. These forms of identification shall include, but not
5		be limited to, any of the following: driver's license, social
6		security card, utility bill, employee or student
7		identification card, credit card, or a civic, union or
8		professional association membership card. In addition, in a
9		municipality with a population of 1,000,000 or more
10		inhabitants, if the customer does not have an identification
11		issued by a governmental entity containing a photograph of the
12		person being identified, the pawnbroker shall photograph the
13		customer in color and record the customer's name, residence
14		address, date of birth, social security number, gender, height,
15		and weight on the reverse side of the photograph. If the
16		customer has no social security number, the pawnbroker shall
17		record this fact.
18		A county or municipality, including a home rule unit, may
19		regulate a pawnbroker's identification requirements for
20		persons pledging or pawning goods, articles, or other things to
21		the pawnbroker in a manner that is not less restrictive than
22		the regulation by the State of a pawnbroker's identification
23		requirements for persons pledging or pawning goods, articles,
24		or other things. A home rule unit may not regulate a
25		pawnbroker's identification requirements for persons pledging
26		or pawning goods, articles, or other things to the pawnbroker
27		in a manner less restrictive than the regulation by the State
28		of a pawnbroker's identification requirements for persons
29		pledging or pawning goods, articles, or other things. This
30		Section is a limitation under subsection (i) of Section 6 of
31		Article VII of the Illinois Constitution on the concurrent
32		exercise by home rule units of the powers and functions
33		exercised by the State.
34		(c) A pawnbroker may maintain the records required by
35		subsection (a) in computer form if the computer form has been
36		approved by the Commissioner, the sheriff of the county in

1		which the shop is located, and the police department of the
2		municipality in which the shop is located.
3		(d) Records, including reports to the Commissioner,
4		maintained by pawnbrokers shall be confidential, and no
5		disclosure of pawnbroker records shall be made except
6		disclosures authorized by this Act or ordered by a court of
7		competent jurisdiction. No record transferred to a
8		governmental official shall be improperly disclosed, provided
9		that use of those records as evidence of a felony or
10		misdemeanor shall be a proper purpose.
11		(e) Pawnbrokers and their associations may lawfully give
12		appropriate governmental agencies computer equipment for the
13		purpose of transferring information pursuant to this Act.
14		(Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
15		(205 ILCS 510/9.5 new)
16		Sec. 9.5. Redemption of goods after license revocation,
17		suspension, or denial.
18		(a) After revocation of a license and if the Commissioner
19		has not taken possession and control of the pawnshop pursuant
20		to Section 0.05, a pawnbroker shall maintain usual business
21		hours at the pawnshop for not less than 30 days after the
22		latest default date of any pawn transaction made at that
23		pawnshop for the sole purpose of allowing a pledgor to redeem
24		pledged goods.
25		(b) After suspension of a license, a pawnbroker shall
26		maintain usual business hours at the pawnshop during the
27		suspension for the sole purpose of allowing a pledgor to redeem
28		goods or to renew a pawn transaction that matures during the
29		suspension.
30		(c) After the denial of a license renewal application, a
31		pawnbroker shall maintain usual business hours at the pawnshop
32		for not less than 30 days after the latest default date of any
33		pawn transaction made at that pawnshop for the sole purpose of
34		allowing a pledgor to redeem pledged goods.
35		(d) The Commissioner may exercise any authority conferred

1		on the Commissioner to protect the interest of a pledgor of
2		goods in the possession of a pawnbroker whose license has been
3		revoked or suspended, or whose license renewal application has
4		been denied, including the assessment of a civil money penalty
5		and all other penalties and remedies provided for in this Act.

6		Section 25. The Corporate Fiduciary Act is amended by
7		changing Sections 5-1 and 5-9 as follows:
8		(205 ILCS 620/5-1) (from Ch. 17, par. 1555-1)
9		Sec. 5-1. Commissioner's powers. The Commissioner of Banks
10		and Real Estate shall have the following powers and authority
11		and is charged with the duties and responsibilities designated
12		in this Act:
13		(a) To promulgate, in accordance with the Illinois
14		Administrative Procedure Act, reasonable rules for the purpose
15		of administering the provisions of this Act and for the purpose
16		of incorporating by reference rules promulgated by the Federal
17		Deposit Insurance Corporation, the Board of Governors of the
18		Federal Reserve System, the Office of the Comptroller of the
19		Currency, the Office of Thrift Supervision, or their successors
20		that pertain to corporate fiduciaries, including, but not
21		limited to, standards for the operation and conduct of the
22		affairs of corporate fiduciaries;
23		(b) To issue orders for the purpose of administering the
24		provisions of this Act and any rule promulgated in accordance
25		with this Act;
26		(c) To appoint hearing officers to conduct hearings held
27		pursuant to any of the powers granted to the Commissioner under
28		this Section for the purpose of administering this Act and any
29		rule promulgated in accordance with this Act;
30		(d) To subpoena witnesses, to compel their attendance, to
31		administer an oath, to examine any person under oath and to
32		require the production of any relevant books, papers, accounts
33		and documents in the course of and pursuant to any
34		investigation being conducted, or any action being taken, by

1		the Commissioner in respect of any matter relating to the
2		duties imposed upon, or the powers vested in, the Commissioner
3		under the provisions of this Act, or any rule or regulation
4		promulgated in accordance with this Act;
5		(e) To conduct hearings;
6		(f) To promulgate the form and content of any applications
7		required under this Act;
8		(g) To impose civil penalties of up to $100,000 $10,000
9		against any person or corporate fiduciary for each violation of
10		any provision of this Act, any rule promulgated in accordance
11		with this Act, any order of the Commissioner or any other
12		action which, in the Commissioner's discretion, is a detriment
13		or impediment to accepting or executing trusts; and
14		(h) To address any inquiries to any corporate fiduciary, or
15		the officers thereof, in relation to its doings and conditions,
16		or any other matter connected with its affairs, and it shall be
17		the duty of any corporate fiduciary or person so addressed, to
18		promptly reply in writing to such inquiries. The Commissioner
19		may also require reports from any corporate fiduciary at any
20		time he may deem desirable.
21		(Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
22		(205 ILCS 620/5-9) (from Ch. 17, par. 1555-9)
23		Sec. 5-9. Statement of condition.
24		(a) Each corporate fiduciary shall file with the
25		Commissioner, when requested, a statement under oath, of the
26		condition of such corporate fiduciary as of the date requested.
27		The statement of condition shall be in such form and contain
28		such statements, returns and information, as to the affairs,
29		business conditions, and resources of the corporate fiduciary
30		or of its trust department, as the case may be, as the said
31		Commissioner may, from time to time prescribe or require.
32		(b) Such statement of condition shall be verified by the
33		affidavit of the president, vice president or principal
34		accounting officer of said corporate fiduciary, who shall also
35		state in such affidavit that he has examined the books and

1		accounts of said corporate fiduciary or of its trust
2		department, as the case may be for the purpose of making said
3		report or statement, and that the information contained in the
4		statement or report is accurate to the best of his knowledge
5		and belief. If the statement is submitted in electronic form,
6		the Commissioner may, in the call for the report, specify the
7		manner in which the appropriate officer of the corporate
8		fiduciary shall verify the statement of condition.
9		(c) (Blank). The corporate fiduciary shall cause a proper
10		abstract of the statements of assets and liabilities reported
11		under sub-section (a) of this Section to be published once in a
12		newspaper of general circulation, circulated in the city, town
13		or village where the corporate fiduciary is located. Such
14		publication shall be paid for by said corporate fiduciary which
15		shall cause to be provided to the Commissioner a certificate of
16		publication from the publishing newspaper in such form as the
17		Commissioner shall require. When the corporate fiduciary is a
18		State bank, qualified under this Act, the statements published
19		in compliance with the Illinois Banking Act may be accepted by
20		the Commissioner in compliance with the publication
21		requirements of this Section although an annual statement of
22		condition may still be required.
23		(d) Any corporate fiduciary which fails to file an accurate
24		statement of condition on or before the date it is due, to
25		publish the report if required to be published, or which fails
26		to provide evidence of such publication may be fined $100 for
27		each day of noncompliance.
28		(e) Any corporate fiduciary which is the victim of a
29		robbery or experiences a shortage of funds in excess of
30		$10,000, an apparent misapplication of the corporate
31		fiduciary's funds by an officer, employee, director, or agent,
32		a charge-off of assets of the corporate fiduciary, or any
33		adverse legal action in an amount in excess of 10% of total
34		capital and surplus of the corporate fiduciary, including but
35		not limited to, the entry of an adverse money judgment against
36		the corporate fiduciary shall report that information in

1		writing to the Commissioner within 7 days. Neither the
2		corporate fiduciary, its directors, officers, employees or
3		agents, in the preparation or filing of the reports required by
4		this subsection, shall be subject to any liability for libel,
5		slander or other charges resulting from information supplied in
6		such reports, except when the supplying of such information is
7		done in a corrupt or malicious manner or otherwise not in good
8		faith.
9		(Source: P.A. 89-364, eff. 8-18-95.)

10		(205 ILCS 5/9.5 rep.)
11		Section 30. The Illinois Banking Act is amended by
12		repealing Section 9.5.

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