94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2508


 
Introduced 2/17/2005, by Rep. Mike Boland
 
SYNOPSIS AS INTRODUCED:
 		
















205 ILCS 710/5




205 ILCS 710/10





205 ILCS 710/20 new










    Amends the Banking on Illinois Act. Makes a change concerning declarations of policy to provide that by ensuring a favorable environment for banks to commence and operate their businesses from this State, more newly created community banks and merging banks will choose to maintain or retain their headquarters in or (now, and) relocate their main banking offices to Illinois. Provides that it is the purpose of the Act to encourage and provide a favorable environment in Illinois for the chartering and operating of banks that locate and maintain main banking headquarters (now, offices) in this State. Authorizes a State or federally chartered bank that maintains its main banking headquarters in this State to offer a credit product to Illinois residents under the same terms and conditions that an out-of-state bank may offer the credit product to Illinois residents.  Requires any bank offering such a credit product to provide written notice to the Director of the Division of Banks and Real Estate in the Department of Financial and Professional Regulation of its intent to offer the product.  Makes other changes. Effective immediately.
















LRB094 09278 MKM 39515 b

















 


 


A BILL FOR









 











HB2508

LRB094 09278 MKM 39515 b






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    AN ACT concerning regulation.

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


 
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    Section 5. The Banking on Illinois Act is amended  by 
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changing Sections 5 and 10 and  by adding Section 20 as follows:
 



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    (205 ILCS 710/5)



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    Sec. 5. Findings and declarations of policy. The General 
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Assembly hereby
finds and declares:


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        (1) that the economic strength and general welfare of 
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    Illinois depends on
a strong, profitable, and competitive 
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    banking industry in this State
that preserves and creates 
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    employment, increases credit availability, attracts

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    capital, and expands the savings base for the citizens of 
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    this State;


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        (2) that the removal of geographic restrictions in the 
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    federal banking
laws and in the laws of the 50 states has 
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    given rise to a substantial number of
newly created 
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    community banks and interstate bank mergers requiring the

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    selection of main office locations and relocations;


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        (3) that by ensuring a favorable environment for banks 
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    to commence and
operate their businesses from this State, 
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    more newly created community banks
and merging banks will 
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    choose to maintain or retain their headquarters in or
and

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    relocate their main banking offices to Illinois; and


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        (4) that preserving and increasing the number of bank 
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    headquarters and
main banking offices within Illinois will 
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    substantially increase employment
opportunities, credit 
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    availability, and capital investment in this State,
while 
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    strengthening the savings base of this State, thereby 
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    providing
significant benefits to all Illinois citizens, 
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    to commercial and agricultural
businesses of all sizes in 
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    this State, and to all local governments and
political 
 


 






HB2508
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LRB094 09278 MKM 39515 b




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    subdivisions of this State.

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(Source: P.A. 91-330, eff. 7-29-99.)

 



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    (205 ILCS 710/10)



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    Sec. 10. Purpose. The purpose of this Act is to encourage 
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and provide a
favorable environment in Illinois for the 
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chartering and operating of
banks
that locate and maintain main 
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banking headquarters
offices in this State.

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(Source: P.A. 91-330, eff. 7-29-99.)

 
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    (205 ILCS 710/20  new)
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    Sec. 20. Credit products.
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    (a) Any State or federally chartered bank that maintains 
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its main banking headquarters in this State may offer a credit 
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product to Illinois residents under the same terms and 
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conditions that an out-of-state bank may offer the credit 
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product to Illinois residents, subject to the same limitations 
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and conditions that are applicable to the out-of-state bank, 
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and subject to applicable provisions of the High Risk Home Loan 
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Act. This Section shall not in any way impair the authority of 
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a bank to offer a credit product under any other law of this 
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State.
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    (b) At least 30 days before a bank offers any credit 
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product under this Section, the bank shall provide written 
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notice to the Director of the Division of Banks and Real Estate 
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in the Department of Financial and Profession Regulation of its 
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intent to offer the credit product. The notice shall cite the 
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federal or state law, rule, regulation, or interpretation upon 
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which the bank is basing its offer of a credit product under 
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this Section.
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    (c) The Division of Banks and Real Estate in the Department 
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of Financial and Professional Regulation may promulgate rules 
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to administer the provisions of this Section. 

 

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