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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Banking Act is amended by adding | ||||||
5 | Section 21.5 as follows: | ||||||
6 | (205 ILCS 5/21.5 new) | ||||||
7 | Sec. 21.5. Prohibition against establishment of branches | ||||||
8 | on or near the premises of certain affiliates. | ||||||
9 | (a) For the purposes of this Section: | ||||||
10 | "Affiliate" means any company having a relationship with a | ||||||
11 | bank that would cause the company to be an affiliate pursuant | ||||||
12 | to Section 35.2 of this Act if the bank were a State bank.
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13 | "Bank" has the meaning ascribed to that term in the Federal | ||||||
14 | Deposit Insurance Act (12 U.S.C. Sec. 1813) and includes any | ||||||
15 | out-of-state bank. | ||||||
16 | "Bank holding company" and "financial holding company" | ||||||
17 | have the meanings ascribed to those terms in the federal Bank | ||||||
18 | Holding Company Act of 1956 (12 U.S.C. Sec. 1841). | ||||||
19 | A location is considered "adjacent to" the premises of an | ||||||
20 | affiliate if the location is not separated from the boundary of | ||||||
21 | the premises of the affiliate by real property that is owned by | ||||||
22 | a person or entity having no business relationship with the | ||||||
23 | bank or with the affiliate and that is not leased to or used by |
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1 | the bank or affiliate. | ||||||
2 | (b) Notwithstanding any other provision of this Act, after | ||||||
3 | the effective date of this amendatory Act of the 95th General | ||||||
4 | Assembly, no bank may establish a bank office or branch on or | ||||||
5 | adjacent to the premises of an affiliate of the bank if the | ||||||
6 | affiliate engages in any commercial activity that could not | ||||||
7 | lawfully be conducted by a bank holding company, a financial | ||||||
8 | holding company, or a subsidiary of the bank holding company or | ||||||
9 | financial holding company pursuant to federal law. | ||||||
10 | (c) It is the intent of this Section that no entity be | ||||||
11 | permitted to circumvent the prohibition stated in this Section | ||||||
12 | by first establishing a bank office or branch and then | ||||||
13 | subsequently locating an office of an affiliate on or adjacent | ||||||
14 | to the premises of the bank office or branch. If any entity | ||||||
15 | attempts to locate an office of an affiliate on or adjacent to | ||||||
16 | the premises of the bank office or branch, the entity must | ||||||
17 | cease to operate its bank office or branch at a location that | ||||||
18 | would violate the intent of this Section.
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19 | Section 10. The Savings Bank Act is amended by adding | ||||||
20 | Section 1006.10 as follows: | ||||||
21 | (205 ILCS 205/1006.10 new)
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22 | Sec. 1006.10. Prohibition against establishment of offices | ||||||
23 | or branches on or adjacent to the premises of certain | ||||||
24 | affiliates. |
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1 | (a) For purposes of this Section:
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2 | "Affiliate" has the meaning defined in this Act.
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3 | "Savings Bank" means a savings bank operating under | ||||||
4 | this Act, an out-of-state savings bank as defined under | ||||||
5 | this Act, or a savings association defined in the Federal | ||||||
6 | Deposit Insurance Act (12 U.S.C. Sec. 1813).
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7 | "Savings bank holding company" has the meaning | ||||||
8 | ascribed in this Act.
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9 | A location is considered "adjacent to" the premises of an | ||||||
10 | affiliate if the location is not separated from the boundary of | ||||||
11 | the premises of the affiliate by real property that is owned by | ||||||
12 | a person or entity having no business relationship with the | ||||||
13 | savings bank, savings bank holding company, or with an | ||||||
14 | affiliate and that is not leased to or used by the savings bank | ||||||
15 | or affiliate.
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16 | (b) Notwithstanding any other provision of this Act, after | ||||||
17 | the effective date of this amendatory Act of the 95th General | ||||||
18 | Assembly, no savings bank may establish an office or branch on | ||||||
19 | or adjacent to the premises of an affiliate of the savings bank | ||||||
20 | if the affiliate engages in any commercial activity that could | ||||||
21 | not lawfully be conducted by a savings bank holding company or | ||||||
22 | a subsidiary of the savings bank holding company pursuant to | ||||||
23 | federal law.
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24 | (c) It is the intent of this Section that no entity be | ||||||
25 | permitted to circumvent the prohibition stated in this Section | ||||||
26 | by first establishing a savings bank office or branch and then |
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1 | subsequently locating an office of an affiliate on or adjacent | ||||||
2 | to the premises of the savings bank office or branch. If any | ||||||
3 | entity attempts to locate an office or branch of an affiliate | ||||||
4 | in, on, or adjacent to the premises of the savings bank office | ||||||
5 | or branch, the entity must cease to operate its savings bank | ||||||
6 | office or branch at a location that would violate the intent of | ||||||
7 | this Section.
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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