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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 Office of Banks and Real Estate Act is | |||||||||||||||||||
5 | amended by changing Sections 5 and 6 as follows:
| |||||||||||||||||||
6 | (20 ILCS 3205/5) (from Ch. 17, par. 455)
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7 | Sec. 5. Powers. In addition to all the other powers and | |||||||||||||||||||
8 | duties provided
by law, the Secretary Commissioner shall have | |||||||||||||||||||
9 | the 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.
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23 | (d) Whenever the Secretary Commissioner is authorized or |
| |||||||
| |||||||
1 | required by law to consider
or to make findings regarding the | ||||||
2 | character of incorporators, directors,
management personnel, | ||||||
3 | or other relevant individuals under the Illinois Banking
Act,
| ||||||
4 | the Corporate Fiduciary Act, the Pawnbroker Regulation Act, or | ||||||
5 | at other
times as the Secretary Commissioner deems necessary | ||||||
6 | for the purpose of carrying out the Secretary's
Commissioner's | ||||||
7 | statutory powers
and responsibilities, the Secretary | ||||||
8 | Commissioner shall consider criminal
history record | ||||||
9 | information, including nonconviction information, pursuant to
| ||||||
10 | the Criminal Identification Act. The Secretary Commissioner | ||||||
11 | shall, in the
form and manner required by
the Department of | ||||||
12 | State Police and the Federal Bureau of Investigation, cause
to | ||||||
13 | be conducted a criminal history record investigation to obtain
| ||||||
14 | information currently contained in the files of the Department | ||||||
15 | of State Police
or the Federal Bureau of Investigation, | ||||||
16 | provided that the Secretary Commissioner need
not cause | ||||||
17 | additional criminal history record investigations to be | ||||||
18 | conducted
on individuals for whom the Secretary Commissioner , a | ||||||
19 | federal bank regulatory
agency, or any other government agency | ||||||
20 | has caused such investigations to
have been conducted | ||||||
21 | previously unless such additional investigations are
otherwise | ||||||
22 | required by law or unless the Secretary Commissioner deems such | ||||||
23 | additional
investigations to be necessary for the purposes of
| ||||||
24 | carrying out the Secretary's Commissioner's statutory powers | ||||||
25 | and responsibilities.
The Department of State Police shall
| ||||||
26 | provide, on the Secretary's Commissioner's request, |
| |||||||
| |||||||
1 | information concerning criminal
charges and their disposition | ||||||
2 | currently on file with respect to a relevant
individual. | ||||||
3 | Information obtained as a result
of an investigation under this | ||||||
4 | Section shall be used in determining eligibility
to be an | ||||||
5 | incorporator, director, management personnel, or other | ||||||
6 | relevant
individual in relation to a financial institution or | ||||||
7 | other entity
supervised by the Secretary Commissioner . Upon | ||||||
8 | request and payment of fees in
conformance with the
| ||||||
9 | requirements of Section 2605-400 of the Department of State | ||||||
10 | Police Law (20 ILCS
2605/2605-400), the Department of State | ||||||
11 | Police is authorized
to furnish, pursuant to positive | ||||||
12 | identification, such information contained in
State files as is | ||||||
13 | necessary to fulfill the request.
| ||||||
14 | (e) When issuing charters, permits, licenses, or other | ||||||
15 | authorizations,
the Secretary Commissioner may impose such | ||||||
16 | terms and conditions on the issuance
as he deems necessary or | ||||||
17 | appropriate. Failure to
abide by those terms and conditions may | ||||||
18 | result in the revocation of the
issuance, the imposition of | ||||||
19 | corrective orders, or the imposition of civil
money penalties.
| ||||||
20 | (f) If the Secretary Commissioner has reasonable cause to | ||||||
21 | believe that any entity
that has not submitted an application | ||||||
22 | for authorization or licensure is
conducting any activity that | ||||||
23 | would otherwise require authorization or
licensure by the | ||||||
24 | Secretary Commissioner , the Secretary Commissioner shall have | ||||||
25 | the power to
subpoena witnesses, to compel their attendance, | ||||||
26 | and to require the production
of any relevant books, papers, |
| |||||||
| |||||||
1 | accounts, and documents , and to conduct an examination of the | ||||||
2 | entity in order to determine
whether the entity is subject to | ||||||
3 | authorization or licensure by the Secretary or the Department | ||||||
4 | of Financial and Professional Regulation
Commissioner or the | ||||||
5 | Office of Banks and Real Estate .
| ||||||
6 | (g) The Secretary Commissioner may, through the Attorney | ||||||
7 | General, request
the circuit court of any county to issue an | ||||||
8 | injunction to restrain any person
from violating the provisions | ||||||
9 | of any Act administered by the Secretary Commissioner .
| ||||||
10 | (h) Whenever the Secretary Commissioner is authorized to | ||||||
11 | take any action or
required by law to consider or make | ||||||
12 | findings, the Secretary Commissioner may delegate
or appoint, | ||||||
13 | in writing, an officer or employee of the Department of | ||||||
14 | Financial and Professional Regulation Office of Banks and Real
| ||||||
15 | Estate to
take that action or make that finding. | ||||||
16 | (i) To prescribe the form, filing, and processing | ||||||
17 | requirements for applications submitted to the Department | ||||||
18 | including, but not limited to, the requirement to file | ||||||
19 | applications electronically.
| ||||||
20 | (Source: P.A. 91-239, eff. 1-1-00; 92-483, eff. 8-23-01.)
| ||||||
21 | (20 ILCS 3205/6) (from Ch. 17, par. 456)
| ||||||
22 | Sec. 6. Duties. The Secretary Commissioner shall direct and | ||||||
23 | supervise all the
administrative and technical activities of | ||||||
24 | the Office and shall:
| ||||||
25 | (a) Apply and carry out this Act and the law and all rules |
| |||||||
| |||||||
1 | adopted in
pursuance thereof.
| ||||||
2 | (b) Appoint, subject to the provisions of the Personnel | ||||||
3 | Code, such
employees, experts, and special assistants as may be
| ||||||
4 | necessary to carry out effectively the provisions of this Act | ||||||
5 | and, if the
rate of compensation is not otherwise fixed by law, | ||||||
6 | fix their
compensation; but neither the Secretary Commissioner | ||||||
7 | nor any deputy commissioner shall be
subject to the Personnel | ||||||
8 | Code.
| ||||||
9 | (c) (Blank). Serve as Chairman of the State Banking Board | ||||||
10 | of Illinois.
| ||||||
11 | (d) Serve as Chairman of the Board of Trustees of the | ||||||
12 | Illinois Bank
Examiners' Education Foundation.
| ||||||
13 | (e) Issue guidelines in the form of rules or regulations | ||||||
14 | which will prohibit
discrimination by any State chartered bank | ||||||
15 | against any individual, corporation,
partnership, association | ||||||
16 | or other entity because it appears in a
so-called blacklist | ||||||
17 | issued by any domestic or foreign corporate or governmental
| ||||||
18 | entity.
| ||||||
19 | (f) Make an annual report to the Governor regarding the | ||||||
20 | work of the Office
as the Secretary Commissioner may consider | ||||||
21 | desirable or as the Governor may request.
| ||||||
22 | (g) Perform such other acts as may be requested by the | ||||||
23 | State Banking
Board
of Illinois pursuant to its lawful powers | ||||||
24 | and perform any other lawful act
that the Secretary
| ||||||
25 | Commissioner considers to be
necessary or desirable to carry | ||||||
26 | out the purposes and provisions of this Act.
|
| |||||||
| |||||||
1 | (h) Adopt, in accordance with the Illinois Administrative | ||||||
2 | Procedure
Act, reasonable rules that the Secretary | ||||||
3 | Commissioner deems necessary for the proper
administration and | ||||||
4 | enforcement of any Act the administration of which is vested
in | ||||||
5 | the Secretary Commissioner or the Department of Financial and | ||||||
6 | Professional Regulation Office of Banks and Real Estate . | ||||||
7 | (i) Work in cooperation with the Director of Aging to | ||||||
8 | encourage all financial institutions regulated by the | ||||||
9 | Department Office to participate fully in the Department on | ||||||
10 | Aging's financial exploitation of the elderly intervention | ||||||
11 | program.
| ||||||
12 | (Source: P.A. 92-483, eff. 8-23-01; 93-786, eff. 7-21-04.)
| ||||||
13 | Section 10. The Illinois Bank Examiners' Education | ||||||
14 | Foundation Act is amended by changing Section 5 as follows:
| ||||||
15 | (20 ILCS 3210/5) (from Ch. 17, par. 405)
| ||||||
16 | Sec. 5. The Foundation shall be governed by a Board of | ||||||
17 | Trustees. The
Board shall consist of the members of the Board | ||||||
18 | of Banks and Trust Companies following trustees: the | ||||||
19 | Commissioner, who shall
be its chairman; one Class A member and | ||||||
20 | three Class B members from the
State Banking Board of Illinois, | ||||||
21 | appointed by the Governor .
| ||||||
22 | The terms of the trustees of the Foundation who are members | ||||||
23 | of the State
Banking Board of Illinois are to be coextensive | ||||||
24 | with their terms on the Board of Banks and Trust Companies
|
| |||||||
| |||||||
1 | State Banking Board of Illinois . An appointment to fill a | ||||||
2 | vacancy shall be
for the unexpired term of the trustee whose | ||||||
3 | term is being filled. Trustees
shall receive no compensation | ||||||
4 | for service on the Board, but shall be
reimbursed for all | ||||||
5 | reasonable and necessary expenditures incurred in the
| ||||||
6 | performance of their official duties.
| ||||||
7 | (Source: P.A. 84-1127.)
| ||||||
8 | Section 15. The Illinois Banking Act is amended by changing | ||||||
9 | Sections 2, 13, 16, 48, and 82 and by adding Sections 78.5 and | ||||||
10 | 79.5 as follows:
| ||||||
11 | (205 ILCS 5/2) (from Ch. 17, par. 302)
| ||||||
12 | Sec. 2. General definitions. In this Act, unless the | ||||||
13 | context otherwise
requires, the following words and phrases | ||||||
14 | shall have the following meanings:
| ||||||
15 | "Accommodation party" shall have the meaning ascribed to | ||||||
16 | that term in
Section 3-419 of the Uniform Commercial Code.
| ||||||
17 | "Action" in the sense of a judicial proceeding includes | ||||||
18 | recoupments,
counterclaims, set-off, and any other proceeding | ||||||
19 | in which
rights are determined.
| ||||||
20 | "Affiliate facility" of a bank means a main banking | ||||||
21 | premises or branch
of another commonly owned bank.
The main | ||||||
22 | banking premises or any branch of a bank
may be an "affiliate | ||||||
23 | facility" with respect to one or more other commonly owned
| ||||||
24 | banks.
|
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| |||||||
1 | "Appropriate federal banking agency" means the Federal | ||||||
2 | Deposit Insurance
Corporation, the Federal Reserve Bank of | ||||||
3 | Chicago, or the Federal Reserve Bank
of St. Louis, as | ||||||
4 | determined by federal law.
| ||||||
5 | "Bank" means any person doing a banking business whether | ||||||
6 | subject to the
laws of this or any other jurisdiction.
| ||||||
7 | A "banking house", "branch", "branch bank" or "branch
| ||||||
8 | office" shall mean any place of business of a bank at which | ||||||
9 | deposits are
received, checks paid, or loans made, but shall | ||||||
10 | not include any place at
which only records thereof are made, | ||||||
11 | posted, or kept. A place of business
at which deposits are | ||||||
12 | received, checks paid, or loans made shall not be
deemed to be | ||||||
13 | a branch, branch bank, or branch office if the place of
| ||||||
14 | business is adjacent to and connected with the main banking | ||||||
15 | premises, or if
it is separated from the main banking premises | ||||||
16 | by not more than an alley;
provided always that (i) if the | ||||||
17 | place of business is separated by an alley
from the main | ||||||
18 | banking premises there is a connection between the two by
| ||||||
19 | public or private way or by subterranean or overhead passage, | ||||||
20 | and (ii) if
the place of business is in a building not wholly | ||||||
21 | occupied by the bank, the
place of business shall not be within | ||||||
22 | any office or room in which any other
business or service of | ||||||
23 | any kind or nature other than the business of the
bank is | ||||||
24 | conducted or carried on. A place of business at which deposits | ||||||
25 | are
received, checks paid, or loans made shall not be deemed to | ||||||
26 | be a branch,
branch bank, or branch office (i) of any bank if |
| |||||||
| |||||||
1 | the place is a terminal established and maintained in | ||||||
2 | accordance with
paragraph
(17) of Section 5 of this Act, or | ||||||
3 | (ii) of a commonly owned bank
by virtue of
transactions | ||||||
4 | conducted at that place on behalf of the other commonly owned | ||||||
5 | bank
under paragraph (23) of Section 5 of this Act if the place | ||||||
6 | is an affiliate
facility with respect to the other bank.
| ||||||
7 | "Board" means the Board of Banks and Trust Companies. | ||||||
8 | "Branch of an out-of-state bank" means a branch established | ||||||
9 | or maintained in
Illinois by an out-of-state bank as a result | ||||||
10 | of a merger between an Illinois
bank and the out-of-state bank | ||||||
11 | that occurs on or after May 31, 1997, or any
branch established | ||||||
12 | by the out-of-state bank following the merger.
| ||||||
13 | "Bylaws" means the bylaws of a bank that are adopted by the | ||||||
14 | bank's board of
directors or shareholders for the regulation | ||||||
15 | and management of the bank's
affairs. If the bank operates as a | ||||||
16 | limited liability company, however, "bylaws"
means the | ||||||
17 | operating
agreement of the bank.
| ||||||
18 | "Call report fee" means the fee to be paid to the
Secretary | ||||||
19 | Commissioner by each State bank pursuant to paragraph (a) of | ||||||
20 | subsection (3)
of Section 48 of this Act.
| ||||||
21 | "Capital" includes the aggregate of outstanding capital | ||||||
22 | stock and
preferred stock.
| ||||||
23 | "Cash flow reserve account" means the account within the | ||||||
24 | books and records
of the Secretary of Financial and | ||||||
25 | Professional Regulation Commissioner of Banks and Real Estate | ||||||
26 | used to
record funds designated to maintain a reasonable Bank |
| |||||||
| |||||||
1 | and Trust Company Fund
operating balance to meet agency | ||||||
2 | obligations on a timely basis.
| ||||||
3 | "Charter" includes the original charter and all amendments | ||||||
4 | thereto
and articles of merger or consolidation.
| ||||||
5 | "Commissioner" means the Commissioner of Banks and Real | ||||||
6 | Estate or a person
authorized by the Commissioner, the Office | ||||||
7 | of Banks and Real Estate
Act, or this Act to act in the | ||||||
8 | Commissioner's stead.
| ||||||
9 | "Commonly owned banks" means 2 or more banks that each | ||||||
10 | qualify as a bank
subsidiary of the same bank holding company | ||||||
11 | pursuant to Section 18 of the
Federal Deposit Insurance Act; | ||||||
12 | "commonly owned bank" refers to one of a group
of commonly | ||||||
13 | owned banks but only with respect to one or more of the other | ||||||
14 | banks
in the same group.
| ||||||
15 | "Community" means a city, village, or incorporated town and | ||||||
16 | also includes
the area served by the banking offices of a bank, | ||||||
17 | but need not be limited or
expanded to conform to the | ||||||
18 | geographic boundaries of units of local
government.
| ||||||
19 | "Company" means a corporation, limited liability company, | ||||||
20 | partnership,
business trust,
association, or similar | ||||||
21 | organization and, unless specifically excluded,
includes a | ||||||
22 | "State bank" and a "bank".
| ||||||
23 | "Consolidating bank" means a party to a consolidation.
| ||||||
24 | "Consolidation" takes place when 2 or more banks, or a | ||||||
25 | trust company and
a bank, are extinguished and by the same | ||||||
26 | process a new bank is created,
taking over the assets and |
| |||||||
| |||||||
1 | assuming the liabilities of the banks or trust
company passing | ||||||
2 | out of existence.
| ||||||
3 | "Continuing bank" means a merging bank, the charter of | ||||||
4 | which becomes the
charter of the resulting bank.
| ||||||
5 | "Converting bank" means a State bank converting to become a | ||||||
6 | national
bank, or a national bank converting to become a State | ||||||
7 | bank.
| ||||||
8 | "Converting trust company" means a trust company | ||||||
9 | converting to become a
State bank.
| ||||||
10 | "Court" means a court of competent jurisdiction.
| ||||||
11 | "Director" means a member of the board of directors of a | ||||||
12 | bank. In the case
of a manager-managed limited liability | ||||||
13 | company, however, "director" means a
manager of
the bank and, | ||||||
14 | in the case of a member-managed limited liability company,
| ||||||
15 | "director" means a member of the bank. The term "director" does | ||||||
16 | not include an
advisory director, honorary director, director | ||||||
17 | emeritus, or similar person,
unless the person is otherwise | ||||||
18 | performing
functions similar to those of a member of the board | ||||||
19 | of directors. | ||||||
20 | "Director of the Division" means the Director of the | ||||||
21 | Division of Banks of the Department of Financial and | ||||||
22 | Professional Regulation.
| ||||||
23 | "Eligible depository institution" means an insured savings | ||||||
24 | association
that is in default, an insured savings association | ||||||
25 | that is in danger of
default, a State or national bank that is | ||||||
26 | in default or a State or
national bank that is in danger of |
| |||||||
| |||||||
1 | default, as those terms are defined in this
Section, or a new | ||||||
2 | bank as that term defined in Section 11(m) of the Federal
| ||||||
3 | Deposit Insurance Act or a bridge bank as that term is defined | ||||||
4 | in Section 11(n)
of the Federal Deposit Insurance Act or a new | ||||||
5 | federal savings association
authorized under Section | ||||||
6 | 11(d)(2)(f) of the Federal Deposit Insurance Act.
| ||||||
7 | "Fiduciary" means trustee, agent, executor, administrator, | ||||||
8 | committee,
guardian for a minor or for a person under legal | ||||||
9 | disability, receiver,
trustee in bankruptcy, assignee for | ||||||
10 | creditors, or any holder of similar
position of trust.
| ||||||
11 | "Financial institution" means a bank, savings and loan | ||||||
12 | association,
credit union, or any licensee under the Consumer | ||||||
13 | Installment Loan Act or
the Sales Finance Agency Act and, for | ||||||
14 | purposes of Section 48.3, any
proprietary network, funds | ||||||
15 | transfer corporation, or other entity providing
electronic | ||||||
16 | funds transfer services, or any corporate fiduciary, its
| ||||||
17 | subsidiaries, affiliates, parent company, or contractual | ||||||
18 | service provider
that is examined by the Secretary | ||||||
19 | Commissioner .
| ||||||
20 | "Foundation" means the Illinois Bank Examiners' Education | ||||||
21 | Foundation.
| ||||||
22 | "General obligation" means a bond, note, debenture, | ||||||
23 | security, or other
instrument evidencing an obligation of the | ||||||
24 | government entity that is the
issuer that is supported by the
| ||||||
25 | full available resources of the issuer, the principal and | ||||||
26 | interest of which
is payable in whole or in part by taxation.
|
| |||||||
| |||||||
1 | "Guarantee" means an undertaking or promise to answer for | ||||||
2 | payment of
another's debt or performance of another's duty, | ||||||
3 | liability, or obligation
whether "payment guaranteed" or | ||||||
4 | "collection guaranteed".
| ||||||
5 | "In danger of default" means a State or national bank, a | ||||||
6 | federally chartered
insured savings association or an Illinois | ||||||
7 | state chartered insured savings
association with respect to | ||||||
8 | which the Secretary Commissioner or the appropriate
federal | ||||||
9 | banking agency has advised the Federal Deposit Insurance
| ||||||
10 | Corporation that:
| ||||||
11 | (1) in the opinion of the Secretary Commissioner or the | ||||||
12 | appropriate federal
banking agency,
| ||||||
13 | (A) the State or national bank or insured savings | ||||||
14 | association is not
likely to be able to meet the | ||||||
15 | demands of the State or national bank's or
savings | ||||||
16 | association's obligations in the normal course of | ||||||
17 | business; and
| ||||||
18 | (B) there is no reasonable prospect that the State | ||||||
19 | or national bank or
insured savings association will be | ||||||
20 | able to meet those demands or pay those
obligations | ||||||
21 | without federal assistance; or
| ||||||
22 | (2) in the opinion of the Secretary Commissioner or the | ||||||
23 | appropriate federal
banking agency,
| ||||||
24 | (A) the State or national bank or insured savings | ||||||
25 | association has
incurred or is likely to incur losses | ||||||
26 | that will deplete all or substantially
all of its |
| |||||||
| |||||||
1 | capital; and
| ||||||
2 | (B) there is no reasonable prospect that the | ||||||
3 | capital of the State
or national bank or insured | ||||||
4 | savings association will be replenished without
| ||||||
5 | federal assistance.
| ||||||
6 | "In default" means, with respect to a State or national | ||||||
7 | bank or an insured
savings association, any adjudication or | ||||||
8 | other official determination by any
court of competent | ||||||
9 | jurisdiction, the Secretary Commissioner , the appropriate | ||||||
10 | federal
banking agency, or other public authority pursuant to | ||||||
11 | which a conservator, receiver,
or other legal custodian is | ||||||
12 | appointed for a State or national bank or an
insured savings | ||||||
13 | association.
| ||||||
14 | "Insured savings association" means any federal savings | ||||||
15 | association chartered
under Section 5 of the federal Home | ||||||
16 | Owners' Loan Act and any State savings
association chartered | ||||||
17 | under the Illinois Savings and Loan Act of 1985 or a
| ||||||
18 | predecessor Illinois statute, the deposits of which are insured | ||||||
19 | by the Federal
Deposit Insurance Corporation. The term also | ||||||
20 | includes a savings bank organized
or operating under the | ||||||
21 | Savings Bank Act.
| ||||||
22 | "Insured savings association in recovery" means an insured | ||||||
23 | savings
association that is not an eligible depository | ||||||
24 | institution and that does
not meet the minimum capital | ||||||
25 | requirements applicable with respect to the
insured savings | ||||||
26 | association.
|
| |||||||
| |||||||
1 | "Issuer" means for purposes of Section 33 every person who | ||||||
2 | shall have
issued or proposed to issue any security; except | ||||||
3 | that (1) with respect to
certificates of deposit, voting trust | ||||||
4 | certificates, collateral-trust
certificates, and certificates | ||||||
5 | of interest or shares in an unincorporated
investment trust not | ||||||
6 | having a board of directors (or persons performing
similar | ||||||
7 | functions), "issuer" means the person or persons performing the
| ||||||
8 | acts and assuming the duties of depositor or manager pursuant | ||||||
9 | to the
provisions of the trust, agreement, or instrument under | ||||||
10 | which the
securities are issued; (2) with respect to trusts | ||||||
11 | other than those
specified in clause (1) above, where the | ||||||
12 | trustee is a corporation
authorized to accept and execute | ||||||
13 | trusts, "issuer" means the entrusters,
depositors, or creators | ||||||
14 | of the trust and any manager or committee charged
with the | ||||||
15 | general direction of the affairs of the trust pursuant to the
| ||||||
16 | provisions of the agreement or instrument creating the trust; | ||||||
17 | and (3) with
respect to equipment trust certificates or like | ||||||
18 | securities, "issuer" means
the person to whom the equipment or | ||||||
19 | property is or is to be leased or
conditionally sold.
| ||||||
20 | "Letter of credit" and "customer" shall have the meanings | ||||||
21 | ascribed to
those terms in Section 5-102 of the Uniform | ||||||
22 | Commercial Code.
| ||||||
23 | "Main banking premises" means the location that is | ||||||
24 | designated in a
bank's charter as its main office.
| ||||||
25 | "Maker or obligor" means for purposes of Section 33 the | ||||||
26 | issuer of a
security, the promisor in a debenture or other debt |
| |||||||
| |||||||
1 | security, or the
mortgagor or grantor of a trust deed or | ||||||
2 | similar conveyance of a security
interest in real or personal | ||||||
3 | property.
| ||||||
4 | "Merged bank" means a merging bank that is not the | ||||||
5 | continuing, resulting,
or surviving bank in a consolidation or | ||||||
6 | merger.
| ||||||
7 | "Merger" includes consolidation.
| ||||||
8 | "Merging bank" means a party to a bank merger.
| ||||||
9 | "Merging trust company" means a trust company party to a | ||||||
10 | merger with
a State bank.
| ||||||
11 | "Mid-tier bank holding company" means a corporation that | ||||||
12 | (a) owns 100% of
the issued and outstanding shares of each | ||||||
13 | class of stock of a State bank, (b)
has no other subsidiaries, | ||||||
14 | and (c) 100% of the issued and outstanding shares of
the | ||||||
15 | corporation are owned by a parent bank holding company.
| ||||||
16 | "Municipality" means any municipality, political | ||||||
17 | subdivision, school
district, taxing district, or agency.
| ||||||
18 | "National bank" means a national banking association | ||||||
19 | located in this
State and after May 31, 1997, means a national | ||||||
20 | banking association without
regard to its location.
| ||||||
21 | "Out-of-state bank" means a bank chartered under the laws | ||||||
22 | of a state other
than Illinois, a territory of the United | ||||||
23 | States, or the District of Columbia.
| ||||||
24 | "Parent bank holding company" means a corporation that is a | ||||||
25 | bank holding
company as that term is defined in the Illinois | ||||||
26 | Bank Holding Company Act of
1957 and owns 100% of the issued |
| |||||||
| |||||||
1 | and outstanding shares of a mid-tier bank
holding company.
| ||||||
2 | "Person" means an individual, corporation, limited | ||||||
3 | liability company,
partnership, joint
venture, trust, estate, | ||||||
4 | or unincorporated association.
| ||||||
5 | "Public agency" means the State of Illinois, the various | ||||||
6 | counties,
townships,
cities, towns, villages, school | ||||||
7 | districts, educational service regions, special
road | ||||||
8 | districts, public water supply districts, fire protection | ||||||
9 | districts,
drainage districts, levee districts, sewer | ||||||
10 | districts, housing authorities, the
Illinois Bank Examiners' | ||||||
11 | Education Foundation, the Chicago Park District, and
all other | ||||||
12 | political corporations or subdivisions of the State of | ||||||
13 | Illinois,
whether now or hereafter created, whether herein | ||||||
14 | specifically mentioned or
not, and shall also include any other
| ||||||
15 | state or any political corporation or subdivision of another | ||||||
16 | state.
| ||||||
17 | "Public funds" or "public money" means
current operating | ||||||
18 | funds, special funds, interest and sinking funds, and funds
of | ||||||
19 | any kind or character belonging to, in the custody of, or | ||||||
20 | subject to the
control or regulation of the United States or a | ||||||
21 | public agency. "Public funds"
or "public money" shall include | ||||||
22 | funds held by any of the officers, agents, or
employees of the | ||||||
23 | United States or of a public agency in the course of their
| ||||||
24 | official duties and, with respect to public money of the United | ||||||
25 | States, shall
include Postal Savings funds.
| ||||||
26 | "Published" means, unless the context requires otherwise, |
| |||||||
| |||||||
1 | the publishing
of the notice or instrument referred to in some | ||||||
2 | newspaper of general
circulation in the community in which the | ||||||
3 | bank is located at least once
each week for 3 successive weeks. | ||||||
4 | Publishing shall be accomplished by, and
at the expense of, the | ||||||
5 | bank required to publish. Where publishing is
required, the | ||||||
6 | bank shall submit to the Secretary Commissioner that evidence | ||||||
7 | of the
publication as the Secretary Commissioner shall deem | ||||||
8 | appropriate.
| ||||||
9 | "Qualified financial contract" means any security | ||||||
10 | contract,
commodity contract, forward contract, including spot | ||||||
11 | and
forward foreign exchange contracts, repurchase agreement, | ||||||
12 | swap agreement, and
any
similar agreement, any option to enter | ||||||
13 | into any such agreement, including any
combination of the | ||||||
14 | foregoing, and any master agreement for such agreements.
A | ||||||
15 | master agreement, together with all supplements thereto, shall | ||||||
16 | be treated
as one qualified financial contract. The contract, | ||||||
17 | option, agreement, or
combination of contracts, options, or | ||||||
18 | agreements shall be reflected upon the
books, accounts, or | ||||||
19 | records of the bank, or a party to the contract shall
provide | ||||||
20 | documentary evidence of such agreement.
| ||||||
21 | "Recorded" means the filing or recording of the notice or | ||||||
22 | instrument
referred to in the office of the Recorder of the | ||||||
23 | county wherein
the bank is located.
| ||||||
24 | "Resulting bank" means the bank resulting from a merger or | ||||||
25 | conversion.
| ||||||
26 | "Secretary" means the Secretary of Financial and |
| |||||||
| |||||||
1 | Professional Regulation or a person
authorized by the | ||||||
2 | Secretary, the Office of Banks and Real Estate
Act, or this Act | ||||||
3 | to act in the Secretary's stead. | ||||||
4 | "Securities" means stocks, bonds, debentures, notes, or | ||||||
5 | other similar
obligations.
| ||||||
6 | "Stand-by letter of credit" means a letter of credit under | ||||||
7 | which drafts
are payable upon the condition the customer has | ||||||
8 | defaulted in performance of
a duty, liability, or obligation.
| ||||||
9 | "State bank" means any banking corporation that has a | ||||||
10 | banking charter
issued by the Secretary Commissioner under
this | ||||||
11 | Act.
| ||||||
12 | "State Banking Board" means the State Banking Board of | ||||||
13 | Illinois.
| ||||||
14 | "Subsidiary" with respect to a specified company means a | ||||||
15 | company that is
controlled by the specified company. For | ||||||
16 | purposes of paragraphs (8) and (12)
of Section 5 of this Act, | ||||||
17 | "control" means the exercise of operational or
managerial | ||||||
18 | control of a corporation by the bank, either alone or together | ||||||
19 | with
other affiliates of the bank.
| ||||||
20 | "Surplus" means the aggregate of (i) amounts paid in excess | ||||||
21 | of the par
value of capital stock and preferred stock; (ii) | ||||||
22 | amounts contributed other
than for capital stock and preferred | ||||||
23 | stock and allocated to the surplus
account; and (iii) amounts | ||||||
24 | transferred from undivided profits.
| ||||||
25 | "Tier 1 Capital" and "Tier 2 Capital" have the meanings | ||||||
26 | assigned to those
terms in regulations promulgated for the |
| |||||||
| |||||||
1 | appropriate federal banking agency of
a state bank, as those | ||||||
2 | regulations are now or hereafter amended.
| ||||||
3 | "Trust company" means a limited liability company or | ||||||
4 | corporation
incorporated in this State for the
purpose of | ||||||
5 | accepting and executing trusts.
| ||||||
6 | "Undivided profits" means undistributed earnings less | ||||||
7 | discretionary
transfers to surplus.
| ||||||
8 | "Unimpaired capital and unimpaired surplus", for the | ||||||
9 | purposes of paragraph
(21) of Section 5 and Sections 32, 33, | ||||||
10 | 34, 35.1, 35.2, and 47 of this Act means
the sum of the state | ||||||
11 | bank's Tier 1 Capital and Tier 2 Capital plus such other
| ||||||
12 | shareholder equity as may be included by
regulation of the | ||||||
13 | Secretary Commissioner . Unimpaired capital and unimpaired | ||||||
14 | surplus
shall be calculated on the basis of the date of the | ||||||
15 | last quarterly call report
filed with the Secretary | ||||||
16 | Commissioner preceding the date of the transaction for which | ||||||
17 | the
calculation is made, provided that: (i) when a material | ||||||
18 | event occurs after the
date of the last quarterly call report | ||||||
19 | filed with the Secretary Commissioner that reduces
or increases | ||||||
20 | the bank's unimpaired capital and unimpaired surplus by 10% or
| ||||||
21 | more, then the unimpaired capital and unimpaired surplus shall | ||||||
22 | be calculated
from the date of the material
event for a | ||||||
23 | transaction conducted after the date of the material event; and
| ||||||
24 | (ii) if the Secretary Commissioner determines for safety and | ||||||
25 | soundness reasons that a
state bank should calculate unimpaired | ||||||
26 | capital and unimpaired surplus more
frequently than provided by |
| |||||||
| |||||||
1 | this paragraph, the Secretary Commissioner may by written
| ||||||
2 | notice direct the bank to calculate unimpaired capital and | ||||||
3 | unimpaired surplus
at a more frequent interval. In the case of | ||||||
4 | a state bank newly chartered under
Section 13 or a state bank | ||||||
5 | resulting from a merger, consolidation, or
conversion under | ||||||
6 | Sections 21 through 26 for which no preceding quarterly call
| ||||||
7 | report has been filed with the Secretary Commissioner , | ||||||
8 | unimpaired capital and unimpaired
surplus shall be calculated | ||||||
9 | for the first calendar quarter on the basis of the
effective | ||||||
10 | date of the charter, merger, consolidation, or conversion.
| ||||||
11 | (Source: P.A. 92-483, eff. 8-23-01; 93-561, eff. 1-1-04.)
| ||||||
12 | (205 ILCS 5/13) (from Ch. 17, par. 320)
| ||||||
13 | Sec. 13. Issuance of charter.
| ||||||
14 | (a) When the directors have organized as provided in | ||||||
15 | Section 12 of this
Act, and the capital stock and the preferred | ||||||
16 | stock, if any, together with a
surplus of not less than 50% of | ||||||
17 | the capital,
has been all fully paid in and a record of the | ||||||
18 | same
filed with the Secretary Commissioner , the Secretary | ||||||
19 | Commissioner or some competent
person of the Secretary's | ||||||
20 | Commissioner's appointment shall make a thorough
examination | ||||||
21 | into the affairs of the proposed bank, and if satisfied (i)
| ||||||
22 | that
all the requirements of this Act have been complied with, | ||||||
23 | (ii) that
no
intervening circumstance has occurred to change | ||||||
24 | the Secretary's Commissioner's findings
made pursuant to | ||||||
25 | Section 10 of this Act, and (iii) that the prior involvement
by |
| |||||||
| |||||||
1 | any stockholder who will own a sufficient amount of stock to | ||||||
2 | have control,
as defined in Section 18 of this Act, of the | ||||||
3 | proposed bank with any other
financial institution, whether as | ||||||
4 | stockholder, director, officer, or customer,
was conducted in a | ||||||
5 | safe and sound manner, upon payment into the Secretary's
| ||||||
6 | Commissioner's office of the reasonable expenses of the
| ||||||
7 | examination, as determined by the Secretary Commissioner , the | ||||||
8 | Secretary Commissioner shall
issue a charter authorizing the | ||||||
9 | bank to commence business as authorized in
this Act. All | ||||||
10 | charters issued by the Secretary Commissioner or any | ||||||
11 | predecessor
agency which chartered State banks, including any | ||||||
12 | charter outstanding as of
September 1, 1989, shall be | ||||||
13 | perpetual. For the 2 years after the Secretary Commissioner
has | ||||||
14 | issued a charter to a bank, the bank shall request and obtain | ||||||
15 | from the Secretary
Commissioner prior written approval before | ||||||
16 | it may change senior management
personnel or directors.
| ||||||
17 | The original charter, duly certified by the Secretary | ||||||
18 | Commissioner , or a certified copy
shall be evidence in all | ||||||
19 | courts and places
of the existence and authority of the bank to | ||||||
20 | do business. Upon the
issuance of the charter by the Secretary | ||||||
21 | Commissioner , the bank
shall be deemed fully organized and may
| ||||||
22 | proceed to do business. The Secretary Commissioner may, in the | ||||||
23 | Secretary's Commissioner's
discretion, withhold the issuing of | ||||||
24 | the charter when the Secretary Commissioner has
reason to | ||||||
25 | believe that the bank is organized for any purpose other than
| ||||||
26 | that contemplated by this Act. The Secretary Commissioner shall
|
| |||||||
| |||||||
1 | revoke the charter and order liquidation in the event that the | ||||||
2 | bank does
not commence a general banking business within one | ||||||
3 | year from the date of
the issuance of the charter, unless a | ||||||
4 | request has been submitted, in
writing, to the Secretary | ||||||
5 | Commissioner for an extension and the request has been
| ||||||
6 | approved. After commencing a general
banking business, a bank | ||||||
7 | may
change
its name by filing written notice with the Secretary | ||||||
8 | Commissioner at least 30 days
prior
to the effective date of | ||||||
9 | such change. A bank chartered under this Act may
change its | ||||||
10 | main banking premises by filing written application with the | ||||||
11 | Secretary
Commissioner , on forms prescribed by the Secretary | ||||||
12 | Commissioner , provided (i) the change
shall not be a removal to | ||||||
13 | a new location without complying with the capital
requirements | ||||||
14 | of Section 7 and of subsection (1) of Section 10 of this Act; | ||||||
15 | (ii)
the Secretary Commissioner approves the relocation or | ||||||
16 | change; and (iii) the bank
complies with any applicable federal | ||||||
17 | law or regulation. The application
shall be deemed to be | ||||||
18 | approved if the Secretary Commissioner has not acted on the
| ||||||
19 | application within 30 days after receipt of the application, | ||||||
20 | unless within the
30-day time frame the Secretary Commissioner | ||||||
21 | informs the bank that an extension of time
is
necessary prior | ||||||
22 | to the Secretary's Commissioner's action on the application.
| ||||||
23 | (b) (1) The Secretary Commissioner may also issue a charter | ||||||
24 | to a bank that is owned
exclusively by other depository | ||||||
25 | institutions or depository institution holding
companies | ||||||
26 | and is organized to engage exclusively in providing |
| |||||||
| |||||||
1 | services to or
for other depository institutions, their | ||||||
2 | holding companies, and the officers,
directors, and | ||||||
3 | employees of such institutions and companies, and in | ||||||
4 | providing
correspondent banking services at the request of | ||||||
5 | other depository institutions
or their holding companies | ||||||
6 | (also referred to as a "bankers' bank").
| ||||||
7 | (2) A bank chartered pursuant to paragraph (1) shall, | ||||||
8 | except as otherwise
specifically determined or limited by | ||||||
9 | the Secretary Commissioner in an order or
pursuant to a | ||||||
10 | rule, be vested with the same rights
and privileges and | ||||||
11 | subject to the same duties, restrictions, penalties,
and | ||||||
12 | liabilities now or hereafter imposed under this Act.
| ||||||
13 | (c) A bank chartered under this Act shall after November 1, | ||||||
14 | 1985, and an
out-of-state bank that merges with a State bank | ||||||
15 | and establishes or maintains a
branch in this State after
May | ||||||
16 | 31, 1997, shall obtain
from and , at all times while it accepts | ||||||
17 | or retains deposits, maintain with
the Federal Deposit | ||||||
18 | Insurance Corporation, or such other instrumentality of
or | ||||||
19 | corporation chartered by the United States, deposit insurance | ||||||
20 | as
authorized under federal law.
| ||||||
21 | (d) (i) A bank that has a banking charter issued by the | ||||||
22 | Secretary Commissioner under
this Act may, pursuant to a | ||||||
23 | written purchase and assumption agreement,
transfer | ||||||
24 | substantially all of its assets to another State bank or | ||||||
25 | national
bank in consideration, in whole or in part, for | ||||||
26 | the transferee banks'
assumption of any part or all of its |
| |||||||
| |||||||
1 | liabilities. Such a transfer shall in
no way be deemed to | ||||||
2 | impair the charter of the transferor bank or cause the
| ||||||
3 | transferor bank to forfeit any of its rights, powers, | ||||||
4 | interests,
franchises, or privileges as a State bank, nor | ||||||
5 | shall any voluntary
reduction in the transferor bank's | ||||||
6 | activities resulting from the transfer
have any such | ||||||
7 | effect; provided, however, that a State bank that transfers
| ||||||
8 | substantially all of its assets pursuant to this subsection | ||||||
9 | (d) and
following the transfer does not accept deposits and | ||||||
10 | make loans, shall not
have any rights, powers, interests, | ||||||
11 | franchises, or privileges under
subsection (15) of Section | ||||||
12 | 5 of this Act until the bank has resumed
accepting deposits | ||||||
13 | and making loans.
| ||||||
14 | (ii) The fact that a State bank does not resume | ||||||
15 | accepting deposits and
making loans for a period of 24 | ||||||
16 | months commencing on September 11, 1989 or on a
date of the | ||||||
17 | transfer of substantially all of a State bank's assets, | ||||||
18 | whichever
is later, or such longer period as the Secretary | ||||||
19 | Commissioner may allow in writing, may
be the basis for a | ||||||
20 | finding by the Secretary Commissioner under Section 51 of | ||||||
21 | this Act
that the bank is unable to continue operations.
| ||||||
22 | (iii) The authority provided by subdivision (i) of this | ||||||
23 | subsection
(d) shall terminate on May 31, 1997, and no bank | ||||||
24 | that has transferred
substantially all of its assets | ||||||
25 | pursuant to this subsection (d) shall continue
in existence | ||||||
26 | after May 31, 1997.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-322, eff. 1-1-00; 92-483, eff. 8-23-01.)
| ||||||
2 | (205 ILCS 5/16) (from Ch. 17, par. 323)
| ||||||
3 | Sec. 16. Directors. The business and affairs of a State | ||||||
4 | bank shall be
managed by its board of directors that shall | ||||||
5 | exercise its powers as follows:
| ||||||
6 | (1) Directors shall be elected as provided in this Act. Any | ||||||
7 | omission
to elect a director or directors shall not impair any | ||||||
8 | of the rights and
privileges of the bank or of any person in | ||||||
9 | any way interested. The existing
directors shall hold office | ||||||
10 | until their successors are elected and qualify.
| ||||||
11 | (2) (a) Notwithstanding the provisions of any charter | ||||||
12 | heretofore or
hereafter issued, the number of directors, | ||||||
13 | not fewer than 5
nor more than 25, may be fixed from time | ||||||
14 | to time by the stockholders at any
meeting of the | ||||||
15 | stockholders called for the purpose of electing directors
| ||||||
16 | or changing the number thereof by the affirmative vote of | ||||||
17 | at least
two-thirds of the outstanding stock entitled to | ||||||
18 | vote at the
meeting, and the number so fixed shall be the | ||||||
19 | board regardless of
vacancies until the number of directors | ||||||
20 | is thereafter changed by similar
action.
| ||||||
21 | (b) Notwithstanding the minimum number of directors | ||||||
22 | specified in
paragraph (a) of this subsection, a State bank | ||||||
23 | that has been in existence
for 10 years or more and has | ||||||
24 | less than $20,000,000 in assets, as of the
December 31 | ||||||
25 | immediately preceding the annual meeting of shareholders |
| |||||||
| |||||||
1 | at
which directors are elected, may, subject to the | ||||||
2 | approval of the Secretary
Commissioner , have a minimum of 3 | ||||||
3 | directors; provided that if a State bank
has fewer than 5 | ||||||
4 | directors, at least one director shall not be an officer
or | ||||||
5 | employee of the bank. The Secretary Commissioner shall | ||||||
6 | annually review the
appropriateness of the grant of | ||||||
7 | authority to have a reduced minimum number
of directors | ||||||
8 | pursuant to this paragraph (b).
| ||||||
9 | (3) Except as otherwise provided in this paragraph (3), | ||||||
10 | directors
shall hold office until the next annual meeting of | ||||||
11 | the stockholders
succeeding their election or until their | ||||||
12 | successors are elected and
qualify. If the board of directors | ||||||
13 | consists of 6 or more members, in lieu
of electing the | ||||||
14 | membership of the whole board of directors annually, the
| ||||||
15 | charter or by-laws of a State bank may provide that the | ||||||
16 | directors shall be
divided into either 2 or 3 classes, each | ||||||
17 | class to be as nearly equal in
number as is possible. The term | ||||||
18 | of office of directors of the first class
shall expire at the | ||||||
19 | first annual meeting of the stockholders after their
election, | ||||||
20 | that of the second class shall expire at the second annual
| ||||||
21 | meeting after their election, and that of the third class, if | ||||||
22 | any, shall
expire at the third annual meeting after their | ||||||
23 | election. At each annual
meeting after classification, the | ||||||
24 | number of directors equal to the number
of the class whose | ||||||
25 | terms expire at the time of the meeting shall be elected
to | ||||||
26 | hold office until the second succeeding annual meeting, if |
| |||||||
| |||||||
1 | there be 2
classes, or until the third succeeding annual | ||||||
2 | meeting, if there be 3
classes. Vacancies may be filled by | ||||||
3 | stockholders at a special meeting
called for the purpose.
| ||||||
4 | If authorized by the bank's by-laws or an amendment | ||||||
5 | thereto, the directors
of a State bank may properly fill a | ||||||
6 | vacancy or vacancies arising between
shareholders' meetings, | ||||||
7 | but at no time may the number of directors selected to
fill a | ||||||
8 | vacancy in this manner during any interim period between | ||||||
9 | shareholders'
meetings exceed 33 1/3% of the total membership | ||||||
10 | of the board of directors.
| ||||||
11 | (4) The board of directors shall hold regular meetings at | ||||||
12 | least
once
each month, provided that, upon prior written | ||||||
13 | approval by the Secretary Commissioner ,
the board of directors | ||||||
14 | may hold regular meetings less frequently than once
each month | ||||||
15 | but at least once each calendar
quarter. A special meeting of | ||||||
16 | the board of directors may be held as
provided by the by-laws. | ||||||
17 | A special meeting of the board of directors may
also be held | ||||||
18 | upon call by the Secretary Commissioner or a bank examiner | ||||||
19 | appointed
under the provisions of this Act upon not less than | ||||||
20 | 12 hours notice of
the meeting by personal service of the | ||||||
21 | notice , or by mailing the notice to
each of the directors at | ||||||
22 | his residence as shown by the books of the bank , or by any | ||||||
23 | other method of delivery, provided such method provides proof | ||||||
24 | of service and receipt .
A majority of the board of directors | ||||||
25 | shall constitute a quorum for the
transaction of business | ||||||
26 | unless a greater number is required by the charter
or the |
| |||||||
| |||||||
1 | by-laws. The act of the majority of the directors present at a
| ||||||
2 | meeting at which a quorum is present shall be the act of the | ||||||
3 | board of
directors unless the act of a greater number is | ||||||
4 | required by the charter
or by the by-laws.
| ||||||
5 | (5) A member of the board of directors shall be elected
| ||||||
6 | president.
The board of directors may appoint other officers, | ||||||
7 | as the by-laws may
provide, and fix their salaries to carry on | ||||||
8 | the business of the bank. The
board of directors may make and | ||||||
9 | amend by-laws (not inconsistent with this
Act) for the | ||||||
10 | government of the bank and may, by the affirmative vote of a
| ||||||
11 | majority of the board of directors, establish reasonable | ||||||
12 | compensation of
all directors for services to the corporation | ||||||
13 | as directors, officers, or
otherwise. An officer, whether | ||||||
14 | elected or appointed by the board of
directors or appointed | ||||||
15 | pursuant to the by-laws, may be removed by the board
of | ||||||
16 | directors at any time.
| ||||||
17 | (6) The board of directors shall cause suitable books and
| ||||||
18 | records of all
the bank's transactions to be kept.
| ||||||
19 | (7) (a) In discharging the duties of their respective | ||||||
20 | positions, the
board
of directors, committees of the board, | ||||||
21 | and individual directors may, in
considering the best long | ||||||
22 | term and short term interests of the bank,
consider the | ||||||
23 | effects of any action (including, without limitation, | ||||||
24 | action
that may involve or relate to a merger or potential | ||||||
25 | merger or to a change
or potential change in control of the | ||||||
26 | bank) upon employees, depositors,
suppliers, and customers |
| |||||||
| |||||||
1 | of the corporation or its subsidiaries,
communities in | ||||||
2 | which the main banking premises, branches, offices, or | ||||||
3 | other
establishments of the bank or its subsidiaries are | ||||||
4 | located, and all pertinent
factors.
| ||||||
5 | (b) In discharging the duties of their respective | ||||||
6 | positions, the board
of
directors, committees of the board, | ||||||
7 | and individual directors shall be entitled
to rely on | ||||||
8 | advice, information, opinions, reports or statements, | ||||||
9 | including
financial statements and financial data, | ||||||
10 | prepared or presented by: (i) one or
more officers or | ||||||
11 | employees of the bank whom the director believes to be
| ||||||
12 | reliable and competent in the matter presented; (ii) one or | ||||||
13 | more counsels,
accountants, or other consultants as to | ||||||
14 | matters that the director believes to
be within that | ||||||
15 | person's professional or expert competence; or (iii) a | ||||||
16 | committee
of the board upon which the director does not | ||||||
17 | serve, as to matters within that
committee's designated | ||||||
18 | authority; provided that the director's reliance under
| ||||||
19 | this paragraph (b) is placed in good faith, after | ||||||
20 | reasonable inquiry if the
need for such inquiry is apparent | ||||||
21 | under the circumstances and without knowledge
that would | ||||||
22 | cause such reliance to be unreasonable.
| ||||||
23 | (Source: P.A. 91-452, eff. 1-1-00; 92-476, eff. 8-23-01.)
| ||||||
24 | (205 ILCS 5/48) (from Ch. 17, par. 359)
| ||||||
25 | Sec. 48. Secretary's Commissioner's powers; duties. The |
| |||||||
| |||||||
1 | Secretary Commissioner shall have the
powers and authority, and | ||||||
2 | is charged with the duties and responsibilities
designated in | ||||||
3 | this Act, and a State bank shall not be subject to any
other | ||||||
4 | visitorial power other than as authorized by this Act, except | ||||||
5 | those
vested in the courts, or upon prior consultation with the | ||||||
6 | Secretary Commissioner , a
foreign bank regulator with an | ||||||
7 | appropriate supervisory interest in the parent
or affiliate of | ||||||
8 | a state bank. In the performance of the Secretary's | ||||||
9 | Commissioner's
duties:
| ||||||
10 | (1) The Secretary Commissioner shall call for statements | ||||||
11 | from all State banks
as provided in Section 47 at least one | ||||||
12 | time during each calendar quarter.
| ||||||
13 | (2) (a) The Secretary Commissioner , as often as the | ||||||
14 | Secretary Commissioner shall deem
necessary or
proper, and no | ||||||
15 | less frequently than 18 months following the preceding
| ||||||
16 | examination, shall appoint a suitable person or
persons to make | ||||||
17 | an examination of the affairs of every State bank,
except that | ||||||
18 | for every eligible State bank, as defined by regulation, the | ||||||
19 | Secretary
Commissioner in lieu of the examination may accept on | ||||||
20 | an alternating basis the
examination made by the eligible State | ||||||
21 | bank's appropriate federal banking
agency pursuant to Section | ||||||
22 | 111 of the Federal Deposit Insurance Corporation
Improvement | ||||||
23 | Act of 1991, provided the appropriate federal banking agency | ||||||
24 | has
made such an examination. A person so appointed shall not | ||||||
25 | be a stockholder or
officer or employee of
any bank which that | ||||||
26 | person may be directed to examine, and shall have
powers to |
| |||||||
| |||||||
1 | make a thorough examination into all the affairs of the bank | ||||||
2 | and
in so doing to examine any of the officers or agents or | ||||||
3 | employees thereof
on oath and shall make a full and detailed | ||||||
4 | report of the condition of the
bank to the Secretary | ||||||
5 | Commissioner . In making the examination the examiners shall
| ||||||
6 | include an examination of the affairs of all the affiliates of | ||||||
7 | the bank, as
defined in subsection (b) of Section 35.2 of this | ||||||
8 | Act, or subsidiaries of the
bank as shall be
necessary to | ||||||
9 | disclose fully the conditions of the subsidiaries or
| ||||||
10 | affiliates, the relations
between the bank and the subsidiaries | ||||||
11 | or affiliates and the effect of those
relations upon
the | ||||||
12 | affairs of the bank, and in connection therewith shall have | ||||||
13 | power to
examine any of the officers, directors, agents, or | ||||||
14 | employees of the
subsidiaries or affiliates
on oath. After May | ||||||
15 | 31, 1997, the Secretary Commissioner may enter into cooperative
| ||||||
16 | agreements
with state regulatory authorities of other states to | ||||||
17 | provide for examination of
State bank branches in those states, | ||||||
18 | and the Secretary Commissioner may accept reports
of | ||||||
19 | examinations of State bank branches from those state regulatory | ||||||
20 | authorities.
These cooperative agreements may set forth the | ||||||
21 | manner in which the other state
regulatory authorities may be | ||||||
22 | compensated for examinations prepared for and
submitted to the | ||||||
23 | Secretary Commissioner .
| ||||||
24 | (b) After May 31, 1997, the Secretary Commissioner is | ||||||
25 | authorized to examine, as often
as the Secretary Commissioner | ||||||
26 | shall deem necessary or proper, branches of out-of-state
banks. |
| |||||||
| |||||||
1 | The Secretary Commissioner may establish and may assess fees to | ||||||
2 | be paid to the Secretary
Commissioner for examinations under | ||||||
3 | this subsection (b). The fees shall be
borne by the | ||||||
4 | out-of-state bank, unless the fees are borne by the state
| ||||||
5 | regulatory authority that chartered the out-of-state bank, as | ||||||
6 | determined by a
cooperative agreement between the Secretary | ||||||
7 | Commissioner and the state regulatory
authority that chartered | ||||||
8 | the out-of-state bank.
| ||||||
9 | (2.5) Whenever any State bank, any subsidiary or affiliate | ||||||
10 | of a State
bank, or after May 31, 1997, any branch of an | ||||||
11 | out-of-state bank causes to
be performed, by contract or | ||||||
12 | otherwise, any bank services
for itself, whether on or off its | ||||||
13 | premises:
| ||||||
14 | (a) that performance shall be subject to examination by | ||||||
15 | the Secretary Commissioner
to the same extent as if | ||||||
16 | services were being performed by the bank or, after
May 31, | ||||||
17 | 1997, branch of the out-of-state bank itself
on its own | ||||||
18 | premises; and
| ||||||
19 | (b) the bank or, after May 31, 1997, branch of the | ||||||
20 | out-of-state bank
shall notify the Secretary Commissioner | ||||||
21 | of the existence of a service
relationship. The | ||||||
22 | notification shall be submitted with the first statement
of | ||||||
23 | condition (as required by Section 47 of this Act) due after | ||||||
24 | the making
of the service contract or the performance of | ||||||
25 | the service, whichever occurs
first. The Secretary | ||||||
26 | Commissioner shall be notified of each subsequent contract |
| |||||||
| |||||||
1 | in
the same manner.
| ||||||
2 | For purposes of this subsection (2.5), the term "bank | ||||||
3 | services" means
services such as sorting and posting of checks | ||||||
4 | and deposits, computation
and posting of interest and other | ||||||
5 | credits and charges, preparation and
mailing of checks, | ||||||
6 | statements, notices, and similar items, or any other
clerical, | ||||||
7 | bookkeeping, accounting, statistical, or similar functions
| ||||||
8 | performed for a State bank, including but not limited to | ||||||
9 | electronic data
processing related to those bank services.
| ||||||
10 | (3) The expense of administering this Act, including the | ||||||
11 | expense of
the examinations of State banks as provided in this | ||||||
12 | Act, shall to the extent
of the amounts resulting from the fees | ||||||
13 | provided for in paragraphs (a),
(a-2), and (b) of this | ||||||
14 | subsection (3) be assessed against and borne by the
State | ||||||
15 | banks:
| ||||||
16 | (a) Each bank shall pay to the Secretary Commissioner a | ||||||
17 | Call Report Fee which
shall be paid in quarterly | ||||||
18 | installments equal
to one-fourth of the sum of the annual | ||||||
19 | fixed fee of $800, plus a variable
fee based on the assets | ||||||
20 | shown on the quarterly statement of condition
delivered to | ||||||
21 | the Secretary Commissioner in accordance with Section 47 | ||||||
22 | for the
preceding quarter according to the following | ||||||
23 | schedule: 16¢ per $1,000 of
the first $5,000,000 of total | ||||||
24 | assets, 15¢ per $1,000 of the next
$20,000,000 of total | ||||||
25 | assets, 13¢ per $1,000 of the next $75,000,000 of
total | ||||||
26 | assets, 9¢ per $1,000 of the next $400,000,000 of total |
| |||||||
| |||||||
1 | assets, 7¢
per $1,000 of the next $500,000,000 of total | ||||||
2 | assets, and 5¢ per $1,000 of
all assets in excess of | ||||||
3 | $1,000,000,000, of the State bank. The Call Report
Fee | ||||||
4 | shall be calculated by the Secretary Commissioner and | ||||||
5 | billed to the banks for
remittance at the time of the | ||||||
6 | quarterly statements of condition
provided for in Section | ||||||
7 | 47. The Secretary Commissioner may require payment of the | ||||||
8 | fees
provided in this Section by an electronic transfer of | ||||||
9 | funds or an automatic
debit of an account of each of the | ||||||
10 | State banks. In case more than one
examination of any
bank | ||||||
11 | is deemed by the Secretary Commissioner to be necessary in | ||||||
12 | any examination
frequency cycle specified in subsection | ||||||
13 | 2(a) of this Section,
and is performed at his direction, | ||||||
14 | the Secretary Commissioner may
assess a reasonable | ||||||
15 | additional fee to recover the cost of the additional
| ||||||
16 | examination; provided, however, that an examination | ||||||
17 | conducted at the request
of the State Treasurer pursuant to | ||||||
18 | the Uniform Disposition of Unclaimed
Property Act shall not | ||||||
19 | be deemed to be an additional examination under this
| ||||||
20 | Section.
In lieu
of the method and amounts set forth in | ||||||
21 | this paragraph (a) for the calculation
of the Call Report | ||||||
22 | Fee, the Secretary Commissioner may specify by
rule that | ||||||
23 | the Call Report Fees provided by this Section may be | ||||||
24 | assessed
semiannually or some other period and may provide | ||||||
25 | in the rule the formula to
be
used for calculating and | ||||||
26 | assessing the periodic Call Report Fees to be paid by
State
|
| |||||||
| |||||||
1 | banks.
| ||||||
2 | (a-1) If in the opinion of the Secretary Commissioner | ||||||
3 | an emergency exists or
appears likely, the Secretary | ||||||
4 | Commissioner may assign an examiner or examiners to
monitor | ||||||
5 | the affairs of a State bank with whatever frequency he | ||||||
6 | deems
appropriate, including but not limited to a daily | ||||||
7 | basis. The reasonable
and necessary expenses of the | ||||||
8 | Secretary Commissioner during the period of the monitoring
| ||||||
9 | shall be borne by the subject bank. The Secretary | ||||||
10 | Commissioner shall furnish the
State bank a statement of | ||||||
11 | time and expenses if requested to do so within 30
days of | ||||||
12 | the conclusion of the monitoring period.
| ||||||
13 | (a-2) On and after January 1, 1990, the reasonable and | ||||||
14 | necessary
expenses of the Secretary Commissioner during | ||||||
15 | examination of the performance of
electronic data | ||||||
16 | processing services under subsection (2.5) shall be
borne | ||||||
17 | by the banks for which the services are provided. An | ||||||
18 | amount, based
upon a fee structure prescribed by the | ||||||
19 | Secretary Commissioner , shall be paid by the
banks or, | ||||||
20 | after May 31, 1997, branches of out-of-state banks | ||||||
21 | receiving the
electronic data processing services along | ||||||
22 | with the
Call Report Fee assessed under paragraph (a) of | ||||||
23 | this
subsection (3).
| ||||||
24 | (a-3) After May 31, 1997, the reasonable and necessary | ||||||
25 | expenses of the Secretary
Commissioner during examination | ||||||
26 | of the performance of electronic data
processing services |
| |||||||
| |||||||
1 | under subsection (2.5) at or on behalf of branches of
| ||||||
2 | out-of-state banks shall be borne by the out-of-state | ||||||
3 | banks, unless those
expenses are borne by the state | ||||||
4 | regulatory authorities that chartered the
out-of-state | ||||||
5 | banks, as determined by cooperative agreements between the | ||||||
6 | Secretary
Commissioner and the state regulatory | ||||||
7 | authorities that chartered the
out-of-state banks.
| ||||||
8 | (b) "Fiscal year" for purposes of this Section 48 is | ||||||
9 | defined as a
period beginning July 1 of any year and ending | ||||||
10 | June 30 of the next year.
The Secretary Commissioner shall | ||||||
11 | receive for each fiscal year, commencing with the
fiscal | ||||||
12 | year ending June 30, 1987, a contingent fee equal to the | ||||||
13 | lesser of
the aggregate of the fees paid by all State banks | ||||||
14 | under paragraph (a) of
subsection (3) for that year, or the | ||||||
15 | amount, if any, whereby the aggregate
of the administration | ||||||
16 | expenses, as defined in paragraph (c), for that
fiscal year | ||||||
17 | exceeds the sum of the aggregate of the fees payable by all
| ||||||
18 | State banks for that year under paragraph (a) of subsection | ||||||
19 | (3),
plus any amounts transferred into the Bank and Trust | ||||||
20 | Company Fund from the
State Pensions Fund for that year,
| ||||||
21 | plus all
other amounts collected by the Secretary | ||||||
22 | Commissioner for that year under any
other provision of | ||||||
23 | this Act, plus the aggregate of all fees
collected for that | ||||||
24 | year by the Secretary Commissioner under the Corporate | ||||||
25 | Fiduciary
Act, excluding the receivership fees provided | ||||||
26 | for in Section 5-10 of the
Corporate Fiduciary Act, and the |
| |||||||
| |||||||
1 | Foreign Banking Office Act.
The aggregate amount of the | ||||||
2 | contingent
fee thus arrived at for any fiscal year shall be | ||||||
3 | apportioned amongst,
assessed upon, and paid by the State | ||||||
4 | banks and foreign banking corporations,
respectively, in | ||||||
5 | the same proportion
that the fee of each under paragraph | ||||||
6 | (a) of subsection (3), respectively,
for that year bears to | ||||||
7 | the aggregate for that year of the fees collected
under | ||||||
8 | paragraph (a) of subsection (3). The aggregate amount of | ||||||
9 | the
contingent fee, and the portion thereof to be assessed | ||||||
10 | upon each State
bank and foreign banking corporation,
| ||||||
11 | respectively, shall be determined by the Secretary | ||||||
12 | Commissioner and shall be paid by
each, respectively, | ||||||
13 | within 120 days of the close of the period for which
the | ||||||
14 | contingent fee is computed and is payable, and the | ||||||
15 | Secretary Commissioner shall
give 20 days advance notice of | ||||||
16 | the amount of the contingent fee payable by
the State bank | ||||||
17 | and of the date fixed by the Secretary Commissioner for | ||||||
18 | payment of
the fee.
| ||||||
19 | (c) The "administration expenses" for any fiscal year | ||||||
20 | shall mean the
ordinary and contingent expenses for that | ||||||
21 | year incident to making the
examinations provided for by, | ||||||
22 | and for otherwise administering, this Act,
the Corporate | ||||||
23 | Fiduciary Act, excluding the expenses paid from the
| ||||||
24 | Corporate Fiduciary Receivership account in the Bank and | ||||||
25 | Trust Company
Fund, the Foreign Banking Office Act,
the | ||||||
26 | Electronic Fund Transfer Act,
and the Illinois Bank |
| |||||||
| |||||||
1 | Examiners'
Education Foundation Act, including all | ||||||
2 | salaries and other
compensation paid for personal services | ||||||
3 | rendered for the State by
officers or employees of the | ||||||
4 | State, including the Secretary and his or her deputies | ||||||
5 | Commissioner and the
Deputy Commissioners , all | ||||||
6 | expenditures for telephone and telegraph
charges, postage | ||||||
7 | and postal charges, office stationery, supplies and
| ||||||
8 | services, and office furniture and equipment, including | ||||||
9 | typewriters and
copying and duplicating machines and | ||||||
10 | filing equipment, surety bond
premiums, and travel | ||||||
11 | expenses of those officers and employees, employees,
| ||||||
12 | expenditures or charges for the acquisition, enlargement | ||||||
13 | or improvement
of, or for the use of, any office space, | ||||||
14 | building, or structure, or
expenditures for the | ||||||
15 | maintenance thereof or for furnishing heat, light,
or power | ||||||
16 | with respect thereto, all to the extent that those | ||||||
17 | expenditures
are directly incidental to such examinations | ||||||
18 | or administration.
The Secretary Commissioner shall not be | ||||||
19 | required by paragraphs (c) or (d-1) of this
subsection (3) | ||||||
20 | to maintain in any fiscal year's budget appropriated | ||||||
21 | reserves
for accrued vacation and accrued sick leave that | ||||||
22 | is required to be paid to
employees of the Secretary | ||||||
23 | Commissioner upon termination of their service with the | ||||||
24 | Secretary
Commissioner in an amount that is more than is | ||||||
25 | reasonably anticipated to be
necessary for any anticipated | ||||||
26 | turnover in employees, whether due to normal
attrition or |
| |||||||
| |||||||
1 | due to layoffs, terminations, or resignations.
| ||||||
2 | (d) The aggregate of all fees collected by the | ||||||
3 | Secretary Commissioner under
this Act, the Corporate | ||||||
4 | Fiduciary Act,
or the Foreign Banking Office Act on
and | ||||||
5 | after July 1, 1979, shall be paid promptly after receipt of | ||||||
6 | the same,
accompanied by a detailed statement thereof, into | ||||||
7 | the State treasury and
shall be set apart in a special fund | ||||||
8 | to be known as the "Bank and Trust
Company Fund", except as | ||||||
9 | provided in paragraph (c) of subsection (11) of
this | ||||||
10 | Section. All earnings received from investments of funds in | ||||||
11 | the Bank
and
Trust Company Fund shall be deposited in the | ||||||
12 | Bank and Trust Company Fund
and may be used for the same | ||||||
13 | purposes as fees deposited in that Fund. The
amount from | ||||||
14 | time to time deposited into the Bank and
Trust Company Fund | ||||||
15 | shall be used to offset the ordinary administrative
| ||||||
16 | expenses of the Secretary of Financial and Professional | ||||||
17 | Regulation Commissioner of Banks and Real Estate as defined | ||||||
18 | in
this Section. Nothing in this amendatory Act of 1979 | ||||||
19 | shall prevent
continuing the practice of paying expenses | ||||||
20 | involving salaries, retirement,
social security, and | ||||||
21 | State-paid insurance premiums of State officers by
| ||||||
22 | appropriations from the General Revenue Fund. However, the | ||||||
23 | General Revenue
Fund shall be reimbursed for those payments | ||||||
24 | made on and after July 1, 1979,
by an annual transfer of | ||||||
25 | funds from the Bank and Trust Company Fund. Moneys in the | ||||||
26 | Bank and Trust Company Fund may be transferred to the |
| |||||||
| |||||||
1 | Professions Indirect Cost Fund, as authorized under | ||||||
2 | Section 2105-300 of the Department of Professional | ||||||
3 | Regulation Law of the Civil Administrative Code of | ||||||
4 | Illinois.
| ||||||
5 | (d-1) Adequate funds shall be available in the Bank and | ||||||
6 | Trust
Company Fund to permit the timely payment of | ||||||
7 | administration expenses. In
each fiscal year the total | ||||||
8 | administration expenses shall be deducted from
the total | ||||||
9 | fees collected by the Secretary Commissioner and the | ||||||
10 | remainder transferred
into the Cash Flow Reserve Account, | ||||||
11 | unless the balance of the Cash Flow
Reserve Account prior | ||||||
12 | to the transfer equals or exceeds
one-fourth of the total | ||||||
13 | initial appropriations from the Bank and Trust
Company Fund | ||||||
14 | for the subsequent year, in which case the remainder shall | ||||||
15 | be
credited to State banks and foreign banking corporations
| ||||||
16 | and applied against their fees for the subsequent
year. The | ||||||
17 | amount credited to each State bank and foreign banking | ||||||
18 | corporation
shall be in the same proportion as the
Call | ||||||
19 | Report Fees paid by each for the year bear to the total | ||||||
20 | Call Report
Fees collected for the year. If, after a | ||||||
21 | transfer to the Cash Flow Reserve
Account is made or if no | ||||||
22 | remainder is available for transfer, the balance
of the | ||||||
23 | Cash Flow Reserve Account is less than one-fourth of the | ||||||
24 | total
initial appropriations for the subsequent year and | ||||||
25 | the amount transferred
is less than 5% of the total Call | ||||||
26 | Report Fees for the year, additional
amounts needed to make |
| |||||||
| |||||||
1 | the transfer equal to 5% of the total Call Report
Fees for | ||||||
2 | the year shall be apportioned amongst, assessed upon, and
| ||||||
3 | paid by the State banks and foreign banking corporations
in | ||||||
4 | the same proportion that the Call Report Fees of each,
| ||||||
5 | respectively, for the year bear to the total Call Report | ||||||
6 | Fees collected for
the year. The additional amounts | ||||||
7 | assessed shall be transferred into the
Cash Flow Reserve | ||||||
8 | Account. For purposes of this paragraph (d-1), the
| ||||||
9 | calculation of the fees collected by the Secretary | ||||||
10 | Commissioner shall exclude the
receivership fees provided | ||||||
11 | for in Section 5-10 of the Corporate Fiduciary Act.
| ||||||
12 | (e) The Secretary Commissioner may upon request | ||||||
13 | certify to any public record
in his keeping and shall have | ||||||
14 | authority to levy a reasonable charge for
issuing | ||||||
15 | certifications of any public record in his keeping.
| ||||||
16 | (f) In addition to fees authorized elsewhere in this | ||||||
17 | Act, the Secretary
Commissioner
may, in connection with a | ||||||
18 | review, approval, or provision of a service, levy a
| ||||||
19 | reasonable charge to recover the cost of the review, | ||||||
20 | approval, or service.
| ||||||
21 | (4) Nothing contained in this Act shall be construed to | ||||||
22 | limit the
obligation relative to examinations and reports of | ||||||
23 | any State bank, deposits
in which are to any extent insured by | ||||||
24 | the United States or any agency
thereof, nor to limit in any | ||||||
25 | way the powers of the Secretary Commissioner with
reference to | ||||||
26 | examinations and reports of that bank.
|
| |||||||
| |||||||
1 | (5) The nature and condition of the assets in or investment | ||||||
2 | of any
bonus, pension, or profit sharing plan for officers or | ||||||
3 | employees of every
State bank or, after May 31, 1997, branch of | ||||||
4 | an out-of-state bank shall be
deemed to be included in the | ||||||
5 | affairs of that State
bank or branch of an out-of-state bank | ||||||
6 | subject to examination by the Secretary
Commissioner under the
| ||||||
7 | provisions of subsection (2) of this Section, and if the | ||||||
8 | Secretary Commissioner
shall find from an examination that the | ||||||
9 | condition of or operation
of the investments or assets of the | ||||||
10 | plan is unlawful, fraudulent, or
unsafe, or that any trustee | ||||||
11 | has abused his trust, the Secretary Commissioner
shall, if the | ||||||
12 | situation so found by the Secretary Commissioner shall not be
| ||||||
13 | corrected to his satisfaction within 60 days after the | ||||||
14 | Secretary Commissioner has
given notice to the board of | ||||||
15 | directors of the State bank or out-of-state
bank of his
| ||||||
16 | findings, report the facts to the Attorney General who shall | ||||||
17 | thereupon
institute proceedings against the State bank or | ||||||
18 | out-of-state bank, the
board of directors
thereof, or the | ||||||
19 | trustees under such plan as the nature of the case may require.
| ||||||
20 | (6) The Secretary Commissioner shall have the power:
| ||||||
21 | (a) To promulgate reasonable rules for the purpose of
| ||||||
22 | administering the provisions of this Act.
| ||||||
23 | (a-5) To impose conditions on any approval issued by | ||||||
24 | the Secretary Commissioner
if he determines that the | ||||||
25 | conditions are necessary or appropriate. These
conditions | ||||||
26 | shall be imposed in writing and shall continue
in effect |
| |||||||
| |||||||
1 | for the period prescribed by the Secretary Commissioner .
| ||||||
2 | (b) To issue orders
against any person, if the | ||||||
3 | Secretary Commissioner has
reasonable cause to believe | ||||||
4 | that an unsafe or unsound banking practice
has occurred, is | ||||||
5 | occurring, or is about to occur, if any person has | ||||||
6 | violated,
is violating, or is about to violate any law, | ||||||
7 | rule, or written
agreement with the Secretary | ||||||
8 | Commissioner , or
for the purpose of administering the | ||||||
9 | provisions of
this Act and any rule promulgated in | ||||||
10 | accordance with this Act.
| ||||||
11 | (b-1) To enter into agreements with a bank establishing | ||||||
12 | a program to
correct the condition of the bank or its | ||||||
13 | practices.
| ||||||
14 | (c) To appoint hearing officers to execute any of the | ||||||
15 | powers granted to
the Secretary Commissioner under this | ||||||
16 | Section for the purpose of administering this
Act and any | ||||||
17 | rule promulgated in accordance with this Act
and otherwise | ||||||
18 | to authorize, in writing, an officer or employee of the | ||||||
19 | Department of Financial and Professional Regulation Office
| ||||||
20 | of
Banks and Real Estate to exercise his powers under this | ||||||
21 | Act.
| ||||||
22 | (d) To subpoena witnesses, to compel their attendance, | ||||||
23 | to administer
an oath, to examine any person under oath, | ||||||
24 | and to require the production of
any relevant books, | ||||||
25 | papers, accounts, and documents in the course of and
| ||||||
26 | pursuant to any investigation being conducted, or any |
| |||||||
| |||||||
1 | action being taken,
by the Secretary Commissioner in | ||||||
2 | respect of any matter relating to the duties imposed
upon, | ||||||
3 | or the powers vested in, the Secretary Commissioner under | ||||||
4 | the provisions of
this Act or any rule promulgated in | ||||||
5 | accordance with this Act.
| ||||||
6 | (e) To conduct hearings.
| ||||||
7 | (7) Whenever, in the opinion of the Secretary Commissioner , | ||||||
8 | any director,
officer, employee, or agent of a State bank
or | ||||||
9 | any subsidiary or bank holding company of the bank
or, after | ||||||
10 | May 31, 1997, of any
branch of an out-of-state bank
or any | ||||||
11 | subsidiary or bank holding company of the bank
shall have | ||||||
12 | violated any law,
rule, or order relating to that bank
or any | ||||||
13 | subsidiary or bank holding company of the bank, shall have
| ||||||
14 | obstructed or impeded any examination or investigation by the | ||||||
15 | Secretary Commissioner , shall have engaged in an unsafe or
| ||||||
16 | unsound practice in conducting the business of that bank
or any | ||||||
17 | subsidiary or bank holding company of the bank,
or shall have
| ||||||
18 | violated any law or engaged or participated in any unsafe or | ||||||
19 | unsound practice
in connection with any financial institution | ||||||
20 | or other business entity such that
the character and fitness of | ||||||
21 | the director, officer, employee, or agent does not
assure | ||||||
22 | reasonable promise of safe and sound operation of the State | ||||||
23 | bank, the Secretary
Commissioner
may issue an order of removal.
| ||||||
24 | If, in the opinion of the Secretary Commissioner , any former | ||||||
25 | director, officer,
employee,
or agent of a State bank
or any | ||||||
26 | subsidiary or bank holding company of the bank, prior to the
|
| |||||||
| |||||||
1 | termination of his or her service with
that bank
or any | ||||||
2 | subsidiary or bank holding company of the bank, violated any | ||||||
3 | law,
rule, or order relating to that
State bank
or any | ||||||
4 | subsidiary or bank holding company of the bank, obstructed or | ||||||
5 | impeded
any examination or investigation by the Secretary | ||||||
6 | Commissioner , engaged in an unsafe or unsound practice in | ||||||
7 | conducting the
business of that bank
or any subsidiary or bank | ||||||
8 | holding company of the bank,
or violated any law or engaged or | ||||||
9 | participated in any
unsafe or unsound practice in connection | ||||||
10 | with any financial institution or
other business entity such | ||||||
11 | that the character and fitness of the director,
officer, | ||||||
12 | employee, or agent would not have assured reasonable promise of | ||||||
13 | safe
and sound operation of the State bank, the Secretary | ||||||
14 | Commissioner may issue an order
prohibiting that person from
| ||||||
15 | further
service with a bank
or any subsidiary or bank holding | ||||||
16 | company of the bank
as a director, officer, employee, or agent. | ||||||
17 | An order
issued pursuant to this subsection shall be served | ||||||
18 | upon the
director,
officer, employee, or agent. A copy of the | ||||||
19 | order shall be sent to each
director of the bank affected by | ||||||
20 | personal service, certified mail return receipt requested, or | ||||||
21 | any other method that provides proof of service and receipt | ||||||
22 | registered mail . The person affected by
the action may request | ||||||
23 | a hearing before the Board of Banks and Trust Companies State | ||||||
24 | Banking Board within 10
days after receipt of the order. The | ||||||
25 | hearing shall be held by
the Board within 30 days after the | ||||||
26 | request has been received by the Board.
The Board shall make a |
| |||||||
| |||||||
1 | determination approving, modifying, or disapproving
the order | ||||||
2 | of the Secretary Commissioner as its final administrative | ||||||
3 | decision. If a
hearing is held by the Board, the Board shall | ||||||
4 | make its determination within
60 days from the conclusion of | ||||||
5 | the hearing. Any person affected by a
decision of the Board | ||||||
6 | under this subsection (7) of Section 48 of this Act
may have | ||||||
7 | the decision reviewed only under and in accordance with the
| ||||||
8 | Administrative Review Law and the rules adopted pursuant | ||||||
9 | thereto. A copy of
the order shall also be served upon the bank | ||||||
10 | of which he is a director,
officer, employee, or agent, | ||||||
11 | whereupon he shall cease to be a director,
officer, employee, | ||||||
12 | or agent of that bank. The Secretary Commissioner may
institute | ||||||
13 | a civil action against the director, officer, or agent of the
| ||||||
14 | State bank or, after May 31, 1997, of the branch of the | ||||||
15 | out-of-state bank
against whom any order provided for by this | ||||||
16 | subsection (7) of
this Section 48 has been issued, and against | ||||||
17 | the State bank or, after May 31,
1997, out-of-state bank, to | ||||||
18 | enforce
compliance with or to enjoin any violation of the terms | ||||||
19 | of the order.
Any person who has been the subject of an order | ||||||
20 | of removal
or
an order of prohibition issued by the Secretary | ||||||
21 | Commissioner under
this subsection or Section 5-6 of the | ||||||
22 | Corporate Fiduciary Act may not
thereafter serve as director, | ||||||
23 | officer, employee, or agent of any State bank
or of any branch | ||||||
24 | of any out-of-state bank,
or of any corporate fiduciary, as | ||||||
25 | defined in Section 1-5.05 of the
Corporate
Fiduciary Act, or of | ||||||
26 | any other entity that is subject to licensure or
regulation by |
| |||||||
| |||||||
1 | the Secretary Commissioner or the Department of Financial and | ||||||
2 | Professional Regulation Office of Banks and Real Estate unless
| ||||||
3 | the Secretary Commissioner has granted prior approval in | ||||||
4 | writing.
| ||||||
5 | For purposes of this paragraph (7), "bank holding company" | ||||||
6 | has the
meaning prescribed in Section 2 of the Illinois Bank | ||||||
7 | Holding Company Act of
1957.
| ||||||
8 | (8) The Secretary Commissioner may impose civil penalties | ||||||
9 | in an amount not to exceed the amount a federal regulatory | ||||||
10 | agency is authorized to charge under federal law of up to | ||||||
11 | $10,000 against
any person for each violation of any provision | ||||||
12 | of this Act, any rule
promulgated in accordance with this Act, | ||||||
13 | any order of the Director of the Division or Secretary | ||||||
14 | Commissioner , or
any other action which in the Director's or | ||||||
15 | Secretary's Commissioner's discretion is an unsafe or
unsound | ||||||
16 | banking practice.
| ||||||
17 | (9) The Secretary Commissioner may impose civil penalties | ||||||
18 | of up to $100
against any person for the first failure to | ||||||
19 | comply with reporting
requirements set forth in the report of | ||||||
20 | examination of the bank and up to
$200 for the second and | ||||||
21 | subsequent failures to comply with those reporting
| ||||||
22 | requirements.
| ||||||
23 | (10) All final administrative decisions of the Secretary | ||||||
24 | Commissioner hereunder
shall be subject to judicial review | ||||||
25 | pursuant to the provisions of the
Administrative Review Law. | ||||||
26 | For matters involving administrative review,
venue shall be in |
| |||||||
| |||||||
1 | either Sangamon County or Cook County.
| ||||||
2 | (11) The endowment fund for the Illinois Bank Examiners' | ||||||
3 | Education
Foundation shall be administered as follows:
| ||||||
4 | (a) (Blank).
| ||||||
5 | (b) The Foundation is empowered to receive voluntary | ||||||
6 | contributions,
gifts, grants, bequests, and donations on | ||||||
7 | behalf of the Illinois Bank
Examiners' Education | ||||||
8 | Foundation from national banks and other persons for
the | ||||||
9 | purpose of funding the endowment of the Illinois Bank | ||||||
10 | Examiners'
Education Foundation.
| ||||||
11 | (c) The aggregate of all special educational fees | ||||||
12 | collected by the Secretary
Commissioner and property | ||||||
13 | received by the Secretary Commissioner on behalf of the
| ||||||
14 | Illinois Bank Examiners' Education Foundation under this | ||||||
15 | subsection
(11) on or after June 30, 1986, shall be either | ||||||
16 | (i) promptly paid after
receipt of the same, accompanied by | ||||||
17 | a detailed statement thereof, into the
State Treasury and | ||||||
18 | shall be set apart in a special fund to be known as "The
| ||||||
19 | Illinois Bank Examiners' Education Fund" to be invested by | ||||||
20 | either the
Treasurer of the State of Illinois in the Public | ||||||
21 | Treasurers' Investment
Pool or in any other investment he | ||||||
22 | is authorized to make or by the Illinois
State Board of | ||||||
23 | Investment as the board of trustees of the Illinois Bank
| ||||||
24 | Examiners' Education Foundation may direct or (ii) | ||||||
25 | deposited into an account
maintained in a commercial bank | ||||||
26 | or corporate fiduciary in the name of the
Illinois Bank |
| |||||||
| |||||||
1 | Examiners' Education Foundation pursuant to the order and
| ||||||
2 | direction of the Board of Trustees of the Illinois Bank | ||||||
3 | Examiners' Education
Foundation.
| ||||||
4 | (12) (Blank).
| ||||||
5 | (Source: P.A. 94-91, eff. 7-1-05.)
| ||||||
6 | (205 ILCS 5/78.5 new) | ||||||
7 | Sec. 78.5. Board of Banks and Trust Companies; creation, | ||||||
8 | members, appointment. | ||||||
9 | (a) There is created the Board of Banks and Trust | ||||||
10 | Companies, which shall consist of the Director, who shall be | ||||||
11 | its chairperson, and 6 additional members divided into 2 | ||||||
12 | classes designated Class A members and Class B members, to be | ||||||
13 | appointed by the Governor by and with the advice and consent of | ||||||
14 | the Senate, as follows: | ||||||
15 | (1) Class A shall consist of 2 persons, neither of whom | ||||||
16 | is an officer or director of or owner, whether directly or | ||||||
17 | indirectly, of more than 5% of the outstanding capital | ||||||
18 | stock of any bank. | ||||||
19 | (2) Class B shall consist of 4 persons, each of whom at | ||||||
20 | the time of the appointment is an officer, director, or | ||||||
21 | employee of a State bank or trust company and has at least | ||||||
22 | 10 years of banking experience. | ||||||
23 | (b) The Board of Banks and Trust Companies formerly created | ||||||
24 | by Section 78 of this Act is abolished on January 1, 2009, and | ||||||
25 | the terms of all members of that Board then serving are |
| |||||||
| |||||||
1 | terminated on that date. | ||||||
2 | (c) For purposes of the Successor Agency Act, the Board of | ||||||
3 | Banks and Trust Companies created under this Section shall be | ||||||
4 | the sucessor agency of the State Banking Board of Illinois and | ||||||
5 | the Board of Banks and Trust Companies Created under Section 78 | ||||||
6 | of this Act. | ||||||
7 | (205 ILCS 5/79.5 new) | ||||||
8 | Sec. 79.5. Board, terms of office. The terms of office of | ||||||
9 | the Class A and Class B members of the Board of Banks and Trust | ||||||
10 | Companies shall begin on January 1, 2009. | ||||||
11 | (a) The persons first appointed as the Class A members of | ||||||
12 | the Board of Banks and Trust Companies shall have the following | ||||||
13 | terms as designated by the Governor: (i) one person for a term | ||||||
14 | of 2 years and (ii) one person for a term of 4 years. | ||||||
15 | Thereafter, the term of office of each of the Class A members | ||||||
16 | shall be 4 years, except that an appointment to fill a vacancy | ||||||
17 | shall be for the unexpired term of the member whose term is | ||||||
18 | being filled. | ||||||
19 | (b) The persons first appointed as Class B members of the | ||||||
20 | Board of Banks and Trust Companies shall have the following | ||||||
21 | terms as designated by the Governor: (i) one member for a term | ||||||
22 | of one year, (ii) one member for a term of 2 years, (iii) one | ||||||
23 | member for a term of 3 years, and (iv) one member for a term of | ||||||
24 | 4 years. Thereafter, the term of office of each Class B member | ||||||
25 | shall be 4 years, except that an appointment to fill a vacancy |
| |||||||
| |||||||
1 | shall be for the unexpired term of the member whose term is | ||||||
2 | being filled. | ||||||
3 | (c) No Class A or Class B member of the Board of Banks and | ||||||
4 | Trust Companies shall serve more than 2 full 4-year terms of | ||||||
5 | office. | ||||||
6 | (d) Each member of the Board of Banks and Trust Companies | ||||||
7 | shall continue serving until his or her successor is appointed.
| ||||||
8 | (205 ILCS 5/82) (from Ch. 17, par. 394)
| ||||||
9 | Sec. 82. Secretary Commissioner , board; civil liability. | ||||||
10 | Neither the Secretary Commissioner , any deputy commissioner , | ||||||
11 | any member of the
Board of Banks and Trust Companies, any | ||||||
12 | member of the State Banking Board
of Illinois, nor any | ||||||
13 | examiner, assistant examiner or
other employee of the | ||||||
14 | Secretary's Commissioner's office shall be subject to any civil
| ||||||
15 | liability or penalty, whether for damages or otherwise, on | ||||||
16 | account of or
for any action taken or omitted to be taken in | ||||||
17 | their respective official
capacities, except when such acts or | ||||||
18 | omissions to act are corrupt or
malicious or unless such action | ||||||
19 | is taken or omitted to be taken not in good
faith and without | ||||||
20 | reasonable grounds.
| ||||||
21 | (Source: P.A. 85-204.)
| ||||||
22 | (205 ILCS 5/78 rep.)
| ||||||
23 | (205 ILCS 5/79 rep.)
| ||||||
24 | Section 20. The Illinois Banking Act is amended by |
| |||||||
| |||||||
1 | repealing Sections 78 and 79. | ||||||
2 | Section 25. The Illinois Bank Holding Company Act of 1957 | ||||||
3 | is amended by changing Sections 2 and 3.074 as follows:
| ||||||
4 | (205 ILCS 10/2) (from Ch. 17, par. 2502)
| ||||||
5 | Sec. 2. Unless the context requires otherwise:
| ||||||
6 | (a) "Bank" means any national banking association or any | ||||||
7 | bank, banking
association or savings bank, whether organized | ||||||
8 | under the laws of Illinois,
another state, the United States, | ||||||
9 | the District of Columbia, any territory of
the United States, | ||||||
10 | Puerto Rico, Guam, American Samoa or the Virgin Islands,
which | ||||||
11 | (1) accepts deposits that the depositor has a legal right to | ||||||
12 | withdraw on
demand by check or other negotiable order and (2) | ||||||
13 | engages in the business of
making commercial loans. "Bank" does | ||||||
14 | not include any organization operating
under Sections 25 or 25 | ||||||
15 | (a) of the Federal Reserve Act, or any organization
which does | ||||||
16 | not do business within the United States except as an incident | ||||||
17 | to
its activities outside the United States or any foreign | ||||||
18 | bank.
| ||||||
19 | (b) "Bank holding company" means any company that controls | ||||||
20 | or has control
over any bank or over any company that is or | ||||||
21 | becomes a bank holding company by
virtue of this Act.
| ||||||
22 | (c) "Banking office" means the principal office of a bank, | ||||||
23 | any branch
of a bank, or any other office at which a bank | ||||||
24 | accepts deposits, provided,
however, that "banking office" |
| |||||||
| |||||||
1 | shall not mean:
| ||||||
2 | (1) unmanned automatic teller machines, point of sale | ||||||
3 | terminals or other
similar unmanned electronic banking | ||||||
4 | facilities at which deposits may be
accepted; or
| ||||||
5 | (2) offices located outside the United States.
| ||||||
6 | (d) "Cause to be chartered", with respect to a specified | ||||||
7 | bank, means the
acquisition of control of such bank prior to | ||||||
8 | the time it commences to
engage in the banking business.
| ||||||
9 | (e) "Commissioner" means the Commissioner of Banks and Real | ||||||
10 | Estate
or a person authorized by the Commissioner, the Office | ||||||
11 | of Banks and Real Estate
Act, or this Act to act in the | ||||||
12 | Commissioner's stead.
| ||||||
13 | (f) "Community" means the contiguous area served by the | ||||||
14 | banking offices
of a bank, but need not be limited or expanded | ||||||
15 | to conform to the geographic
boundaries of units of local | ||||||
16 | government.
| ||||||
17 | (g) "Company" means any corporation, business trust, | ||||||
18 | voting trust,
association, partnership, joint venture, similar | ||||||
19 | organization or any other
trust unless by its terms it must | ||||||
20 | terminate within 25 years or not later
than 21 years and 10 | ||||||
21 | months after the death of individuals living on the
effective | ||||||
22 | date of the trust, but shall not include (1) an individual or | ||||||
23 | (2)
any corporation the majority of the shares of which are | ||||||
24 | owned by the United
States or by any state or any corporation | ||||||
25 | or community chest fund,
organized and operated exclusively for | ||||||
26 | religious, charitable, scientific,
literary or educational |
| |||||||
| |||||||
1 | purposes, no part of the net earnings of which
inure to the | ||||||
2 | benefit of any private shareholder or individual and no
| ||||||
3 | substantial part of the activities of which is carrying on | ||||||
4 | propaganda or
otherwise attempting to influence legislation.
| ||||||
5 | (h) A company "controls or has control over" a bank or | ||||||
6 | company if (1) it
directly or indirectly owns or controls or | ||||||
7 | has the power to vote, 25% or
more of the voting shares of any | ||||||
8 | class of voting securities of such bank or
company or (2) it | ||||||
9 | controls in any manner the election of a majority of the
| ||||||
10 | directors or trustees of such bank or company or (3) a trustee | ||||||
11 | holds for
the benefit of its shareholders, members or | ||||||
12 | employees, 25% or more of the
voting shares of such bank or | ||||||
13 | company or (4) it directly or indirectly
exercises a | ||||||
14 | controlling influence over the management or policies of such
| ||||||
15 | bank or company that is a bank holding company and the Board of | ||||||
16 | Governors
of the Federal Reserve System has so determined under | ||||||
17 | the federal Bank
Holding Company Act. In determining whether | ||||||
18 | any company controls or has
control over a bank or company: (i) | ||||||
19 | shares owned or controlled by any
subsidiary of a company shall | ||||||
20 | be deemed to be indirectly owned or
controlled by such company; | ||||||
21 | (ii) shares held or controlled, directly or
indirectly, by a | ||||||
22 | trustee or trustees for the benefit of a company, the
| ||||||
23 | shareholders or members of a company or the employees (whether | ||||||
24 | exclusively
or not) of a company, shall be deemed to be | ||||||
25 | controlled by such company; and
(iii) shares transferred, | ||||||
26 | directly or indirectly, by any bank holding
company (or by any |
| |||||||
| |||||||
1 | company which, but for such transfer, would be a bank
holding | ||||||
2 | company) to any transferee that is indebted
to the transferor | ||||||
3 | or that has one or more officers, directors, trustees or
| ||||||
4 | beneficiaries in common with or subject to control by the | ||||||
5 | transferor, shall
be deemed to be indirectly owned or | ||||||
6 | controlled by the transferor unless
the Board of Governors of | ||||||
7 | the Federal Reserve System has determined, under
the federal | ||||||
8 | Bank Holding Company Act, that the transferor is not in fact
| ||||||
9 | capable of controlling the transferee. Notwithstanding the | ||||||
10 | foregoing, no
company shall be deemed to have control of or | ||||||
11 | over a bank or bank holding
company (A) by virtue of its | ||||||
12 | ownership or control of shares in a fiduciary
capacity arising | ||||||
13 | in the ordinary course of its business; (B) by virtue of
its | ||||||
14 | ownership or control of shares acquired by it in connection | ||||||
15 | with its
underwriting of securities which are held only for | ||||||
16 | such period of time as
will permit the sale thereof upon a | ||||||
17 | reasonable basis; (C) by virtue of its
holding any shares as | ||||||
18 | collateral taken in the ordinary course of securing a
debt or | ||||||
19 | other obligation; (D) by virtue of its ownership or control of | ||||||
20 | shares
acquired in the ordinary course of collecting a debt or | ||||||
21 | other obligation
previously contracted in good faith, until 5 | ||||||
22 | years after the date acquired; or
(E) by virtue of its voting | ||||||
23 | rights with respect to shares of any bank or bank
holding | ||||||
24 | company acquired in the course of a proxy solicitation in the | ||||||
25 | case of a
company formed and operated for the sole purpose of | ||||||
26 | participating in a proxy
solicitation.
|
| |||||||
| |||||||
1 | (i) "Federal Bank Holding Company Act" means the | ||||||
2 | federal Bank Holding
Company Act of 1956, as now or | ||||||
3 | hereafter amended.
| ||||||
4 | (j) "Foreign bank" means any company organized under the | ||||||
5 | laws of a
foreign country which engages in the business of | ||||||
6 | banking or any subsidiary
or affiliate of any such company, | ||||||
7 | organized under such laws. "Foreign
bank" includes, without | ||||||
8 | limitation, foreign merchant banks and other
foreign | ||||||
9 | institutions that engage in banking activities usual in | ||||||
10 | connection
with the business of banking in the countries where | ||||||
11 | such foreign
institutions are organized or operating.
| ||||||
12 | (k) "Home state" means the home state of a foreign bank as | ||||||
13 | determined
pursuant to the federal International Banking Act of | ||||||
14 | 1978.
| ||||||
15 | (l) "Illinois bank" means a bank:
| ||||||
16 | (1) that is organized under the laws of this State or | ||||||
17 | of the United States; and
| ||||||
18 | (2) whose main banking premises is located in Illinois.
| ||||||
19 | (m) "Illinois bank holding company" means a bank holding | ||||||
20 | company:
| ||||||
21 | (1) whose principal place of business is Illinois; and
| ||||||
22 | (2) that is not directly or indirectly controlled by | ||||||
23 | another bank
holding company whose principal place of | ||||||
24 | business is a state other than
Illinois or by a foreign | ||||||
25 | bank whose Home State is a state other than Illinois.
| ||||||
26 | An out of state bank holding company that acquires
control |
| |||||||
| |||||||
1 | of one or more
Illinois banks or Illinois bank holding | ||||||
2 | companies pursuant to Sections
3.061 or 3.071 shall not be | ||||||
3 | deemed an Illinois bank holding company.
| ||||||
4 | (n) "Main banking premises" means the location that is | ||||||
5 | designated in a
bank's charter as its main office and that is | ||||||
6 | within the state in which the
total deposits held by all of the | ||||||
7 | banking offices of such bank are the
largest, as shown in the | ||||||
8 | most recent reports of condition or similar
reports filed by | ||||||
9 | such bank with state or federal regulatory authorities.
| ||||||
10 | (o) "Out of state bank" means a bank:
| ||||||
11 | (1) that is not an Illinois bank; and
| ||||||
12 | (2) whose main banking premises is located in a state | ||||||
13 | other
than Illinois.
| ||||||
14 | (p) "Out of state bank holding company" means a
bank | ||||||
15 | holding company:
| ||||||
16 | (1) that is not an Illinois bank holding company;
| ||||||
17 | (2) whose principal place of business is a state other
| ||||||
18 | than Illinois the laws of which expressly authorize the | ||||||
19 | acquisition by an
Illinois bank holding company of a bank | ||||||
20 | or bank holding company in that
state under qualifications | ||||||
21 | and conditions which are not unduly restrictive,
as | ||||||
22 | determined by the Secretary Commissioner , when compared to | ||||||
23 | those imposed by the
laws of Illinois.
| ||||||
24 | (q) "Principal place of business" means,
with respect to a | ||||||
25 | bank holding company, the state in which the total
deposits | ||||||
26 | held by all of the banking offices of all of the bank |
| |||||||
| |||||||
1 | subsidiaries
of such bank holding company are the largest, as | ||||||
2 | shown in the most recent
reports of condition or similar | ||||||
3 | reports filed by the bank holding company's
bank subsidiaries | ||||||
4 | with state or federal regulatory authorities.
| ||||||
5 | (q-5) "Secretary" means the Secretary of Financial and | ||||||
6 | Professional Regulation
or a person authorized by the | ||||||
7 | Secretary, the Office of Banks and Real Estate
Act, or this Act | ||||||
8 | to act in the Secretary's stead. | ||||||
9 | (r) "State" or "states" when used in this Act means any | ||||||
10 | State of the
United States, the District of Columbia, any | ||||||
11 | territory of the United
States, Puerto Rico, Guam, American | ||||||
12 | Samoa or the Virgin Islands.
| ||||||
13 | (s) "Subsidiary", with respect to a specified bank holding | ||||||
14 | company,
means any bank or company controlled by such bank | ||||||
15 | holding company.
| ||||||
16 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
17 | (205 ILCS 10/3.074) (from Ch. 17, par. 2510.04)
| ||||||
18 | Sec. 3.074. Powers; administrative review.
| ||||||
19 | (a) The Secretary Commissioner shall have the power and | ||||||
20 | authority:
| ||||||
21 | (1) to promulgate reasonable procedural rules for the | ||||||
22 | purposes
of
administering the provisions of this Act. The | ||||||
23 | Secretary Commissioner shall specify
the form of any | ||||||
24 | application, report or document that is required to be
| ||||||
25 | filed with the Secretary Commissioner pursuant to this Act;
|
| |||||||
| |||||||
1 | (2) to issue orders for the purpose of administering | ||||||
2 | the
provisions of
this Act and any rule promulgated in | ||||||
3 | accordance with this Act;
| ||||||
4 | (3) to appoint hearing officers to execute any of the | ||||||
5 | powers
granted to
the Secretary Commissioner under this | ||||||
6 | Section for the purpose of administering this
Act or any | ||||||
7 | rule promulgated in accordance with this Act; and
| ||||||
8 | (4) to subpoena witnesses, to compel their attendance, | ||||||
9 | to
administer an
oath, to examine any person under oath and | ||||||
10 | to require the production of any
relevant books, papers, | ||||||
11 | accounts and documents in the course of and
pursuant to any | ||||||
12 | investigation or hearing being conducted or any action
| ||||||
13 | being taken by the Secretary Commissioner in respect to any | ||||||
14 | matter relating to the
duties imposed upon or the powers | ||||||
15 | vested in the Secretary Commissioner under the
provisions | ||||||
16 | of this Act or any rule promulgated in accordance with this
| ||||||
17 | Act.
| ||||||
18 | (b) Whenever, in the opinion of the Secretary Commissioner , | ||||||
19 | any
director,
officer, employee, or agent of any bank holding | ||||||
20 | company or subsidiary or
affiliate of
that company shall have | ||||||
21 | violated any law, rule, or order relating to that bank
holding | ||||||
22 | company or subsidiary or affiliate of that company, shall have
| ||||||
23 | obstructed or
impeded any examination or investigation by the | ||||||
24 | Secretary Commissioner , shall have
engaged in an unsafe or | ||||||
25 | unsound practice in conducting the business
of that bank | ||||||
26 | holding company or subsidiary or affiliate of that company, or
|
| |||||||
| |||||||
1 | shall have
violated any law or engaged or participated in any | ||||||
2 | unsafe or unsound
practice in connection with any financial | ||||||
3 | institution or other business
entity such that the character | ||||||
4 | and fitness of the director, officer,
employee, or agent does | ||||||
5 | not assure reasonable promise of safe and sound
operation of | ||||||
6 | the bank holding company, the Secretary
Commissioner may issue | ||||||
7 | an order of removal. If, in the opinion of the Secretary
| ||||||
8 | Commissioner , any former director, officer, employee, or agent | ||||||
9 | of a bank
holding company or subsidiary or affiliate of that | ||||||
10 | company, prior to the
termination of his or her service with | ||||||
11 | that holding company or subsidiary or
affiliate of that | ||||||
12 | company, violated any law, rule, or order relating to that
bank | ||||||
13 | holding company or subsidiary or affiliate of that company, | ||||||
14 | obstructed
or impeded any examination or investigation by the | ||||||
15 | Secretary Commissioner , engaged
in an unsafe or unsound | ||||||
16 | practice in conducting the business of that bank
holding
| ||||||
17 | company or subsidiary or affiliate of that company, or violated | ||||||
18 | any law or
engaged
or participated in any unsafe or unsound | ||||||
19 | practice in connection with any
financial institution or other | ||||||
20 | business entity such that the character
and fitness of the | ||||||
21 | director, officer, employee, or agent would not have
assured | ||||||
22 | reasonable promise of safe and sound operation of the bank
| ||||||
23 | holding company, the Secretary Commissioner may issue an order | ||||||
24 | prohibiting that
person from further service with a bank | ||||||
25 | holding company or subsidiary or
affiliate of that company as a | ||||||
26 | director, officer, employee, or agent.
|
| |||||||
| |||||||
1 | An order
issued
pursuant to this subsection shall be served | ||||||
2 | upon the director, officer,
employee, or agent. A copy of the | ||||||
3 | order shall be sent to each director of
the bank holding | ||||||
4 | company affected by registered mail. The person affected
by the | ||||||
5 | action may request a hearing before the Board of Banks and | ||||||
6 | Trust Companies State Banking Board within
10 days after | ||||||
7 | receipt of the order. The hearing shall be held by the Board of | ||||||
8 | Banks and Trust Companies State
Banking Board within 30 days | ||||||
9 | after the request has been received by the Board of Banks and | ||||||
10 | Trust Companies State
Banking
Board . The Board of Banks and | ||||||
11 | Trust Companies State Banking Board shall make a determination | ||||||
12 | approving,
modifying, or
disapproving the order of the | ||||||
13 | Secretary Commissioner as its final administrative
decision.
| ||||||
14 | If a hearing is held by the Board of Banks and Trust Companies | ||||||
15 | State Banking Board , the Board of Banks and Trust Companies | ||||||
16 | State Banking Board shall
make its determination
within 60 days | ||||||
17 | from the conclusion of the hearing. Any person affected by a
| ||||||
18 | decision of the Board of Banks and Trust Companies State | ||||||
19 | Banking Board under this subsection
may have the decision | ||||||
20 | reviewed only under and in accordance with the
Administrative
| ||||||
21 | Review Law and the rules adopted pursuant thereto. A copy of | ||||||
22 | the order
shall also be served upon the bank holding company of | ||||||
23 | which he is a director,
officer,
employee, or agent, whereupon | ||||||
24 | he shall cease to be a director, officer,
employee, or agent of | ||||||
25 | that bank holding company.
| ||||||
26 | The Secretary Commissioner may
institute a
civil action |
| |||||||
| |||||||
1 | against the director, officer, employee, or agent of the bank
| ||||||
2 | holding
company, against whom
any order provided for by this | ||||||
3 | subsection has been
issued, to enforce compliance with or to | ||||||
4 | enjoin any violation of the terms
of the order.
| ||||||
5 | Any person who has been the subject of an order of removal
| ||||||
6 | or an order of prohibition issued by the Secretary Commissioner | ||||||
7 | under this subsection,
subdivision (7) of Section 48 of the | ||||||
8 | Illinois Banking Act, or
Section 5-6 of the Corporate Fiduciary | ||||||
9 | Act may not thereafter serve as
director, officer, employee, or | ||||||
10 | agent of any holding company, State bank, or
branch
of any | ||||||
11 | out-of-state bank, of any corporate fiduciary, as defined in
| ||||||
12 | Section 1-5.05 of the Corporate Fiduciary Act, or of any other | ||||||
13 | entity
that is subject to licensure or regulation by the | ||||||
14 | Secretary Commissioner or the
Department of Financial and | ||||||
15 | Professional Regulation Office of Banks and Real Estate unless | ||||||
16 | the Secretary Commissioner has granted
prior approval in | ||||||
17 | writing.
| ||||||
18 | (c) All final administrative decisions of the Secretary
| ||||||
19 | Commissioner under
this
Act shall be subject to judicial review | ||||||
20 | pursuant to provisions of the
Administrative Review Law. For | ||||||
21 | matters involving administrative review,
venue shall be in | ||||||
22 | either Sangamon County or Cook County.
| ||||||
23 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
24 | Section 30. The Pawnbroker Regulation Act is amended by | ||||||
25 | changing Section 0.05 as follows:
|
| |||||||
| |||||||
1 | (205 ILCS 510/0.05)
| ||||||
2 | Sec. 0.05. Administration of Act.
| ||||||
3 | (a) This Act shall be administered by the Secretary
| ||||||
4 | Commissioner of Banks and Real Estate who shall have all of the | ||||||
5 | following
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 Secretary Commissioner under this | ||||||
14 | Section for the purpose of administering this
Act and any | ||||||
15 | rule 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 Secretary
Commissioner in | ||||||
22 | respect of any matter relating to the duties imposed upon, | ||||||
23 | or
the powers vested in, the Secretary Commissioner under | ||||||
24 | the provisions of this Act or any
rule promulgated in | ||||||
25 | accordance with this Act.
|
| |||||||
| |||||||
1 | (5) To conduct hearings.
| ||||||
2 | (6) To impose civil penalties graduated up to $1,000 | ||||||
3 | against any person
for each
violation of any provision of | ||||||
4 | this Act, any rule promulgated in
accordance
with this Act, | ||||||
5 | or any order of the Secretary Commissioner
based upon the | ||||||
6 | seriousness of the violation.
| ||||||
7 | (6.5) To initiate, through the Attorney General, | ||||||
8 | injunction proceedings
whenever it appears to the | ||||||
9 | Secretary Commissioner that any person, whether licensed | ||||||
10 | under
this Act or not, is engaged or about to engage in an | ||||||
11 | act or practice that
constitutes or will constitute a | ||||||
12 | violation of this Act or any rule prescribed
under the | ||||||
13 | authority of this Act. The Secretary Commissioner may, in | ||||||
14 | his or her
discretion, through the Attorney General, apply | ||||||
15 | for an injunction, and upon a
proper showing, any circuit | ||||||
16 | court may enter a permanent or preliminary
injunction or a | ||||||
17 | temporary restraining order without bond to enforce this | ||||||
18 | Act in
addition to the penalties and other remedies | ||||||
19 | provided for in this Act.
| ||||||
20 | (7) To issue a cease and desist order and, for | ||||||
21 | violations of
this Act, any order issued by the Secretary | ||||||
22 | Commissioner pursuant to this Act, any
rule promulgated in | ||||||
23 | accordance with this Act,
or any other applicable law in | ||||||
24 | connection with the operation of a pawnshop,
to suspend a | ||||||
25 | license issued under this Act for up to 30 days.
| ||||||
26 | (8) To determine
compliance with applicable law and |
| |||||||
| |||||||
1 | rules related to the operation of pawnshops
and to verify | ||||||
2 | the accuracy of reports filed with the Secretary | ||||||
3 | Commissioner , the Secretary
Commissioner , not more than | ||||||
4 | one time every 2 years, may, but is not required
to, | ||||||
5 | conduct a routine examination of a pawnshop, and in
| ||||||
6 | addition, the Secretary Commissioner may examine the | ||||||
7 | affairs of any pawnshop at any time if the Secretary | ||||||
8 | Commissioner
has
reasonable cause to believe that unlawful | ||||||
9 | or fraudulent activity is occurring,
or has occurred, | ||||||
10 | therein.
| ||||||
11 | (9) In response to a complaint, to address any | ||||||
12 | inquiries to any pawnshop
in relation to its affairs, and | ||||||
13 | it shall be the duty of the pawnshop to
promptly reply in | ||||||
14 | writing to such inquiries. The Secretary Commissioner may | ||||||
15 | also require
reports or information from any pawnshop at | ||||||
16 | any time the Secretary Commissioner may deem
desirable.
| ||||||
17 | (10) To revoke a license issued under this Act if the | ||||||
18 | Secretary Commissioner
determines that (a) a licensee has | ||||||
19 | been convicted of a felony in connection
with the | ||||||
20 | operations of a pawnshop; (b) a licensee knowingly, | ||||||
21 | recklessly, or
continuously violated this Act, a rule | ||||||
22 | promulgated in
accordance with this Act, or any order of | ||||||
23 | the Secretary Commissioner ; (c) a fact or
condition exists | ||||||
24 | that, if it had existed or had been known at the time of | ||||||
25 | the
original application, would have justified license | ||||||
26 | refusal; or (d) the licensee
knowingly submits materially |
| |||||||
| |||||||
1 | false or misleading documents with the intent to
deceive | ||||||
2 | the Secretary Commissioner or any other party ; or (e) the | ||||||
3 | licensee is unable or ceases to continue to operate the | ||||||
4 | pawnshop .
| ||||||
5 | (10.2) To remove or prohibit the employment of any | ||||||
6 | officer, director, or employee who engages or who has | ||||||
7 | engaged in unsafe, unsound, or unlawful activities. | ||||||
8 | (10.7) To prohibit the hiring of employees who have | ||||||
9 | been convicted of a felony or of any criminal offense | ||||||
10 | relating to dishonesty or breach of trust in connection | ||||||
11 | with the operation of a pawnshop.
| ||||||
12 | (11) Following license revocation, to take possession | ||||||
13 | and control of a
pawnshop for the purpose of examination, | ||||||
14 | reorganization, or liquidation through
receivership and to | ||||||
15 | appoint a receiver, which may be the Secretary | ||||||
16 | Commissioner , a
pawnshop, or
another suitable person.
| ||||||
17 | (b) After consultation with local law enforcement | ||||||
18 | officers, the Attorney
General, and the industry, the Secretary | ||||||
19 | Commissioner may by rule require that
pawnbrokers
operate video | ||||||
20 | camera surveillance systems to record photographic
| ||||||
21 | representations of customers and retain the tapes produced for | ||||||
22 | up to 30 days.
| ||||||
23 | (c) Pursuant to rule, the Secretary Commissioner shall | ||||||
24 | issue licenses on an annual or
multi-year basis for operating a
| ||||||
25 | pawnshop. Any person currently operating or
who has operated a | ||||||
26 | pawnshop in this State during the 2 years preceding the
|
| |||||||
| |||||||
1 | effective date of this amendatory Act of 1997 shall be issued a | ||||||
2 | license upon
payment of the fee required under this Act. New | ||||||
3 | applicants shall meet
standards for a license as established by | ||||||
4 | the Secretary Commissioner .
Except with the prior written | ||||||
5 | consent of the Secretary Commissioner , no individual,
either a | ||||||
6 | new applicant or a person currently operating a pawnshop, may | ||||||
7 | be
issued a license to operate a pawnshop if the individual has | ||||||
8 | been convicted
of a felony or of any criminal offense relating | ||||||
9 | to dishonesty or breach of
trust in connection with the | ||||||
10 | operations of a pawnshop.
The Secretary Commissioner shall
| ||||||
11 | establish license fees. The fees shall not exceed the amount | ||||||
12 | reasonably
required for administration of this Act. It shall be | ||||||
13 | unlawful to operate a
pawnshop without a license issued by the | ||||||
14 | Secretary Commissioner .
| ||||||
15 | (d) In addition to license fees, the Secretary Commissioner | ||||||
16 | may, by rule, establish
fees in connection with a review, | ||||||
17 | approval, or provision of a service, and levy
a reasonable | ||||||
18 | charge to recover the cost of the review, approval, or service
| ||||||
19 | (such as a change in control, change in location, or renewal of | ||||||
20 | a license).
The Secretary Commissioner may also levy a | ||||||
21 | reasonable charge to recover the cost of an
examination if the | ||||||
22 | Secretary Commissioner determines that unlawful or fraudulent | ||||||
23 | activity
has occurred. The Secretary Commissioner may require | ||||||
24 | payment of the fees and charges
provided in this Act by | ||||||
25 | certified check, money order, an electronic transfer of
funds, | ||||||
26 | or an automatic debit of an account.
|
| |||||||
| |||||||
1 | (e) The Pawnbroker Regulation Fund is established as a | ||||||
2 | special
fund in the State treasury. Moneys collected under this | ||||||
3 | Act shall be deposited
into the Fund and used for the | ||||||
4 | administration of this Act.
In the event that General Revenue | ||||||
5 | Funds are appropriated to the Office of the
Secretary of | ||||||
6 | Financial and Professional Regulation Commissioner of Banks | ||||||
7 | and Real Estate for the initial implementation of this
Act, the | ||||||
8 | Governor may direct the repayment from the Pawnbroker | ||||||
9 | Regulation
Fund to the General Revenue Fund of such advance in | ||||||
10 | an amount not to exceed
$30,000. The Governor may direct this | ||||||
11 | interfund transfer at such time as he
deems appropriate by | ||||||
12 | giving appropriate written notice. Moneys in the Pawnbroker | ||||||
13 | Regulation Fund may be transferred to the Professions Indirect | ||||||
14 | Cost Fund, as authorized under Section 2105-300 of the | ||||||
15 | Department of Professional Regulation Law of the Civil | ||||||
16 | Administrative Code of Illinois.
| ||||||
17 | (f) The Secretary Commissioner may, by rule, require all | ||||||
18 | pawnshops to provide for
the expenses that would arise from the | ||||||
19 | administration of the receivership of a
pawnshop under this Act | ||||||
20 | through the assessment of fees, the requirement to
pledge | ||||||
21 | surety bonds, or such other methods as determined by the | ||||||
22 | Secretary Commissioner .
| ||||||
23 | (g) All final administrative decisions of the Secretary | ||||||
24 | Commissioner under
this Act shall be subject to judicial review | ||||||
25 | pursuant to the provisions of the
Administrative Review Law. | ||||||
26 | For matters involving administrative review, venue
shall be in
|
| |||||||
| |||||||
1 | either Sangamon County or Cook County.
| ||||||
2 | (Source: P.A. 94-91, eff. 7-1-05.)
| ||||||
3 | Section 40. The Corporate Fiduciary Act is amended by | ||||||
4 | changing Sections 1-5.15, 2-7, 4-5, 5-1, 5-3, 5-5, 5-6, 5-8, | ||||||
5 | and 5-9 as follows:
| ||||||
6 | (205 ILCS 620/1-5.15 new)
| ||||||
7 | Sec. 1-5.15. Secretary of Financial and Professional | ||||||
8 | Regulation. "Secretary" means the Secretary of Financial and | ||||||
9 | Professional Regulation or a person authorized by the | ||||||
10 | Secretary, the Office of Banks and Real Estate Act, or this Act | ||||||
11 | to act in the Secretary's stead.
| ||||||
12 | (205 ILCS 620/2-7) (from Ch. 17, par. 1552-7)
| ||||||
13 | Sec. 2-7. A corporate fiduciary so incorporated or
| ||||||
14 | authorized after January 1, 1988, shall have minimum capital as | ||||||
15 | determined by the Secretary Commissioner as
necessary for safe | ||||||
16 | and sound operation of a corporate
fiduciary. The Commissioner | ||||||
17 | shall record such organization
capital requirements in the | ||||||
18 | Office of the
Secretary of State.
During the time that a | ||||||
19 | corporate fiduciary shall continue in its
fiduciary business, | ||||||
20 | it shall not withdraw, or permit to be withdrawn,
either in the | ||||||
21 | form of dividends or otherwise, any portion of its capital
| ||||||
22 | except as approved by the Secretary Commissioner . The Secretary | ||||||
23 | Commissioner may, after a
corporate fiduciary has been |
| |||||||
| |||||||
1 | incorporated or authorized require additional
capital if the | ||||||
2 | Secretary Commissioner finds the condition and operations of | ||||||
3 | the
corporate fiduciary or its proposed scope of operations | ||||||
4 | require such
additional capital to achieve or maintain a safe | ||||||
5 | and sound condition.
| ||||||
6 | (Source: P.A. 90-301, eff. 8-1-97.)
| ||||||
7 | (205 ILCS 620/4-5) (from Ch. 17, par. 1554-5)
| ||||||
8 | Sec. 4-5. Certificate of authority; fees; certificate of
| ||||||
9 | reciprocity. | ||||||
10 | (a) Prior to the time any foreign corporation acts in this | ||||||
11 | State as
testamentary trustee, trustee appointed by any court, | ||||||
12 | trustee under any written
agreement, declaration or instrument | ||||||
13 | of trust, executor, administrator,
administrator to collect, | ||||||
14 | guardian or in any other like fiduciary capacity,
such foreign | ||||||
15 | corporation shall apply to the Secretary of Financial and | ||||||
16 | Professional Regulation Commissioner of Banks and Real
Estate | ||||||
17 | for a certificate of authority with reference to
the fiduciary | ||||||
18 | capacity or capacities in which such foreign corporation | ||||||
19 | proposes
to act in this State, and the Secretary of Financial | ||||||
20 | and Professional Regulation Commissioner of Banks and Real | ||||||
21 | Estate shall issue a certificate of authority to such | ||||||
22 | corporation
concerning only the fiduciary capacity or such of | ||||||
23 | the fiduciary capacities to
which the application pertains and | ||||||
24 | with respect to which he has been furnished
satisfactory | ||||||
25 | evidence that such foreign corporation meets the requirements |
| |||||||
| |||||||
1 | of
Section 4-2 of this Act. The certificate of authority shall | ||||||
2 | set forth the
fiduciary capacity or capacities, as the case may | ||||||
3 | be, for which the certificate
is issued, and shall recite and | ||||||
4 | certify that such foreign corporation is
eligible to act in | ||||||
5 | this State in such fiduciary capacity or capacities, as the
| ||||||
6 | case may be, pursuant to the provisions of this Act. The | ||||||
7 | certificate of
authority shall remain in full force and effect | ||||||
8 | until such time as such foreign
corporation violates any order | ||||||
9 | of the Director of the Division or Secretary arising under this | ||||||
10 | Act, any provision of this Act, or any rule promulgated in | ||||||
11 | accordance with this Act or ceases to be eligible so to act | ||||||
12 | under the provisions of this Act.
| ||||||
13 | (b) Each foreign corporation making application for a | ||||||
14 | certificate of
authority shall pay reasonable fees to the | ||||||
15 | Secretary of Financial and Professional Regulation | ||||||
16 | Commissioner of Banks and Real
Estate as determined by the | ||||||
17 | Secretary Commissioner for the services
of his office.
| ||||||
18 | (c) Any foreign corporation holding a certificate of
| ||||||
19 | reciprocity which recites and certifies that such foreign
| ||||||
20 | corporation is eligible to act in this State in any such
| ||||||
21 | fiduciary capacity pursuant to the provisions of Article IV of
| ||||||
22 | this Act or any predecessor Act upon the same subject, issued
| ||||||
23 | prior to the effective date of this amendatory Act of 1987 may
| ||||||
24 | act in this State under such certificate of reciprocity in any
| ||||||
25 | such fiduciary capacity without applying for a new certificate | ||||||
26 | of
authority. Such certificate of reciprocity shall remain in |
| |||||||
| |||||||
1 | full
force and effect until such time as such foreign | ||||||
2 | corporation
ceases to be eligible so to act under the | ||||||
3 | provisions of Article
IV of this Act.
| ||||||
4 | (d) Any foreign corporation acting in Illinois under a | ||||||
5 | certificate of
authority or a certificate of reciprocity shall | ||||||
6 | report changes in its name
or address to the Secretary | ||||||
7 | Commissioner and shall notify the Secretary Commissioner when | ||||||
8 | it is
no longer serving as a corporate fiduciary in Illinois.
| ||||||
9 | (e) The provisions of this Section shall not apply to a | ||||||
10 | foreign
corporation establishing or acquiring and maintaining | ||||||
11 | a place of business in
this State to conduct business as a | ||||||
12 | fiduciary in accordance with Article IVA
of this Act.
| ||||||
13 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
14 | (205 ILCS 620/5-1) (from Ch. 17, par. 1555-1)
| ||||||
15 | Sec. 5-1. Secretary's Commissioner's powers. The Secretary | ||||||
16 | of Financial and Professional Regulation Commissioner of Banks | ||||||
17 | and Real
Estate shall have the following powers and
authority | ||||||
18 | and is charged with the duties and responsibilities
designated | ||||||
19 | in this Act:
| ||||||
20 | (a) To promulgate, in accordance with the Illinois | ||||||
21 | Administrative Procedure
Act, reasonable rules for the purpose | ||||||
22 | of administering the provisions of this
Act and for the purpose | ||||||
23 | of incorporating by reference rules promulgated by the
Federal | ||||||
24 | Deposit Insurance Corporation, the Board of Governors of the | ||||||
25 | Federal
Reserve System, the Office of the Comptroller of the |
| |||||||
| |||||||
1 | Currency, the
Office of Thrift Supervision, or their successors | ||||||
2 | that pertain to corporate
fiduciaries, including, but not | ||||||
3 | limited to, standards for the operation and
conduct of the | ||||||
4 | affairs of corporate fiduciaries;
| ||||||
5 | (b) To issue orders for the purpose of administering the
| ||||||
6 | provisions of this Act and any rule promulgated in accordance
| ||||||
7 | with this Act;
| ||||||
8 | (c) To appoint hearing officers to conduct hearings held
| ||||||
9 | pursuant to any of the powers granted to the Secretary | ||||||
10 | Commissioner under
this Section for the purpose of | ||||||
11 | administering this Act and any
rule promulgated in accordance | ||||||
12 | with this Act;
| ||||||
13 | (d) To subpoena witnesses, to compel their attendance, to
| ||||||
14 | administer an oath, to examine any person under oath and to
| ||||||
15 | require the production of any relevant books, papers, accounts
| ||||||
16 | and documents in the course of and pursuant to any | ||||||
17 | investigation
being conducted, or any action being taken, by | ||||||
18 | the Secretary Commissioner
in respect of any matter relating to | ||||||
19 | the duties imposed upon, or
the powers vested in, the Secretary | ||||||
20 | Commissioner under the provisions of
this Act, or any rule or | ||||||
21 | regulation promulgated in accordance
with this Act;
| ||||||
22 | (e) To conduct hearings;
| ||||||
23 | (f) To promulgate the form and content of any applications | ||||||
24 | required
under this Act;
| ||||||
25 | (g) To impose civil penalties in an amount not to exceed | ||||||
26 | the amount a federal regulatory agency is authorized to charge |
| |||||||
| |||||||
1 | under federal law of up to $10,000 against any
person or | ||||||
2 | corporate fiduciary for each violation of any provision
of this | ||||||
3 | Act, any rule promulgated in accordance with this Act,
any | ||||||
4 | order of the Secretary Commissioner or any other action which, | ||||||
5 | in the Secretary's
Commissioner's discretion, is a detriment or | ||||||
6 | impediment to
accepting or executing trusts; and
| ||||||
7 | (h) To address any inquiries to any corporate fiduciary, or
| ||||||
8 | the officers thereof, in relation to its doings and conditions,
| ||||||
9 | or any other matter connected with its affairs, and it shall be
| ||||||
10 | the duty of any corporate fiduciary or person so addressed, to
| ||||||
11 | promptly reply in writing to such inquiries. The Secretary | ||||||
12 | Commissioner
may also require reports from any corporate | ||||||
13 | fiduciary at any time
he may deem desirable.
| ||||||
14 | (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
| ||||||
15 | (205 ILCS 620/5-3) (from Ch. 17, par. 1555-3)
| ||||||
16 | Sec. 5-3. Violations; orders.
| ||||||
17 | (a) Whenever it appears to the Secretary Commissioner
from | ||||||
18 | any examination, statement of condition or report, that any
| ||||||
19 | corporate fiduciary has committed any violation of law, has | ||||||
20 | made
or published a false statement of condition or is | ||||||
21 | conducting its
business in an unsafe, unsound or unauthorized | ||||||
22 | manner, he may shall ,
by an order under his signature, direct | ||||||
23 | the discontinuance of
such illegal and unsafe, unsound or | ||||||
24 | unauthorized practices and
that the corporate fiduciary | ||||||
25 | strictly conform with the
requirements of the law, and with |
| |||||||
| |||||||
1 | safety and security in its
transactions.
| ||||||
2 | (b) If a corporate fiduciary refuses or neglects to make a
| ||||||
3 | required statement of condition or any report required under | ||||||
4 | this
Act, or to comply with an order as above stated, or if it | ||||||
5 | appears
to the Secretary Commissioner that it is unsafe or | ||||||
6 | inexpedient for the
corporate fiduciary to continue to transact | ||||||
7 | business, or that
extraordinary withdrawals of money are | ||||||
8 | jeopardizing the interests
of remaining depositors, or that any | ||||||
9 | corporate fiduciary or
officer of a corporate fiduciary has | ||||||
10 | abused his trust or is
guilty of misconduct in his official | ||||||
11 | position, injurious to the
corporate fiduciary, or that it has | ||||||
12 | suffered a serious loss, he
shall enter an order appropriate to | ||||||
13 | the circumstances, which may
include the appointment of a | ||||||
14 | receiver as hereinafter provided,
the taking of possession of | ||||||
15 | the corporate fiduciary, or the removal of
a
director, officer, | ||||||
16 | employee, or agent of the corporate fiduciary, or
he may, | ||||||
17 | represented by the Attorney General, seek an injunction or | ||||||
18 | other
appropriate order from the court.
| ||||||
19 | (c) No dividends shall be paid by a corporate fiduciary | ||||||
20 | while it
continues its business as a corporate fiduciary to an | ||||||
21 | amount greater than
its net profits then on hand, deducting | ||||||
22 | first therefrom its losses
and bad debts.
| ||||||
23 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
24 | (205 ILCS 620/5-5) (from Ch. 17, par. 1555-5)
| ||||||
25 | Sec. 5-5. A special meeting of the board of directors may
|
| |||||||
| |||||||
1 | be held upon call by the Secretary Commissioner or an examiner | ||||||
2 | appointed
under the provisions of this Act, upon not less than | ||||||
3 | 12 hours
notice of such meeting by personal service of such | ||||||
4 | notice, or by
mailing said notice to each of the directors at | ||||||
5 | his residence as
shown by the books of the corporate fiduciary , | ||||||
6 | or by any other method of delivery, provided such method | ||||||
7 | provides proof of service and receipt .
| ||||||
8 | (Source: P.A. 85-858.)
| ||||||
9 | (205 ILCS 620/5-6) (from Ch. 17, par. 1555-6)
| ||||||
10 | Sec. 5-6. Removal orders. Whenever, in the opinion of the | ||||||
11 | Secretary Commissioner ,
any director, officer, employee, or | ||||||
12 | agent of a corporate fiduciary
or subsidiary or corporate | ||||||
13 | parent of the corporate fiduciary
shall have violated any law, | ||||||
14 | rule, or order relating to the corporate
fiduciary
or | ||||||
15 | subsidiary or corporate parent of the corporate fiduciary, | ||||||
16 | shall have
engaged in an unsafe or unsound practice in | ||||||
17 | conducting
the
business of the corporate fiduciary
or | ||||||
18 | subsidiary or corporate parent of the corporate fiduciary, or | ||||||
19 | shall
have violated any law or
engaged or participated in any | ||||||
20 | unsafe or unsound practice in connection with
any financial | ||||||
21 | institution or other business entity such that the character | ||||||
22 | and
fitness of the director, officer, employee, or agent does | ||||||
23 | not assure reasonable
promise of safe and sound operation of | ||||||
24 | the corporate fiduciary
or subsidiary or corporate parent of | ||||||
25 | the corporate fiduciary, the Secretary
Commissioner may issue |
| |||||||
| |||||||
1 | an order of
removal.
If in the opinion of the Secretary | ||||||
2 | Commissioner , any former director, officer,
employee, or agent | ||||||
3 | of a corporate fiduciary
or subsidiary or corporate parent of | ||||||
4 | the corporate fiduciary, prior to the
termination of his
or her | ||||||
5 | service with the corporate fiduciary
or subsidiary or corporate | ||||||
6 | parent of the corporate fiduciary, violated any
law, rule, or | ||||||
7 | order
relating to the corporate fiduciary
or subsidiary or | ||||||
8 | corporate parent of the corporate fiduciary
or engaged in an | ||||||
9 | unsafe or unsound practice
in conducting the business of the | ||||||
10 | corporate fiduciary
or subsidiary or corporate parent of the | ||||||
11 | corporate fiduciary
or violated any law or
engaged or | ||||||
12 | participated in any unsafe or unsound practice in connection | ||||||
13 | with
any financial institution or other business entity such | ||||||
14 | that the character and
fitness of the director, officer, | ||||||
15 | employee, or agent would not have assured
reasonable promise of | ||||||
16 | safe and sound operation of the corporate fiduciary
or | ||||||
17 | subsidiary or corporate parent of the corporate fiduciary,
the | ||||||
18 | Secretary
Commissioner may issue
an order prohibiting that | ||||||
19 | person from further service with a corporate
fiduciary
or | ||||||
20 | subsidiary or corporate parent of the corporate fiduciary
as a | ||||||
21 | director, officer, employee, or agent. An order issued pursuant
| ||||||
22 | to this Section shall be served upon the
director, officer, | ||||||
23 | employee, or
agent. A copy of the order shall be sent to each | ||||||
24 | director of the corporate
fiduciary
affected by personal | ||||||
25 | service, certified mail return receipt
requested, or any other | ||||||
26 | method that provides proof of service and receipt. The
person |
| |||||||
| |||||||
1 | affected by the action may request a hearing before the Board | ||||||
2 | of Banks and Trust Companies
State Banking Board of Illinois , | ||||||
3 | hereafter "the Board", within 10 days after
receipt of the | ||||||
4 | order of removal or prohibition. The hearing shall be held
by | ||||||
5 | the Board
according to the same procedures used pursuant to | ||||||
6 | Section 48 of the Illinois
Banking Act, and the hearing shall | ||||||
7 | be held within 30 days after the request has
been received by | ||||||
8 | the Board. After concluding the hearing, the Board shall make
a | ||||||
9 | determination approving, modifying, or disapproving the order | ||||||
10 | of the Secretary
Commissioner as its final administrative | ||||||
11 | decision. A copy of the order shall
be served upon the | ||||||
12 | corporate fiduciary
of which the person is a
director, officer, | ||||||
13 | employee, or agent, whereupon the person shall cease to be a
| ||||||
14 | director,
officer, employee, or agent of the corporate | ||||||
15 | fiduciary. Any person who has
been removed or prohibited by an | ||||||
16 | order of the Secretary Commissioner under this
Section or | ||||||
17 | subsection
(7) of Section 48 of the Illinois Banking Act may | ||||||
18 | not thereafter serve as
director, officer, employee, or agent | ||||||
19 | of any State bank or corporate fiduciary,
or of any other | ||||||
20 | entity that is subject to licensure or regulation by the | ||||||
21 | Secretary
Commissioner or the Department of Financial and | ||||||
22 | Professional Regulation Office of Banks and Real Estate unless | ||||||
23 | the Secretary Commissioner
has granted prior approval in | ||||||
24 | writing. The Secretary Commissioner may institute a civil
| ||||||
25 | action against the
director,
officer, employee, or agent | ||||||
26 | subject to an order issued under this Section and
against the |
| |||||||
| |||||||
1 | corporate fiduciary
to enforce compliance with or to enjoin any
| ||||||
2 | violation of the terms of the order.
| ||||||
3 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
4 | (205 ILCS 620/5-8) (from Ch. 17, par. 1555-8)
| ||||||
5 | Sec. 5-8. All final administrative decisions of the | ||||||
6 | Secretary
Commissioner , or of the Board of Banks and Trust | ||||||
7 | Companies State Banking Board of Illinois where
this Act | ||||||
8 | provides a hearing before such Board to review a
decision of | ||||||
9 | the Secretary Commissioner , shall be subject to review pursuant
| ||||||
10 | to the provisions of the Administrative Review Law, as now or
| ||||||
11 | hereafter amended, and the rules adopted pursuant thereto.
For | ||||||
12 | matters involving administrative review, venue shall be in | ||||||
13 | either
Sangamon County or Cook County.
| ||||||
14 | (Source: P.A. 86-754.)
| ||||||
15 | (205 ILCS 620/5-9) (from Ch. 17, par. 1555-9)
| ||||||
16 | Sec. 5-9. Statement of condition.
| ||||||
17 | (a) Each corporate fiduciary shall file with
the Secretary | ||||||
18 | Commissioner , when requested, a statement under oath, of the
| ||||||
19 | condition of such corporate fiduciary as of the date requested.
| ||||||
20 | The statement of condition shall be in such form and contain | ||||||
21 | such
statements, returns and information, as to the affairs, | ||||||
22 | business
conditions, and resources of the corporate fiduciary | ||||||
23 | or of its
trust department, as the case may be, as the said | ||||||
24 | Secretary Commissioner
may, from time to time prescribe or |
| |||||||
| |||||||
1 | require.
| ||||||
2 | (b) Such statement of condition shall be verified by the
| ||||||
3 | affidavit of the president, vice president or principal
| ||||||
4 | accounting officer of said corporate fiduciary, who shall also
| ||||||
5 | state in such affidavit that he has examined the books and
| ||||||
6 | accounts of said corporate fiduciary or of its trust | ||||||
7 | department,
as the case may be for the purpose of making said | ||||||
8 | report or
statement, and that the information contained in the | ||||||
9 | statement or
report is accurate to the best of his knowledge | ||||||
10 | and belief. If the statement
is submitted in electronic form, | ||||||
11 | the Secretary Commissioner may, in the call for the
report, | ||||||
12 | specify the manner in which the appropriate officer of the | ||||||
13 | corporate
fiduciary shall verify the statement of condition.
| ||||||
14 | (c) (Blank). The corporate fiduciary shall cause a proper | ||||||
15 | abstract
of the statements of assets and liabilities reported | ||||||
16 | under
sub-section (a) of this Section to be published once in a | ||||||
17 | newspaper
of general circulation, circulated in the city, town | ||||||
18 | or village
where the corporate fiduciary is located. Such | ||||||
19 | publication shall
be paid for by said corporate fiduciary which | ||||||
20 | shall cause to be
provided to the Commissioner a certificate of | ||||||
21 | publication from
the publishing newspaper in such form as the | ||||||
22 | Commissioner shall
require. When the corporate fiduciary is a | ||||||
23 | State bank, qualified
under this Act, the statements published | ||||||
24 | in compliance with the
Illinois Banking Act may be accepted by | ||||||
25 | the Commissioner in
compliance with the publication | ||||||
26 | requirements of this Section
although an annual statement of |
| |||||||
| |||||||
1 | condition may still be required.
| ||||||
2 | (d) Any corporate fiduciary which fails to file an accurate
| ||||||
3 | statement of condition on or before the date it is due, to
| ||||||
4 | publish the report if required to be published, or which fails | ||||||
5 | to
provide evidence of such publication may be fined $100 for | ||||||
6 | each
day of noncompliance.
| ||||||
7 | (e) Any corporate fiduciary which is the victim of a | ||||||
8 | robbery
or experiences a
shortage of funds in excess of | ||||||
9 | $10,000, an apparent
misapplication of
the corporate | ||||||
10 | fiduciary's funds by an officer, employee, director,
or
agent, | ||||||
11 | a charge-off of assets of the corporate fiduciary, or any | ||||||
12 | adverse legal action in an amount
in excess of 10% of total | ||||||
13 | capital and surplus of the corporate fiduciary,
including but
| ||||||
14 | not limited to, the entry of an adverse money judgment against | ||||||
15 | the
corporate fiduciary shall report that information in | ||||||
16 | writing to the Secretary
Commissioner within 7 days. Compliance | ||||||
17 | with the time frames prescribed by the United States Department | ||||||
18 | of Treasury's Financial Crimes Enforcement Network shall be | ||||||
19 | deemed compliance with this Section. Neither the corporate | ||||||
20 | fiduciary,
its directors, officers, employees or agents, in the | ||||||
21 | preparation or
filing of the reports required by this | ||||||
22 | subsection, shall be
subject to any
liability for libel, | ||||||
23 | slander or other charges resulting from information
supplied in | ||||||
24 | such reports, except when the supplying of such information is
| ||||||
25 | done in a corrupt or malicious manner or otherwise not in good | ||||||
26 | faith.
|
| |||||||
| |||||||
1 | (Source: P.A. 89-364, eff. 8-18-95.)
| ||||||
2 | Section 45. The Foreign Bank Representative Office Act is | ||||||
3 | amended by changing Section 2 as follows:
| ||||||
4 | (205 ILCS 650/2) (from Ch. 17, par. 2852)
| ||||||
5 | Sec. 2. Definitions. As used in this Act, unless the | ||||||
6 | context requires
otherwise:
| ||||||
7 | (a) "Commissioner" means the Commissioner of Banks and Real | ||||||
8 | Estate or a
person authorized by the Commissioner, the Office | ||||||
9 | of Banks and Real Estate Act,
or this Act to act in the | ||||||
10 | Commissioner's stead.
| ||||||
11 | (b) "Foreign bank" means (1) a bank or trust company which | ||||||
12 | is organized
under the laws of any state or territory of the | ||||||
13 | United States, including the
District of Columbia, other than | ||||||
14 | the State of Illinois; (2) a national bank
having its principal | ||||||
15 | place of business in any state or territory of the United
| ||||||
16 | States, including the District of Columbia, other than the | ||||||
17 | State of Illinois;
or (3) a bank or trust company organized and | ||||||
18 | operating under the laws of a
country other than the United | ||||||
19 | States of America.
| ||||||
20 | (c) "Representative office" means an office in the State of | ||||||
21 | Illinois at
which a foreign bank engages in representational | ||||||
22 | functions
but does not conduct a commercial banking business. | ||||||
23 | (d) "Secretary" means the Secretary of Financial and | ||||||
24 | Professional Regulation or a person authorized by the |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Secretary, the Office of Banks and Real Estate
Act, or this Act | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | to act in the Secretary's stead.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | (205 ILCS 680/Act rep.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Section 50. The Financial Institution Activity Reporting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Act is repealed.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Section 99. Effective date. This Act takes effect January | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | 1, 2009.
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