95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1526

 

Introduced 2/22/2007, by Rep. Joseph M. Lyons

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Finance Act. Excludes moneys received under the Illinois Credit Union Act from those moneys required to be deposited into the Financial Institution Fund. Makes certain provisions concerning transfers to the General Revenue Fund inapplicable to (i) any fund established under the Illinois Credit Union Act, the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, or the Savings Bank Act and (ii) the Professions Indirect Cost Fund. Prohibits the allocation or transfer of additional amounts generated by certain fee increases with respect to or from the Credit Union Fund. Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, the Illinois Credit Union Act, and the Residential Mortgage License Act of 1987. With respect to the moneys in each of the Bank and Trust Company Fund, the Savings and Residential Finance Regulatory Fund, and the Credit Union Fund, exempts those moneys from assignment or transfer, with exceptions. Requires that rules to adjust regulatory fee rates must be adopted. Makes changes concerning credit union regulatory fees. Makes changes concerning certain residential mortgage license fees. Makes other changes. Effective immediately.


LRB095 08530 MJR 28711 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1526 LRB095 08530 MJR 28711 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Finance Act is amended by changing
5 Sections 6z-26, 8h, and 8j as follows:
 
6     (30 ILCS 105/6z-26)
7     Sec. 6z-26. The Financial Institution Fund. All moneys
8 received by the Department of Financial and Professional
9 Regulation under the Safety Deposit License Act, the Foreign
10 Exchange License Act, the Pawners Societies Act, the Sale of
11 Exchange Act, the Currency Exchange Act, the Sales Finance
12 Agency Act, the Debt Management Service Act, the Consumer
13 Installment Loan Act, the Illinois Development Credit
14 Corporation Act, the Title Insurance Act, and any other Act
15 administered by the Department of Financial and Professional
16 Regulation as the successor of the Department of Financial
17 Institutions now or in the future, other than the Illinois
18 Credit Union Act, (unless an Act specifically provides
19 otherwise) shall be deposited in the Financial Institution Fund
20 (hereinafter "Fund"), a special fund that is hereby created in
21 the State Treasury.
22     Moneys in the Fund shall be used by the Department, subject
23 to appropriation, for expenses incurred in administering the

 

 

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1 above named and referenced Acts.
2     The Comptroller and the State Treasurer shall transfer from
3 the General Revenue Fund to the Fund any monies received by the
4 Department after June 30, 1993, under any of the above named
5 and referenced Acts that have been deposited in the General
6 Revenue Fund.
7     As soon as possible after the end of each calendar year,
8 the Comptroller shall compare the balance in the Fund at the
9 end of the calendar year with the amount appropriated from the
10 Fund for the fiscal year beginning on July 1 of that calendar
11 year. If the balance in the Fund exceeds the amount
12 appropriated, the Comptroller and the State Treasurer shall
13 transfer from the Fund to the General Revenue Fund an amount
14 equal to the difference between the balance in the Fund and the
15 amount appropriated.
16     Nothing in this Section shall be construed to prohibit
17 appropriations from the General Revenue Fund for expenses
18 incurred in the administration of the above named and
19 referenced Acts.
20     Moneys in the Fund may be transferred to the Professions
21 Indirect Cost Fund, as authorized under Section 2105-300 of the
22 Department of Professional Regulation Law of the Civil
23 Administrative Code of Illinois.
24 (Source: P.A. 94-91, eff. 7-1-05.)
 
25     (30 ILCS 105/8h)

 

 

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1     Sec. 8h. Transfers to General Revenue Fund.
2     (a) Except as otherwise provided in this Section and
3 Section 8n of this Act, and (c), (d), or (e), notwithstanding
4 any other State law to the contrary, the Governor may, through
5 June 30, 2007, from time to time direct the State Treasurer and
6 Comptroller to transfer a specified sum from any fund held by
7 the State Treasurer to the General Revenue Fund in order to
8 help defray the State's operating costs for the fiscal year.
9 The total transfer under this Section from any fund in any
10 fiscal year shall not exceed the lesser of (i) 8% of the
11 revenues to be deposited into the fund during that fiscal year
12 or (ii) an amount that leaves a remaining fund balance of 25%
13 of the July 1 fund balance of that fiscal year. In fiscal year
14 2005 only, prior to calculating the July 1, 2004 final
15 balances, the Governor may calculate and direct the State
16 Treasurer with the Comptroller to transfer additional amounts
17 determined by applying the formula authorized in Public Act
18 93-839 to the funds balances on July 1, 2003. No transfer may
19 be made from a fund under this Section that would have the
20 effect of reducing the available balance in the fund to an
21 amount less than the amount remaining unexpended and unreserved
22 from the total appropriation from that fund estimated to be
23 expended for that fiscal year. This Section does not apply to
24 any funds that are restricted by federal law to a specific use,
25 to any funds in the Motor Fuel Tax Fund, the Intercity
26 Passenger Rail Fund, the Hospital Provider Fund, the Medicaid

 

 

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1 Provider Relief Fund, the Teacher Health Insurance Security
2 Fund, the Reviewing Court Alternative Dispute Resolution Fund,
3 the Voters' Guide Fund, the Foreign Language Interpreter Fund,
4 the Lawyers' Assistance Program Fund, the Supreme Court Federal
5 Projects Fund, the Supreme Court Special State Projects Fund,
6 the Supplemental Low-Income Energy Assistance Fund, the Good
7 Samaritan Energy Trust Fund, the Low-Level Radioactive Waste
8 Facility Development and Operation Fund, the Horse Racing
9 Equity Trust Fund, or the Hospital Basic Services Preservation
10 Fund, or to any funds to which subsection (f) of Section 20-40
11 of the Nursing and Advanced Practice Nursing Act applies. No
12 transfers may be made under this Section from the Pet
13 Population Control Fund. Notwithstanding any other provision
14 of this Section, for fiscal year 2004, the total transfer under
15 this Section from the Road Fund or the State Construction
16 Account Fund shall not exceed the lesser of (i) 5% of the
17 revenues to be deposited into the fund during that fiscal year
18 or (ii) 25% of the beginning balance in the fund. For fiscal
19 year 2005 through fiscal year 2007, no amounts may be
20 transferred under this Section from the Road Fund, the State
21 Construction Account Fund, the Criminal Justice Information
22 Systems Trust Fund, the Wireless Service Emergency Fund, or the
23 Mandatory Arbitration Fund.
24     In determining the available balance in a fund, the
25 Governor may include receipts, transfers into the fund, and
26 other resources anticipated to be available in the fund in that

 

 

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1 fiscal year.
2     The State Treasurer and Comptroller shall transfer the
3 amounts designated under this Section as soon as may be
4 practicable after receiving the direction to transfer from the
5 Governor.
6     (a-5) Transfers directed to be made under this Section on
7 or before February 28, 2006 that are still pending on May 19,
8 2006 (the effective date of Public Act 94-774) this amendatory
9 Act of the 94th General Assembly shall be redirected as
10 provided in Section 8n of this Act.
11     (b) This Section does not apply to: (i) the Ticket For The
12 Cure Fund; (ii) any fund established under the Community Senior
13 Services and Resources Act; or (iii) on or after January 1,
14 2006 (the effective date of Public Act 94-511), the Child Labor
15 and Day and Temporary Labor Enforcement Fund; or (iv) any fund
16 established under the Illinois Credit Union Act, the Illinois
17 Banking Act, the Illinois Savings and Loan Act of 1985, or the
18 Savings Bank Act, or the Professions Indirect Cost Fund
19 established under the Department of Professional Regulation
20 Law of the Civil Administrative Code of Illinois, the transfers
21 from and expenditures of such funds being at all times limited
22 to the purposes specified in those Acts.
23     (c) This Section does not apply to the Demutualization
24 Trust Fund established under the Uniform Disposition of
25 Unclaimed Property Act.
26     (d) This Section does not apply to moneys set aside in the

 

 

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1 Illinois State Podiatric Disciplinary Fund for podiatric
2 scholarships and residency programs under the Podiatric
3 Scholarship and Residency Act.
4     (e) Subsection (a) does not apply to, and no transfer may
5 be made under this Section from, the Pension Stabilization
6 Fund.
7 (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674,
8 eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04;
9 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff.
10 1-15-05; 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511, eff.
11 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05; 94-645,
12 eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff. 11-2-05;
13 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; 94-773, eff.
14 5-18-06; 94-774, eff. 5-19-06; 94-804, eff. 5-26-06; 94-839,
15 eff. 6-6-06; revised 6-19-06.)
 
16     (30 ILCS 105/8j)
17     Sec. 8j. Allocation and transfer of fee receipts to General
18 Revenue Fund. Except as otherwise provided in this Section and
19 Section 8n of this Act, and notwithstanding any other law to
20 the contrary, additional amounts generated by the new and
21 increased fees created or authorized by Public Acts 93-22,
22 93-23, 93-24, and 93-32 shall be allocated between the fund
23 otherwise entitled to receive the fee and the General Revenue
24 Fund by the Governor, except that no allocation and transfer
25 shall be made with respect to or from the Credit Union Fund. In

 

 

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1 determining the amount of the allocation to the General Revenue
2 Fund, the Governor shall calculate whether the available
3 resources in the fund are sufficient to satisfy the unexpended
4 and unreserved appropriations from the fund for the fiscal
5 year.
6     In calculating the available resources in a fund, the
7 Governor may include receipts, transfers into the fund, and
8 other resources anticipated to be available in the fund in that
9 fiscal year.
10     Upon determining the amount of an allocation to the General
11 Revenue Fund under this Section, the Governor may direct the
12 State Treasurer and Comptroller to transfer the amount of that
13 allocation from the fund in which the fee amounts have been
14 deposited to the General Revenue Fund; provided, however, that
15 the Governor shall not direct the transfer of any amount that
16 would have the effect of reducing the available resources in
17 the fund to an amount less than the amount remaining unexpended
18 and unreserved from the total appropriation from that fund for
19 that fiscal year.
20     The State Treasurer and Comptroller shall transfer the
21 amounts designated under this Section as soon as may be
22 practicable after receiving the direction to transfer from the
23 Governor.
24     This Section does not apply to the Demutualization Trust
25 Fund established under the Uniform Disposition of Unclaimed
26 Property Act.

 

 

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1     Transfers directed to be made under this Section on or
2 before February 28, 2006 that are still pending on the
3 effective date of this amendatory Act of the 94th General
4 Assembly shall be redirected as provided in Section 8n of this
5 Act.
6 (Source: P.A. 93-25, eff. 6-20-03; 93-32, eff. 6-20-03; 94-686,
7 eff. 11-2-05; 94-774, eff. 5-19-06.)
 
8     Section 10. The Illinois Banking Act is amended by changing
9 Section 48 as follows:
 
10     (205 ILCS 5/48)  (from Ch. 17, par. 359)
11     Sec. 48. Commissioner's powers; duties. The Commissioner
12 shall have the powers and authority, and is charged with the
13 duties and responsibilities designated in this Act, and a State
14 bank shall not be subject to any other visitorial power other
15 than as authorized by this Act, except those vested in the
16 courts, or upon prior consultation with the Commissioner, a
17 foreign bank regulator with an appropriate supervisory
18 interest in the parent or affiliate of a state bank. In the
19 performance of the Commissioner's duties:
20     (1) The Commissioner shall call for statements from all
21 State banks as provided in Section 47 at least one time during
22 each calendar quarter.
23     (2) (a) The Commissioner, as often as the Commissioner
24 shall deem necessary or proper, and no less frequently than 18

 

 

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1 months following the preceding examination, shall appoint a
2 suitable person or persons to make an examination of the
3 affairs of every State bank, except that for every eligible
4 State bank, as defined by regulation, the Commissioner in lieu
5 of the examination may accept on an alternating basis the
6 examination made by the eligible State bank's appropriate
7 federal banking agency pursuant to Section 111 of the Federal
8 Deposit Insurance Corporation Improvement Act of 1991,
9 provided the appropriate federal banking agency has made such
10 an examination. A person so appointed shall not be a
11 stockholder or officer or employee of any bank which that
12 person may be directed to examine, and shall have powers to
13 make a thorough examination into all the affairs of the bank
14 and in so doing to examine any of the officers or agents or
15 employees thereof on oath and shall make a full and detailed
16 report of the condition of the bank to the Commissioner. In
17 making the examination the examiners shall include an
18 examination of the affairs of all the affiliates of the bank,
19 as defined in subsection (b) of Section 35.2 of this Act, or
20 subsidiaries of the bank as shall be necessary to disclose
21 fully the conditions of the subsidiaries or affiliates, the
22 relations between the bank and the subsidiaries or affiliates
23 and the effect of those relations upon the affairs of the bank,
24 and in connection therewith shall have power to examine any of
25 the officers, directors, agents, or employees of the
26 subsidiaries or affiliates on oath. After May 31, 1997, the

 

 

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1 Commissioner may enter into cooperative agreements with state
2 regulatory authorities of other states to provide for
3 examination of State bank branches in those states, and the
4 Commissioner may accept reports of examinations of State bank
5 branches from those state regulatory authorities. These
6 cooperative agreements may set forth the manner in which the
7 other state regulatory authorities may be compensated for
8 examinations prepared for and submitted to the Commissioner.
9     (b) After May 31, 1997, the Commissioner is authorized to
10 examine, as often as the Commissioner shall deem necessary or
11 proper, branches of out-of-state banks. The Commissioner may
12 establish and may assess fees to be paid to the Commissioner
13 for examinations under this subsection (b). The fees shall be
14 borne by the out-of-state bank, unless the fees are borne by
15 the state regulatory authority that chartered the out-of-state
16 bank, as determined by a cooperative agreement between the
17 Commissioner and the state regulatory authority that chartered
18 the out-of-state bank.
19     (2.5) Whenever any State bank, any subsidiary or affiliate
20 of a State bank, or after May 31, 1997, any branch of an
21 out-of-state bank causes to be performed, by contract or
22 otherwise, any bank services for itself, whether on or off its
23 premises:
24         (a) that performance shall be subject to examination by
25     the Commissioner to the same extent as if services were
26     being performed by the bank or, after May 31, 1997, branch

 

 

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1     of the out-of-state bank itself on its own premises; and
2         (b) the bank or, after May 31, 1997, branch of the
3     out-of-state bank shall notify the Commissioner of the
4     existence of a service relationship. The notification
5     shall be submitted with the first statement of condition
6     (as required by Section 47 of this Act) due after the
7     making of the service contract or the performance of the
8     service, whichever occurs first. The Commissioner shall be
9     notified of each subsequent contract in the same manner.
10     For purposes of this subsection (2.5), the term "bank
11 services" means services such as sorting and posting of checks
12 and deposits, computation and posting of interest and other
13 credits and charges, preparation and mailing of checks,
14 statements, notices, and similar items, or any other clerical,
15 bookkeeping, accounting, statistical, or similar functions
16 performed for a State bank, including but not limited to
17 electronic data processing related to those bank services.
18     (3) The expense of administering this Act, including the
19 expense of the examinations of State banks as provided in this
20 Act, shall to the extent of the amounts resulting from the fees
21 provided for in paragraphs (a), (a-2), and (b) of this
22 subsection (3) be assessed against and borne by the State
23 banks:
24         (a) Each bank shall pay to the Commissioner a Call
25     Report Fee which shall be paid in quarterly installments
26     equal to one-fourth of the sum of the annual fixed fee of

 

 

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1     $800, plus a variable fee based on the assets shown on the
2     quarterly statement of condition delivered to the
3     Commissioner in accordance with Section 47 for the
4     preceding quarter according to the following schedule: 16
5     per $1,000 of the first $5,000,000 of total assets, 15 per
6     $1,000 of the next $20,000,000 of total assets, 13 per
7     $1,000 of the next $75,000,000 of total assets, 9 per
8     $1,000 of the next $400,000,000 of total assets, 7 per
9     $1,000 of the next $500,000,000 of total assets, and 5 per
10     $1,000 of all assets in excess of $1,000,000,000, of the
11     State bank. The Call Report Fee shall be calculated by the
12     Commissioner and billed to the banks for remittance at the
13     time of the quarterly statements of condition provided for
14     in Section 47. The Commissioner may require payment of the
15     fees provided in this Section by an electronic transfer of
16     funds or an automatic debit of an account of each of the
17     State banks. In case more than one examination of any bank
18     is deemed by the Commissioner to be necessary in any
19     examination frequency cycle specified in subsection 2(a)
20     of this Section, and is performed at his direction, the
21     Commissioner may assess a reasonable additional fee to
22     recover the cost of the additional examination; provided,
23     however, that an examination conducted at the request of
24     the State Treasurer pursuant to the Uniform Disposition of
25     Unclaimed Property Act shall not be deemed to be an
26     additional examination under this Section. In lieu of the

 

 

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1     method and amounts set forth in this paragraph (a) for the
2     calculation of the Call Report Fee, the Commissioner may
3     specify by rule that the Call Report Fees provided by this
4     Section may be assessed semiannually or some other period
5     and may provide in the rule the formula to be used for
6     calculating and assessing the periodic Call Report Fees to
7     be paid by State banks.
8         (a-1) If in the opinion of the Commissioner an
9     emergency exists or appears likely, the Commissioner may
10     assign an examiner or examiners to monitor the affairs of a
11     State bank with whatever frequency he deems appropriate,
12     including but not limited to a daily basis. The reasonable
13     and necessary expenses of the Commissioner during the
14     period of the monitoring shall be borne by the subject
15     bank. The Commissioner shall furnish the State bank a
16     statement of time and expenses if requested to do so within
17     30 days of the conclusion of the monitoring period.
18         (a-2) On and after January 1, 1990, the reasonable and
19     necessary expenses of the Commissioner during examination
20     of the performance of electronic data processing services
21     under subsection (2.5) shall be borne by the banks for
22     which the services are provided. An amount, based upon a
23     fee structure prescribed by the Commissioner, shall be paid
24     by the banks or, after May 31, 1997, branches of
25     out-of-state banks receiving the electronic data
26     processing services along with the Call Report Fee assessed

 

 

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

 

 

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1     aggregate of all fees collected for that year by the
2     Commissioner under the Corporate Fiduciary Act, excluding
3     the receivership fees provided for in Section 5-10 of the
4     Corporate Fiduciary Act, and the Foreign Banking Office
5     Act. The aggregate amount of the contingent fee thus
6     arrived at for any fiscal year shall be apportioned
7     amongst, assessed upon, and paid by the State banks and
8     foreign banking corporations, respectively, in the same
9     proportion that the fee of each under paragraph (a) of
10     subsection (3), respectively, for that year bears to the
11     aggregate for that year of the fees collected under
12     paragraph (a) of subsection (3). The aggregate amount of
13     the contingent fee, and the portion thereof to be assessed
14     upon each State bank and foreign banking corporation,
15     respectively, shall be determined by the Commissioner and
16     shall be paid by each, respectively, within 120 days of the
17     close of the period for which the contingent fee is
18     computed and is payable, and the Commissioner shall give 20
19     days advance notice of the amount of the contingent fee
20     payable by the State bank and of the date fixed by the
21     Commissioner for payment of the fee.
22         (c) The "administration expenses" for any fiscal year
23     shall mean the ordinary and contingent expenses for that
24     year incident to making the examinations provided for by,
25     and for otherwise administering, this Act, the Corporate
26     Fiduciary Act, excluding the expenses paid from the

 

 

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1     Corporate Fiduciary Receivership account in the Bank and
2     Trust Company Fund, the Foreign Banking Office Act, the
3     Electronic Fund Transfer Act, and the Illinois Bank
4     Examiners' Education Foundation Act, including all
5     salaries and other compensation paid for personal services
6     rendered for the State by officers or employees of the
7     State, including the Commissioner and the Deputy
8     Commissioners, all expenditures for telephone and
9     telegraph charges, postage and postal charges, office
10     stationery, supplies and services, and office furniture
11     and equipment, including typewriters and copying and
12     duplicating machines and filing equipment, surety bond
13     premiums, and travel expenses of those officers and
14     employees, employees, expenditures or charges for the
15     acquisition, enlargement or improvement of, or for the use
16     of, any office space, building, or structure, or
17     expenditures for the maintenance thereof or for furnishing
18     heat, light, or power with respect thereto, all to the
19     extent that those expenditures are directly incidental to
20     such examinations or administration. The Commissioner
21     shall not be required by paragraphs (c) or (d-1) of this
22     subsection (3) to maintain in any fiscal year's budget
23     appropriated reserves for accrued vacation and accrued
24     sick leave that is required to be paid to employees of the
25     Commissioner upon termination of their service with the
26     Commissioner in an amount that is more than is reasonably

 

 

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1     anticipated to be necessary for any anticipated turnover in
2     employees, whether due to normal attrition or due to
3     layoffs, terminations, or resignations.
4         (d) The aggregate of all fees collected by the
5     Commissioner under this Act, the Corporate Fiduciary Act,
6     or the Foreign Banking Office Act on and after July 1,
7     1979, shall be paid promptly after receipt of the same,
8     accompanied by a detailed statement thereof, into the State
9     treasury and shall be set apart in a special fund to be
10     known as the "Bank and Trust Company Fund", except as
11     provided in paragraph (c) of subsection (11) of this
12     Section. All earnings received from investments of funds in
13     the Bank and Trust Company Fund shall be deposited in the
14     Bank and Trust Company Fund and may only be used for the
15     same purposes as fees deposited in that Fund. The amount
16     from time to time deposited into the Bank and Trust Company
17     Fund shall be used exclusively for the following purposes:
18     (i) to offset the ordinary administrative expenses of the
19     Commissioner of Banks and Real Estate as defined in this
20     Section or (ii) as a credit against fees under paragraph
21     (d-1) of this subsection. No other appropriations shall be
22     made from the Bank and Trust Company Fund. All moneys in
23     the Bank and Trust Company Fund are exempt from assignment
24     or transfer under any other law or executive order, other
25     than for the purposes authorized by the Illinois State
26     Auditing Act. Nothing in this amendatory Act of 1979 shall

 

 

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1     prevent continuing the practice of paying expenses
2     involving salaries, retirement, social security, and
3     State-paid insurance premiums of State officers by
4     appropriations from the General Revenue Fund. However, the
5     General Revenue Fund shall be reimbursed for those payments
6     made on and after July 1, 1979, by an annual transfer of
7     funds from the Bank and Trust Company Fund. Moneys in the
8     Bank and Trust Company Fund may be transferred to the
9     Professions Indirect Cost Fund, as authorized under
10     Section 2105-300 of the Department of Professional
11     Regulation Law of the Civil Administrative Code of
12     Illinois. Any fees assessed upon and paid by State banks
13     pursuant to this Act must be held in trust to be used
14     exclusively to pay the expenses of administering this Act.
15     The credit to State banks of unexpended funds provided for
16     under paragraph (d-1) of this subsection (3) constitutes a
17     continuing property interest of the State banks in those
18     unexpended funds.
19         (d-1) Adequate funds shall be available in the Bank and
20     Trust Company Fund to permit the timely payment of
21     administration expenses. In each fiscal year the total
22     administration expenses shall be deducted from the total
23     fees collected by the Commissioner and the remainder
24     transferred into the Cash Flow Reserve Account, unless the
25     balance of the Cash Flow Reserve Account prior to the
26     transfer equals or exceeds one-fourth of the total initial

 

 

HB1526 - 19 - LRB095 08530 MJR 28711 b

1     appropriations from the Bank and Trust Company Fund for the
2     subsequent year, in which case the remainder shall be
3     credited to State banks and foreign banking corporations
4     and applied against their fees for the subsequent year. The
5     amount credited to each State bank and foreign banking
6     corporation shall be in the same proportion as the Call
7     Report Fees paid by each for the year bear to the total
8     Call Report Fees collected for the year. Beginning January
9     1, 2008, the Commissioner must adopt rules to adjust
10     regulatory fee rates to those in effect prior to the
11     escalation in rates published in 27 Ill.Reg. 16024, Oct.
12     10, 2003, and as amended at 27 Ill.Reg. 16326, Oct. 24,
13     2003, unless an audit by the Auditor General of banking
14     regulatory oversight activities requires a different rate
15     to be set to cover the costs of regulatory oversight. Any
16     adjustments made pursuant to an Auditor General's audit
17     must be set forth in the form of a notice to each affected
18     entity 45 days prior to making those adjustments. The
19     notice must contain an explanation that includes a
20     description of the audit results pertaining to the banking
21     industry and a description of each reason why adjustments
22     to the regulatory fee rates are required. If, after a
23     transfer to the Cash Flow Reserve Account is made or if no
24     remainder is available for transfer, the balance of the
25     Cash Flow Reserve Account is less than one-fourth of the
26     total initial appropriations for the subsequent year and

 

 

HB1526 - 20 - LRB095 08530 MJR 28711 b

1     the amount transferred is less than 5% of the total Call
2     Report Fees for the year, additional amounts needed to make
3     the transfer equal to 5% of the total Call Report Fees for
4     the year shall be apportioned amongst, assessed upon, and
5     paid by the State banks and foreign banking corporations in
6     the same proportion that the Call Report Fees of each,
7     respectively, for the year bear to the total Call Report
8     Fees collected for the year. The additional amounts
9     assessed shall be transferred into the Cash Flow Reserve
10     Account. For purposes of this paragraph (d-1), the
11     calculation of the fees collected by the Commissioner shall
12     exclude the receivership fees provided for in Section 5-10
13     of the Corporate Fiduciary Act.
14         (e) The Commissioner may upon request certify to any
15     public record in his keeping and shall have authority to
16     levy a reasonable charge for issuing certifications of any
17     public record in his keeping.
18         (f) In addition to fees authorized elsewhere in this
19     Act, the Commissioner may, in connection with a review,
20     approval, or provision of a service, levy a reasonable
21     charge to recover the cost of the review, approval, or
22     service.
23     (4) Nothing contained in this Act shall be construed to
24 limit the obligation relative to examinations and reports of
25 any State bank, deposits in which are to any extent insured by
26 the United States or any agency thereof, nor to limit in any

 

 

HB1526 - 21 - LRB095 08530 MJR 28711 b

1 way the powers of the Commissioner with reference to
2 examinations and reports of that bank.
3     (5) The nature and condition of the assets in or investment
4 of any bonus, pension, or profit sharing plan for officers or
5 employees of every State bank or, after May 31, 1997, branch of
6 an out-of-state bank shall be deemed to be included in the
7 affairs of that State bank or branch of an out-of-state bank
8 subject to examination by the Commissioner under the provisions
9 of subsection (2) of this Section, and if the Commissioner
10 shall find from an examination that the condition of or
11 operation of the investments or assets of the plan is unlawful,
12 fraudulent, or unsafe, or that any trustee has abused his
13 trust, the Commissioner shall, if the situation so found by the
14 Commissioner shall not be corrected to his satisfaction within
15 60 days after the Commissioner has given notice to the board of
16 directors of the State bank or out-of-state bank of his
17 findings, report the facts to the Attorney General who shall
18 thereupon institute proceedings against the State bank or
19 out-of-state bank, the board of directors thereof, or the
20 trustees under such plan as the nature of the case may require.
21     (6) The Commissioner shall have the power:
22         (a) To promulgate reasonable rules for the purpose of
23     administering the provisions of this Act.
24         (a-5) To impose conditions on any approval issued by
25     the Commissioner if he determines that the conditions are
26     necessary or appropriate. These conditions shall be

 

 

HB1526 - 22 - LRB095 08530 MJR 28711 b

1     imposed in writing and shall continue in effect for the
2     period prescribed by the Commissioner.
3         (b) To issue orders against any person, if the
4     Commissioner has reasonable cause to believe that an unsafe
5     or unsound banking practice has occurred, is occurring, or
6     is about to occur, if any person has violated, is
7     violating, or is about to violate any law, rule, or written
8     agreement with the Commissioner, or for the purpose of
9     administering the provisions of this Act and any rule
10     promulgated in 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 Commissioner under this Section for
16     the purpose of administering this Act and any rule
17     promulgated in accordance with this Act and otherwise to
18     authorize, in writing, an officer or employee of the Office
19     of Banks and Real Estate to exercise his powers under this
20     Act.
21         (d) To subpoena witnesses, to compel their attendance,
22     to administer an oath, to examine any person under oath,
23     and to require the production of any relevant books,
24     papers, accounts, and documents in the course of and
25     pursuant to any investigation being conducted, or any
26     action being taken, by the Commissioner in respect of any

 

 

HB1526 - 23 - LRB095 08530 MJR 28711 b

1     matter relating to the duties imposed upon, or the powers
2     vested in, the Commissioner under the provisions of this
3     Act or any rule promulgated in accordance with this Act.
4         (e) To conduct hearings.
5     (7) Whenever, in the opinion of the Commissioner, any
6 director, officer, employee, or agent of a State bank or any
7 subsidiary or bank holding company of the bank or, after May
8 31, 1997, of any branch of an out-of-state bank or any
9 subsidiary or bank holding company of the bank shall have
10 violated any law, rule, or order relating to that bank or any
11 subsidiary or bank holding company of the bank, shall have
12 obstructed or impeded any examination or investigation by the
13 Commissioner, shall have engaged in an unsafe or unsound
14 practice in conducting the business of that bank or any
15 subsidiary or bank holding company of the bank, or shall have
16 violated any law or engaged or participated in any unsafe or
17 unsound practice in connection with any financial institution
18 or other business entity such that the character and fitness of
19 the director, officer, employee, or agent does not assure
20 reasonable promise of safe and sound operation of the State
21 bank, the Commissioner may issue an order of removal. If, in
22 the opinion of the Commissioner, any former director, officer,
23 employee, or agent of a State bank or any subsidiary or bank
24 holding company of the bank, prior to the termination of his or
25 her service with that bank or any subsidiary or bank holding
26 company of the bank, violated any law, rule, or order relating

 

 

HB1526 - 24 - LRB095 08530 MJR 28711 b

1 to that State bank or any subsidiary or bank holding company of
2 the bank, obstructed or impeded any examination or
3 investigation by the Commissioner, engaged in an unsafe or
4 unsound practice in conducting the business of that bank or any
5 subsidiary or bank holding company of the bank, or violated any
6 law or engaged or participated in any unsafe or unsound
7 practice in connection with any financial institution or other
8 business entity such that the character and fitness of the
9 director, officer, employee, or agent would not have assured
10 reasonable promise of safe and sound operation of the State
11 bank, the Commissioner may issue an order prohibiting that
12 person from further service with a bank or any subsidiary or
13 bank holding company of the bank as a director, officer,
14 employee, or agent. An order issued pursuant to this subsection
15 shall be served upon the director, officer, employee, or agent.
16 A copy of the order shall be sent to each director of the bank
17 affected by registered mail. The person affected by the action
18 may request a hearing before the State Banking Board within 10
19 days after receipt of the order. The hearing shall be held by
20 the Board within 30 days after the request has been received by
21 the Board. The Board shall make a determination approving,
22 modifying, or disapproving the order of the Commissioner as its
23 final administrative decision. If a hearing is held by the
24 Board, the Board shall make its determination within 60 days
25 from the conclusion of the hearing. Any person affected by a
26 decision of the Board under this subsection (7) of Section 48

 

 

HB1526 - 25 - LRB095 08530 MJR 28711 b

1 of this Act may have the decision reviewed only under and in
2 accordance with the Administrative Review Law and the rules
3 adopted pursuant thereto. A copy of the order shall also be
4 served upon the bank of which he is a director, officer,
5 employee, or agent, whereupon he shall cease to be a director,
6 officer, employee, or agent of that bank. The Commissioner may
7 institute a civil action against the director, officer, or
8 agent of the State bank or, after May 31, 1997, of the branch
9 of the out-of-state bank against whom any order provided for by
10 this subsection (7) of this Section 48 has been issued, and
11 against the State bank or, after May 31, 1997, out-of-state
12 bank, to enforce compliance with or to enjoin any violation of
13 the terms of the order. Any person who has been the subject of
14 an order of removal or an order of prohibition issued by the
15 Commissioner under this subsection or Section 5-6 of the
16 Corporate Fiduciary Act may not thereafter serve as director,
17 officer, employee, or agent of any State bank or of any branch
18 of any out-of-state bank, or of any corporate fiduciary, as
19 defined in Section 1-5.05 of the Corporate Fiduciary Act, or of
20 any other entity that is subject to licensure or regulation by
21 the Commissioner or the Office of Banks and Real Estate unless
22 the Commissioner has granted prior approval in writing.
23     For purposes of this paragraph (7), "bank holding company"
24 has the meaning prescribed in Section 2 of the Illinois Bank
25 Holding Company Act of 1957.
26     (8) The Commissioner may impose civil penalties of up to

 

 

HB1526 - 26 - LRB095 08530 MJR 28711 b

1 $10,000 against any person for each violation of any provision
2 of this Act, any rule promulgated in accordance with this Act,
3 any order of the Commissioner, or any other action which in the
4 Commissioner's discretion is an unsafe or unsound banking
5 practice.
6     (9) The Commissioner may impose civil penalties of up to
7 $100 against any person for the first failure to comply with
8 reporting requirements set forth in the report of examination
9 of the bank and up to $200 for the second and subsequent
10 failures to comply with those reporting requirements.
11     (10) All final administrative decisions of the
12 Commissioner hereunder shall be subject to judicial review
13 pursuant to the provisions of the Administrative Review Law.
14 For matters involving administrative review, venue shall be in
15 either Sangamon County or Cook County.
16     (11) The endowment fund for the Illinois Bank Examiners'
17 Education Foundation shall be administered as follows:
18         (a) (Blank).
19         (b) The Foundation is empowered to receive voluntary
20     contributions, gifts, grants, bequests, and donations on
21     behalf of the Illinois Bank Examiners' Education
22     Foundation from national banks and other persons for the
23     purpose of funding the endowment of the Illinois Bank
24     Examiners' Education Foundation.
25         (c) The aggregate of all special educational fees
26     collected by the Commissioner and property received by the

 

 

HB1526 - 27 - LRB095 08530 MJR 28711 b

1     Commissioner on behalf of the Illinois Bank Examiners'
2     Education Foundation under this subsection (11) on or after
3     June 30, 1986, shall be either (i) promptly paid after
4     receipt of the same, accompanied by a detailed statement
5     thereof, into the State Treasury and shall be set apart in
6     a special fund to be known as "The Illinois Bank Examiners'
7     Education Fund" to be invested by either the Treasurer of
8     the State of Illinois in the Public Treasurers' Investment
9     Pool or in any other investment he is authorized to make or
10     by the Illinois State Board of Investment as the board of
11     trustees of the Illinois Bank Examiners' Education
12     Foundation may direct or (ii) deposited into an account
13     maintained in a commercial bank or corporate fiduciary in
14     the name of the Illinois Bank Examiners' Education
15     Foundation pursuant to the order and direction of the Board
16     of Trustees of the Illinois Bank Examiners' Education
17     Foundation.
18     (12) (Blank).
19 (Source: P.A. 94-91, eff. 7-1-05.)
 
20     Section 15. The Illinois Savings and Loan Act of 1985 is
21 amended by changing Sections 7-3 and 7-19.1 as follows:
 
22     (205 ILCS 105/7-3)  (from Ch. 17, par. 3307-3)
23     Sec. 7-3. Personnel, records, files, actions and duties,
24 etc.

 

 

HB1526 - 28 - LRB095 08530 MJR 28711 b

1     (a) The Commissioner shall appoint, subject to applicable
2 provisions of the Personnel Code, a supervisor, such examiners,
3 employees, experts and special assistants as may be necessary
4 to carry out effectively this Act. The Commissioner shall
5 require each supervisor, examiner, expert and special
6 assistant employed or appointed by him to give bond, with
7 security to be approved by the Commissioner, not less in any
8 case than $15,000, conditioned for the faithful discharge of
9 his duties. The premium on such bond shall be paid by the
10 Commissioner from funds appropriated for that purpose. The
11 bond, along with verification of payment of the premium on such
12 bond, shall be filed in the office of the Secretary of State.
13     (b) The Commissioner shall have the following duties and
14 powers:
15     (1) To exercise the rights, powers and duties set forth in
16 this Act or in any other related Act;
17     (2) To establish such regulations as may be reasonable or
18 necessary to accomplish the purposes of this Act;
19     (3) To direct and supervise all the administrative and
20 technical activities of this office and create an Advisory
21 Committee which upon request will make recommendations to him;
22     (4) To make an annual report regarding the work of his
23 office as he may consider desirable to the Governor, or as the
24 Governor may request;
25     (5) To cause a suit to be filed in his name to enforce any
26 law of this State that applies to an association, subsidiary of

 

 

HB1526 - 29 - LRB095 08530 MJR 28711 b

1 an association, or holding company operating under this Act and
2 shall include the enforcement of any obligation of the
3 officers, directors or employees of any association;
4     (6) To prescribe a uniform manner in which the books and
5 records of every association are to be maintained; and
6     (7) To establish reasonable and rationally based fee
7 structures for each association and holding company operating
8 under this Act and for their service corporations and
9 subsidiaries, which fees shall include but not be limited to
10 annual fees, application fees, regular and special examination
11 fees, and such other fees as the Commissioner establishes and
12 demonstrates to be directly resultant from his
13 responsibilities under this Act and as are directly
14 attributable to individual entities operating under this Act.
15 Beginning on January 1, 2008, the Commissioner must adopt rules
16 to adjust regulatory fee rates to those in effect prior to the
17 escalation in rates published in 27 Ill.Reg. 16024, Oct. 10,
18 2003, and as amended at 27 Ill.Reg. 16326, Oct. 24, 2003,
19 unless an audit by the Auditor General of banking regulatory
20 oversight activities requires a different rate to be set to
21 cover the costs of regulatory oversight. Any adjustments made
22 pursuant to an Auditor General's audit must be set forth in the
23 form of a notice to each affected entity 45 days prior to
24 making those adjustments. The notice must contain an
25 explanation that includes a description of the audit results
26 pertaining to the banking industry and a description of each

 

 

HB1526 - 30 - LRB095 08530 MJR 28711 b

1 reason why adjustments to the regulatory fee rates are
2 required.
3 (Source: P.A. 85-313.)
 
4     (205 ILCS 105/7-19.1)  (from Ch. 17, par. 3307-19.1)
5     Sec. 7-19.1. Savings and Residential Finance Regulatory
6 Fund.
7     (a) The aggregate of all fees collected by the Commissioner
8 under this Act shall be paid promptly after receipt of the
9 same, accompanied by a detailed statement thereof, into the
10 State treasury and shall be set apart in the Savings and
11 Residential Finance Regulatory Fund, a special fund hereby
12 created in the State treasury. The amounts deposited into the
13 Fund shall be solely and exclusively used for the ordinary and
14 contingent expenses of the Commissioner in administering the
15 Illinois Savings and Loan Act of 1985, the Savings Bank Act,
16 and the Residential Mortgage License Act of 1987 Office of
17 Banks and Real Estate. Nothing in this Act shall prevent
18 continuing the practice of paying expenses involving salaries,
19 retirement, social security, and State-paid insurance of State
20 officers by appropriation from the General Revenue Fund.
21     (b) Except as otherwise provided in subsection (b-5), no
22 moneys in the Savings and Residential Finance Regulatory Fund
23 shall may not be appropriated, assigned, or transferred to
24 another State fund. All moneys in the Fund shall be exempt from
25 assignment or transfer under any other law or executive order,

 

 

HB1526 - 31 - LRB095 08530 MJR 28711 b

1 other than for the purposes authorized by the Illinois State
2 Auditing Act. All The moneys in the Fund shall remain the
3 property of and shall be held in trust for the sole benefit and
4 exclusive regulation of be for the sole benefit of the
5 institutions and entities assessed.
6     (b-5) Moneys in the Savings and Residential Finance
7 Regulatory Fund may be transferred to the Professions Indirect
8 Cost Fund, as authorized under Section 2105-300 of the
9 Department of Professional Regulation Law of the Civil
10 Administrative Code of Illinois.
11     (c) All earnings received from investments of funds in the
12 Savings and Residential Finance Regulatory Fund shall be
13 deposited into the Savings and Residential Finance Regulatory
14 Fund and may be used for the same purposes as fees deposited
15 into that Fund.
16     (d) When the amount remaining in the Savings and
17 Residential Finance Regulatory Fund at the end of a fiscal year
18 exceeds 25% of the total actual administrative and operational
19 expenses incurred under the Illinois Savings and Loan Act of
20 1985, the Savings Bank Act, and the Residential Mortgage
21 License Act of 1987 for that fiscal year, the excess must be
22 credited to the appropriate institutions and entities and
23 applied against their regulatory fees for the subsequent fiscal
24 year. The amount credited to the institution or entity must be
25 in the same proportion that the fees paid by the institution or
26 entity for the fiscal year in which the excess is produced

 

 

HB1526 - 32 - LRB095 08530 MJR 28711 b

1 bears to the aggregate of the fees collected by the
2 Commissioner under the Illinois Savings and Loan Act of 1985,
3 the Savings Bank Act, and the Residential Mortgage License Act
4 of 1987 for the same fiscal year. For the purpose of this
5 Section, "fiscal year" means the period beginning July 1 of any
6 calendar year and ending June 30 of the next calendar year.
7 (Source: P.A. 94-91, eff. 7-1-05.)
 
8     Section 20. The Savings Bank Act is amended by changing
9 Section 9002 as follows:
 
10     (205 ILCS 205/9002)  (from Ch. 17, par. 7309-2)
11     Sec. 9002. Powers of Commissioner. The Commissioner shall
12 have the following powers and duties:
13     (1) To exercise the rights, powers, and duties set forth in
14 this Act or in any related Act.
15     (2) To establish regulations as may be reasonable or
16 necessary to accomplish the purposes of this Act.
17     (3) To make an annual report regarding the work of his
18 office under this Act as he may consider desirable to the
19 Governor, or as the Governor may request.
20     (4) To cause a suit to be filed in his name to enforce any
21 law of this State that applies to savings banks, their service
22 corporations, subsidiaries, affiliates, or holding companies
23 operating under this Act, including the enforcement of any
24 obligation of the officers, directors, agents, or employees of

 

 

HB1526 - 33 - LRB095 08530 MJR 28711 b

1 any savings bank.
2     (5) To prescribe a uniform manner in which the books and
3 records of every savings bank are to be maintained.
4     (6) To establish a reasonable fee structure for savings
5 banks and holding companies operating under this Act and for
6 their service corporations and subsidiaries. The fees shall
7 include, but not be limited to, annual fees, application fees,
8 regular and special examination fees, and other fees as the
9 Commissioner establishes and demonstrates to be directly
10 resultant from the Commissioner's responsibilities under this
11 Act and as are directly attributable to individual entities
12 operating under this Act. The aggregate of all fees collected
13 by the Commissioner on and after the effective date of this Act
14 shall be paid promptly after receipt of the same, accompanied
15 by a detailed statement thereof, into the Savings and
16 Residential Finance Regulatory Fund. The amounts deposited
17 into the Fund shall be used for the ordinary and contingent
18 expenses of the Office of Banks and Real Estate. Nothing in
19 this Act shall prevent continuing the practice of paying
20 expenses involving salaries, retirement, social security, and
21 State-paid insurance of State officers by appropriation from
22 the General Revenue Fund. Beginning on January 1, 2008, the
23 Commissioner must adopt rules to adjust regulatory fee rates to
24 those in effect prior to the escalation in rates published in
25 27 Ill.Reg. 16024, Oct. 10, 2003, and as amended at 27 Ill.Reg.
26 16326, Oct. 24, 2003, unless an audit by the Auditor General of

 

 

HB1526 - 34 - LRB095 08530 MJR 28711 b

1 banking regulatory oversight activities requires a different
2 rate to be set to cover the costs of regulatory oversight. Any
3 adjustments made pursuant to an Auditor General's audit must be
4 set forth in the form of a notice to each affected entity 45
5 days prior to making those adjustments. The notice must contain
6 an explanation that includes a description of the audit results
7 pertaining to the banking industry and a description of each
8 reason why adjustments to the regulatory fee rates are
9 required.
10 (Source: P.A. 89-508, eff. 7-3-96.)
 
11     Section 25. The Illinois Credit Union Act is amended by
12 changing Section 12 as follows:
 
13     (205 ILCS 305/12)  (from Ch. 17, par. 4413)
14     Sec. 12. Regulatory fees.
15     (1) A credit union regulated by the Department shall pay a
16 regulatory fee to the Department pursuant to a regulatory fee
17 schedule based upon the credit union's its total assets as
18 shown by its Year-end Call Report at the following rates or at
19 a lesser rate established in a manner proportionately
20 consistent with the following rates and that would fund the
21 actual administrative and operational expenses of the Credit
22 Union Section pursuant to subsection (5):
23TOTAL ASSETSANNUAL REGULATORY FEE
24$25,000 or less ...............$100

 

 

HB1526 - 35 - LRB095 08530 MJR 28711 b

1Over $25,000 and not over
2$100,000 ......................$100 plus $4 per
3$1,000 of assets in excess of
4$25,000
5Over $100,000 and not over
6$200,000 ......................$400 plus $3 per
7$1,000 of assets in excess of
8$100,000
9Over $200,000 and not over
10$500,000 ......................$700 plus $2 per
11$1,000 of assets in excess of
12$200,000
13Over $500,000 and not over
14$1,000,000 ....................$1,300 plus $1.40
15per $1,000 of assets in excess
16of $500,000
17Over $1,000,000 and not
18over $5,000,000................$2,000 plus $0.50
19per $1,000 of assets in
20excess of $1,000,000
21Over $5,000,000 and not
22over $30,000,000 .............. $4,000 $5,080 plus $0.35 $0.44
23per $1,000 assets
24in excess of $5,000,000
25Over $30,000,000 and not

 

 

HB1526 - 36 - LRB095 08530 MJR 28711 b

1over $100,000,000 .............$12,750 $16,192 plus $0.30 $0.38
2per $1,000 of assets in
3excess of $30,000,000
4Over $100,000,000 and not
5over $500,000,000 .............$33,750 $42,862 plus $0.15 $0.19
6per $1,000 of assets in
7excess of $100,000,000
8Over $500,000,000 .............$93,750 $140,625 plus $0.05 $0.075
9per $1,000 of assets in
10excess of $500,000,000
11     (2) The Director shall review the regulatory fee schedule
12 in subsection (1) and the projected earnings on those fees on
13 an annual basis and adjust the fee schedule for the next fiscal
14 year. The fee schedule may be increased by no more than 5%
15 annually if necessary to defray the actual estimated
16 administrative and operational expenses of the Credit Union
17 Section, Department as defined in subsection (5). However, the
18 fee schedule shall not be increased if the amount remaining in
19 the Credit Union Fund at the end of the fiscal year is equal to
20 or greater than 25% of the actual administrative and
21 operational expenses for the preceding fiscal year. The
22 regulatory fee for the next fiscal year shall be calculated by
23 the Director based on the credit union's total assets as of

 

 

HB1526 - 37 - LRB095 08530 MJR 28711 b

1 December 31 of the preceding calendar year. The Director shall
2 provide credit unions with written notice of any adjustment
3 made in the regulatory fee schedule.
4     (3) Beginning on January 1, 2008, Not later than March 1 of
5 each calendar year, a credit union shall pay to the Department
6 a regulatory fee in quarterly installments equal to one-fourth
7 of the regulatory fee due for that calendar year in accordance
8 with the regulatory fee schedule in subsection (1), on the
9 basis of assets as of the Year-end Call Report of the preceding
10 calendar year. The total annual regulatory fee shall not be
11 less than $100 or more than $125,000 $187,500, provided that
12 the regulatory fee cap of $125,000 $187,500 shall be adjusted
13 to incorporate the same percentage increase as the Director
14 makes in the regulatory fee schedule from time to time under
15 subsection (2). No regulatory fee shall be collected from a
16 credit union until it has been in operation for one year. The
17 regulatory fee shall be billed to credit unions on a quarterly
18 basis and payable by credit unions on the due date for the call
19 report for the preceding quarter.
20     (4) The aggregate of all fees collected by the Department
21 under this Act shall be paid promptly after they are received,
22 accompanied by a detailed statement thereof, into the State
23 Treasury and shall be set apart in the Credit Union Fund, a
24 special fund hereby created in the State treasury. The amount
25 from time to time deposited in the Credit Union Fund and shall
26 be used solely and exclusively to offset the actual ordinary

 

 

HB1526 - 38 - LRB095 08530 MJR 28711 b

1 administrative and operational expenses of the Credit Union
2 Section Department under this Act. All earnings received from
3 investments of funds in the Credit Union Fund shall be
4 deposited into the Credit Union Fund and may be used for the
5 same purposes as fees deposited into that Fund. Moneys
6 deposited into the Credit Union Fund shall remain the property
7 of credit unions and shall be held in trust by the State for
8 the benefit and account of credit unions unless and until such
9 time as the moneys are expended for the purposes authorized in
10 this Act. No other appropriations shall be made from the Credit
11 Union Fund, and the moneys in the Credit Union Fund shall be
12 exempt from assignment or transfer under any other law or
13 executive order, other than for the purposes authorized by the
14 Illinois State Auditing Act. Moneys in the Credit Union Fund
15 may be transferred to the Professions Indirect Cost Fund, as
16 authorized under Section 2105-300 of the Department of
17 Professional Regulation Law of the Civil Administrative Code of
18 Illinois.
19     (5) The actual administrative and operational expenses of
20 the Credit Union Section for any fiscal calendar year shall
21 mean the ordinary and contingent expenses for that year
22 incidental to making the examinations provided for by, and for
23 administering, this Act, including all salaries and other
24 compensation paid for personal services rendered for the State
25 by officers or employees of the State to enforce this Act; all
26 expenditures for telephone and telegraph charges, postage and

 

 

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1 postal charges, office supplies and services, furniture and
2 equipment, office space and maintenance thereof, travel
3 expenses and other necessary expenses; all to the extent that
4 such expenditures are directly incidental to such examination
5 or administration.
6     (6) When the balance in the Credit Union Fund at the end of
7 a fiscal year exceeds 25% aggregate of all fees collected by
8 the Department under this Act and all earnings thereon for any
9 calendar year exceeds 150% of the total actual administrative
10 and operational expenses under this Act for that fiscal year,
11 such excess shall be credited to credit unions and applied
12 against their regulatory fees for the subsequent fiscal year.
13 The amount credited to a credit union shall be in the same
14 proportion as the fee paid by such credit union for the fiscal
15 calendar year in which the excess is produced bears to the
16 aggregate of the fees collected by the Department under this
17 Act for the same fiscal year.
18     (7) Examination fees for the year 2000 statutory
19 examinations paid pursuant to the examination fee schedule in
20 effect at that time shall be credited toward the regulatory fee
21 to be assessed the credit union in calendar year 2001.
22     (8) Nothing in this Act shall prohibit the General Assembly
23 from appropriating funds to the Department from the General
24 Revenue Fund for the purpose of administering this Act.
25     (9) For purposes of this Section, "fiscal year" means a
26 period beginning on July 1 of any calendar year and ending on

 

 

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1 June 30 of the next calendar year.
2 (Source: P.A. 93-32, eff. 7-1-03; 93-652, eff. 1-8-04; 94-91,
3 eff. 7-1-05.)
 
4     Section 30. The Residential Mortgage License Act of 1987 is
5 amended by changing Section 2-2, 2-6, and 4-1 as follows:
 
6     (205 ILCS 635/2-2)  (from Ch. 17, par. 2322-2)
7     Sec. 2-2. Application process; investigation; fee.
8     (a) The Commissioner shall issue a license upon completion
9 of all of the following:
10         (1) The filing of an application for license.
11         (2) The filing with the Commissioner of a listing of
12     judgments entered against, and bankruptcy petitions by,
13     the license applicant for the preceding 10 years.
14         (3) The payment, in certified funds, of investigation
15     and application fees, the total of which shall be in an
16     amount equal to $1,800 $2,700 annually, however, the
17     Commissioner may increase the investigation and
18     application fees by rule as provided in Section 4-11.
19         (4) Except for a broker applying to renew a license,
20     the filing of an audited balance sheet including all
21     footnotes prepared by a certified public accountant in
22     accordance with generally accepted accounting principles
23     and generally accepted auditing principles which evidences
24     that the applicant meets the net worth requirements of

 

 

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1     Section 3-5.
2         (5) The filing of proof satisfactory to the
3     Commissioner that the applicant, the members thereof if the
4     applicant is a partnership or association, the members or
5     managers thereof that retain any authority or
6     responsibility under the operating agreement if the
7     applicant is a limited liability company, or the officers
8     thereof if the applicant is a corporation have 3 years
9     experience preceding application in real estate finance.
10     Instead of this requirement, the applicant and the
11     applicant's officers or members, as applicable, may
12     satisfactorily complete a program of education in real
13     estate finance and fair lending, as approved by the
14     Commissioner, prior to receiving the initial license. The
15     Commissioner shall promulgate rules regarding proof of
16     experience requirements and educational requirements and
17     the satisfactory completion of those requirements. The
18     Commissioner may establish by rule a list of duly licensed
19     professionals and others who may be exempt from this
20     requirement.
21         (6) An investigation of the averments required by
22     Section 2-4, which investigation must allow the
23     Commissioner to issue positive findings stating that the
24     financial responsibility, experience, character, and
25     general fitness of the license applicant and of the members
26     thereof if the license applicant is a partnership or

 

 

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1     association, of the officers and directors thereof if the
2     license applicant is a corporation, and of the managers and
3     members that retain any authority or responsibility under
4     the operating agreement if the license applicant is a
5     limited liability company are such as to command the
6     confidence of the community and to warrant belief that the
7     business will be operated honestly, fairly and efficiently
8     within the purpose of this Act. If the Commissioner shall
9     not so find, he or she shall not issue such license, and he
10     or she shall notify the license applicant of the denial.
11     The Commissioner may impose conditions on a license if the
12 Commissioner determines that the conditions are necessary or
13 appropriate. These conditions shall be imposed in writing and
14 shall continue in effect for the period prescribed by the
15 Commissioner.
16     (b) All licenses shall be issued in duplicate with one copy
17 being transmitted to the license applicant and the second being
18 retained with the Commissioner.
19     Upon receipt of such license, a residential mortgage
20 licensee shall be authorized to engage in the business
21 regulated by this Act. Such license shall remain in full force
22 and effect until it expires without renewal, is surrendered by
23 the licensee or revoked or suspended as hereinafter provided.
24 (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
 
25     (205 ILCS 635/2-6)  (from Ch. 17, par. 2322-6)

 

 

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1     Sec. 2-6. License issuance and renewal; fee.
2     (a) Beginning July 1, 2003, licenses shall be renewed every
3 year on the anniversary of the date of issuance of the original
4 license. Properly completed renewal application forms and
5 filing fees must be received by the Commissioner 60 days prior
6 to the renewal date.
7     (b) It shall be the responsibility of each licensee to
8 accomplish renewal of its license; failure of the licensee to
9 receive renewal forms absent a request sent by certified mail
10 for such forms will not waive said responsibility. Failure by a
11 licensee to submit a properly completed renewal application
12 form and fees in a timely fashion, absent a written extension
13 from the Commissioner, will result in the assessment of
14 additional fees, as follows:
15         (1) A fee of $500 $750 will be assessed to the licensee
16     30 days after the proper renewal date and $1,000 $1,500
17     each month thereafter, until the license is either renewed
18     or expires pursuant to Section 2-6, subsections (c) and
19     (d), of this Act.
20         (2) Such fee will be assessed without prior notice to
21     the licensee, but will be assessed only in cases wherein
22     the Commissioner has in his or her possession documentation
23     of the licensee's continuing activity for which the
24     unrenewed license was issued.
25     (c) A license which is not renewed by the date required in
26 this Section shall automatically become inactive. No activity

 

 

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1 regulated by this Act shall be conducted by the licensee when a
2 license becomes inactive. The Commissioner may require the
3 licensee to provide a plan for the disposition of any
4 residential mortgage loans not closed or funded when the
5 license becomes inactive. The Commissioner may allow a licensee
6 with an inactive license to conduct activities regulated by
7 this Act for the sole purpose of assisting borrowers in the
8 closing or funding of loans for which the loan application was
9 taken from a borrower while the license was active. An inactive
10 license may be reactivated by the Commissioner upon payment of
11 the renewal fee, and payment of a reactivation fee equal to the
12 renewal fee.
13     (d) A license which is not renewed within one year of
14 becoming inactive shall expire.
15     (e) A licensee ceasing an activity or activities regulated
16 by this Act and desiring to no longer be licensed shall so
17 inform the Commissioner in writing and, at the same time,
18 convey the license and all other symbols or indicia of
19 licensure. The licensee shall include a plan for the withdrawal
20 from regulated business, including a timetable for the
21 disposition of the business. Upon receipt of such written
22 notice, the Commissioner shall issue a certified statement
23 canceling the license.
24 (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; 93-1018,
25 eff. 1-1-05.)
 

 

 

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1     (205 ILCS 635/4-1)  (from Ch. 17, par. 2324-1)
2     Sec. 4-1. Commissioner of Banks and Real Estate; functions,
3 powers, and duties. The functions, powers, and duties of the
4 Commissioner of Banks and Real Estate shall include the
5 following:
6     (a) To issue or refuse to issue any license as provided by
7 this Act;
8     (b) To revoke or suspend for cause any license issued under
9 this Act;
10     (c) To keep records of all licenses issued under this Act;
11     (d) To receive, consider, investigate, and act upon
12 complaints made by any person in connection with any
13 residential mortgage licensee in this State;
14     (e) To consider and act upon any recommendations from the
15 Residential Mortgage Board;
16     (f) To prescribe the forms of and receive:
17         (1) applications for licenses; and
18         (2) all reports and all books and records required to
19     be made by any licensee under this Act, including annual
20     audited financial statements and annual reports of
21     mortgage activity;
22     (g) To adopt rules and regulations necessary and proper for
23 the administration of this Act;
24     (h) To subpoena documents and witnesses and compel their
25 attendance and production, to administer oaths, and to require
26 the production of any books, papers, or other materials

 

 

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1 relevant to any inquiry authorized by this Act;
2     (h-1) To issue orders against any person, if the
3 Commissioner has reasonable cause to believe that an unsafe,
4 unsound, or unlawful practice has occurred, is occurring, or is
5 about to occur, if any person has violated, is violating, or is
6 about to violate any law, rule, or written agreement with the
7 Commissioner, or for the purpose of administering the
8 provisions of this Act and any rule adopted in accordance with
9 the Act;
10     (h-2) To address any inquiries to any licensee, or the
11 officers thereof, in relation to its activities and conditions,
12 or any other matter connected with its affairs, and it shall be
13 the duty of any licensee or person so addressed, to promptly
14 reply in writing to such inquiries. The Commissioner may also
15 require reports from any licensee at any time the Commissioner
16 may deem desirable;
17     (i) To require information with regard to any license
18 applicant as he or she may deem desirable, with due regard to
19 the paramount interests of the public as to the experience,
20 background, honesty, truthfulness, integrity, and competency
21 of the license applicant as to financial transactions involving
22 primary or subordinate mortgage financing, and where the
23 license applicant is an entity other than an individual, as to
24 the honesty, truthfulness, integrity, and competency of any
25 officer or director of the corporation, association, or other
26 entity, or the members of a partnership;

 

 

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1     (j) To examine the books and records of every licensee
2 under this Act at intervals as specified in Section 4-2;
3     (k) To enforce provisions of this Act;
4     (l) To levy fees, fines, and charges for services performed
5 in administering this Act; the aggregate of all fees collected
6 by the Commissioner on and after the effective date of this Act
7 shall be paid promptly after receipt of the same, accompanied
8 by a detailed statement thereof, into the Savings and
9 Residential Finance Regulatory Fund; the amounts deposited
10 into that Fund shall be used for the ordinary and contingent
11 expenses of the Office of Banks and Real Estate. Nothing in
12 this Act shall prevent continuing the practice of paying
13 expenses involving salaries, retirement, social security, and
14 State-paid insurance of State officers by appropriation from
15 the General Revenue Fund. Beginning on January 1, 2008, the
16 Commissioner must adopt rules to adjust regulatory fee rates to
17 those in effect prior to the escalation in rates published in
18 27 Ill.Reg. 10783, July 1, 2003, unless an audit by the Auditor
19 General of banking regulatory oversight activities requires a
20 different rate to be set to cover the costs of regulatory
21 oversight. Any adjustments made pursuant to an Auditor
22 General's audit must be set forth in the form of a notice to
23 each affected entity 45 days prior to making those adjustments.
24 The notice must contain an explanation that includes a
25 description of the audit results pertaining to the banking
26 industry and a description of each reason why adjustments to

 

 

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1 the regulatory fee rates are required.
2     (m) To appoint examiners, supervisors, experts, and
3 special assistants as needed to effectively and efficiently
4 administer this Act;
5     (n) To conduct hearings for the purpose of:
6         (1) appeals of orders of the Commissioner;
7         (2) suspensions or revocations of licenses, or fining
8     of licensees;
9         (3) investigating:
10             (i) complaints against licensees; or
11             (ii) annual gross delinquency rates; and
12         (4) carrying out the purposes of this Act;
13     (o) To exercise exclusive visitorial power over a licensee
14 unless otherwise authorized by this Act or as vested in the
15 courts, or upon prior consultation with the Commissioner, a
16 foreign residential mortgage regulator with an appropriate
17 supervisory interest in the parent or affiliate of a licensee;
18     (p) To enter into cooperative agreements with state
19 regulatory authorities of other states to provide for
20 examination of corporate offices or branches of those states
21 and to accept reports of such examinations;
22     (q) To assign an examiner or examiners to monitor the
23 affairs of a licensee with whatever frequency the Commissioner
24 determines appropriate and to charge the licensee for
25 reasonable and necessary expenses of the Commissioner, if in
26 the opinion of the Commissioner an emergency exists or appears

 

 

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1 likely to occur; and
2     (r) To impose civil penalties of up to $50 per day against
3 a licensee for failing to respond to a regulatory request or
4 reporting requirement.
5 (Source: P.A. 93-1018, eff. 1-1-05.)
 
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3     30 ILCS 105/6z-26
4     30 ILCS 105/8h
5     30 ILCS 105/8j
6     205 ILCS 5/48 from Ch. 17, par. 359
7     205 ILCS 105/7-3 from Ch. 17, par. 3307-3
8     205 ILCS 105/7-19.1 from Ch. 17, par. 3307-19.1
9     205 ILCS 205/9002 from Ch. 17, par. 7309-2
10     205 ILCS 305/12 from Ch. 17, par. 4413
11     205 ILCS 635/2-2 from Ch. 17, par. 2322-2
12     205 ILCS 635/2-6 from Ch. 17, par. 2322-6
13     205 ILCS 635/4-1 from Ch. 17, par. 2324-1