Synopsis As Introduced Amends the Illinois Banking Act. Prohibits banks from establishing a branch on or adjacent to the premises of an affiliate of the bank if the affiliate engages in commercial activity that could not lawfully be conducted by a bank holding company, a financial holding company, or their subsidiaries. Provides that if an entity attempts to locate an office of an affiliate on or adjacent to the premises of the bank office or branch, then the entity must cease to operate its bank office or branch at that location. Effective immediately.
Changes the definition of "affiliate". Provides that no bank may establish a bank office or branch on or adjacent to the premises of an affiliate under certain circumstances (previously, the restriction applied only to a branch). Amends the Savings Bank Act. Provides for a prohibition against the establishment of savings bank offices or branches on or adjacent to the premises of certain affiliates.
Senate Committee Amendment No. 2 Deletes everything after the enacting clause. Reinserts the engrossed bill with the following changes. In a provision in the Illinois Banking Act, changes the definition of an "affiliate" to include (i) any company that controls the bank; (ii) any company that is controlled by the company that controls the State bank; and (iii) any company controlled directly or indirectly, by trust or otherwise, by or for the benefit of shareholders who beneficially or otherwise control, directly or indirectly, by trust or otherwise, the bank or any company that controls the bank. Adds a definition for "control" to describe ownership or control by a company. In the Illinois Banking Act and the Savings Bank Act, adds an exemption for provisions concerning the prohibition of establishing an affiliate of a bank or savings bank. Provides that neither a bank nor a savings bank that was not chartered and accepting consumer deposits in the State prior to May 1, 2007 may acquire the right or authority to establish a bank office or savings bank office or branch on or adjacent to the premises of an affiliate of that bank or savings bank by acquiring through purchase, change in control, merger, or any other means the charter, bank office, savings bank office, branch of another bank, or branch of another savings bank. Provides that if a federal agency with authority to approve or disapprove an application for the establishment of a branch in the State or a court of competent jurisdiction determines that any provision is inconsistent with the provisions of the federal Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 and would have the effect of nullifying the laws of the State that permit interstate branching on a reciprocal basis, the provision shall be deemed to be null and void without further review or action being necessary. Effective immediately.
Senate Floor Amendment No. 3 Deletes everything after the enacting clause. Amends the Illinois Banking Act and Savings Bank Act. Provides that notwithstanding any other law of the State, no bank or savings bank may establish or maintain a branch that accepts deposits on or adjacent to the premises of an affiliate of the bank or savings bank if the affiliate engages in any commercial activity that could not be lawfully be conducted by a bank holding company, a savings bank holding company, a financial holding company, a subsidiary of the bank holding company or financial holding company, or a subsidiary of the savings bank holding company. Provides that the provisions shall not apply to an affiliate that operates solely for the purpose of owning or leasing the real estate on which the branch that accepts deposits is located. Provides that the provisions shall not be construed to prohibit the maintenance of a branch that was established prior to May 10, 2007, or the conduct of any transactions that were lawfully being conducted at the branch prior to May 10, 2007. Provides that specified officials may make and enforce reasonable rules, regulations, directions, orders, decisions, and findings as the execution and enforcement of the provisions. Effective immediately.