SB2495sam002 94TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 2/7/2006

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2495

2     AMENDMENT NO. ______. Amend Senate Bill 2495, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The State Finance Act is amended by changing
6 Sections 6z-26, 8h, and 8j as follows:
 
7     (30 ILCS 105/6z-26)
8     Sec. 6z-26. The Financial Institution Fund. All moneys
9 received by the Department of Financial and Professional
10 Regulation under the Safety Deposit License Act, the Foreign
11 Exchange License Act, the Pawners Societies Act, the Sale of
12 Exchange Act, the Currency Exchange Act, the Sales Finance
13 Agency Act, the Debt Management Service Act, the Consumer
14 Installment Loan Act, the Illinois Development Credit
15 Corporation Act, the Title Insurance Act, and any other Act
16 administered by the Department of Financial and Professional
17 Regulation as the successor of the Department of Financial
18 Institutions now or in the future, other than the Illinois
19 Credit Union Act, (unless an Act specifically provides
20 otherwise) shall be deposited in the Financial Institution Fund
21 (hereinafter "Fund"), a special fund that is hereby created in
22 the State Treasury.
23     Moneys in the Fund shall be used by the Department, subject
24 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)
26     Sec. 8h. Transfers to General Revenue Fund.
27     (a) Except as provided in subsection (b), notwithstanding
28 any other State law to the contrary, the Governor may, through
29 June 30, 2007, from time to time direct the State Treasurer and
30 Comptroller to transfer a specified sum from any fund held by
31 the State Treasurer to the General Revenue Fund in order to
32 help defray the State's operating costs for the fiscal year.
33 The total transfer under this Section from any fund in any

 

 

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1 fiscal year shall not exceed the lesser of (i) 8% of the
2 revenues to be deposited into the fund during that fiscal year
3 or (ii) an amount that leaves a remaining fund balance of 25%
4 of the July 1 fund balance of that fiscal year. In fiscal year
5 2005 only, prior to calculating the July 1, 2004 final
6 balances, the Governor may calculate and direct the State
7 Treasurer with the Comptroller to transfer additional amounts
8 determined by applying the formula authorized in Public Act
9 93-839 to the funds balances on July 1, 2003. No transfer may
10 be made from a fund under this Section that would have the
11 effect of reducing the available balance in the fund to an
12 amount less than the amount remaining unexpended and unreserved
13 from the total appropriation from that fund estimated to be
14 expended for that fiscal year. This Section does not apply to
15 any funds that are restricted by federal law to a specific use,
16 to any funds in the Motor Fuel Tax Fund, the Intercity
17 Passenger Rail Fund, the Hospital Provider Fund, the Medicaid
18 Provider Relief Fund, the Teacher Health Insurance Security
19 Fund, the Reviewing Court Alternative Dispute Resolution Fund,
20 or the Voters' Guide Fund, the Foreign Language Interpreter
21 Fund, the Lawyers' Assistance Program Fund, the Supreme Court
22 Federal Projects Fund, the Supreme Court Special State Projects
23 Fund, or the Low-Level Radioactive Waste Facility Development
24 and Operation Fund, or the Hospital Basic Services Preservation
25 Fund, or to any funds to which subsection (f) of Section 20-40
26 of the Nursing and Advanced Practice Nursing Act applies. No
27 transfers may be made under this Section from the Pet
28 Population Control Fund. Notwithstanding any other provision
29 of this Section, for fiscal year 2004, the total transfer under
30 this Section from the Road Fund or the State Construction
31 Account Fund shall not exceed the lesser of (i) 5% of the
32 revenues to be deposited into the fund during that fiscal year
33 or (ii) 25% of the beginning balance in the fund. For fiscal
34 year 2005 through fiscal year 2007, no amounts may be

 

 

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1 transferred under this Section from the Road Fund, the State
2 Construction Account Fund, the Criminal Justice Information
3 Systems Trust Fund, the Wireless Service Emergency Fund, or the
4 Mandatory Arbitration Fund.
5     In determining the available balance in a fund, the
6 Governor may include receipts, transfers into the fund, and
7 other resources anticipated to be available in the fund in that
8 fiscal year.
9     The State Treasurer and Comptroller shall transfer the
10 amounts designated under this Section as soon as may be
11 practicable after receiving the direction to transfer from the
12 Governor.
13     (b) This Section does not apply to: (i) the Ticket For The
14 Cure Fund; (ii) or to any fund established under the Community
15 Senior Services and Resources Act; (iii) or (ii) on or after
16 January 1, 2006 (the effective date of Public Act 94-511) this
17 amendatory Act of the 94th General Assembly, the Child Labor
18 and Day and Temporary Labor Enforcement Fund; or (iv) any fund
19 established under the Illinois Credit Union Act, the Illinois
20 Banking Act, the Illinois Savings and Loan Act of 1985, or the
21 Savings Bank Act, or the Professions Indirect Cost Fund
22 established under the Department of Professional Regulation
23 Law of the Civil Administrative Code of Illinois, the transfers
24 from and expenditures of such funds being at all times limited
25 to the purposes specified in those Acts.
26     (c) This Section does not apply to the Demutualization
27 Trust Fund established under the Uniform Disposition of
28 Unclaimed Property Act.
29     (d) (c) This Section does not apply to moneys set aside in
30 the Illinois State Podiatric Disciplinary Fund for podiatric
31 scholarships and residency programs under the Podiatric
32 Scholarship and Residency Act.
33 (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674,
34 eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04;

 

 

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1 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff.
2 1-15-05; 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511, eff.
3 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05; 94-645,
4 eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff. 11-2-05;
5 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; revised 1-23-06.)
 
6     (30 ILCS 105/8j)
7     Sec. 8j. Allocation and transfer of fee receipts to General
8 Revenue Fund. Notwithstanding any other law to the contrary,
9 additional amounts generated by the new and increased fees
10 created or authorized by Public Acts 93-22, 93-23, 93-24, and
11 93-32 shall be allocated between the fund otherwise entitled to
12 receive the fee and the General Revenue Fund by the Governor's
13 Office of Management and Budget, except that no allocation and
14 transfer shall be made with respect to or from the Credit Union
15 Fund. In determining the amount of the allocation to the
16 General Revenue Fund, the Director of the Governor's Office of
17 Management and Budget shall calculate whether the available
18 resources in the fund are sufficient to satisfy the unexpended
19 and unreserved appropriations from the fund for the fiscal
20 year.
21     In calculating the available resources in a fund, the
22 Director of the Governor's Office of Management and Budget may
23 include receipts, transfers into the fund, and other resources
24 anticipated to be available in the fund in that fiscal year.
25     Upon determining the amount of an allocation to the General
26 Revenue Fund under this Section, the Director of the Governor's
27 Office of Management and Budget may direct the State Treasurer
28 and Comptroller to transfer the amount of that allocation from
29 the fund in which the fee amounts have been deposited to the
30 General Revenue Fund; provided, however, that the Director
31 shall not direct the transfer of any amount that would have the
32 effect of reducing the available resources in the fund to an
33 amount less than the amount remaining unexpended and unreserved

 

 

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1 from the total appropriation from that fund for that fiscal
2 year.
3     The State Treasurer and Comptroller shall transfer the
4 amounts designated under this Section as soon as may be
5 practicable after receiving the direction to transfer from the
6 Director of the Governor's Office of Management and Budget.
7     This Section does not apply to the Demutualization Trust
8 Fund established under the Uniform Disposition of Unclaimed
9 Property Act.
10 (Source: P.A. 93-25, eff. 6-20-03; 93-32, eff. 6-20-03; 94-686,
11 eff. 11-2-05.)
 
12     Section 10. The Illinois Banking Act is amended by changing
13 Section 48 as follows:
 
14     (205 ILCS 5/48)  (from Ch. 17, par. 359)
15     Sec. 48. Commissioner's powers; duties. The Commissioner
16 shall have the powers and authority, and is charged with the
17 duties and responsibilities designated in this Act, and a State
18 bank shall not be subject to any other visitorial power other
19 than as authorized by this Act, except those vested in the
20 courts, or upon prior consultation with the Commissioner, a
21 foreign bank regulator with an appropriate supervisory
22 interest in the parent or affiliate of a state bank. In the
23 performance of the Commissioner's duties:
24     (1) The Commissioner shall call for statements from all
25 State banks as provided in Section 47 at least one time during
26 each calendar quarter.
27     (2) (a) The Commissioner, as often as the Commissioner
28 shall deem necessary or proper, and no less frequently than 18
29 months following the preceding examination, shall appoint a
30 suitable person or persons to make an examination of the
31 affairs of every State bank, except that for every eligible
32 State bank, as defined by regulation, the Commissioner in lieu

 

 

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1 of the examination may accept on an alternating basis the
2 examination made by the eligible State bank's appropriate
3 federal banking agency pursuant to Section 111 of the Federal
4 Deposit Insurance Corporation Improvement Act of 1991,
5 provided the appropriate federal banking agency has made such
6 an examination. A person so appointed shall not be a
7 stockholder or officer or employee of any bank which that
8 person may be directed to examine, and shall have powers to
9 make a thorough examination into all the affairs of the bank
10 and in so doing to examine any of the officers or agents or
11 employees thereof on oath and shall make a full and detailed
12 report of the condition of the bank to the Commissioner. In
13 making the examination the examiners shall include an
14 examination of the affairs of all the affiliates of the bank,
15 as defined in subsection (b) of Section 35.2 of this Act, or
16 subsidiaries of the bank as shall be necessary to disclose
17 fully the conditions of the subsidiaries or affiliates, the
18 relations between the bank and the subsidiaries or affiliates
19 and the effect of those relations upon the affairs of the bank,
20 and in connection therewith shall have power to examine any of
21 the officers, directors, agents, or employees of the
22 subsidiaries or affiliates on oath. After May 31, 1997, the
23 Commissioner may enter into cooperative agreements with state
24 regulatory authorities of other states to provide for
25 examination of State bank branches in those states, and the
26 Commissioner may accept reports of examinations of State bank
27 branches from those state regulatory authorities. These
28 cooperative agreements may set forth the manner in which the
29 other state regulatory authorities may be compensated for
30 examinations prepared for and submitted to the Commissioner.
31     (b) After May 31, 1997, the Commissioner is authorized to
32 examine, as often as the Commissioner shall deem necessary or
33 proper, branches of out-of-state banks. The Commissioner may
34 establish and may assess fees to be paid to the Commissioner

 

 

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1 for examinations under this subsection (b). The fees shall be
2 borne by the out-of-state bank, unless the fees are borne by
3 the state regulatory authority that chartered the out-of-state
4 bank, as determined by a cooperative agreement between the
5 Commissioner and the state regulatory authority that chartered
6 the out-of-state bank.
7     (2.5) Whenever any State bank, any subsidiary or affiliate
8 of a State bank, or after May 31, 1997, any branch of an
9 out-of-state bank causes to be performed, by contract or
10 otherwise, any bank services for itself, whether on or off its
11 premises:
12         (a) that performance shall be subject to examination by
13     the Commissioner to the same extent as if services were
14     being performed by the bank or, after May 31, 1997, branch
15     of the out-of-state bank itself on its own premises; and
16         (b) the bank or, after May 31, 1997, branch of the
17     out-of-state bank shall notify the Commissioner of the
18     existence of a service relationship. The notification
19     shall be submitted with the first statement of condition
20     (as required by Section 47 of this Act) due after the
21     making of the service contract or the performance of the
22     service, whichever occurs first. The Commissioner shall be
23     notified of each subsequent contract in the same manner.
24     For purposes of this subsection (2.5), the term "bank
25 services" means services such as sorting and posting of checks
26 and deposits, computation and posting of interest and other
27 credits and charges, preparation and mailing of checks,
28 statements, notices, and similar items, or any other clerical,
29 bookkeeping, accounting, statistical, or similar functions
30 performed for a State bank, including but not limited to
31 electronic data processing related to those bank services.
32     (3) The expense of administering this Act, including the
33 expense of the examinations of State banks as provided in this
34 Act, shall to the extent of the amounts resulting from the fees

 

 

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

 

 

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

 

 

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1     chartered the out-of-state banks.
2         (b) "Fiscal year" for purposes of this Section 48 is
3     defined as a period beginning July 1 of any year and ending
4     June 30 of the next year. The Commissioner shall receive
5     for each fiscal year, commencing with the fiscal year
6     ending June 30, 1987, a contingent fee equal to the lesser
7     of the aggregate of the fees paid by all State banks under
8     paragraph (a) of subsection (3) for that year, or the
9     amount, if any, whereby the aggregate of the administration
10     expenses, as defined in paragraph (c), for that fiscal year
11     exceeds the sum of the aggregate of the fees payable by all
12     State banks for that year under paragraph (a) of subsection
13     (3), plus any amounts transferred into the Bank and Trust
14     Company Fund from the State Pensions Fund for that year,
15     plus all other amounts collected by the Commissioner for
16     that year under any other provision of this Act, plus the
17     aggregate of all fees collected for that year by the
18     Commissioner under the Corporate Fiduciary Act, excluding
19     the receivership fees provided for in Section 5-10 of the
20     Corporate Fiduciary Act, and the Foreign Banking Office
21     Act. The aggregate amount of the contingent fee thus
22     arrived at for any fiscal year shall be apportioned
23     amongst, assessed upon, and paid by the State banks and
24     foreign banking corporations, respectively, in the same
25     proportion that the fee of each under paragraph (a) of
26     subsection (3), respectively, for that year bears to the
27     aggregate for that year of the fees collected under
28     paragraph (a) of subsection (3). The aggregate amount of
29     the contingent fee, and the portion thereof to be assessed
30     upon each State bank and foreign banking corporation,
31     respectively, shall be determined by the Commissioner and
32     shall be paid by each, respectively, within 120 days of the
33     close of the period for which the contingent fee is
34     computed and is payable, and the Commissioner shall give 20

 

 

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1     days advance notice of the amount of the contingent fee
2     payable by the State bank and of the date fixed by the
3     Commissioner for payment of the fee.
4         (c) The "administration expenses" for any fiscal year
5     shall mean the ordinary and contingent expenses for that
6     year incident to making the examinations provided for by,
7     and for otherwise administering, this Act, the Corporate
8     Fiduciary Act, excluding the expenses paid from the
9     Corporate Fiduciary Receivership account in the Bank and
10     Trust Company Fund, the Foreign Banking Office Act, the
11     Electronic Fund Transfer Act, and the Illinois Bank
12     Examiners' Education Foundation Act, including all
13     salaries and other compensation paid for personal services
14     rendered for the State by officers or employees of the
15     State, including the Commissioner and the Deputy
16     Commissioners, all expenditures for telephone and
17     telegraph charges, postage and postal charges, office
18     stationery, supplies and services, and office furniture
19     and equipment, including typewriters and copying and
20     duplicating machines and filing equipment, surety bond
21     premiums, and travel expenses of those officers and
22     employees, employees, expenditures or charges for the
23     acquisition, enlargement or improvement of, or for the use
24     of, any office space, building, or structure, or
25     expenditures for the maintenance thereof or for furnishing
26     heat, light, or power with respect thereto, all to the
27     extent that those expenditures are directly incidental to
28     such examinations or administration. The Commissioner
29     shall not be required by paragraphs (c) or (d-1) of this
30     subsection (3) to maintain in any fiscal year's budget
31     appropriated reserves for accrued vacation and accrued
32     sick leave that is required to be paid to employees of the
33     Commissioner upon termination of their service with the
34     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
27     prevent continuing the practice of paying expenses
28     involving salaries, retirement, social security, and
29     State-paid insurance premiums of State officers by
30     appropriations from the General Revenue Fund. However, the
31     General Revenue Fund shall be reimbursed for those payments
32     made on and after July 1, 1979, by an annual transfer of
33     funds from the Bank and Trust Company Fund. Moneys in the
34     Bank and Trust Company Fund may be transferred to the

 

 

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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. Any fees assessed upon and paid by State banks
5     pursuant to this Act must be held in trust to be used
6     exclusively to pay the expenses of administering this Act.
7     The credit to State banks of unexpended funds provided for
8     under paragraph (d-1) of this subsection (3) constitutes a
9     continuing property interest of the State banks in those
10     unexpended funds.
11         (d-1) Adequate funds shall be available in the Bank and
12     Trust Company Fund to permit the timely payment of
13     administration expenses. In each fiscal year the total
14     administration expenses shall be deducted from the total
15     fees collected by the Commissioner and the remainder
16     transferred into the Cash Flow Reserve Account, unless the
17     balance of the Cash Flow Reserve Account prior to the
18     transfer equals or exceeds one-fourth of the total initial
19     appropriations from the Bank and Trust Company Fund for the
20     subsequent year, in which case the remainder shall be
21     credited to State banks and foreign banking corporations
22     and applied against their fees for the subsequent year. The
23     amount credited to each State bank and foreign banking
24     corporation shall be in the same proportion as the Call
25     Report Fees paid by each for the year bear to the total
26     Call Report Fees collected for the year. For the fiscal
27     year beginning July 1, 2007, the Commissioner must adopt
28     rules to adjust regulatory fee rates to those in effect
29     prior to the escalation in rates published in 27 Ill.Reg.
30     16024, Oct. 10, 2003, and as amended at 27 Ill.Reg. 16326,
31     Oct. 24, 2003, unless an audit by the Auditor General of
32     banking regulatory oversight activities requires a
33     different rate to be set to cover the costs of regulatory
34     oversight. Any adjustments made pursuant to an Auditor

 

 

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1     General's audit must be set forth in the form of a notice
2     to each affected entity 45 days prior to making those
3     adjustments. The notice must contain an explanation that
4     includes a description of the audit results pertaining to
5     the banking industry and a description of each reason why
6     adjustments to the regulatory fee rates are required. If,
7     after a transfer to the Cash Flow Reserve Account is made
8     or if no remainder is available for transfer, the balance
9     of the Cash Flow Reserve Account is less than one-fourth of
10     the total initial appropriations for the subsequent year
11     and the amount transferred is less than 5% of the total
12     Call Report Fees for the year, additional amounts needed to
13     make the transfer equal to 5% of the total Call Report Fees
14     for the year shall be apportioned amongst, assessed upon,
15     and paid by the State banks and foreign banking
16     corporations in the same proportion that the Call Report
17     Fees of each, respectively, for the year bear to the total
18     Call Report Fees collected for the year. The additional
19     amounts assessed shall be transferred into the Cash Flow
20     Reserve Account. For purposes of this paragraph (d-1), the
21     calculation of the fees collected by the Commissioner shall
22     exclude the receivership fees provided for in Section 5-10
23     of the Corporate Fiduciary Act.
24         (e) The Commissioner may upon request certify to any
25     public record in his keeping and shall have authority to
26     levy a reasonable charge for issuing certifications of any
27     public record in his keeping.
28         (f) In addition to fees authorized elsewhere in this
29     Act, the Commissioner may, in connection with a review,
30     approval, or provision of a service, levy a reasonable
31     charge to recover the cost of the review, approval, or
32     service.
33     (4) Nothing contained in this Act shall be construed to
34 limit the obligation relative to examinations and reports of

 

 

09400SB2495sam002 - 16 - LRB094 17958 LJB 55612 a

1 any State bank, deposits in which are to any extent insured by
2 the United States or any agency thereof, nor to limit in any
3 way the powers of the Commissioner with reference to
4 examinations and reports of that bank.
5     (5) The nature and condition of the assets in or investment
6 of any bonus, pension, or profit sharing plan for officers or
7 employees of every State bank or, after May 31, 1997, branch of
8 an out-of-state bank shall be deemed to be included in the
9 affairs of that State bank or branch of an out-of-state bank
10 subject to examination by the Commissioner under the provisions
11 of subsection (2) of this Section, and if the Commissioner
12 shall find from an examination that the condition of or
13 operation of the investments or assets of the plan is unlawful,
14 fraudulent, or unsafe, or that any trustee has abused his
15 trust, the Commissioner shall, if the situation so found by the
16 Commissioner shall not be corrected to his satisfaction within
17 60 days after the Commissioner has given notice to the board of
18 directors of the State bank or out-of-state bank of his
19 findings, report the facts to the Attorney General who shall
20 thereupon institute proceedings against the State bank or
21 out-of-state bank, the board of directors thereof, or the
22 trustees under such plan as the nature of the case may require.
23     (6) The Commissioner shall have the power:
24         (a) To promulgate reasonable rules for the purpose of
25     administering the provisions of this Act.
26         (a-5) To impose conditions on any approval issued by
27     the Commissioner if he determines that the conditions are
28     necessary or appropriate. These conditions shall be
29     imposed in writing and shall continue in effect for the
30     period prescribed by the Commissioner.
31         (b) To issue orders against any person, if the
32     Commissioner has reasonable cause to believe that an unsafe
33     or unsound banking practice has occurred, is occurring, or
34     is about to occur, if any person has violated, is

 

 

09400SB2495sam002 - 17 - LRB094 17958 LJB 55612 a

1     violating, or is about to violate any law, rule, or written
2     agreement with the Commissioner, or for the purpose of
3     administering the provisions of this Act and any rule
4     promulgated in accordance with this Act.
5         (b-1) To enter into agreements with a bank establishing
6     a program to correct the condition of the bank or its
7     practices.
8         (c) To appoint hearing officers to execute any of the
9     powers granted to the Commissioner under this Section for
10     the purpose of administering this Act and any rule
11     promulgated in accordance with this Act and otherwise to
12     authorize, in writing, an officer or employee of the Office
13     of Banks and Real Estate to exercise his powers under this
14     Act.
15         (d) To subpoena witnesses, to compel their attendance,
16     to administer an oath, to examine any person under oath,
17     and to require the production of any relevant books,
18     papers, accounts, and documents in the course of and
19     pursuant to any investigation being conducted, or any
20     action being taken, by the Commissioner in respect of any
21     matter relating to the duties imposed upon, or the powers
22     vested in, the Commissioner under the provisions of this
23     Act or any rule promulgated in accordance with this Act.
24         (e) To conduct hearings.
25     (7) Whenever, in the opinion of the Commissioner, any
26 director, officer, employee, or agent of a State bank or any
27 subsidiary or bank holding company of the bank or, after May
28 31, 1997, of any branch of an out-of-state bank or any
29 subsidiary or bank holding company of the bank shall have
30 violated any law, rule, or order relating to that bank or any
31 subsidiary or bank holding company of the bank, shall have
32 obstructed or impeded any examination or investigation by the
33 Commissioner, shall have engaged in an unsafe or unsound
34 practice in conducting the business of that bank or any

 

 

09400SB2495sam002 - 18 - LRB094 17958 LJB 55612 a

1 subsidiary or bank holding company of the bank, or shall have
2 violated any law or engaged or participated in any unsafe or
3 unsound practice in connection with any financial institution
4 or other business entity such that the character and fitness of
5 the director, officer, employee, or agent does not assure
6 reasonable promise of safe and sound operation of the State
7 bank, the Commissioner may issue an order of removal. If, in
8 the opinion of the Commissioner, any former director, officer,
9 employee, or agent of a State bank or any subsidiary or bank
10 holding company of the bank, prior to the termination of his or
11 her service with that bank or any subsidiary or bank holding
12 company of the bank, violated any law, rule, or order relating
13 to that State bank or any subsidiary or bank holding company of
14 the bank, obstructed or impeded any examination or
15 investigation by the Commissioner, 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 violated any
18 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 State
23 bank, the Commissioner may issue an order prohibiting that
24 person from further service with a bank or any subsidiary or
25 bank holding company of the bank as a director, officer,
26 employee, or agent. An order issued pursuant to this subsection
27 shall be served upon the director, officer, employee, or agent.
28 A copy of the order shall be sent to each director of the bank
29 affected by registered mail. The person affected by the action
30 may request a hearing before the State Banking Board within 10
31 days after receipt of the order. The hearing shall be held by
32 the Board within 30 days after the request has been received by
33 the Board. The Board shall make a determination approving,
34 modifying, or disapproving the order of the Commissioner as its

 

 

09400SB2495sam002 - 19 - LRB094 17958 LJB 55612 a

1 final administrative decision. If a hearing is held by the
2 Board, the Board shall make its determination within 60 days
3 from the conclusion of the hearing. Any person affected by a
4 decision of the Board under this subsection (7) of Section 48
5 of this Act may have the decision reviewed only under and in
6 accordance with the Administrative Review Law and the rules
7 adopted pursuant thereto. A copy of the order shall also be
8 served upon the bank of which he is a director, officer,
9 employee, or agent, whereupon he shall cease to be a director,
10 officer, employee, or agent of that bank. The Commissioner may
11 institute a civil action against the director, officer, or
12 agent of the State bank or, after May 31, 1997, of the branch
13 of the out-of-state bank against whom any order provided for by
14 this subsection (7) of this Section 48 has been issued, and
15 against the State bank or, after May 31, 1997, out-of-state
16 bank, to enforce compliance with or to enjoin any violation of
17 the terms of the order. Any person who has been the subject of
18 an order of removal or an order of prohibition issued by the
19 Commissioner under this subsection or Section 5-6 of the
20 Corporate Fiduciary Act may not thereafter serve as director,
21 officer, employee, or agent of any State bank or of any branch
22 of any out-of-state bank, or of any corporate fiduciary, as
23 defined in Section 1-5.05 of the Corporate Fiduciary Act, or of
24 any other entity that is subject to licensure or regulation by
25 the Commissioner or the Office of Banks and Real Estate unless
26 the Commissioner has granted prior approval in writing.
27     For purposes of this paragraph (7), "bank holding company"
28 has the meaning prescribed in Section 2 of the Illinois Bank
29 Holding Company Act of 1957.
30     (8) The Commissioner may impose civil penalties of up to
31 $10,000 against any person for each violation of any provision
32 of this Act, any rule promulgated in accordance with this Act,
33 any order of the Commissioner, or any other action which in the
34 Commissioner's discretion is an unsafe or unsound banking

 

 

09400SB2495sam002 - 20 - LRB094 17958 LJB 55612 a

1 practice.
2     (9) The Commissioner may impose civil penalties of up to
3 $100 against any person for the first failure to comply with
4 reporting requirements set forth in the report of examination
5 of the bank and up to $200 for the second and subsequent
6 failures to comply with those reporting requirements.
7     (10) All final administrative decisions of the
8 Commissioner hereunder shall be subject to judicial review
9 pursuant to the provisions of the Administrative Review Law.
10 For matters involving administrative review, venue shall be in
11 either Sangamon County or Cook County.
12     (11) The endowment fund for the Illinois Bank Examiners'
13 Education Foundation shall be administered as follows:
14         (a) (Blank).
15         (b) The Foundation is empowered to receive voluntary
16     contributions, gifts, grants, bequests, and donations on
17     behalf of the Illinois Bank Examiners' Education
18     Foundation from national banks and other persons for the
19     purpose of funding the endowment of the Illinois Bank
20     Examiners' Education Foundation.
21         (c) The aggregate of all special educational fees
22     collected by the Commissioner and property received by the
23     Commissioner on behalf of the Illinois Bank Examiners'
24     Education Foundation under this subsection (11) on or after
25     June 30, 1986, shall be either (i) promptly paid after
26     receipt of the same, accompanied by a detailed statement
27     thereof, into the State Treasury and shall be set apart in
28     a special fund to be known as "The Illinois Bank Examiners'
29     Education Fund" to be invested by either the Treasurer of
30     the State of Illinois in the Public Treasurers' Investment
31     Pool or in any other investment he is authorized to make or
32     by the Illinois State Board of Investment as the board of
33     trustees of the Illinois Bank Examiners' Education
34     Foundation may direct or (ii) deposited into an account

 

 

09400SB2495sam002 - 21 - LRB094 17958 LJB 55612 a

1     maintained in a commercial bank or corporate fiduciary in
2     the name of the Illinois Bank Examiners' Education
3     Foundation pursuant to the order and direction of the Board
4     of Trustees of the Illinois Bank Examiners' Education
5     Foundation.
6     (12) (Blank).
7 (Source: P.A. 94-91, eff. 7-1-05.)
 
8     Section 15. The Illinois Savings and Loan Act of 1985 is
9 amended by changing Sections 7-3 and 7-19.1 as follows:
 
10     (205 ILCS 105/7-3)  (from Ch. 17, par. 3307-3)
11     Sec. 7-3. Personnel, records, files, actions and duties,
12 etc.
13     (a) The Commissioner shall appoint, subject to applicable
14 provisions of the Personnel Code, a supervisor, such examiners,
15 employees, experts and special assistants as may be necessary
16 to carry out effectively this Act. The Commissioner shall
17 require each supervisor, examiner, expert and special
18 assistant employed or appointed by him to give bond, with
19 security to be approved by the Commissioner, not less in any
20 case than $15,000, conditioned for the faithful discharge of
21 his duties. The premium on such bond shall be paid by the
22 Commissioner from funds appropriated for that purpose. The
23 bond, along with verification of payment of the premium on such
24 bond, shall be filed in the office of the Secretary of State.
25     (b) The Commissioner shall have the following duties and
26 powers:
27     (1) To exercise the rights, powers and duties set forth in
28 this Act or in any other related Act;
29     (2) To establish such regulations as may be reasonable or
30 necessary to accomplish the purposes of this Act;
31     (3) To direct and supervise all the administrative and
32 technical activities of this office and create an Advisory

 

 

09400SB2495sam002 - 22 - LRB094 17958 LJB 55612 a

1 Committee which upon request will make recommendations to him;
2     (4) To make an annual report regarding the work of his
3 office as he may consider desirable to the Governor, or as the
4 Governor may request;
5     (5) To cause a suit to be filed in his name to enforce any
6 law of this State that applies to an association, subsidiary of
7 an association, or holding company operating under this Act and
8 shall include the enforcement of any obligation of the
9 officers, directors or employees of any association;
10     (6) To prescribe a uniform manner in which the books and
11 records of every association are to be maintained; and
12     (7) To establish reasonable and rationally based fee
13 structures for each association and holding company operating
14 under this Act and for their service corporations and
15 subsidiaries, which fees shall include but not be limited to
16 annual fees, application fees, regular and special examination
17 fees, and such other fees as the Commissioner establishes and
18 demonstrates to be directly resultant from his
19 responsibilities under this Act and as are directly
20 attributable to individual entities operating under this Act.
21 For the fiscal year beginning on July 1, 2007, the Commissioner
22 must adopt rules to adjust regulatory fee rates to those in
23 effect prior to the escalation in rates published in 27
24 Ill.Reg. 16024, Oct. 10, 2003, and as amended at 27 Ill.Reg.
25 16326, Oct. 24, 2003, unless an audit by the Auditor General of
26 banking regulatory oversight activities requires a different
27 rate to be set to cover the costs of regulatory oversight. Any
28 adjustments made pursuant to an Auditor General's audit must be
29 set forth in the form of a notice to each affected entity 45
30 days prior to making those adjustments. The notice must contain
31 an explanation that includes a description of the audit results
32 pertaining to the banking industry and a description of each
33 reason why adjustments to the regulatory fee rates are
34 required.

 

 

09400SB2495sam002 - 23 - LRB094 17958 LJB 55612 a

1 (Source: P.A. 85-313.)
 
2     (205 ILCS 105/7-19.1)  (from Ch. 17, par. 3307-19.1)
3     Sec. 7-19.1. Savings and Residential Finance Regulatory
4 Fund.
5     (a) The aggregate of all fees collected by the Commissioner
6 under this Act shall be paid promptly after receipt of the
7 same, accompanied by a detailed statement thereof, into the
8 State treasury and shall be set apart in the Savings and
9 Residential Finance Regulatory Fund, a special fund hereby
10 created in the State treasury. The amounts deposited into the
11 Fund shall be solely and exclusively used for the ordinary and
12 contingent expenses of the Commissioner in administering the
13 Illinois Savings and Loan Act of 1985, the Savings Bank Act,
14 and the Residential Mortgage License Act of 1987 Office of
15 Banks and Real Estate. Nothing in this Act shall prevent
16 continuing the practice of paying expenses involving salaries,
17 retirement, social security, and State-paid insurance of State
18 officers by appropriation from the General Revenue Fund.
19     (b) Except as otherwise provided in subsection (b-5), no
20 moneys in the Savings and Residential Finance Regulatory Fund
21 shall may not be appropriated, assigned, or transferred to
22 another State fund. All moneys in the Fund shall be exempt from
23 assignment or transfer under any other law or executive order,
24 other than for the purposes authorized by the Illinois State
25 Auditing Act. All The moneys in the Fund shall remain the
26 property of and shall be held in trust for the sole benefit and
27 exclusive regulation of be for the sole benefit of the
28 institutions and entities assessed.
29     (b-5) Moneys in the Savings and Residential Finance
30 Regulatory Fund may be transferred to the Professions Indirect
31 Cost Fund, as authorized under Section 2105-300 of the
32 Department of Professional Regulation Law of the Civil
33 Administrative Code of Illinois.

 

 

09400SB2495sam002 - 24 - LRB094 17958 LJB 55612 a

1     (c) All earnings received from investments of funds in the
2 Savings and Residential Finance Regulatory Fund shall be
3 deposited into the Savings and Residential Finance Regulatory
4 Fund and may be used for the same purposes as fees deposited
5 into that Fund.
6     (d) When the amount remaining in the Savings and
7 Residential Finance Regulatory Fund at the end of a fiscal year
8 exceeds 25% of the total actual administrative and operational
9 expenses incurred under the Illinois Savings and Loan Act of
10 1985, the Savings Bank Act, and the Residential Mortgage
11 License Act of 1987 for that fiscal year, the excess must be
12 credited to the appropriate institutions and entities and
13 applied against their regulatory fees for the subsequent fiscal
14 year. The amount credited to the institution or entity must be
15 in the same proportion that the fees paid by the institution or
16 entity for the fiscal year in which the excess is produced
17 bears to the aggregate of the fees collected by the
18 Commissioner under the Illinois Savings and Loan Act of 1985,
19 the Savings Bank Act, and the Residential Mortgage License Act
20 of 1987 for the same fiscal year. For the purpose of this
21 Section, "fiscal year" means the period beginning July 1 of any
22 calendar year and ending June 30 of the next calendar year.
23 (Source: P.A. 94-91, eff. 7-1-05.)
 
24     Section 20. The Savings Bank Act is amended by changing
25 Section 9002 as follows:
 
26     (205 ILCS 205/9002)  (from Ch. 17, par. 7309-2)
27     Sec. 9002. Powers of Commissioner. The Commissioner shall
28 have the following powers and duties:
29     (1) To exercise the rights, powers, and duties set forth in
30 this Act or in any related Act.
31     (2) To establish regulations as may be reasonable or
32 necessary to accomplish the purposes of this Act.

 

 

09400SB2495sam002 - 25 - LRB094 17958 LJB 55612 a

1     (3) To make an annual report regarding the work of his
2 office under this Act as he may consider desirable to the
3 Governor, or as the Governor may request.
4     (4) To cause a suit to be filed in his name to enforce any
5 law of this State that applies to savings banks, their service
6 corporations, subsidiaries, affiliates, or holding companies
7 operating under this Act, including the enforcement of any
8 obligation of the officers, directors, agents, or employees of
9 any savings bank.
10     (5) To prescribe a uniform manner in which the books and
11 records of every savings bank are to be maintained.
12     (6) To establish a reasonable fee structure for savings
13 banks and holding companies operating under this Act and for
14 their service corporations and subsidiaries. The fees shall
15 include, but not be limited to, annual fees, application fees,
16 regular and special examination fees, and other fees as the
17 Commissioner establishes and demonstrates to be directly
18 resultant from the Commissioner's responsibilities under this
19 Act and as are directly attributable to individual entities
20 operating under this Act. The aggregate of all fees collected
21 by the Commissioner on and after the effective date of this Act
22 shall be paid promptly after receipt of the same, accompanied
23 by a detailed statement thereof, into the Savings and
24 Residential Finance Regulatory Fund. The amounts deposited
25 into the Fund shall be used for the ordinary and contingent
26 expenses of the Office of Banks and Real Estate. Nothing in
27 this Act shall prevent continuing the practice of paying
28 expenses involving salaries, retirement, social security, and
29 State-paid insurance of State officers by appropriation from
30 the General Revenue Fund. For the fiscal year beginning July 1,
31 2007, the Commissioner must adopt rules to adjust regulatory
32 fee rates to those in effect prior to the escalation in rates
33 published in 27 Ill.Reg. 16024, Oct. 10, 2003, and as amended
34 at 27 Ill.Reg. 16326, Oct. 24, 2003, unless an audit by the

 

 

09400SB2495sam002 - 26 - LRB094 17958 LJB 55612 a

1 Auditor General of banking regulatory oversight activities
2 requires a different rate to be set to cover the costs of
3 regulatory oversight. Any adjustments made pursuant to an
4 Auditor General's audit must be set forth in the form of a
5 notice to each affected entity 45 days prior to making those
6 adjustments. The notice must contain an explanation that
7 includes a description of the audit results pertaining to the
8 banking industry and a description of each reason why
9 adjustments to the regulatory fee rates are 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 ASSETSREGULATORY FEE
24$25,000 or less ...............$100
25Over $25,000 and not over
26$100,000 ......................$100 plus $4 per
27$1,000 of assets in excess of
28$25,000
29Over $100,000 and not over
30$200,000 ......................$400 plus $3 per
31$1,000 of assets in excess of
32$100,000

 

 

09400SB2495sam002 - 27 - LRB094 17958 LJB 55612 a

1Over $200,000 and not over
2$500,000 ......................$700 plus $2 per
3$1,000 of assets in excess of
4$200,000
5Over $500,000 and not over
6$1,000,000 ....................$1,300 plus $1.40
7per $1,000 of assets in excess
8of $500,000
9Over $1,000,000 and not
10over $5,000,000................$2,000 plus $0.50
11per $1,000 of assets in
12excess of $1,000,000
13Over $5,000,000 and not
14over $30,000,000 .............. $4,000 $5,080 plus $0.35 $0.44
15per $1,000 assets
16in excess of $5,000,000
17Over $30,000,000 and not
18over $100,000,000 .............$12,750 $16,192 plus $0.30 $0.38
19per $1,000 of assets in
20excess of $30,000,000
21Over $100,000,000 and not
22over $500,000,000 .............$33,750 $42,862 plus $0.15 $0.19
23per $1,000 of assets in
24excess of $100,000,000
25Over $500,000,000 .............$93,750 $140,625 plus $0.05 $0.075
26per $1,000 of assets in
27excess of $500,000,000
28     (2) The Director shall review the regulatory fee schedule
29 in subsection (1) and the projected earnings on those fees on
30 an annual basis and adjust the fee schedule for the next fiscal
31 year. The fee schedule may be increased by no more than 5%

 

 

09400SB2495sam002 - 28 - LRB094 17958 LJB 55612 a

1 annually if necessary to defray the actual estimated
2 administrative and operational expenses of the Credit Union
3 Section, Department as defined in subsection (5). However, the
4 fee schedule shall not be increased if the amount remaining in
5 the Credit Union Fund at the end of the fiscal year is equal to
6 or greater than 25% of the actual administrative and
7 operational expenses for the preceding fiscal year. The
8 regulatory fee for the next fiscal year shall be calculated by
9 the Director based on the credit union's total assets as of
10 December 31 of the preceding calendar year. The Director shall
11 provide credit unions with written notice of any adjustment
12 made in the regulatory fee schedule.
13     (3) Beginning on July 1, 2007, each fiscal year Not later
14 than March 1 of each calendar year, a credit union shall pay to
15 the Department a regulatory fee in quarterly installments equal
16 to one-fourth of the regulatory fee due for that fiscal year
17 for that calendar year in accordance with the regulatory fee
18 schedule in subsection (1), on the basis of assets as of the
19 Year-end Call Report of the preceding year. The total annual
20 regulatory fee shall not be less than $100 or more than
21 $125,000 $187,500, provided that the regulatory fee cap of
22 $125,000 $187,500 shall be adjusted to incorporate the same
23 percentage increase as the Director makes in the regulatory fee
24 schedule from time to time under subsection (2). No regulatory
25 fee shall be collected from a credit union until it has been in
26 operation for one year. The regulatory fee shall be billed to
27 credit unions on a quarterly basis and payable by credit unions
28 on the due date for the call report for the preceding quarter.
29     (4) The aggregate of all fees collected by the Department
30 under this Act shall be paid promptly after they are received,
31 accompanied by a detailed statement thereof, into the State
32 Treasury and shall be set apart in the Credit Union Fund, a
33 special fund hereby created in the State treasury. The amount
34 from time to time deposited in the Credit Union Fund and shall

 

 

09400SB2495sam002 - 29 - LRB094 17958 LJB 55612 a

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

 

 

09400SB2495sam002 - 30 - LRB094 17958 LJB 55612 a

1 the Department under this Act and all earnings thereon for any
2 calendar year exceeds 150% of the total actual administrative
3 and operational expenses under this Act for that fiscal year,
4 such excess shall be credited to credit unions and applied
5 against their regulatory fees for the subsequent fiscal year.
6 The amount credited to a credit union shall be in the same
7 proportion as the fee paid by such credit union for the fiscal
8 calendar year in which the excess is produced bears to the
9 aggregate of the fees collected by the Department under this
10 Act for the same fiscal year.
11     (7) Examination fees for the year 2000 statutory
12 examinations paid pursuant to the examination fee schedule in
13 effect at that time shall be credited toward the regulatory fee
14 to be assessed the credit union in calendar year 2001.
15     (8) Nothing in this Act shall prohibit the General Assembly
16 from appropriating funds to the Department from the General
17 Revenue Fund for the purpose of administering this Act.
18     (9) For purposes of this Section, "fiscal year" means a
19 period beginning on July 1 of any calendar year and ending on
20 June 30 of the next calendar year.
21 (Source: P.A. 93-32, eff. 7-1-03; 93-652, eff. 1-8-04; 94-91,
22 eff. 7-1-05.)
 
23     Section 30. The Residential Mortgage License Act of 1987 is
24 amended by changing Section 2-2, 2-6, and 4-1 as follows:
 
25     (205 ILCS 635/2-2)  (from Ch. 17, par. 2322-2)
26     Sec. 2-2. Application process; investigation; fee.
27     (a) The Commissioner shall issue a license upon completion
28 of all of the following:
29         (1) The filing of an application for license.
30         (2) The filing with the Commissioner of a listing of
31     judgments entered against, and bankruptcy petitions by,
32     the license applicant for the preceding 10 years.

 

 

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1         (3) The payment, in certified funds, of investigation
2     and application fees, the total of which shall be in an
3     amount equal to $1,800 $2,700 annually, however, the
4     Commissioner may increase the investigation and
5     application fees by rule as provided in Section 4-11.
6         (4) Except for a broker applying to renew a license,
7     the filing of an audited balance sheet including all
8     footnotes prepared by a certified public accountant in
9     accordance with generally accepted accounting principles
10     and generally accepted auditing principles which evidences
11     that the applicant meets the net worth requirements of
12     Section 3-5.
13         (5) The filing of proof satisfactory to the
14     Commissioner that the applicant, the members thereof if the
15     applicant is a partnership or association, the members or
16     managers thereof that retain any authority or
17     responsibility under the operating agreement if the
18     applicant is a limited liability company, or the officers
19     thereof if the applicant is a corporation have 3 years
20     experience preceding application in real estate finance.
21     Instead of this requirement, the applicant and the
22     applicant's officers or members, as applicable, may
23     satisfactorily complete a program of education in real
24     estate finance and fair lending, as approved by the
25     Commissioner, prior to receiving the initial license. The
26     Commissioner shall promulgate rules regarding proof of
27     experience requirements and educational requirements and
28     the satisfactory completion of those requirements. The
29     Commissioner may establish by rule a list of duly licensed
30     professionals and others who may be exempt from this
31     requirement.
32         (6) An investigation of the averments required by
33     Section 2-4, which investigation must allow the
34     Commissioner to issue positive findings stating that the

 

 

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1     financial responsibility, experience, character, and
2     general fitness of the license applicant and of the members
3     thereof if the license applicant is a partnership or
4     association, of the officers and directors thereof if the
5     license applicant is a corporation, and of the managers and
6     members that retain any authority or responsibility under
7     the operating agreement if the license applicant is a
8     limited liability company are such as to command the
9     confidence of the community and to warrant belief that the
10     business will be operated honestly, fairly and efficiently
11     within the purpose of this Act. If the Commissioner shall
12     not so find, he or she shall not issue such license, and he
13     or she shall notify the license applicant of the denial.
14     The Commissioner may impose conditions on a license if the
15 Commissioner determines that the conditions are necessary or
16 appropriate. These conditions shall be imposed in writing and
17 shall continue in effect for the period prescribed by the
18 Commissioner.
19     (b) All licenses shall be issued in duplicate with one copy
20 being transmitted to the license applicant and the second being
21 retained with the Commissioner.
22     Upon receipt of such license, a residential mortgage
23 licensee shall be authorized to engage in the business
24 regulated by this Act. Such license shall remain in full force
25 and effect until it expires without renewal, is surrendered by
26 the licensee or revoked or suspended as hereinafter provided.
27 (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
 
28     (205 ILCS 635/2-6)  (from Ch. 17, par. 2322-6)
29     Sec. 2-6. License issuance and renewal; fee.
30     (a) Beginning July 1, 2003, licenses shall be renewed every
31 year on the anniversary of the date of issuance of the original
32 license. Properly completed renewal application forms and
33 filing fees must be received by the Commissioner 60 days prior

 

 

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1 to the renewal date.
2     (b) It shall be the responsibility of each licensee to
3 accomplish renewal of its license; failure of the licensee to
4 receive renewal forms absent a request sent by certified mail
5 for such forms will not waive said responsibility. Failure by a
6 licensee to submit a properly completed renewal application
7 form and fees in a timely fashion, absent a written extension
8 from the Commissioner, will result in the assessment of
9 additional fees, as follows:
10         (1) A fee of $500 $750 will be assessed to the licensee
11     30 days after the proper renewal date and $1,000 $1,500
12     each month thereafter, until the license is either renewed
13     or expires pursuant to Section 2-6, subsections (c) and
14     (d), of this Act.
15         (2) Such fee will be assessed without prior notice to
16     the licensee, but will be assessed only in cases wherein
17     the Commissioner has in his or her possession documentation
18     of the licensee's continuing activity for which the
19     unrenewed license was issued.
20     (c) A license which is not renewed by the date required in
21 this Section shall automatically become inactive. No activity
22 regulated by this Act shall be conducted by the licensee when a
23 license becomes inactive. The Commissioner may require the
24 licensee to provide a plan for the disposition of any
25 residential mortgage loans not closed or funded when the
26 license becomes inactive. The Commissioner may allow a licensee
27 with an inactive license to conduct activities regulated by
28 this Act for the sole purpose of assisting borrowers in the
29 closing or funding of loans for which the loan application was
30 taken from a borrower while the license was active. An inactive
31 license may be reactivated by the Commissioner upon payment of
32 the renewal fee, and payment of a reactivation fee equal to the
33 renewal fee.
34     (d) A license which is not renewed within one year of

 

 

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1 becoming inactive shall expire.
2     (e) A licensee ceasing an activity or activities regulated
3 by this Act and desiring to no longer be licensed shall so
4 inform the Commissioner in writing and, at the same time,
5 convey the license and all other symbols or indicia of
6 licensure. The licensee shall include a plan for the withdrawal
7 from regulated business, including a timetable for the
8 disposition of the business. Upon receipt of such written
9 notice, the Commissioner shall issue a certified statement
10 canceling the license.
11 (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; 93-1018,
12 eff. 1-1-05.)
 
13     (205 ILCS 635/4-1)  (from Ch. 17, par. 2324-1)
14     Sec. 4-1. Commissioner of Banks and Real Estate; functions,
15 powers, and duties. The functions, powers, and duties of the
16 Commissioner of Banks and Real Estate shall include the
17 following:
18     (a) To issue or refuse to issue any license as provided by
19 this Act;
20     (b) To revoke or suspend for cause any license issued under
21 this Act;
22     (c) To keep records of all licenses issued under this Act;
23     (d) To receive, consider, investigate, and act upon
24 complaints made by any person in connection with any
25 residential mortgage licensee in this State;
26     (e) To consider and act upon any recommendations from the
27 Residential Mortgage Board;
28     (f) To prescribe the forms of and receive:
29         (1) applications for licenses; and
30         (2) all reports and all books and records required to
31     be made by any licensee under this Act, including annual
32     audited financial statements and annual reports of
33     mortgage activity;

 

 

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

 

 

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1     (l) To levy fees, fines, and charges for services performed
2 in administering this Act; the aggregate of all fees collected
3 by the Commissioner on and after the effective date of this Act
4 shall be paid promptly after receipt of the same, accompanied
5 by a detailed statement thereof, into the Savings and
6 Residential Finance Regulatory Fund; the amounts deposited
7 into that Fund shall be used for the ordinary and contingent
8 expenses of the Office of Banks and Real Estate. Nothing in
9 this Act shall prevent continuing the practice of paying
10 expenses involving salaries, retirement, social security, and
11 State-paid insurance of State officers by appropriation from
12 the General Revenue Fund. For the fiscal year beginning on July
13 1, 2007, the Commissioner must adopt rules to adjust regulatory
14 fee rates to those in effect prior to the escalation in rates
15 published in 27 Ill.Reg. 10783, July 1, 2003, unless an audit
16 by the Auditor General of banking regulatory oversight
17 activities requires a different rate to be set to cover the
18 costs of regulatory oversight. Any adjustments made pursuant to
19 an Auditor General's audit must be set forth in the form of a
20 notice to each affected entity 45 days prior to making those
21 adjustments. The notice must contain an explanation that
22 includes a description of the audit results pertaining to the
23 banking industry and a description of each reason why
24 adjustments to the regulatory fee rates are required.
25     (m) To appoint examiners, supervisors, experts, and
26 special assistants as needed to effectively and efficiently
27 administer this Act;
28     (n) To conduct hearings for the purpose of:
29         (1) appeals of orders of the Commissioner;
30         (2) suspensions or revocations of licenses, or fining
31     of licensees;
32         (3) investigating:
33             (i) complaints against licensees; or
34             (ii) annual gross delinquency rates; and

 

 

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1         (4) carrying out the purposes of this Act;
2     (o) To exercise exclusive visitorial power over a licensee
3 unless otherwise authorized by this Act or as vested in the
4 courts, or upon prior consultation with the Commissioner, a
5 foreign residential mortgage regulator with an appropriate
6 supervisory interest in the parent or affiliate of a licensee;
7     (p) To enter into cooperative agreements with state
8 regulatory authorities of other states to provide for
9 examination of corporate offices or branches of those states
10 and to accept reports of such examinations;
11     (q) To assign an examiner or examiners to monitor the
12 affairs of a licensee with whatever frequency the Commissioner
13 determines appropriate and to charge the licensee for
14 reasonable and necessary expenses of the Commissioner, if in
15 the opinion of the Commissioner an emergency exists or appears
16 likely to occur; and
17     (r) To impose civil penalties of up to $50 per day against
18 a licensee for failing to respond to a regulatory request or
19 reporting requirement.
20 (Source: P.A. 93-1018, eff. 1-1-05.)
 
21     Section 99. Effective date. This Act takes effect upon
22 becoming law.".