Full Text of SB2996 96th General Assembly
SB2996ham001 96TH GENERAL ASSEMBLY
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Financial Institutions Committee
Adopted in House Comm. on Apr 28, 2010
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| AMENDMENT TO SENATE BILL 2996
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| AMENDMENT NO. ______. Amend Senate Bill 2996 as follows: | 3 |
| on page 5, immediately below line 21, by inserting the | 4 |
| following: | 5 |
| "Section 7. The Illinois Bank Examiners' Education | 6 |
| Foundation Act is amended by changing Sections 3.01, 4, and 5 | 7 |
| as follows:
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| (20 ILCS 3210/3.01) (from Ch. 17, par. 403.1)
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| Sec. 3.01.
"Board" means the State Banking Board of | 10 |
| Illinois as established under the provisions of the Illinois | 11 |
| Banking Act Board of Trustees of the Illinois Bank
Examiners' | 12 |
| Education Foundation created by this Act .
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| (Source: P.A. 84-1127.)
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| (20 ILCS 3210/4) (from Ch. 17, par. 404)
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| Sec. 4.
The Foundation shall establish an endowment fund | 2 |
| with the
monies in the Illinois Bank Examiners' Education Fund. | 3 |
| The income from such
Fund shall be used to pay for continuing | 4 |
| education and professional
training activity for the | 5 |
| examination employees of the Commissioner's
office authorized | 6 |
| by the Board of the Illinois Bank Examiners' Education
Program | 7 |
| and to pay for reasonable expenses incurred by the Board in the
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| course of administering its official duties under this Act . The | 9 |
| continuing education and professional
training activity to be | 10 |
| funded by the Foundation shall be a supplement to
the education | 11 |
| and training expenditures regularly being made from the Bank
& | 12 |
| Trust Company Fund for such purposes.
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| (Source: P.A. 84-1127.)
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| (20 ILCS 3210/5) (from Ch. 17, par. 405)
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| Sec. 5. The Foundation shall be governed by the a Board of | 16 |
| Trustees . The
Board shall consist of the following trustees: | 17 |
| the Commissioner, who shall
be its chairman; one Class A member | 18 |
| and three Class B members from the
State Banking Board of | 19 |
| Illinois, appointed by the Governor.
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| For carrying out their official duties under this Act, the | 21 |
| Board members The terms of the trustees of the Foundation who | 22 |
| are members of the State
Banking Board of Illinois are to be | 23 |
| coextensive with their terms on the
State Banking Board of | 24 |
| Illinois. An appointment to fill a vacancy shall be
for the | 25 |
| unexpired term of the trustee whose term is being filled. |
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| Trustees
shall receive no compensation for service on the | 2 |
| Board , but shall be
reimbursed for all reasonable and necessary | 3 |
| expenditures incurred in the
performance of said their official | 4 |
| duties.
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| (Source: P.A. 84-1127.)"; and
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| by replacing line 3 on page 11 through line 3 on page 15 with | 7 |
| the following:
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| "(205 ILCS 5/32) (from Ch. 17, par. 339)
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| Sec. 32. Basic loaning limits. The liabilities outstanding | 10 |
| at one time
to a state bank of a
person for money borrowed, | 11 |
| including the liabilities of a partnership
or joint venture in | 12 |
| the liabilities of the several members thereof, shall
not | 13 |
| exceed 25% of the amount of the unimpaired capital and
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| unimpaired surplus
of the bank.
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| The liabilities to any state bank of a person may exceed | 16 |
| 25% of
the unimpaired capital and unimpaired surplus of the | 17 |
| bank,
provided
that (i) the excess amount from time to time | 18 |
| outstanding is fully secured
by readily marketable collateral | 19 |
| having a market value, as determined by
reliable and | 20 |
| continuously available quotations, at least equal to the
excess | 21 |
| amount outstanding; and (ii) the total liabilities shall
not | 22 |
| exceed 30% of the unimpaired capital and unimpaired surplus of | 23 |
| the bank.
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| The following shall not be considered as money borrowed |
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| within the meaning
of this Section:
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| (1) The purchase or discount of bills of exchange drawn | 3 |
| in good
faith
against actually existing values.
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| (2) The purchase or discount of commercial or business | 5 |
| paper actually
owned by the person negotiating the same.
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| (3) The purchase of or loaning money in exchange for | 7 |
| evidences of
indebtedness which shall be secured by | 8 |
| mortgage or trust deed upon
productive real estate the | 9 |
| value of which, as ascertained by the oath of
2 qualified | 10 |
| appraisers, neither of whom shall be an officer,
director, | 11 |
| or employee of the bank or of any subsidiary or affiliate | 12 |
| of the
bank, is double the amount of the principal
debt | 13 |
| secured at the time of the original purchase of evidence of | 14 |
| indebtedness
or loan
of money and which is still double the | 15 |
| amount of the principal debt secured
at the time of any | 16 |
| renewal of the indebtedness or loan, and which
mortgage
or | 17 |
| trust deed is shown, either by a guaranty policy of a title | 18 |
| guaranty
company approved by the Commissioner or by a | 19 |
| registrar's certificate of
title in any county having | 20 |
| adopted the provisions of the Registered
Titles (Torrens) | 21 |
| Act, or by the opinion of an attorney-at-law,
to be a first
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| lien upon the real estate therein described, and real | 23 |
| estate shall not be
deemed to be encumbered within the | 24 |
| meaning of this subsection (3) by reason
of the existence | 25 |
| of instruments reserving rights-of-way, sewer rights and
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| rights in wells, building restrictions or other |
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| restrictive covenants, nor
by reason of the fact it is | 2 |
| subject to lease under which rents or profits
are reserved | 3 |
| by the owners.
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| (4) The purchase of marketable investment securities.
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| (5) The liability to a state bank of a person who is an | 6 |
| accommodation
party to, or guarantor of payment for, any | 7 |
| evidence of indebtedness of
another person who obtains a | 8 |
| loan from or discounts paper with or sells
paper to the | 9 |
| state bank; but the total liability to a
state bank of a | 10 |
| person as an accommodation party or guarantor of payment in
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| respect of such evidences of indebtedness shall not exceed | 12 |
| 25% of
the amount of
the
unimpaired capital and unimpaired | 13 |
| surplus
of the bank; provided however that the liability of | 14 |
| an accommodation party
to paper excepted under subsection 2 | 15 |
| of this Section shall not be included in
the
computation of | 16 |
| this limitation.
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| (6) The liability to a state bank of a person, who as a | 18 |
| guarantor,
guarantees collection of the obligation or | 19 |
| indebtedness of another person.
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| The total liabilities of any one person, for money | 21 |
| borrowed, or
otherwise, shall not exceed 25% of the deposits of | 22 |
| the bank, and
those total liabilities shall at no time exceed | 23 |
| 50% of the amount
of the
unimpaired capital and unimpaired | 24 |
| surplus of the bank.
Absent an actual unremedied breach, the | 25 |
| obligation or responsibility for
breach of warranties or | 26 |
| representations, express or implied, of a person
transferring |
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| negotiable or non-negotiable paper to a bank without recourse
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| and without guaranty of payment, shall not be included in | 3 |
| determining the
amount of liabilities of the person to the bank | 4 |
| for borrowed money
or otherwise; and in the event of and to the | 5 |
| extent of an unremedied breach,
the amount remaining unpaid for | 6 |
| principal and interest on the paper in
respect of which the | 7 |
| unremedied breach exists shall thereafter for
the purpose of | 8 |
| determining whether subsequent transactions giving rise to
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| additional liability of the person to the state bank for | 10 |
| borrowed money or
otherwise are within the limitations of | 11 |
| Sections 32 through 34 of this
Act, be included in computing | 12 |
| the amount of liabilities of the
person for borrowed money or | 13 |
| otherwise.
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| The liability of a person to a state bank on account of
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| acceptances
made or issued by the state bank on behalf of the | 16 |
| person shall be
included in the computation of the total | 17 |
| liabilities of the person for money
borrowed except to the | 18 |
| extent the acceptances grow out of
transactions of the | 19 |
| character described in subsection (6) of Section 34 of this
Act | 20 |
| and are otherwise within the limitations of that subsection;
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| provided nevertheless
that any such excepted acceptances | 22 |
| acquired by the state bank which
accepted the same shall be | 23 |
| included in the computation of the liabilities
of the person to | 24 |
| the state bank for money borrowed.
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| The Secretary may adopt rules to address the funding by | 26 |
| banks of any loan commitment, when such funding would involve |
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| additional extensions of credit to be made after the unimpaired | 2 |
| capital and unimpaired surplus of the bank have decreased and | 3 |
| the Secretary determines that such decrease in unimpaired | 4 |
| capital and unimpaired surplus would cause the additional | 5 |
| extensions of credit to result in an unsafe and unsound | 6 |
| condition. | 7 |
| (Source: P.A. 92-336, eff. 8-10-01; 92-573, eff. 6-26-02.)"; | 8 |
| and
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| on page 33, by replacing lines 11 and 12 with the following: | 10 |
| "this Act, any order of the Commissioner, or any other action"; | 11 |
| and
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| on page 47, line 25, by replacing "and 10-1" with "10-1, and | 13 |
| 11-1"; and | 14 |
| on page 81, immediately below line 18, by inserting the | 15 |
| following:
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| "(205 ILCS 105/11-1) (from Ch. 17, par. 3311-1)
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| Sec. 11-1. Offenses and penalties. Any person who violates | 18 |
| the
provisions of Sections 3-9, 3-10, 5-11 or 5-12 (b) of this | 19 |
| Act is guilty of
a Business Offense.
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| The Commissioner, in addition to any other powers granted | 21 |
| in this Act, shall have the power and authority to impose civil | 22 |
| penalties of up to $100,000 against any person for each |
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| violation of any provision of this Act, any rule promulgated in | 2 |
| accordance with this Act, any order of the Commissioner, or any | 3 |
| other action that in the Commissioner's discretion is an unsafe | 4 |
| or unsound banking practice. | 5 |
| (Source: P.A. 86-137.)"; and
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| on page 81, line 20, by replacing "and 9004," with "9004, and | 7 |
| 11006,"; and | 8 |
| on page 82, line 3, by replacing "of Banks and Real Estate" | 9 |
| with " of Banks and Real Estate "; and
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| on page 97, line 2, by replacing " the hearing " with " a | 11 |
| hearing "; and
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| on page 109, line 24, by replacing " the savings " with " such | 13 |
| savings "; and | 14 |
| on page 113, immediately below line 8, by inserting the | 15 |
| following:
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| "(205 ILCS 205/11006) (from Ch. 17, par. 7311-6)
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| Sec. 11006. Civil penalties. The Commissioner, in addition | 18 |
| to any
other powers granted in this Act, shall have the power | 19 |
| and authority to:
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| (1) Impose civil penalties of up to $100,000 $10,000 |
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| against any person for
each violation of any provision of | 2 |
| this Act, any rule promulgated in
accordance with this Act, | 3 |
| any order of the Commissioner, or any other
action that in | 4 |
| the Commissioner's discretion, is an unsafe or unsound
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| banking practice.
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| (2) Impose civil penalties of up to $100 against any | 7 |
| person for the
first failure to comply with reporting | 8 |
| requirements set forth in the report
of examination of the | 9 |
| bank and up to $200 for the second and subsequent
failures | 10 |
| to comply with those reporting requirements.
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| (Source: P.A. 86-1213.)"; and
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| on page 114, immediately below line 2, by inserting the | 13 |
| following: | 14 |
| " (2.5) To order restitution to consumers suffering | 15 |
| damages resulting from violations of this Act, rules | 16 |
| promulgated in accordance with this Act, or other laws or | 17 |
| regulations related to the operation of a pawnshop. "; and
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| on page 116, by replacing lines 20 and 21 with the following: | 19 |
| " officer, director, employee, or agent of the pawnshop who | 20 |
| engages in or has engaged in unlawful activities that | 21 |
| relate to the operation of a pawnshop. "; and
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| on page 116, line 24, by replacing " establish " with | 23 |
| " established "; and
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| by replacing line 13 on page 120 through line 4 on page 122 | 2 |
| with the following: | 3 |
| "(205 ILCS 510/5.5 new) | 4 |
| Sec. 5.5. Replacement of articles or property; insurance. | 5 |
| In the event that any articles or property pledged are
lost or | 6 |
| rendered inoperable the pawnbroker shall replace the
articles | 7 |
| or property with identical articles or property,
except that if | 8 |
| the pawnbroker cannot reasonably obtain
identical articles or | 9 |
| property, the pawnbroker shall replace
the articles or property | 10 |
| with like articles or property. | 11 |
| No pawnbroker shall conduct business in this State, unless | 12 |
| the
pawnbroker maintains insurance coverage covering all | 13 |
| hazards equal to at least 2
times the aggregate value of the | 14 |
| outstanding loans for
items held in pawn. Such insurance shall | 15 |
| be obtained from an insurance company authorized to do business | 16 |
| in Illinois | 17 |
| The pawnbroker shall file a copy of proof of insurance
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| coverage with the Secretary. A pawnbroker or an insurance | 19 |
| company shall not cancel the
insurance coverage except upon | 20 |
| notice to the
Secretary by certified mail, return receipt | 21 |
| requested. The cancellation is not effective prior to 30 days | 22 |
| after the
Secretary receives the notice. ".
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