Full Text of HB3961 98th General Assembly
HB3961eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Banking Act is amended by changing | 5 | | Section 48 as follows:
| 6 | | (205 ILCS 5/48)
| 7 | | Sec. 48. Secretary's powers; duties. The Secretary shall | 8 | | have the
powers and authority, and is charged with the duties | 9 | | and responsibilities
designated in this Act, and a State bank | 10 | | shall not be subject to any
other visitorial power other than | 11 | | as authorized by this Act, except those
vested in the courts, | 12 | | or upon prior consultation with the Secretary, a
foreign bank | 13 | | regulator with an appropriate supervisory interest in the | 14 | | parent
or affiliate of a state bank. In the performance of the | 15 | | Secretary's
duties:
| 16 | | (1) The Commissioner shall call for statements from all | 17 | | State banks
as provided in Section 47 at least one time during | 18 | | each calendar quarter.
| 19 | | (2) (a) The Commissioner, as often as the Commissioner | 20 | | shall deem
necessary or
proper, and no less frequently than 18 | 21 | | months following the preceding
examination, shall appoint a | 22 | | suitable person or
persons to make an examination of the | 23 | | affairs of every State bank,
except that for every eligible |
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| 1 | | State bank, as defined by regulation, the
Commissioner in lieu | 2 | | of the examination may accept on an alternating basis the
| 3 | | examination made by the eligible State bank's appropriate | 4 | | federal banking
agency pursuant to Section 111 of the Federal | 5 | | Deposit Insurance Corporation
Improvement Act of 1991, | 6 | | provided the appropriate federal banking agency has
made such | 7 | | an examination. A person so appointed shall not be a | 8 | | stockholder or
officer or employee of
any bank which that | 9 | | person may be directed to examine, and shall have
powers to | 10 | | make a thorough examination into all the affairs of the bank | 11 | | and
in so doing to examine any of the officers or agents or | 12 | | employees thereof
on oath and shall make a full and detailed | 13 | | report of the condition of the
bank to the Commissioner. In | 14 | | making the examination the examiners shall
include an | 15 | | examination of the affairs of all the affiliates of the bank, | 16 | | as
defined in subsection (b) of Section 35.2 of this Act, or | 17 | | subsidiaries of the
bank as shall be
necessary to disclose | 18 | | fully the conditions of the subsidiaries or
affiliates, the | 19 | | relations
between the bank and the subsidiaries or affiliates | 20 | | and the effect of those
relations upon
the affairs of the bank, | 21 | | and in connection therewith shall have power to
examine any of | 22 | | the officers, directors, agents, or employees of the
| 23 | | subsidiaries or affiliates
on oath. After May 31, 1997, the | 24 | | Commissioner may enter into cooperative
agreements
with state | 25 | | regulatory authorities of other states to provide for | 26 | | examination of
State bank branches in those states, and the |
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| 1 | | Commissioner may accept reports
of examinations of State bank | 2 | | branches from those state regulatory authorities.
These | 3 | | cooperative agreements may set forth the manner in which the | 4 | | other state
regulatory authorities may be compensated for | 5 | | examinations prepared for and
submitted to the Commissioner.
| 6 | | (b) After May 31, 1997, the Commissioner is authorized to | 7 | | examine, as often
as the Commissioner shall deem necessary or | 8 | | proper, branches of out-of-state
banks. The Commissioner may | 9 | | establish and may assess fees to be paid to the
Commissioner | 10 | | for examinations under this subsection (b). The fees shall be
| 11 | | borne by the out-of-state bank, unless the fees are borne by | 12 | | the state
regulatory authority that chartered the out-of-state | 13 | | bank, as determined by a
cooperative agreement between the | 14 | | Commissioner and the state regulatory
authority that chartered | 15 | | the out-of-state bank.
| 16 | | (2.1) Pursuant to paragraph (a) of subsection (6) of this | 17 | | Section, the Secretary shall adopt rules that ensure | 18 | | consistency and due process in the examination process. The | 19 | | Secretary may also establish guidelines that (i) define the | 20 | | scope of the examination process and (ii) clarify examination | 21 | | items to be resolved. The rules, formal guidance, interpretive | 22 | | letters, or opinions furnished to State banks by the Secretary | 23 | | may be relied upon by the State banks. | 24 | | (2.5) Whenever any State bank, any subsidiary or affiliate | 25 | | of a State
bank, or after May 31, 1997, any branch of an | 26 | | out-of-state bank causes to
be performed, by contract or |
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| 1 | | otherwise, any bank services
for itself, whether on or off its | 2 | | premises:
| 3 | | (a) that performance shall be subject to examination by | 4 | | the Commissioner
to the same extent as if services were | 5 | | being performed by the bank or, after
May 31, 1997, branch | 6 | | of the out-of-state bank itself
on its own premises; and
| 7 | | (b) the bank or, after May 31, 1997, branch of the | 8 | | out-of-state bank
shall notify the Commissioner of the | 9 | | existence of a service
relationship. The notification | 10 | | shall be submitted with the first statement
of condition | 11 | | (as required by Section 47 of this Act) due after the | 12 | | making
of the service contract or the performance of the | 13 | | service, whichever occurs
first. The Commissioner shall be | 14 | | notified of each subsequent contract in
the same manner.
| 15 | | For purposes of this subsection (2.5), the term "bank | 16 | | services" means
services such as sorting and posting of checks | 17 | | and deposits, computation
and posting of interest and other | 18 | | credits and charges, preparation and
mailing of checks, | 19 | | statements, notices, and similar items, or any other
clerical, | 20 | | bookkeeping, accounting, statistical, or similar functions
| 21 | | performed for a State bank, including but not limited to | 22 | | electronic data
processing related to those bank services.
| 23 | | (3) The expense of administering this Act, including the | 24 | | expense of
the examinations of State banks as provided in this | 25 | | Act, shall to the extent
of the amounts resulting from the fees | 26 | | provided for in paragraphs (a),
(a-2), and (b) of this |
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| 1 | | subsection (3) be assessed against and borne by the
State | 2 | | banks:
| 3 | | (a) Each bank shall pay to the Secretary a Call Report | 4 | | Fee which
shall be paid in quarterly installments equal
to | 5 | | one-fourth of the sum of the annual fixed fee of $800, plus | 6 | | a variable
fee based on the assets shown on the quarterly | 7 | | statement of condition
delivered to the Secretary in | 8 | | accordance with Section 47 for the
preceding quarter | 9 | | according to the following schedule: 16˘ per $1,000 of
the | 10 | | first $5,000,000 of total assets, 15˘ per $1,000 of the | 11 | | next
$20,000,000 of total assets, 13˘ per $1,000 of the | 12 | | next $75,000,000 of
total assets, 9˘ per $1,000 of the next | 13 | | $400,000,000 of total assets, 7˘
per $1,000 of the next | 14 | | $500,000,000 of total assets, and 5˘ per $1,000 of
all | 15 | | assets in excess of $1,000,000,000, of the State bank. The | 16 | | Call Report
Fee shall be calculated by the Secretary and | 17 | | billed to the banks for
remittance at the time of the | 18 | | quarterly statements of condition
provided for in Section | 19 | | 47. The Secretary may require payment of the fees
provided | 20 | | in this Section by an electronic transfer of funds or an | 21 | | automatic
debit of an account of each of the State banks. | 22 | | In case more than one
examination of any
bank is deemed by | 23 | | the Secretary to be necessary in any examination
frequency | 24 | | cycle specified in subsection 2(a) of this Section,
and is | 25 | | performed at his direction, the Secretary may
assess a | 26 | | reasonable additional fee to recover the cost of the |
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| 1 | | additional
examination; provided, however, that an | 2 | | examination conducted at the request
of the State Treasurer | 3 | | pursuant to the Uniform Disposition of Unclaimed
Property | 4 | | Act shall not be deemed to be an additional examination | 5 | | under this
Section.
In lieu
of the method and amounts set | 6 | | forth in this paragraph (a) for the calculation
of the Call | 7 | | Report Fee, the Secretary may specify by
rule that the Call | 8 | | Report Fees provided by this Section may be assessed
| 9 | | semiannually or some other period and may provide in the | 10 | | rule the formula to
be
used for calculating and assessing | 11 | | the periodic Call Report Fees to be paid by
State
banks.
| 12 | | (a-1) If in the opinion of the Commissioner an | 13 | | emergency exists or
appears likely, the Commissioner may | 14 | | assign an examiner or examiners to
monitor the affairs of a | 15 | | State bank with whatever frequency he deems
appropriate, | 16 | | including but not limited to a daily basis. The reasonable
| 17 | | and necessary expenses of the Commissioner during the | 18 | | period of the monitoring
shall be borne by the subject | 19 | | bank. The Commissioner shall furnish the
State bank a | 20 | | statement of time and expenses if requested to do so within | 21 | | 30
days of the conclusion of the monitoring period.
| 22 | | (a-2) On and after January 1, 1990, the reasonable and | 23 | | necessary
expenses of the Commissioner during examination | 24 | | of the performance of
electronic data processing services | 25 | | under subsection (2.5) shall be
borne by the banks for | 26 | | which the services are provided. An amount, based
upon a |
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| 1 | | fee structure prescribed by the Commissioner, shall be paid | 2 | | by the
banks or, after May 31, 1997, branches of | 3 | | out-of-state banks receiving the
electronic data | 4 | | processing services along with the
Call Report Fee assessed | 5 | | under paragraph (a) of this
subsection (3).
| 6 | | (a-3) After May 31, 1997, the reasonable and necessary | 7 | | expenses of the
Commissioner during examination of the | 8 | | performance of electronic data
processing services under | 9 | | subsection (2.5) at or on behalf of branches of
| 10 | | out-of-state banks shall be borne by the out-of-state | 11 | | banks, unless those
expenses are borne by the state | 12 | | regulatory authorities that chartered the
out-of-state | 13 | | banks, as determined by cooperative agreements between the
| 14 | | Commissioner and the state regulatory authorities that | 15 | | chartered the
out-of-state banks.
| 16 | | (b) "Fiscal year" for purposes of this Section 48 is | 17 | | defined as a
period beginning July 1 of any year and ending | 18 | | June 30 of the next year.
The Commissioner shall receive | 19 | | for each fiscal year, commencing with the
fiscal year | 20 | | ending June 30, 1987, a contingent fee equal to the lesser | 21 | | of
the aggregate of the fees paid by all State banks under | 22 | | paragraph (a) of
subsection (3) for that year, or the | 23 | | amount, if any, whereby the aggregate
of the administration | 24 | | expenses, as defined in paragraph (c), for that
fiscal year | 25 | | exceeds the sum of the aggregate of the fees payable by all
| 26 | | State banks for that year under paragraph (a) of subsection |
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| 1 | | (3),
plus any amounts transferred into the Bank and Trust | 2 | | Company Fund from the
State Pensions Fund for that year,
| 3 | | plus all
other amounts collected by the Commissioner for | 4 | | that year under any
other provision of this Act, plus the | 5 | | aggregate of all fees
collected for that year by the | 6 | | Commissioner under the Corporate Fiduciary
Act, excluding | 7 | | the receivership fees provided for in Section 5-10 of the
| 8 | | Corporate Fiduciary Act, and the Foreign Banking Office | 9 | | Act.
The aggregate amount of the contingent
fee thus | 10 | | arrived at for any fiscal year shall be apportioned | 11 | | amongst,
assessed upon, and paid by the State banks and | 12 | | foreign banking corporations,
respectively, in the same | 13 | | proportion
that the fee of each under paragraph (a) of | 14 | | subsection (3), respectively,
for that year bears to the | 15 | | aggregate for that year of the fees collected
under | 16 | | paragraph (a) of subsection (3). The aggregate amount of | 17 | | the
contingent fee, and the portion thereof to be assessed | 18 | | upon each State
bank and foreign banking corporation,
| 19 | | respectively, shall be determined by the Commissioner and | 20 | | shall be paid by
each, respectively, within 120 days of the | 21 | | close of the period for which
the contingent fee is | 22 | | computed and is payable, and the Commissioner shall
give 20 | 23 | | days advance notice of the amount of the contingent fee | 24 | | payable by
the State bank and of the date fixed by the | 25 | | Commissioner for payment of
the fee.
| 26 | | (c) The "administration expenses" for any fiscal year |
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| 1 | | shall mean the
ordinary and contingent expenses for that | 2 | | year incident to making the
examinations provided for by, | 3 | | and for otherwise administering, this Act,
the Corporate | 4 | | Fiduciary Act, excluding the expenses paid from the
| 5 | | Corporate Fiduciary Receivership account in the Bank and | 6 | | Trust Company
Fund, the Foreign Banking Office Act,
the | 7 | | Electronic Fund Transfer Act,
and the Illinois Bank | 8 | | Examiners'
Education Foundation Act, including all | 9 | | salaries and other
compensation paid for personal services | 10 | | rendered for the State by
officers or employees of the | 11 | | State, including the Commissioner and the
Deputy | 12 | | Commissioners, communication equipment and services, | 13 | | office furnishings, surety bond
premiums, and travel | 14 | | expenses of those officers and employees, employees,
| 15 | | expenditures or charges for the acquisition, enlargement | 16 | | or improvement
of, or for the use of, any office space, | 17 | | building, or structure, or
expenditures for the | 18 | | maintenance thereof or for furnishing heat, light,
or power | 19 | | with respect thereto, all to the extent that those | 20 | | expenditures
are directly incidental to such examinations | 21 | | or administration.
The Commissioner shall not be required | 22 | | by paragraphs (c) or (d-1) of this
subsection (3) to | 23 | | maintain in any fiscal year's budget appropriated reserves
| 24 | | for accrued vacation and accrued sick leave that is | 25 | | required to be paid to
employees of the Commissioner upon | 26 | | termination of their service with the
Commissioner in an |
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| 1 | | amount that is more than is reasonably anticipated to be
| 2 | | necessary for any anticipated turnover in employees, | 3 | | whether due to normal
attrition or due to layoffs, | 4 | | terminations, or resignations.
| 5 | | (d) The aggregate of all fees collected by the | 6 | | Secretary under
this Act, the Corporate Fiduciary Act,
or | 7 | | the Foreign Banking Office Act on
and after July 1, 1979, | 8 | | shall be paid promptly after receipt of the same,
| 9 | | accompanied by a detailed statement thereof, into the State | 10 | | treasury and
shall be set apart in a special fund to be | 11 | | known as the "Bank and Trust
Company Fund", except as | 12 | | provided in paragraph (c) of subsection (11) of
this | 13 | | Section. All earnings received from investments of funds in | 14 | | the Bank
and
Trust Company Fund shall be deposited in the | 15 | | Bank and Trust Company Fund
and may be used for the same | 16 | | purposes as fees deposited in that Fund. The
amount from | 17 | | time to time deposited into the Bank and
Trust Company Fund | 18 | | shall be used: (i) to offset the ordinary administrative
| 19 | | expenses of the Secretary as defined in
this Section or | 20 | | (ii) as a credit against fees under paragraph (d-1) of this | 21 | | subsection (3). Nothing in this amendatory Act of 1979 | 22 | | shall prevent
continuing the practice of paying expenses | 23 | | involving salaries, retirement,
social security, and | 24 | | State-paid insurance premiums of State officers by
| 25 | | appropriations from the General Revenue Fund. However, the | 26 | | General Revenue
Fund shall be reimbursed for those payments |
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| 1 | | made on and after July 1, 1979,
by an annual transfer of | 2 | | funds from the Bank and Trust Company Fund. Moneys in the | 3 | | Bank and Trust Company Fund may be transferred to the | 4 | | Professions Indirect Cost Fund, as authorized under | 5 | | Section 2105-300 of the Department of Professional | 6 | | Regulation Law of the Civil Administrative Code of | 7 | | Illinois.
| 8 | | Notwithstanding provisions in the State Finance Act, | 9 | | as now or hereafter amended, or any other law to the | 10 | | contrary, the sum of $18,788,847 shall be transferred from | 11 | | the Bank and Trust Company Fund to the Financial | 12 | | Institutions Settlement of 2008 Fund on the effective date | 13 | | of this amendatory Act of the 95th General Assembly, or as | 14 | | soon thereafter as practical. | 15 | | Notwithstanding provisions in the State Finance Act, | 16 | | as now or hereafter amended, or any other law to the | 17 | | contrary, the Governor may, during any fiscal year through | 18 | | January 10, 2011, from time to time direct the State | 19 | | Treasurer and Comptroller to transfer a specified sum not | 20 | | exceeding 10% of the revenues to be deposited into the Bank | 21 | | and Trust Company Fund during that fiscal year from that | 22 | | Fund to the General Revenue Fund in order to help defray | 23 | | the State's operating costs for the fiscal year. | 24 | | Notwithstanding provisions in the State Finance Act, as now | 25 | | or hereafter amended, or any other law to the contrary, the | 26 | | total sum transferred during any fiscal year through |
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| 1 | | January 10, 2011, from the Bank and Trust Company Fund to | 2 | | the General Revenue Fund pursuant to this provision shall | 3 | | not exceed during any fiscal year 10% of the revenues to be | 4 | | deposited into the Bank and Trust Company Fund during that | 5 | | fiscal year. The State Treasurer and Comptroller shall | 6 | | transfer the amounts designated under this Section as soon | 7 | | as may be practicable after receiving the direction to | 8 | | transfer from the Governor.
| 9 | | (d-1) Adequate funds shall be available in the Bank and | 10 | | Trust
Company Fund to permit the timely payment of | 11 | | administration expenses. In
each fiscal year the total | 12 | | administration expenses shall be deducted from
the total | 13 | | fees collected by the Commissioner and the remainder | 14 | | transferred
into the Cash Flow Reserve Account, unless the | 15 | | balance of the Cash Flow
Reserve Account prior to the | 16 | | transfer equals or exceeds
one-fourth of the total initial | 17 | | appropriations from the Bank and Trust
Company Fund for the | 18 | | subsequent year, in which case the remainder shall be
| 19 | | credited to State banks and foreign banking corporations
| 20 | | and applied against their fees for the subsequent
year. The | 21 | | amount credited to each State bank and foreign banking | 22 | | corporation
shall be in the same proportion as the
Call | 23 | | Report Fees paid by each for the year bear to the total | 24 | | Call Report
Fees collected for the year. If, after a | 25 | | transfer to the Cash Flow Reserve
Account is made or if no | 26 | | remainder is available for transfer, the balance
of the |
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| 1 | | Cash Flow Reserve Account is less than one-fourth of the | 2 | | total
initial appropriations for the subsequent year and | 3 | | the amount transferred
is less than 5% of the total Call | 4 | | Report Fees for the year, additional
amounts needed to make | 5 | | the transfer equal to 5% of the total Call Report
Fees for | 6 | | the year shall be apportioned amongst, assessed upon, and
| 7 | | paid by the State banks and foreign banking corporations
in | 8 | | the same proportion that the Call Report Fees of each,
| 9 | | respectively, for the year bear to the total Call Report | 10 | | Fees collected for
the year. The additional amounts | 11 | | assessed shall be transferred into the
Cash Flow Reserve | 12 | | Account. For purposes of this paragraph (d-1), the
| 13 | | calculation of the fees collected by the Commissioner shall | 14 | | exclude the
receivership fees provided for in Section 5-10 | 15 | | of the Corporate Fiduciary Act.
| 16 | | (e) The Commissioner may upon request certify to any | 17 | | public record
in his keeping and shall have authority to | 18 | | levy a reasonable charge for
issuing certifications of any | 19 | | public record in his keeping.
| 20 | | (f) In addition to fees authorized elsewhere in this | 21 | | Act, the
Commissioner
may, in connection with a review, | 22 | | approval, or provision of a service, levy a
reasonable | 23 | | charge to recover the cost of the review, approval, or | 24 | | service.
| 25 | | (4) Nothing contained in this Act shall be construed to | 26 | | limit the
obligation relative to examinations and reports of |
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| 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 |
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| 1 | | the Commissioner
if he determines that the conditions are | 2 | | necessary or appropriate. These
conditions shall be | 3 | | imposed in writing and shall continue
in effect for the | 4 | | period prescribed by the Commissioner.
| 5 | | (b) To issue orders
against any person, if the | 6 | | Commissioner has
reasonable cause to believe that an unsafe | 7 | | or unsound banking practice
has occurred, is occurring, or | 8 | | is about to occur, if any person has violated,
is | 9 | | violating, or is about to violate any law, rule, or written
| 10 | | agreement with the Commissioner, or
for the purpose of | 11 | | administering the provisions of
this Act and any rule | 12 | | promulgated in accordance with this Act.
| 13 | | (b-1) To enter into agreements with a bank establishing | 14 | | a program to
correct the condition of the bank or its | 15 | | practices.
| 16 | | (c) To appoint hearing officers to execute any of the | 17 | | powers granted to
the Commissioner under this Section for | 18 | | the purpose of administering this
Act and any rule | 19 | | promulgated in accordance with this Act
and otherwise to | 20 | | authorize, in writing, an officer or employee of the Office
| 21 | | of
Banks and Real Estate to exercise his powers under this | 22 | | Act.
| 23 | | (d) To subpoena witnesses, to compel their attendance, | 24 | | to administer
an oath, to examine any person under oath, | 25 | | and to require the production of
any relevant books, | 26 | | papers, accounts, and documents in the course of and
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| 1 | | pursuant to any investigation being conducted, or any | 2 | | action being taken,
by the Commissioner in respect of any | 3 | | matter relating to the duties imposed
upon, or the powers | 4 | | vested in, the Commissioner under the provisions of
this | 5 | | Act or any rule promulgated in accordance with this Act.
| 6 | | (e) To conduct hearings.
| 7 | | (7) Whenever, in the opinion of the Secretary, any | 8 | | director,
officer, employee, or agent of a State bank
or any | 9 | | subsidiary or bank holding company of the bank
or, after May | 10 | | 31, 1997, of any
branch of an out-of-state bank
or any | 11 | | subsidiary or bank holding company of the bank
shall have | 12 | | violated any law,
rule, or order relating to that bank
or any | 13 | | subsidiary or bank holding company of the bank, shall have
| 14 | | obstructed or impeded any examination or investigation by the | 15 | | Secretary, shall have engaged in an unsafe or
unsound practice | 16 | | in conducting the business of that bank
or any subsidiary or | 17 | | bank holding company of the bank,
or shall have
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 does not
assure | 22 | | reasonable promise of safe and sound operation of the State | 23 | | bank, the
Secretary
may issue an order of removal.
If, in the | 24 | | opinion of the Secretary, any former director, officer,
| 25 | | employee,
or agent of a State bank
or any subsidiary or bank | 26 | | holding company of the bank, prior to the
termination of his or |
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| 1 | | her service with
that bank
or any subsidiary or bank holding | 2 | | company of the bank, violated any law,
rule, or order relating | 3 | | to that
State bank
or any subsidiary or bank holding company of | 4 | | the bank, obstructed or impeded
any examination or | 5 | | investigation by the Secretary, engaged in an unsafe or unsound | 6 | | practice in conducting the
business of that bank
or any | 7 | | subsidiary or bank holding company of the bank,
or violated any | 8 | | law or engaged or participated in any
unsafe or unsound | 9 | | practice in connection with any financial institution or
other | 10 | | business entity such that the character and fitness of the | 11 | | director,
officer, employee, or agent would not have assured | 12 | | reasonable promise of safe
and sound operation of the State | 13 | | bank, the Secretary may issue an order
prohibiting that person | 14 | | from
further
service with a bank
or any subsidiary or bank | 15 | | holding company of the bank
as a director, officer, employee, | 16 | | or agent. An order
issued pursuant to this subsection shall be | 17 | | served upon the
director,
officer, employee, or agent. A copy | 18 | | of the order shall be sent to each
director of the bank | 19 | | affected by registered mail. A copy of
the order shall also be | 20 | | served upon the bank of which he is a director,
officer, | 21 | | employee, or agent, whereupon he shall cease to be a director,
| 22 | | officer, employee, or agent of that bank. The Secretary may
| 23 | | institute a civil action against the director, officer, or | 24 | | agent of the
State bank or, after May 31, 1997, of the branch | 25 | | of the out-of-state bank
against whom any order provided for by | 26 | | this subsection (7) of
this Section 48 has been issued, and |
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| 1 | | against the State bank or, after May 31,
1997, out-of-state | 2 | | bank, to enforce
compliance with or to enjoin any violation of | 3 | | the terms of the order.
Any person who has been the subject of | 4 | | an order of removal
or
an order of prohibition issued by the | 5 | | Secretary under
this subsection or Section 5-6 of the Corporate | 6 | | Fiduciary Act may not
thereafter serve as director, officer, | 7 | | employee, or agent of any State bank
or of any branch of any | 8 | | out-of-state bank,
or of any corporate fiduciary, as defined in | 9 | | Section 1-5.05 of the
Corporate
Fiduciary Act, or of any other | 10 | | entity that is subject to licensure or
regulation by the | 11 | | Division of Banking unless
the Secretary has granted prior | 12 | | approval in writing.
| 13 | | For purposes of this paragraph (7), "bank holding company" | 14 | | has the
meaning prescribed in Section 2 of the Illinois Bank | 15 | | Holding Company Act of
1957.
| 16 | | (8) The Commissioner may impose civil penalties of up to | 17 | | $100,000 against
any person for each violation of any provision | 18 | | of this Act, any rule
promulgated in accordance with this Act, | 19 | | any order of the Commissioner, or
any other action which in the | 20 | | Commissioner's discretion is an unsafe or
unsound banking | 21 | | practice.
| 22 | | (9) The Commissioner may impose civil penalties of up to | 23 | | $100
against any person for the first failure to comply with | 24 | | reporting
requirements set forth in the report of examination | 25 | | of the bank and up to
$200 for the second and subsequent | 26 | | failures to comply with those reporting
requirements.
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| 1 | | (10) All final administrative decisions of the | 2 | | Commissioner hereunder
shall be subject to judicial review | 3 | | pursuant to the provisions of the
Administrative Review Law. | 4 | | For matters involving administrative review,
venue shall be in | 5 | | either Sangamon County or Cook County.
| 6 | | (11) The endowment fund for the Illinois Bank Examiners' | 7 | | Education
Foundation shall be administered as follows:
| 8 | | (a) (Blank).
| 9 | | (b) The Foundation is empowered to receive voluntary | 10 | | contributions,
gifts, grants, bequests, and donations on | 11 | | behalf of the Illinois Bank
Examiners' Education | 12 | | Foundation from national banks and other persons for
the | 13 | | purpose of funding the endowment of the Illinois Bank | 14 | | Examiners'
Education Foundation.
| 15 | | (c) The aggregate of all special educational fees | 16 | | collected by the
Secretary and property received by the | 17 | | Secretary on behalf of the
Illinois Bank Examiners' | 18 | | Education Foundation under this subsection
(11) on or after | 19 | | June 30, 1986, shall be either (i) promptly paid after
| 20 | | receipt of the same, accompanied by a detailed statement | 21 | | thereof, into the
State Treasury and shall be set apart in | 22 | | a special fund to be known as "The
Illinois Bank Examiners' | 23 | | Education Fund" to be invested by either the
Treasurer of | 24 | | the State of Illinois in the Public Treasurers' Investment
| 25 | | Pool or in any other investment he is authorized to make or | 26 | | by the Illinois
State Board of Investment as the State |
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| 1 | | Banking Board of Illinois may direct or (ii) deposited into | 2 | | an account
maintained in a commercial bank or corporate | 3 | | fiduciary in the name of the
Illinois Bank Examiners' | 4 | | Education Foundation pursuant to the order and
direction of | 5 | | the Board of Trustees of the Illinois Bank Examiners' | 6 | | Education
Foundation.
| 7 | | (12) (Blank).
| 8 | | (13) The Secretary may borrow funds from the General | 9 | | Revenue Fund on behalf of the Bank and Trust Company Fund if | 10 | | the Director of Banking certifies to the Governor that there is | 11 | | an economic emergency affecting banking that requires a | 12 | | borrowing to provide additional funds to the Bank and Trust | 13 | | Company Fund. The borrowed funds shall be paid back within 3 | 14 | | years and shall not exceed the total funding appropriated to | 15 | | the Agency in the previous year. | 16 | | (Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10; | 17 | | 97-333, eff. 8-12-11.)
| 18 | | Section 10. The Savings Bank Act is amended by changing | 19 | | Section 9004 as follows:
| 20 | | (205 ILCS 205/9004) (from Ch. 17, par. 7309-4)
| 21 | | Sec. 9004. Examination.
| 22 | | (a) At least once every 18 months or more often if it is
| 23 | | deemed necessary or expedient, the Secretary shall examine the
| 24 | | books, records, operations, and affairs of each savings bank
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| 1 | | operating under this Act. In the course of the examination, the | 2 | | Secretary may
also examine in the same manner all entities,
| 3 | | companies, and individuals which or whom the Secretary | 4 | | determines
may have a relationship with the savings bank or any | 5 | | subsidiary or
entity affiliated with it, if the relationship | 6 | | may adversely affect
the affairs, activities, and safety and | 7 | | soundness of the savings
bank, including: (i) companies | 8 | | controlled by the savings bank;
(ii) entities, including | 9 | | companies controlled by the company,
individual, or | 10 | | individuals that control the savings bank;
and (iii) the | 11 | | company or other entity which controls or owns the
savings | 12 | | bank. Notwithstanding any other provision of this Act, every | 13 | | savings bank, as defined by rule, or, if not defined, to the | 14 | | same extent as would be permitted in the case of a State bank, | 15 | | the Secretary, in lieu of the examination, may accept on an | 16 | | alternating basis the examination made by the eligible savings | 17 | | bank's appropriate federal banking agency pursuant to Section | 18 | | 111 of the Federal Deposit Insurance Corporation Improvement | 19 | | Act of 1991, provided the appropriate federal banking agency | 20 | | has made an examination.
| 21 | | (b) The Secretary shall examine to determine:
| 22 | | (1) Quality of financial condition, including safety | 23 | | and
soundness and investment and loan quality.
| 24 | | (2) Compliance with this Act and other applicable
| 25 | | statutes and regulations.
| 26 | | (3) Quality of management policies.
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| 1 | | (4) Overall safety and soundness of the savings bank,
| 2 | | its parent, subsidiaries, and affiliates.
| 3 | | (5) Remedial actions required to correct and to restore
| 4 | | compliance with applicable statutes, regulations, and | 5 | | proper
business policies.
| 6 | | (c) The Secretary may promulgate regulations to
implement | 7 | | and administer this Section.
| 8 | | (d) If a savings bank, its holding company, or any of its
| 9 | | corporate subsidiaries has not been audited at least once in | 10 | | the
12 months prior to the Secretary's examination, the | 11 | | Secretary may cause an audit of the savings bank's books and | 12 | | records to be
made by an independent licensed public | 13 | | accountant. The cost of the audit
shall be paid for by the | 14 | | entity being audited.
| 15 | | (e) The Secretary or his or her examiners or other
formally | 16 | | designated agents are authorized to administer oaths and
to | 17 | | examine and to take and preserve testimony under oath as to
| 18 | | anything in the affairs or ownership of any savings bank or
| 19 | | institution or affiliate thereof.
| 20 | | (f) Pursuant to subsection (c) of this Section, the | 21 | | Secretary shall adopt rules that ensure consistency and due | 22 | | process in the examination process. The Secretary may also | 23 | | establish guidelines that (i) define the scope of the | 24 | | examination process and (ii) clarify examination items to be | 25 | | resolved. The rules, formal guidance, interpretive letters, or | 26 | | opinions furnished to savings banks by the Secretary may be |
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| 1 | | relied upon by the savings banks. | 2 | | (Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)
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