(205 ILCS 645/12) (from Ch. 17, par. 2719)
Sec. 12.
Control by Commissioner.
(a) Upon the Commissioner's taking possession, pursuant to Section 53
of the Illinois Banking Act, of the business and property in this State of the
banking office of a foreign banking corporation whose deposit liabilities
in this State are not insured by the Federal Deposit Insurance Corporation,
the amounts deposited pursuant to Section 11 shall thereupon become the
property of the Commissioner, free and clear of any and all liens and other
claims, and shall be held by the Commissioner in trust for the
depositors of such
banking office. The Commissioner may, without regard to any priorities,
preferences, or adverse claims and without obtaining the approval of any
court, reduce such property to cash and, as soon as practicable, utilize the
cash to cover initial liquidation costs, if any, and then distribute any
excess to such depositors on a pro rata basis; but no depositor may
receive an
amount in excess of his account balances. For purposes of this Section, the
term "depositor" does not include any other offices or branches of, or
wholly-owned (except for a nominal number of directors' shares)
subsidiaries of, such foreign banking corporation, but includes those to
whom such banking office is indebted by virtue of money or its equivalent
received by such banking office (i) for which it has given credit or is
obligated to give credit to a time or demand deposit or which is evidenced
by a check or draft against a deposit account and certified by such banking
office, or (ii) for which it has issued a letter of credit for cash or a
traveler's check on which such banking office is primarily
liable, or
(iii) for which it has issued an outstanding draft (including advice or
authorization to charge the banking office's balance at another bank),
cashier's check or money order, or other officer's check.
(b) Whenever the Commissioner takes possession of the property and
business of a foreign bank pursuant to Section 53 of the Illinois Banking Act,
the Commissioner shall conserve or liquidate the property and business of the
foreign bank pursuant to the laws of this State as if the foreign bank were an
Illinois bank, with absolute preference and priority given to the creditors of
the foreign bank arising out of transactions with, and recorded on the books
of, its Illinois state branch or Illinois state agency over the creditors of
the foreign bank's offices located outside this State. When the Commissioner
has completed the liquidation of the property and business of a foreign bank,
the Commissioner shall transfer any remaining assets to the foreign bank in
accordance with such orders as the court may issue. However, in case the
foreign bank has an office in another state of the United States which is in
liquidation and the assets of such office appear to be insufficient to pay in
full the creditors of that office, the court shall order the Commissioner to
transfer to the liquidator of that office such amount of any such remaining
assets as appears to be necessary to cover the insufficiency; if there are 2
or more such offices and the amount of
remaining assets is less than the aggregate amount of insufficiencies with
respect
to the offices, the court shall order the Commissioner to distribute the
remaining assets among the liquidators of those offices in such manner as the
court finds equitable.
(Source: P.A. 92-483, eff. 8-23-01.)
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