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90_SB1528sam002
LRB9009866JSgcam02
1 AMENDMENT TO SENATE BILL 1528
2 AMENDMENT NO. . Amend Senate Bill 1528, AS AMENDED,
3 with reference to the page and line numbers of Senate
4 Amendment No. 1, on page 5, line 28, by deleting "(a)"; and
5 on page 6 by deleting lines 2 through 14; and
6 on page 10 by inserting immediately below line 10 the
7 following:
8 "(25) Notwithstanding any other provisions of this Act
9 or any other law, to offer any product or service that is at
10 the time authorized or permitted to any insured savings
11 association by applicable law, provided that powers conferred
12 only by this subsection (25):
13 (a) shall always be subject to the same limitations
14 and restrictions that are applicable to the insured
15 savings association for the product or service by such
16 applicable law;
17 (b) shall be subject to applicable provisions of
18 the Financial Institutions Insurance Sales Law;
19 (c) shall not include the right to own or conduct a
20 real estate brokerage business for which a license would
21 be required under the laws of this State; and
22 (d) shall not be construed to include the
23 establishment or maintenance of a branch, nor shall they
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1 be construed to limit the establishment or maintenance of
2 a branch pursuant to subsection (11)."; and
3 on page 17 by replacing lines 19 through 33 with the
4 following:
5 "(205 ILCS 5/48) (from Ch. 17, par. 359)
6 Sec. 48. Commissioner's powers; duties. The Commissioner
7 shall have the powers and authority, and is charged with the
8 duties and responsibilities designated in this Act, and a
9 State bank shall not be subject to any other visitorial power
10 other than as authorized by this Act, except those vested in
11 the courts, or upon prior consultation with the Commissioner,
12 a foreign bank regulator with an appropriate supervisory
13 interest in the parent or affiliate of a state bank. In the
14 performance of the Commissioner's duties:
15 (1) The Commissioner shall call for statements from all
16 State banks as provided in Section 47 at least one time
17 during each calendar quarter.
18 (2) (a) The Commissioner, as often as the Commissioner
19 shall deem necessary or proper, and no less frequently than
20 18 months following the preceding examination, shall appoint
21 a suitable person or persons to make an examination of the
22 affairs of every State bank, except that for every eligible
23 State bank, as defined by regulation, the Commissioner in
24 lieu of the examination may accept on an alternating basis
25 the examination made by the eligible State bank's appropriate
26 federal banking agency pursuant to Section 111 of the Federal
27 Deposit Insurance Corporation Improvement Act of 1991,
28 provided the appropriate federal banking agency has made such
29 an examination. A person so appointed shall not be a
30 stockholder or officer or employee of any bank which that
31 person may be directed to examine, and shall have powers to
32 make a thorough examination into all the affairs of the bank
33 and in so doing to examine any of the officers or agents or
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1 employees thereof on oath and shall make a full and detailed
2 report of the condition of the bank to the Commissioner. In
3 making the examination the examiners shall include an
4 examination of the affairs of all the affiliates of the bank,
5 as defined in subsection (b) of Section 35.2 of this Act, as
6 shall be necessary to disclose fully the conditions of the
7 affiliates, the relations between the bank and the affiliates
8 and the effect of those relations upon the affairs of the
9 bank, and in connection therewith shall have power to examine
10 any of the officers, directors, agents, or employees of the
11 affiliates on oath. After May 31, 1997, the Commissioner may
12 enter into cooperative agreements with state regulatory
13 authorities of other states to provide for examination of
14 State bank branches in those states, and the Commissioner may
15 accept reports of examinations of State bank branches from
16 those state regulatory authorities. These cooperative
17 agreements may set forth the manner in which the other state
18 regulatory authorities may be compensated for examinations
19 prepared for and submitted to the Commissioner.
20 (b) After May 31, 1997, the Commissioner is authorized
21 to examine, as often as the Commissioner shall deem necessary
22 or proper, branches of out-of-state banks. The Commissioner
23 may establish and may assess fees to be paid to the
24 Commissioner for examinations under this subsection (b). The
25 fees shall be borne by the out-of-state bank, unless the fees
26 are borne by the state regulatory authority that chartered
27 the out-of-state bank, as determined by a cooperative
28 agreement between the Commissioner and the state regulatory
29 authority that chartered the out-of-state bank.
30 (2.5) Whenever any State bank, any subsidiary or
31 affiliate of a State bank, or after May 31, 1997, any branch
32 of an out-of-state bank causes to be performed, by contract
33 or otherwise, any bank services for itself, whether on or off
34 its premises:
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1 (a) that performance shall be subject to
2 examination by the Commissioner to the same extent as if
3 services were being performed by the bank or, after May
4 31, 1997, branch of the out-of-state bank itself on its
5 own premises; and
6 (b) the bank or, after May 31, 1997, branch of the
7 out-of-state bank shall notify the Commissioner of the
8 existence of a service relationship. The notification
9 shall be submitted with the first statement of condition
10 (as required by Section 47 of this Act) due after the
11 making of the service contract or the performance of the
12 service, whichever occurs first. The Commissioner shall
13 be notified of each subsequent contract in the same
14 manner.
15 For purposes of this subsection (2.5), the term "bank
16 services" means services such as sorting and posting of
17 checks and deposits, computation and posting of interest and
18 other credits and charges, preparation and mailing of checks,
19 statements, notices, and similar items, or any other
20 clerical, bookkeeping, accounting, statistical, or similar
21 functions performed for a State bank, including but not
22 limited to electronic data processing related to those bank
23 services.
24 (3) The expense of administering this Act, including the
25 expense of the examinations of State banks as provided in
26 this Act, shall to the extent of the amounts resulting from
27 the fees provided for in paragraphs (a), (a-2), and (b) of
28 this subsection (3) be assessed against and borne by the
29 State banks:
30 (a) Each bank shall pay to the Commissioner a Call
31 Report Fee which shall be paid in quarterly installments
32 equal to one-fourth of the sum of the annual fixed fee of
33 $800, plus a variable fee based on the assets shown on
34 the quarterly statement of condition delivered to the
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1 Commissioner in accordance with Section 47 for the
2 preceding quarter according to the following schedule:
3 16¢ per $1,000 of the first $5,000,000 of total assets,
4 15¢ per $1,000 of the next $20,000,000 of total assets,
5 13¢ per $1,000 of the next $75,000,000 of total assets,
6 9¢ per $1,000 of the next $400,000,000 of total assets,
7 7¢ per $1,000 of the next $500,000,000 of total assets,
8 and 5¢ per $1,000 of all assets in excess of
9 $1,000,000,000, of the State bank. The Call Report Fee
10 shall be calculated by the Commissioner and billed to the
11 banks for remittance at the time of the quarterly
12 statements of condition provided for in Section 47. The
13 Commissioner may require payment of the fees provided in
14 this Section by an electronic transfer of funds or an
15 automatic debit of an account of each of the State banks.
16 In case more than one examination of any bank is deemed
17 by the Commissioner to be necessary in any examination
18 frequency cycle specified in subsection 2(a) of this
19 Section, and is performed at his direction, the
20 Commissioner may assess a reasonable additional fee to
21 recover the cost of the additional examination. In lieu
22 of the method and amounts set forth in this paragraph (a)
23 for the calculation of the Call Report Fee, the
24 Commissioner may specify by rule that the Call Report
25 Fees provided by this Section may be assessed
26 semiannually or some other period and may provide in the
27 rule the formula to be used for calculating and assessing
28 the periodic Call Report Fees to be paid by State banks.
29 (a-1) If in the opinion of the Commissioner an
30 emergency exists or appears likely, the Commissioner may
31 assign an examiner or examiners to monitor the affairs of
32 a State bank with whatever frequency he deems
33 appropriate, including but not limited to a daily basis.
34 The reasonable and necessary expenses of the Commissioner
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1 during the period of the monitoring shall be borne by the
2 subject bank. The Commissioner shall furnish the State
3 bank a statement of time and expenses if requested to do
4 so within 30 days of the conclusion of the monitoring
5 period.
6 (a-2) On and after January 1, 1990, the reasonable
7 and necessary expenses of the Commissioner during
8 examination of the performance of electronic data
9 processing services under subsection (2.5) shall be borne
10 by the banks for which the services are provided. An
11 amount, based upon a fee structure prescribed by the
12 Commissioner, shall be paid by the banks or, after May
13 31, 1997, branches of out-of-state banks receiving the
14 electronic data processing services along with the Call
15 Report Fee assessed under paragraph (a) of this
16 subsection (3).
17 (a-3) After May 31, 1997, the reasonable and
18 necessary expenses of the Commissioner during examination
19 of the performance of electronic data processing services
20 under subsection (2.5) at or on behalf of branches of
21 out-of-state banks shall be borne by the out-of-state
22 banks, unless those expenses are borne by the state
23 regulatory authorities that chartered the out-of-state
24 banks, as determined by cooperative agreements between
25 the Commissioner and the state regulatory authorities
26 that chartered the out-of-state banks.
27 (b) "Fiscal year" for purposes of this Section 48
28 is defined as a period beginning July 1 of any year and
29 ending June 30 of the next year. The Commissioner shall
30 receive for each fiscal year, commencing with the fiscal
31 year ending June 30, 1987, a contingent fee equal to the
32 lesser of the aggregate of the fees paid by all State
33 banks under paragraph (a) of subsection (3) for that
34 year, or the amount, if any, whereby the aggregate of the
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1 administration expenses, as defined in paragraph (c), for
2 that fiscal year exceeds the sum of the aggregate of the
3 fees payable by all State banks for that year under
4 paragraph (a) of subsection (3), plus all other amounts
5 collected by the Commissioner for that year under any
6 other provision of this Act, plus the aggregate of all
7 fees collected for that year by the Commissioner under
8 the Corporate Fiduciary Act, excluding the receivership
9 fees provided for in Section 5-10 of the Corporate
10 Fiduciary Act, and the Foreign Banking Office Act. The
11 aggregate amount of the contingent fee thus arrived at
12 for any fiscal year shall be apportioned amongst,
13 assessed upon, and paid by the State banks and foreign
14 banking corporations, respectively, in the same
15 proportion that the fee of each under paragraph (a) of
16 subsection (3), respectively, for that year bears to the
17 aggregate for that year of the fees collected under
18 paragraph (a) of subsection (3). The aggregate amount of
19 the contingent fee, and the portion thereof to be
20 assessed upon each State bank and foreign banking
21 corporation, respectively, shall be determined by the
22 Commissioner and shall be paid by each, respectively,
23 within 120 days of the close of the period for which the
24 contingent fee is computed and is payable, and the
25 Commissioner shall give 20 days advance notice of the
26 amount of the contingent fee payable by the State bank
27 and of the date fixed by the Commissioner for payment of
28 the fee.
29 (c) The "administration expenses" for any fiscal
30 year shall mean the ordinary and contingent expenses for
31 that year incident to making the examinations provided
32 for by, and for otherwise administering, this Act, the
33 Corporate Fiduciary Act, excluding the expenses paid from
34 the Corporate Fiduciary Receivership account in the Bank
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1 and Trust Company Fund, the Foreign Banking Office Act,
2 the Electronic Fund Transfer Act, and the Illinois Bank
3 Examiners' Education Foundation Act, including all
4 salaries and other compensation paid for personal
5 services rendered for the State by officers or employees
6 of the State, including the Commissioner and the Deputy
7 Commissioners, all expenditures for telephone and
8 telegraph charges, postage and postal charges, office
9 stationery, supplies and services, and office furniture
10 and equipment, including typewriters and copying and
11 duplicating machines and filing equipment, surety bond
12 premiums, and travel expenses of those officers and
13 employees, employees, expenditures or charges for the
14 acquisition, enlargement or improvement of, or for the
15 use of, any office space, building, or structure, or
16 expenditures for the maintenance thereof or for
17 furnishing heat, light, or power with respect thereto,
18 all to the extent that those expenditures are directly
19 incidental to such examinations or administration. The
20 Commissioner shall not be required by paragraphs (c) or
21 (d-1) of this subsection (3) to maintain in any fiscal
22 year's budget appropriated reserves for accrued vacation
23 and accrued sick leave that is required to be paid to
24 employees of the Commissioner upon termination of their
25 service with the Commissioner in an amount that is more
26 than is reasonably anticipated to be necessary for any
27 anticipated turnover in employees, whether due to normal
28 attrition or due to layoffs, terminations, or
29 resignations.
30 (d) The aggregate of all fees collected by the
31 Commissioner under this Act, the Corporate Fiduciary Act,
32 or the Foreign Banking Office Act on and after July 1,
33 1979, shall be paid promptly after receipt of the same,
34 accompanied by a detailed statement thereof, into the
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1 State treasury and shall be set apart in a special fund
2 to be known as the "Bank and Trust Company Fund", except
3 as provided in paragraph (c) of subsection (11) of this
4 Section. The amount from time to time deposited into the
5 Bank and Trust Company Fund shall be used to offset the
6 ordinary administrative expenses of the Commissioner of
7 Banks and Real Estate as defined in this Section. Nothing
8 in this amendatory Act of 1979 shall prevent continuing
9 the practice of paying expenses involving salaries,
10 retirement, social security, and State-paid insurance
11 premiums of State officers by appropriations from the
12 General Revenue Fund. However, the General Revenue Fund
13 shall be reimbursed for those payments made on and after
14 July 1, 1979, by an annual transfer of funds from the
15 Bank and Trust Company Fund.
16 (d-1) Adequate funds shall be available in the Bank
17 and Trust Company Fund to permit the timely payment of
18 administration expenses. In each fiscal year the total
19 administration expenses shall be deducted from the total
20 fees collected by the Commissioner and the remainder
21 transferred into the Cash Flow Reserve Account, unless
22 the balance of the Cash Flow Reserve Account prior to the
23 transfer equals or exceeds one-fourth of the total
24 initial appropriations from the Bank and Trust Company
25 Fund for the subsequent year, in which case the remainder
26 shall be credited to State banks and foreign banking
27 corporations and applied against their fees for the
28 subsequent year. The amount credited to each State bank
29 and foreign banking corporation shall be in the same
30 proportion as the Call Report Fees paid by each for the
31 year bear to the total Call Report Fees collected for the
32 year. If, after a transfer to the Cash Flow Reserve
33 Account is made or if no remainder is available for
34 transfer, the balance of the Cash Flow Reserve Account is
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1 less than one-fourth of the total initial appropriations
2 for the subsequent year and the amount transferred is
3 less than 5% of the total Call Report Fees for the year,
4 additional amounts needed to make the transfer equal to
5 5% of the total Call Report Fees for the year shall be
6 apportioned amongst, assessed upon, and paid by the State
7 banks and foreign banking corporations in the same
8 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
14 shall exclude the receivership fees provided for in
15 Section 5-10 of the Corporate Fiduciary Act.
16 (e) The Commissioner may upon request certify to
17 any public record in his keeping and shall have authority
18 to levy a reasonable charge for issuing certifications of
19 any public record in his keeping.
20 (f) In addition to fees authorized elsewhere in
21 this Act, the Commissioner may, in connection with a
22 review, approval, or provision of a service, levy a
23 reasonable charge to recover the cost of the review,
24 approval, or service.
25 (4) Nothing contained in this Act shall be construed to
26 limit the obligation relative to examinations and reports of
27 any State bank, deposits in which are to any extent insured
28 by the United States or any agency thereof, nor to limit in
29 any way the powers of the Commissioner with reference to
30 examinations and reports of that bank.
31 (5) The nature and condition of the assets in or
32 investment of any bonus, pension, or profit sharing plan for
33 officers or employees of every State bank or, after May 31,
34 1997, branch of an out-of-state bank shall be deemed to be
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1 included in the affairs of that State bank or branch of an
2 out-of-state bank subject to examination by the Commissioner
3 under the provisions of subsection (2) of this Section, and
4 if the Commissioner shall find from an examination that the
5 condition of or operation of the investments or assets of the
6 plan is unlawful, fraudulent, or unsafe, or that any trustee
7 has abused his trust, the Commissioner shall, if the
8 situation so found by the Commissioner shall not be corrected
9 to his satisfaction within 60 days after the Commissioner has
10 given notice to the board of directors of the State bank or
11 out-of-state bank of his findings, report the facts to the
12 Attorney General who shall thereupon institute proceedings
13 against the State bank or out-of-state bank, the board of
14 directors thereof, or the trustees under such plan as the
15 nature of the case may require.
16 (6) The Commissioner shall have the power:
17 (a) To promulgate reasonable rules for the purpose
18 of administering the provisions of this Act.
19 (b) To issue orders for the purpose of
20 administering the provisions of this Act and any rule
21 promulgated in accordance with this Act.
22 (c) To appoint hearing officers to execute any of
23 the powers granted to the Commissioner under this Section
24 for the purpose of administering this Act and any rule
25 promulgated in accordance with this Act.
26 (d) To subpoena witnesses, to compel their
27 attendance, to administer an oath, to examine any person
28 under oath, and to require the production of any relevant
29 books, papers, accounts, and documents in the course of
30 and pursuant to any investigation being conducted, or any
31 action being taken, by the Commissioner in respect of any
32 matter relating to the duties imposed upon, or the powers
33 vested in, the Commissioner under the provisions of this
34 Act or any rule promulgated in accordance with this Act.
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1 (e) To conduct hearings.
2 (7) Whenever, in the opinion of the Commissioner, any
3 director, officer, employee, or agent of a State bank or,
4 after May 31, 1997, of any branch of an out-of-state bank
5 shall have violated any law, rule, or order relating to that
6 bank or shall have engaged in an unsafe or unsound practice
7 in conducting the business of that bank or shall have
8 violated any law or engaged or participated in any unsafe or
9 unsound practice in connection with any financial institution
10 or other business entity such that the character and fitness
11 of the director, officer, employee, or agent does not assure
12 reasonable promise of safe and sound operation of the State
13 bank, the Commissioner may issue an order of removal. If, in
14 the opinion of the Commissioner, any former director,
15 officer, employee, or agent of a State bank, prior to the
16 termination of his or her service with that bank, violated
17 any law, rule, or order relating to that State bank or
18 engaged in an unsafe or unsound practice in conducting the
19 business of that bank or violated any law or engaged or
20 participated in any unsafe or unsound practice in connection
21 with any financial institution or other business entity such
22 that the character and fitness of the director, officer,
23 employee, or agent would not have assured reasonable promise
24 of safe and sound operation of the State bank prior to the
25 termination of his or her service with that bank, the
26 Commissioner may issue an order prohibiting that person from
27 further service with a bank as a director, officer, employee,
28 or agent. An order issued pursuant to this subsection shall
29 be served upon the director, officer, employee, or agent. A
30 copy of the order shall be sent to each director of the bank
31 affected by registered mail. The person affected by the
32 action may request a hearing before the State Banking Board
33 within 10 days after receipt of the order of removal. The
34 hearing shall be held by the Board within 30 days after the
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1 request has been received by the Board. The Board shall make
2 a determination approving, modifying, or disapproving the
3 order of the Commissioner as its final administrative
4 decision. If a hearing is held by the Board, the Board shall
5 make its determination within 60 days from the conclusion of
6 the hearing. Any person affected by a decision of the Board
7 under this subsection (7) of Section 48 of this Act may have
8 the decision reviewed only under and in accordance with the
9 Administrative Review Law and the rules adopted pursuant
10 thereto. A copy of the order shall also be served upon the
11 bank of which he is a director, officer, employee, or agent,
12 whereupon he shall cease to be a director, officer, employee,
13 or agent of that bank. The Commissioner may institute a
14 civil action against the director, officer, or agent of the
15 State bank or, after May 31, 1997, of the branch of the
16 out-of-state bank against whom any order provided for by this
17 subsection (7) of this Section 48 has been issued, and
18 against the State bank or, after May 31, 1997, out-of-state
19 bank, to enforce compliance with or to enjoin any violation
20 of the terms of the order. Any person who has been the
21 subject of an order of removal or an order of prohibition
22 issued by the Commissioner under this subsection or Section
23 5-6 of the Corporate Fiduciary Act may not thereafter serve
24 as director, officer, employee, or agent of any State bank or
25 of any branch of any out-of-state bank, or of any corporate
26 fiduciary, as defined in Section 1-5.05 of the Corporate
27 Fiduciary Act, or of any other entity that is subject to
28 licensure or regulation by the Commissioner or the Office of
29 Banks and Real Estate unless the Commissioner has granted
30 prior approval in writing.
31 (8) The Commissioner may impose civil penalties of up to
32 $10,000 against any person for each violation of any
33 provision of this Act, any rule promulgated in accordance
34 with this Act, any order of the Commissioner, or any other
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1 action which in the Commissioner's discretion is an unsafe or
2 unsound banking practice.
3 (9) The Commissioner may impose civil penalties of up to
4 $100 against any person for the first failure to comply with
5 reporting requirements set forth in the report of examination
6 of the bank and up to $200 for the second and subsequent
7 failures to comply with those reporting requirements.
8 (10) All final administrative decisions of the
9 Commissioner hereunder shall be subject to judicial review
10 pursuant to the provisions of the Administrative Review Law.
11 For matters involving administrative review, venue shall be
12 in either Sangamon County or Cook County.
13 (11) The endowment fund for the Illinois Bank Examiners'
14 Education Foundation shall be administered as follows:
15 (a) (Blank).
16 (b) The Foundation is empowered to receive
17 voluntary contributions, gifts, grants, bequests, and
18 donations on behalf of the Illinois Bank Examiners'
19 Education Foundation from national banks and other
20 persons for the purpose of funding the endowment of the
21 Illinois Bank Examiners' Education Foundation.
22 (c) The aggregate of all special educational fees
23 collected by the Commissioner and property received by
24 the Commissioner on behalf of the Illinois Bank
25 Examiners' Education Foundation under this subsection
26 (11) on or after June 30, 1986, shall be either (i)
27 promptly paid after receipt of the same, accompanied by a
28 detailed statement thereof, into the State Treasury and
29 shall be set apart in a special fund to be known as "The
30 Illinois Bank Examiners' Education Fund" to be invested
31 by either the Treasurer of the State of Illinois in the
32 Public Treasurers' Investment Pool or in any other
33 investment he is authorized to make or by the Illinois
34 State Board of Investment as the board of trustees of the
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1 Illinois Bank Examiners' Education Foundation may direct
2 or (ii) deposited into an account maintained in a
3 commercial bank or corporate fiduciary in the name of the
4 Illinois Bank Examiners' Education Foundation pursuant to
5 the order and direction of the Board of Trustees of the
6 Illinois Bank Examiners' Education Foundation.
7 (12) (Blank).
8 (Source: P.A. 89-208, eff. 9-29-95; 89-317, eff. 8-11-95;
9 89-508, eff. 7-3-96; 89-567, eff. 7-26-96; 89-626, eff.
10 8-9-96; 90-14, eff. 7-1-97; 90-301, eff. 8-1-97.)"; and
11 by deleting all of pages 18 through 29; and
12 on page 30 by deleting lines 1 through 23; and
13 on page 54, line 29, by replacing "of credit of credit" with
14 "of credit"; and
15 on page 56, line 16, by replacing "Board" with "suspended
16 credit union's Board"; and
17 on page 56, line 18, by replacing "Director. If he" with
18 "Director. No credit union shall be required to serve as a
19 surviving credit union in any involuntary merger. Upon the
20 request of the Director, a credit union by a vote of a
21 majority of its Board of Directors may elect to serve as a
22 surviving credit union in an involuntary merger. If the
23 Director he"; and
24 on page 56, line 19, by replacing "the" with "the suspended";
25 and
26 on page 61, line 16, by replacing "licensee" with "licensee
27 shall be subject to the requirements of and"; and
28 on page 62 by deleting lines 31 and 32; and
29 on page 63 by deleting lines 1 though 13; and
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1 on page 65, line 1, by replacing "(f)" with
2 "(f) Repossession with assignment of title."; and
3 on page 65, line 5, by replacing "title" with "title after
4 default"; and
5 on page 65, line 24, by deleting "to execute"; and
6 on page 65 by deleting line 25; and
7 on page 65, line 26, by deleting "has not done so and"; and
8 on page 66, line 2, by replacing "(f-5)" with
9 "(f-5) Repossession without assignment of title."; and
10 on page 66 by replacing line 11 with the following:
11 "setting forth the following information: (i) the name of the
12 owner of record and in bold type at or near the top of the
13 notice a statement that the owner's vehicle was repossessed
14 on a specified date for failure to make payments on the loan
15 (or other reason), (ii) a"; and
16 on page 66, line 18, by replacing "whom" with "whom
17 information may be obtained concerning the amount due to
18 redeem the vehicle and from whom"; and
19 on page 66, line 20, by replacing "option, this notice" with
20 "option, the information required to be set forth in this
21 notice of redemption"; and
22 on page 66, line 21, by replacing "of the" with "of or
23 accompany the"; and
24 on page 66 by replacing line 23 with the following:
25 "Commercial Code, but none of the information required by
26 this notice shall be construed to impose any requirement
27 under Article 9 of the Uniform Commercial Code."; and
28 on page 66 by replacing line 28 with the following:
29 "of defense. The affidavit of defense shall accompany the
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1 notice of redemption"; and
2 on page 66, line 30, by replacing "affidavit" with "affidavit
3 of defense"; and
4 on page 67, line 3, by replacing "affidavit" with "affidavit
5 of defense"; and
6 on page 69, line 6, by replacing "notice" with "notice of
7 redemption"; and
8 on page 69, line 7 by deleting "respectively"; and
9 on page 69, line 8, by replacing "subdivision" with
10 "subdivisions"; and
11 on page 69 by inserting immediately below line 13 the
12 following:
13 "(f-7) Notice of reinstatement in certain cases.
14 (1) If, at the time of repossession by a lienholder
15 that is seeking to transfer title pursuant to subsection
16 (f-5), the owner has paid an amount equal to 30% or more
17 of the deferred payment price or total of payments due,
18 the owner may, within 21 days of the date of
19 repossession, reinstate the contract or loan agreement
20 and recover the vehicle from the lienholder by tendering
21 in a lump sum (i) the total of all unpaid amounts,
22 including any unpaid delinquency or deferral charges due
23 at the date of reinstatement, without acceleration; and
24 (ii) performance necessary to cure any default other than
25 nonpayment of the amounts due; and (iii) all reasonable
26 costs and fees incurred by the lienholder in retaking,
27 holding, and preparing the vehicle for disposition and in
28 arranging for the sale of the vehicle. Reasonable costs
29 and fees incurred by the lienholder include without
30 limitation repossession and storage expenses and, if
31 authorized by the contract or loan agreement, reasonable
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1 attorneys' fees and collection agency charges.
2 (2) Tender of payment and performance pursuant to
3 this limited right of reinstatement restores to the owner
4 his rights under the contract or loan agreement as though
5 no default had occurred. The owner has the right to
6 reinstate the contract or loan agreement and recover the
7 vehicle from the lienholder only once under this
8 subsection. The lienholder may, in the lienholder's sole
9 discretion, extend the period during which the owner may
10 reinstate the contract or loan agreement and recover the
11 vehicle beyond the 21 days allowed under this subsection,
12 and the extension shall not subject the lienholder to
13 liability to the owner under the laws of this State.
14 (3) The lienholder shall deliver or mail written
15 notice to the owner at the owner's last known address,
16 within 3 business days of the date of repossession, of
17 the owner's right to reinstate the contract or loan
18 agreement and recover the vehicle pursuant to the limited
19 right of reinstatement described in this subsection. At
20 the lienholder's option, the information required to be
21 set forth in this notice of reinstatement may be made
22 part of or accompany the notice of redemption required in
23 subdivision (f-5)(1) of this Section and the notification
24 of sale or other disposition required under subsection
25 (3) of Section 9-504 of the Uniform Commercial Code, but
26 none of the information required by this notice of
27 reinstatement shall be construed to impose any
28 requirement under Article 9 of the Uniform Commercial
29 Code.
30 (4) The reinstatement period, if applicable, and
31 the redemption period described in subdivision (f-5)(1)
32 of this Section, shall run concurrently if the
33 information require to be set forth in the notice of
34 reinstatement is part of or accompanies the notice of
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1 redemption. In any event, the 21 day redemption period
2 described in subdivision (f-5)(1) of this Section shall
3 commence on the date of mailing or delivery to the owner
4 of the information required to be set forth in the notice
5 of redemption, and the 21 day reinstatement period
6 described in this subdivision, if applicable, shall
7 commence on the date of mailing or delivery to the owner
8 of the information required to be set forth in the notice
9 of reinstatement.
10 (5) The Office of the Secretary of State shall not
11 determine the merits of an owner's claim of right to
12 reinstatement, nor consider any allegations or assertions
13 regarding the validity or invalidity of a lienholder's
14 claim to the vehicle or an owner's asserted right to
15 reinstatement. Where a lienholder is subject to
16 licensing and regulatory supervision by the State of
17 Illinois, the lienholder shall be subject to all of the
18 powers and authority of the lienholder's primary State
19 regulator to enforce compliance with the procedures set
20 forth in this subsection (f-7)."; and
21 on page 69, line 14, by replacing "(f-10)" with "(f-10)
22 Repossession by judicial process.";and
23 on page 87, line 19, by replacing "institution" with
24 "institution shall be subject to the requirements of and";
25 and
26 on page 89, line 10, by replacing "holder" with "holder shall
27 be subject to the requirements of and".