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90_SB1894
205 ILCS 5/5 from Ch. 17, par. 311
Amends the Illinois Banking Act. Provides that a bank
organized under the Illinois Banking Act may offer any
product or service that may be offered by any federally
insured depository institution. Effective immediately.
LRB9011576JSgcA
LRB9011576JSgcA
1 AN ACT to amend the Illinois Banking Act by changing
2 Section 5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 5 as follows:
7 (205 ILCS 5/5) (from Ch. 17, par. 311)
8 Sec. 5. General corporate powers. A bank organized
9 under this Act or subject hereto shall be a body corporate
10 and politic and shall, without specific mention thereof in
11 the charter, have all the powers conferred by this Act and
12 the following additional general corporate powers:
13 (1) To sue and be sued, complain, and defend in its
14 corporate name.
15 (2) To have a corporate seal, which may be altered at
16 pleasure, and to use the same by causing it or a facsimile
17 thereof to be impressed or affixed or in any manner
18 reproduced, provided that the affixing of a corporate seal to
19 an instrument shall not give the instrument additional force
20 or effect, or change the construction thereof, and the use of
21 a corporate seal is not mandatory.
22 (3) To make, alter, amend, and repeal bylaws, not
23 inconsistent with its charter or with law, for the
24 administration of the affairs of the bank.
25 (4) To elect or appoint and remove officers and agents
26 of the bank and define their duties and fix their
27 compensation.
28 (5) To adopt and operate reasonable bonus plans,
29 profit-sharing plans, stock-bonus plans, stock-option plans,
30 pension plans and similar incentive plans for its directors,
31 officers and employees.
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1 (5.1) To manage, operate and administer a fund for the
2 investment of funds by a public agency or agencies, including
3 any unit of local government or school district, or any
4 person. The fund for a public agency shall invest in the
5 same type of investments and be subject to the same
6 limitations provided for the investment of public funds. The
7 fund for public agencies shall maintain a separate ledger
8 showing the amount of investment for each public agency in
9 the fund. "Public funds" and "public agency" as used in this
10 Section shall have the meanings ascribed to them in Section 1
11 of the Public Funds Investment Act.
12 (6) To make reasonable donations for the public welfare
13 or for charitable, scientific, religious or educational
14 purposes.
15 (7) To borrow or incur an obligation; and to pledge its
16 assets:
17 (a) to secure its borrowings, its lease of personal
18 or real property or its other nondeposit obligations;
19 (b) to enable it to act as agent for the sale of
20 obligations of the United States;
21 (c) to secure deposits of public money of the
22 United States, whenever required by the laws of the
23 United States, including without being limited to,
24 revenues and funds the deposit of which is subject to the
25 control or regulation of the United States or any of its
26 officers, agents, or employees and Postal Savings funds;
27 (d) to secure deposits of public money of any state
28 or of any political corporation or subdivision thereof
29 including, without being limited to, revenues and funds
30 the deposit of which is subject to the control or
31 regulation of any state or of any political corporation
32 or subdivisions thereof or of any of their officers,
33 agents, or employees;
34 (e) to secure deposits of money whenever required
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1 by the National Bankruptcy Act;
2 (f) (blank); and
3 (g) to secure trust funds commingled with the
4 bank's funds, whether deposited by the bank or an
5 affiliate of the bank, pursuant to Section 2-8 of the
6 Corporate Fiduciary Act.
7 (8) To own, possess, and carry as assets all or part of
8 the real estate necessary in or with which to do its banking
9 business, either directly or indirectly through the ownership
10 of all or part of the capital stock, shares or interests in
11 any corporation, association, trust engaged in holding any
12 part or parts or all of the bank premises, engaged in such
13 business and in conducting a safe deposit business in the
14 premises or part of them, or engaged in any activity that the
15 bank is permitted to conduct in a subsidiary pursuant to
16 paragraph (12) of this Section 5.
17 (9) To own, possess, and carry as assets other real
18 estate to which it may obtain title in the collection of its
19 debts or that was formerly used as a part of the bank
20 premises, but title to any real estate except as herein
21 permitted shall not be retained by the bank, either directly
22 or by or through a subsidiary, as permitted by subsection
23 (12) of this Section for a total period of more than 10 years
24 after acquiring title, either directly or indirectly.
25 (10) To do any act, including the acquisition of stock,
26 necessary to obtain insurance of its deposits, or part
27 thereof, and any act necessary to obtain a guaranty, in whole
28 or in part, of any of its loans or investments by the United
29 States or any agency thereof, and any act necessary to sell
30 or otherwise dispose of any of its loans or investments to
31 the United States or any agency thereof, and to acquire and
32 hold membership in the Federal Reserve System.
33 (11) (a) Notwithstanding any other law provisions of
34 this Act, to do any act and to own, possess, and carry as
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1 assets property of the character, including stock, that is at
2 the time authorized or permitted to national banks by an Act
3 of Congress, but subject always to the same limitations and
4 restrictions as are applicable to national banks by the
5 pertinent federal law, and subject to applicable provisions
6 of the Illinois Financial Institutions Insurance Sales Law.
7 (b) Notwithstanding any other law, to offer any product
8 or service that is at the time authorized or permitted to any
9 federally insured depository institution by applicable law,
10 but subject always to the same limitations and restrictions
11 that are applicable to the federally insured depository
12 institution by the applicable law, and subject to applicable
13 provisions of the Illinois Financial Institutions Insurance
14 Sales Law. The powers conferred by this paragraph (b) shall
15 not be construed to include the establishment or maintenance
16 of a branch, nor shall they be construed to limit the
17 establishment or maintenance of a branch pursuant to
18 paragraph (a) of this subsection.
19 (12) To own, possess, and carry as assets stock of one
20 or more corporations that is, or are, engaged in one or more
21 of the following businesses:
22 (a) holding title to and administering assets
23 acquired as a result of the collection or liquidating of
24 loans, investments, or discounts; or
25 (b) holding title to and administering personal
26 property acquired by the bank, directly or indirectly
27 through a subsidiary, for the purpose of leasing to
28 others, provided the lease or leases and the investment
29 of the bank, directly or through a subsidiary, in that
30 personal property otherwise comply with Section 35.1 of
31 this Act; or
32 (c) carrying on or administering any of the
33 activities excepting the receipt of deposits or the
34 payment of checks or other orders for the payment of
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1 money in which a bank may engage in carrying on its
2 general banking business; provided, however, that nothing
3 contained in this paragraph (c) shall be deemed to permit
4 a bank organized under this Act or subject hereto to do,
5 either directly or indirectly through any subsidiary, any
6 act, including the making of any loan or investment, or
7 to own, possess, or carry as assets any property that if
8 done by or owned, possessed, or carried by the State bank
9 would be in violation of or prohibited by any provision
10 of this Act.
11 The provisions of this subsection (12) shall not apply to
12 and shall not be deemed to limit the powers of a State bank
13 with respect to the ownership, possession, and carrying of
14 stock that a State bank is permitted to own, possess, or
15 carry under this Act.
16 Any bank intending to establish a subsidiary under this
17 subsection (12) shall give written notice to the Commissioner
18 60 days prior to the subsidiary's commencing of business or,
19 as the case may be, prior to acquiring stock in a corporation
20 that has already commenced business. After receiving the
21 notice, the Commissioner may waive or reduce the balance of
22 the 60 day notice period. The Commissioner may specify the
23 form of the notice and may promulgate rules and regulations
24 to administer this subsection (12).
25 (13) To accept for payment at a future date not
26 exceeding one year from the date of acceptance, drafts drawn
27 upon it by its customers; and to issue, advise, or confirm
28 letters of credit authorizing the holders thereof to draw
29 drafts upon it or its correspondents.
30 (14) To own and lease personal property acquired by the
31 bank at the request of a prospective lessee and upon the
32 agreement of that person to lease the personal property
33 provided that the lease, the agreement with respect thereto,
34 and the amount of the investment of the bank in the property
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1 comply with Section 35.1 of this Act.
2 (15) (a) To establish and maintain, in addition to the
3 main banking premises, branches offering any banking services
4 permitted at the main banking premises of a State bank.
5 (b) To establish and maintain, after May 31, 1997,
6 branches in another state that may conduct any activity in
7 that state that is authorized or permitted for any bank that
8 has a banking charter issued by that state, subject to the
9 same limitations and restrictions that are applicable to
10 banks chartered by that state.
11 (16) (Blank).
12 (17) To establish and maintain terminals, as authorized
13 by the Electronic Fund Transfer Act.
14 (18) To establish and maintain temporary service booths
15 at any International Fair held in this State which is
16 approved by the United States Department of Commerce, for the
17 duration of the international fair for the sole purpose of
18 providing a convenient place for foreign trade customers at
19 the fair to exchange their home countries' currency into
20 United States currency or the converse. This power shall not
21 be construed as establishing a new place or change of
22 location for the bank providing the service booth.
23 (19) To indemnify its officers, directors, employees,
24 and agents, as authorized for corporations under Section 8.75
25 of the Business Corporation Act of 1983.
26 (20) To own, possess, and carry as assets stock of, or
27 be or become a member of, any corporation, mutual company,
28 association, trust, or other entity formed exclusively for
29 the purpose of providing directors' and officers' liability
30 and bankers' blanket bond insurance or reinsurance to and for
31 the benefit of the stockholders, members, or beneficiaries,
32 or their assets or businesses, or their officers, directors,
33 employees, or agents, and not to or for the benefit of any
34 other person or entity or the public generally.
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1 (21) To make debt or equity investments in corporations
2 or projects, whether for profit or not for profit, designed
3 to promote the development of the community and its welfare,
4 provided that the aggregate investment in all of these
5 corporations and in all of these projects does not exceed 10%
6 of the unimpaired capital and unimpaired surplus of the bank
7 and provided that this limitation shall not apply to
8 creditworthy loans by the bank to those corporations or
9 projects. Upon written application to the Commissioner, a
10 bank may make an investment that would, when aggregated with
11 all other such investments, exceed 10% of the unimpaired
12 capital and unimpaired surplus of the bank. The Commissioner
13 may approve the investment if he is of the opinion and finds
14 that the proposed investment will not have a material adverse
15 effect on the safety and soundness of the bank.
16 (22) To own, possess, and carry as assets the stock of a
17 corporation engaged in the ownership or operation of a travel
18 agency or to operate a travel agency as a part of its
19 business, provided that the bank either owned, possessed, and
20 carried as assets the stock of such a corporation or operated
21 a travel agency as part of its business before July 1, 1991.
22 (23) With respect to affiliate facilities:
23 (a) to conduct at affiliate facilities any of the
24 following transactions for and on behalf of another
25 commonly owned bank, if so authorized by the other bank:
26 receiving deposits; cashing and issuing checks, drafts,
27 and money orders; changing money; and receiving payments
28 on existing indebtedness; and
29 (b) to authorize a commonly owned bank to conduct
30 for and on behalf of it any of the transactions listed in
31 this paragraph (23) at one or more affiliate facilities.
32 Any bank intending to conduct or to authorize a commonly
33 owned bank to conduct at an affiliate facility any of the
34 transactions specified in this paragraph (23) shall give
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1 written notice to the Commissioner at least 30 days before
2 any such transaction is conducted at the affiliate facility.
3 (24) To act as the agent for any fire, life, or other
4 insurance company authorized by the State of Illinois, by
5 soliciting and selling insurance and collecting premiums on
6 policies issued by such company; and to may receive for
7 services so rendered such fees or commissions as may be
8 agreed upon between the said bank and the insurance company
9 for which it may act as agent; provided, however, that no
10 such bank shall in any case assume or guarantee the payment
11 of any premium on insurance policies issued through its
12 agency by its principal; and provided further, that the bank
13 shall not guarantee the truth of any statement made by an
14 assured in filing his application for insurance.
15 (Source: P.A. 89-208, eff. 9-29-95; 89-310, eff. 1-1-96;
16 89-364, eff. 8-18-95; 89-626, eff. 8-9-96; 90-41, eff.
17 10-1-97; 90-301, eff. 8-1-97; revised 10-22-97.)
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.