[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Enrolled ] |
91_SB0461eng SB461 Engrossed LRB9103138LDdv 1 AN ACT to amend the Illinois Savings and Loan Act of 1985 2 by changing Section 4-6. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Savings and Loan Act of 1985 is 6 amended by changing Section 4-6 as follows: 7 (205 ILCS 105/4-6) (from Ch. 17, par. 3304-6) 8 Sec. 4-6. Issuance, delivery and transfer of 9 certificates and account books. (a) Every capital account 10 shall be evidenced by one or more appropriate certificates or 11 account book; and either such certificates or an account 12 book, or both, shall be delivered to the holder of such 13 account. The wording, type and form of the certificates and 14 account books issued by an association shall be subject to 15 the approval of the Commissioner. 16 (b) The holder of a withdrawable capital account may 17 transfer his rights therein absolutely or conditionally to 18 any other person eligible to hold the same by written 19 assignment accompanied by delivery of the appropriate 20 certificate or account book; but notwithstanding the 21 effectiveness of such a transfer between the parties thereto, 22 the association may treat the holder of record as the owner 23 of the account for payment, voting and all other purposes 24 until such assignment and any accompanying certificate or 25 account book have been received by the association with a 26 request for the transfer on the association's records. 27 (c) Withdrawable capital certificates, account books and 28 any other evidences of membership shall be nonnegotiable and 29 not subject to Article 8 of the Uniform Commercial Code, as 30 amended concerning Investment Securities. Permanent reserve 31 share certificates shall be subject to the provisions of SB461 Engrossed -2- LRB9103138LDdv 1 Article 8 of the Uniform Commercial Code, as amended, 2 concerning Investment Securities. 3 (d) All withdrawable capital certificates and account 4 books, delivered to the holders as prescribed by this 5 Article, shall be subject to attachment and execution as 6 provided by the laws of this State., and the association7shall not be subject to garnishment proceedings concerning8any capital account, except with respect to a certificate or9account book in the association's possession, and when10(1) Neither a certificate nor an account book has been11delivered to the holder as required by this Section, or12(2) The certificate and account book (or either of them13if only one has been delivered) have been returned to the14association's possession.15 (e) If the holder of a withdrawable capital account, or 16 the personal representative of any such person, shall file 17 with the association an affidavit to the effect that his 18 account book or certificate has been lost or destroyed, and 19 that such account book or certificate has not been pledged or 20 assigned either in whole or in part, then such association 21 may issue a substitute account book or certificate in the 22 name of such holder, with a statement therein that such 23 account book or certificate is issued in lieu of the one lost 24 or destroyed. The association shall not be liable thereafter 25 with respect to the original account book or certificate; but 26 the board of directors may require a bond in sufficient 27 amount to indemnify the association against any loss which 28 might result from the issuance of such substitute account 29 book or certificate. 30 (Source: P.A. 84-543.) 31 Section 99. Effective date. This Act takes effect upon 32 becoming law.