State of Illinois
92^nd General Assembly
Legislation

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92_HB4409enr

 
HB4409 Enrolled                                LRB9212762BDdv

 1        AN ACT concerning financial institutions.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Metropolitan  Transit  Authority  Act  is
 5    amended by changing Section 25 as follows:

 6        (70 ILCS 3605/25) (from Ch. 111 2/3, par. 325)
 7        Sec.  25.  All  funds  deposited  by the treasurer in any
 8    bank, savings bank, or savings and loan association shall  be
 9    placed in the name of the Authority and shall be withdrawn or
10    paid  out only by check or draft upon the bank, savings bank,
11    or savings and loan association, signed by the  treasurer  or
12    an  assistant  treasurer and countersigned by the chairman of
13    the Board or a vice-chairman of  the  Board.  The  Board  may
14    designate  any  of  its members or any officer or employee of
15    the Authority to affix the  signature  of  the  chairman  and
16    another  to affix the signature of the treasurer to any check
17    or draft for payment of salaries or wages and for the payment
18    of any other obligation of not more than $2500.00.
19        No bank, savings bank, or savings  and  loan  association
20    shall  receive  public  funds  as  permitted by this Section,
21    unless it has  complied  with  the  requirements  established
22    pursuant  to  Section  6  of  "An  Act  relating  to  certain
23    investments  of  public  funds  by public agencies", approved
24    July 23, 1943, as now or hereafter amended.
25    (Source: P.A. 83-541.)

26        Section 10.  The  Illinois  Banking  Act  is  amended  by
27    changing Sections 5, 18, 46, and 48.4 as follows:

28        (205 ILCS 5/5) (from Ch. 17, par. 311)
29        Sec.  5.  General  corporate  powers.   A  bank organized
 
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 1    under this Act or subject hereto shall be  a  body  corporate
 2    and  politic  and  shall, without specific mention thereof in
 3    the charter, have all the powers conferred by  this  Act  and
 4    the following additional general corporate powers:
 5        (1)  To  sue  and  be  sued,  complain, and defend in its
 6    corporate name.
 7        (2)  To have a corporate seal, which may  be  altered  at
 8    pleasure,  and  to  use the same by causing it or a facsimile
 9    thereof  to  be  impressed  or  affixed  or  in  any   manner
10    reproduced, provided that the affixing of a corporate seal to
11    an  instrument shall not give the instrument additional force
12    or effect, or change the construction thereof, and the use of
13    a corporate seal is not mandatory.
14        (3)  To  make,  alter,  amend,  and  repeal  bylaws,  not
15    inconsistent  with  its  charter  or  with   law,   for   the
16    administration  of  the affairs of the bank. If this Act does
17    not  provide  specific  guidance  in  matters  of   corporate
18    governance, the provisions of the Business Corporation Act of
19    1983 may be used if so provided in the bylaws.
20        (4)  To  elect  or appoint and remove officers and agents
21    of  the  bank  and  define  their  duties   and   fix   their
22    compensation.
23        (5)  To   adopt   and  operate  reasonable  bonus  plans,
24    profit-sharing plans, stock-bonus plans, stock-option  plans,
25    pension  plans and similar incentive plans for its directors,
26    officers and employees.
27        (5.1)  To manage, operate and administer a fund  for  the
28    investment of funds by a public agency or agencies, including
29    any  unit  of  local  government  or  school district, or any
30    person.  The fund for a public agency  shall  invest  in  the
31    same   type  of  investments  and  be  subject  to  the  same
32    limitations provided for the investment of public funds.  The
33    fund for public agencies shall  maintain  a  separate  ledger
34    showing  the  amount  of investment for each public agency in
 
HB4409 Enrolled            -3-                 LRB9212762BDdv
 1    the fund. "Public funds" and "public agency" as used in  this
 2    Section shall have the meanings ascribed to them in Section 1
 3    of the Public Funds Investment Act.
 4        (6)  To  make reasonable donations for the public welfare
 5    or  for  charitable,  scientific,  religious  or  educational
 6    purposes.
 7        (7)  To borrow or incur an obligation; and to pledge  its
 8    assets:
 9             (a)  to secure its borrowings, its lease of personal
10        or real property or its other nondeposit obligations;
11             (b)  to  enable  it  to act as agent for the sale of
12        obligations of the United States;
13             (c)  to secure  deposits  of  public  money  of  the
14        United  States,  whenever  required  by  the  laws of the
15        United  States,  including  without  being  limited   to,
16        revenues and funds the deposit of which is subject to the
17        control  or regulation of the United States or any of its
18        officers, agents, or employees and Postal Savings funds;
19             (d)  to secure deposits of public money of any state
20        or of any political corporation  or  subdivision  thereof
21        including,  without  being limited to, revenues and funds
22        the deposit  of  which  is  subject  to  the  control  or
23        regulation  of  any state or of any political corporation
24        or subdivisions thereof or  of  any  of  their  officers,
25        agents, or employees;
26             (e)  to  secure  deposits of money whenever required
27        by the National Bankruptcy Act;
28             (f)  (blank); and
29             (g)  to  secure  trust  funds  commingled  with  the
30        bank's  funds,  whether  deposited  by  the  bank  or  an
31        affiliate of the bank, pursuant to  Section  2-8  of  the
32        Corporate Fiduciary Act.
33        (8)  To  own, possess, and carry as assets all or part of
34    the real estate necessary in or with which to do its  banking
 
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 1    business, either directly or indirectly through the ownership
 2    of  all  or part of the capital stock, shares or interests in
 3    any corporation, association, trust engaged  in  holding  any
 4    part  or  parts  or all of the bank premises, engaged in such
 5    business and in conducting a safe  deposit  business  in  the
 6    premises or part of them, or engaged in any activity that the
 7    bank  is  permitted  to  conduct  in a subsidiary pursuant to
 8    paragraph (12) of this Section 5.
 9        (9)  To own, possess, and  carry  as  assets  other  real
10    estate  to which it may obtain title in the collection of its
11    debts or that was  formerly  used  as  a  part  of  the  bank
12    premises,  but  title  to  any  real  estate except as herein
13    permitted shall not be retained by the bank, either  directly
14    or  by  or  through  a subsidiary, as permitted by subsection
15    (12) of this Section for a total period of more than 10 years
16    after acquiring title, either directly or indirectly.
17        (10)  To do any act, including the acquisition of  stock,
18    necessary  to  obtain  insurance  of  its  deposits,  or part
19    thereof, and any act necessary to obtain a guaranty, in whole
20    or in part, of any of its loans or investments by the  United
21    States  or  any agency thereof, and any act necessary to sell
22    or otherwise dispose of any of its loans  or  investments  to
23    the  United  States or any agency thereof, and to acquire and
24    hold membership in the Federal Reserve System.
25        (11)  Notwithstanding any other provisions of this Act or
26    any other law, to do any act and to own, possess,  and  carry
27    as assets property of the character, including stock, that is
28    at  the  time authorized or permitted to national banks by an
29    Act of Congress, but subject always to the  same  limitations
30    and  restrictions  as are applicable to national banks by the
31    pertinent federal law and subject to applicable provisions of
32    the Financial Institutions Insurance Sales Law.
33        (12)  To own, possess, and carry as assets stock  of  one
34    or  more corporations that is, or are, engaged in one or more
 
HB4409 Enrolled            -5-                 LRB9212762BDdv
 1    of the following businesses:
 2             (a)  holding  title  to  and  administering   assets
 3        acquired  as a result of the collection or liquidating of
 4        loans, investments, or discounts; or
 5             (b)  holding title  to  and  administering  personal
 6        property  acquired  by  the  bank, directly or indirectly
 7        through a subsidiary,  for  the  purpose  of  leasing  to
 8        others,  provided  the lease or leases and the investment
 9        of the bank, directly or through a  subsidiary,  in  that
10        personal  property  otherwise comply with Section 35.1 of
11        this Act; or
12             (c)  carrying  on  or  administering  any   of   the
13        activities  excepting  the  receipt  of  deposits  or the
14        payment of checks or other  orders  for  the  payment  of
15        money  in  which  a  bank  may  engage in carrying on its
16        general banking business; provided, however, that nothing
17        contained in this paragraph (c) shall be deemed to permit
18        a bank organized under this Act or subject hereto to  do,
19        either directly or indirectly through any subsidiary, any
20        act,  including  the making of any loan or investment, or
21        to own, possess, or carry as assets any property that  if
22        done by or owned, possessed, or carried by the State bank
23        would  be  in violation of or prohibited by any provision
24        of this Act.
25        The provisions of this subsection (12) shall not apply to
26    and shall not be deemed to limit the powers of a  State  bank
27    with  respect  to  the ownership, possession, and carrying of
28    stock that a State bank is  permitted  to  own,  possess,  or
29    carry under this Act.
30        Any  bank  intending to establish a subsidiary under this
31    subsection (12) shall give written notice to the Commissioner
32    60 days prior to the subsidiary's commencing of business  or,
33    as the case may be, prior to acquiring stock in a corporation
34    that  has  already  commenced  business.  After receiving the
 
HB4409 Enrolled            -6-                 LRB9212762BDdv
 1    notice, the Commissioner may waive or reduce the  balance  of
 2    the  60  day notice period.  The Commissioner may specify the
 3    form of the notice and may promulgate rules  and  regulations
 4    to administer this subsection (12).
 5        (13)  To   accept  for  payment  at  a  future  date  not
 6    exceeding one year from the date of acceptance, drafts  drawn
 7    upon  it  by  its customers; and to issue, advise, or confirm
 8    letters of credit authorizing the  holders  thereof  to  draw
 9    drafts upon it or its correspondents.
10        (14)  To  own and lease personal property acquired by the
11    bank at the request of a  prospective  lessee  and  upon  the
12    agreement  of  that  person  to  lease  the personal property
13    provided that the lease, the agreement with respect  thereto,
14    and  the amount of the investment of the bank in the property
15    comply with Section 35.1 of this Act.
16        (15) (a)  To establish and maintain, in addition  to  the
17        main  banking  premises,  branches  offering  any banking
18        services permitted at the  main  banking  premises  of  a
19        State bank.
20             (b)  To  establish and maintain, after May 31, 1997,
21        branches in another state that may conduct  any  activity
22        in  that  state  that  is authorized or permitted for any
23        bank that has a banking charter  issued  by  that  state,
24        subject to the same limitations and restrictions that are
25        applicable to banks chartered by that state.
26        (16)  (Blank).
27        (17)  To  establish and maintain terminals, as authorized
28    by the Electronic Fund Transfer Act.
29        (18)  To establish and maintain temporary service  booths
30    at  any  International  Fair  held  in  this  State  which is
31    approved by the United States Department of Commerce, for the
32    duration of the international fair for the  sole  purpose  of
33    providing  a  convenient place for foreign trade customers at
34    the fair to exchange  their  home  countries'  currency  into
 
HB4409 Enrolled            -7-                 LRB9212762BDdv
 1    United  States currency or the converse. This power shall not
 2    be construed  as  establishing  a  new  place  or  change  of
 3    location for the bank providing the service booth.
 4        (19)  To  indemnify  its  officers, directors, employees,
 5    and agents, as authorized for corporations under Section 8.75
 6    of the Business Corporation Act of 1983.
 7        (20)  To own, possess, and carry as assets stock  of,  or
 8    be  or  become  a member of, any corporation, mutual company,
 9    association, trust, or other entity  formed  exclusively  for
10    the  purpose  of providing directors' and officers' liability
11    and bankers' blanket bond insurance or reinsurance to and for
12    the benefit of the stockholders, members,  or  beneficiaries,
13    or  their assets or businesses, or their officers, directors,
14    employees, or agents, and not to or for the  benefit  of  any
15    other person or entity or the public generally.
16        (21)  To  make debt or equity investments in corporations
17    or projects, whether for profit or not for  profit,  designed
18    to  promote the development of the community and its welfare,
19    provided that  the  aggregate  investment  in  all  of  these
20    corporations and in all of these projects does not exceed 10%
21    of  the unimpaired capital and unimpaired surplus of the bank
22    and  provided  that  this  limitation  shall  not  apply   to
23    creditworthy  loans  by  the  bank  to  those corporations or
24    projects.  Upon written application to  the  Commissioner,  a
25    bank  may make an investment that would, when aggregated with
26    all other such investments,  exceed  10%  of  the  unimpaired
27    capital  and unimpaired surplus of the bank. The Commissioner
28    may approve the investment if he is of the opinion and  finds
29    that the proposed investment will not have a material adverse
30    effect on the safety and soundness of the bank.
31        (22)  To own, possess, and carry as assets the stock of a
32    corporation engaged in the ownership or operation of a travel
33    agency  or  to  operate  a  travel  agency  as  a part of its
34    business.
 
HB4409 Enrolled            -8-                 LRB9212762BDdv
 1        (23)  With respect to affiliate facilities:
 2             (a)  to conduct at affiliate facilities for  and  on
 3        behalf  of  another commonly owned bank, if so authorized
 4        by the other bank, all transactions that the  other  bank
 5        is authorized or permitted to perform; and
 6             (b)  to  authorize  a commonly owned bank to conduct
 7        for and on behalf of it any of  the  transactions  it  is
 8        authorized  or  permitted  to  perform  at  one  or  more
 9        affiliate facilities.
10        Any  bank intending to conduct or to authorize a commonly
11    owned bank to conduct at an affiliate  facility  any  of  the
12    transactions  specified  in  this  paragraph  (23) shall give
13    written notice to the Commissioner at least  30  days  before
14    any such transaction is conducted at the affiliate facility.
15        (24)  To  act  as  the agent for any fire, life, or other
16    insurance company authorized by the  State  of  Illinois,  by
17    soliciting  and  selling insurance and collecting premiums on
18    policies issued by such company; and to receive for  services
19    so  rendered  such  fees or commissions as may be agreed upon
20    between the bank and the insurance company for which  it  may
21    act  as  agent; provided, however, that no such bank shall in
22    any case assume or guarantee the payment of  any  premium  on
23    insurance   policies   issued   through  its  agency  by  its
24    principal; and provided further,  that  the  bank  shall  not
25    guarantee  the  truth  of any statement made by an assured in
26    filing his application for insurance.
27        (25)  Notwithstanding any other provisions of this Act or
28    any other law, to offer any product or service that is at the
29    time  authorized  or  permitted  to   any   insured   savings
30    association  or out-of-state bank by applicable law, provided
31    that powers conferred only by this subsection (25):
32             (a)  shall always be subject to the same limitations
33        and restrictions  that  are  applicable  to  the  insured
34        savings  association or out-of-state bank for the product
 
HB4409 Enrolled            -9-                 LRB9212762BDdv
 1        or service by such applicable law;
 2             (b)  shall be subject to  applicable  provisions  of
 3        the Financial Institutions Insurance Sales Law;
 4             (c)  shall not include the right to own or conduct a
 5        real  estate brokerage business for which a license would
 6        be required under the laws of this State; and
 7             (d)  shall  not  be   construed   to   include   the
 8        establishment  or maintenance of a branch, nor shall they
 9        be construed to limit the establishment or maintenance of
10        a branch pursuant to subsection (11).
11        Not less than 30 days before  engaging  in  any  activity
12    under  the authority of this subsection, a bank shall provide
13    written notice to the Commissioner of its intent to engage in
14    the activity.  The notice shall indicate the specific federal
15    or state law, rule, regulation, or  interpretation  the  bank
16    intends to use as authority to engage in the activity.
17    (Source: P.A.  91-330,  eff.  7-29-99;  91-849, eff. 6-22-00;
18    92-483, eff. 8-23-01.)

19        (205 ILCS 5/18) (from Ch. 17, par. 325)
20        Sec. 18.  Change in control.
21        (a)  Before a  change  may  occur  in  the  ownership  of
22    outstanding  stock  of  any  State  bank, whether by sale and
23    purchase, gift, bequest or inheritance, or any  other  means,
24    including  the  acquisition of stock of the State bank by any
25    bank holding company,  which will  result  in  control  or  a
26    change  in  the control of the bank or before a change in the
27    control  of  a  holding  company  having   control   of   the
28    outstanding  stock  of  a  State  bank  whether  by  sale and
29    purchase, gift, bequest or inheritance, or any  other  means,
30    including the acquisition of stock of such holding company by
31    any  other bank holding company, which will result in control
32    or a change in control of the bank  or  holding  company,  or
33    before   a  transfer  of  substantially  all  the  assets  or
 
HB4409 Enrolled            -10-                LRB9212762BDdv
 1    liabilities of the State bank, the Commissioner shall  be  of
 2    the opinion and find:
 3             (1)  that   the   general   character   of  proposed
 4        management  or  of  the  person  desiring   to   purchase
 5        substantially  all  the assets or to assume substantially
 6        all the liabilities of the State bank, after  the  change
 7        in  control,  is  such as to assure reasonable promise of
 8        successful, safe and sound operation;
 9             (1.1)  that  depositors'  interests  will   not   be
10        jeopardized  by  the  purchase  or  assumption  and  that
11        adequate  provision  has been made for all liabilities as
12        required for a voluntary liquidation under Section 68  of
13        this Act;
14             (2)  that  the  future  earnings  prospects  of  the
15        person  desiring  to purchase substantially all assets or
16        to assume substantially all the liabilities of the  State
17        bank,   after   the   proposed  change  in  control,  are
18        favorable;
19             (3)  that  any  prior  involvement  by  the  persons
20        proposing to obtain control,  to  purchase  substantially
21        all  the  assets,  or  to  assume  substantially  all the
22        liabilities  of  the  State  bank  or  by  the   proposed
23        management    personnel    with   any   other   financial
24        institution, whether as stockholder, director, officer or
25        customer, was conducted in a safe and sound manner; and
26             (4)  that if the acquisition is being made by a bank
27        holding company, the acquisition is authorized under  the
28        Illinois Bank Holding Company Act of 1957.
29        (b)  Persons  desiring to purchase control of an existing
30    state bank, to purchase substantially all the assets,  or  to
31    assume  substantially  all  the liabilities of the State bank
32    shall, prior to that purchase, submit to the Commissioner:
33             (1)  a statement of financial worth;
34             (2)  satisfactory   evidence    that    any    prior
 
HB4409 Enrolled            -11-                LRB9212762BDdv
 1        involvement  by  the  persons and the proposed management
 2        personnel with any other financial  institution,  whether
 3        as   stockholder,  director,  officer  or  customer,  was
 4        conducted in a safe and sound manner; and
 5             (3)  such  other   relevant   information   as   the
 6        Commissioner  may  request  to  substantiate the findings
 7        under subsection (a) of this Section.
 8        A  person  who   has   submitted   information   to   the
 9    Commissioner  pursuant  to  this  subsection  (b)  is under a
10    continuing obligation until the Commissioner takes action  on
11    the application to immediately supplement that information if
12    there  are any material changes in the information previously
13    furnished or  if  there  are  any  material  changes  in  any
14    circumstances  that may affect the Commissioner's opinion and
15    findings.  In addition, a person submitting information under
16    this subsection shall notify the  Commissioner  of  the  date
17    when the change in control is finally effected.
18        The  Commissioner may impose such terms and conditions on
19    the approval of the change in control application as he deems
20    necessary or appropriate.
21        If an  applicant,  whose  application  for  a  change  in
22    control  has been approved pursuant to subsection (a) of this
23    Section, fails to effect the change  in  control  within  180
24    days  after  the  date  of  the  Commissioner's approval, the
25    Commissioner shall revoke that approval unless a request  has
26    been  submitted,  in  writing,  to  the  Commissioner  for an
27    extension and the request has been approved.
28        (b-1)  Any person who obtains ownership of  stock  of  an
29    existing  State  bank  or  stock  of  a  holding company that
30    controls the State bank by gift, bequest, or inheritance such
31    that ownership of the stock would constitute control  of  the
32    State  bank or holding company may obtain title and ownership
33    of the stock, but may not exercise management or  control  of
34    the  business  and  affairs  of  the  bank or vote his or her
 
HB4409 Enrolled            -12-                LRB9212762BDdv
 1    shares so as to exercise management  or  control  unless  and
 2    until the Commissioner approves an application for the change
 3    of control as provided in subsection (b) of this Section.
 4        (c)  Whenever  a  state  bank  makes  a  loan  or  loans,
 5    secured,  or to be secured, by 25% or more of the outstanding
 6    stock of a state bank, the president or other chief executive
 7    officer of the lending bank shall promptly report  such  fact
 8    to  the Commissioner upon obtaining knowledge of such loan or
 9    loans, except that no report need  be  made  in  those  cases
10    where  the borrower has been the owner of record of the stock
11    for a period of one year or more, or the stock is that  of  a
12    newly organized bank prior to its opening.
13        (d)  The  reports  required by subsections (b) and (c) of
14    this Section 18, other than those relating to a  transfer  of
15    assets  or  assumption  of  liabilities,  shall  contain  the
16    following  information  to the extent that it is known by the
17    person making the report: (1) the number of shares  involved;
18    (2)  the names of the sellers (or transferors); (3) the names
19    of the purchasers (or transferees);  (4)  the  names  of  the
20    beneficial  owners  if  the  shares are registered in another
21    name: (5) the purchase price, if applicable;  (6)  the  total
22    number  of  shares owned by the sellers (or transferors), the
23    purchasers (or transferees) and the  beneficial  owners  both
24    immediately before and after the transaction; and, (7) in the
25    case  of  a loan, the name of the borrower, the amount of the
26    loan, the name of the bank issuing  the  stock  securing  the
27    loan and the number of shares securing the loan.  In addition
28    to  the  foregoing,  such  reports  shall  contain such other
29    information which is requested by the Commissioner to  inform
30    the  Commissioner  of  the  effect  of  the  transaction upon
31    control of the bank whose stock is involved.
32        (d-1)  The reports required by  subsection  (b)  of  this
33    Section  18  that relate to purchase of assets and assumption
34    of liabilities shall contain the following information to the
 
HB4409 Enrolled            -13-                LRB9212762BDdv
 1    extent that it is known by the person making the report:  (1)
 2    the value, amount, and description of the assets transferred;
 3    (2) the amount, type, and to whom each  type  of  liabilities
 4    are  owed;  (3) the names of the purchasers (or transferees);
 5    (4) the names of the beneficial owners if  the  shares  of  a
 6    purchaser  or  transferee are registered in another name; (5)
 7    the purchase price, if applicable; and, (6) in the case of  a
 8    loan obtained to effect a purchase, the name of the borrower,
 9    the  amount and terms of the loan, and the description of the
10    assets securing the loan.   In  addition  to  the  foregoing,
11    these  reports  shall  contain  any other information that is
12    requested by the Commissioner to inform the  Commissioner  of
13    the effect of the transaction upon the bank from which assets
14    are purchased or liabilities are transferred.
15        (e)  Whenever  such  a  change as described in subsection
16    (a) of this Section 18 occurs, each state bank  shall  report
17    promptly  to  the  Commissioner any changes or replacement of
18    its chief executive officer or of any director  occurring  in
19    the next 12 month period, including in its report a statement
20    of   the   past   and   current   business  and  professional
21    affiliations of the new chief executive officer or directors.
22        (f)  (Blank).
23        (g) (1)  Except as otherwise expressly provided  in  this
24        subsection  (g),  the  Commissioners shall not approve an
25        application for a change in control if upon  consummation
26        of  the  change  in  control the persons applying for the
27        change  in  control,  including  any  affiliates  of  the
28        persons applying, would control 30% or more of the  total
29        amount  of  deposits  which  are located in this State at
30        insured depository institutions.  For  purposes  of  this
31        subsection    (g),    the   words   "insured   depository
32        institution" shall mean State banks, national banks,  and
33        insured   savings  associations.  For  purposes  of  this
34        subsection  (g),  the  word  "deposits"  shall  have  the
 
HB4409 Enrolled            -14-                LRB9212762BDdv
 1        meaning ascribed to that word  in  Section  3(1)  of  the
 2        Federal  Deposit  Insurance  Act.  For  purposes  of this
 3        subsection (g), the total amount of  deposits  which  are
 4        considered  to  be  located  in  this  State  at  insured
 5        depository  institutions  shall  equal  the  sum  of  all
 6        deposits  held  at the main banking premises and branches
 7        in the State of Illinois of State banks, national  banks,
 8        or  insured  savings  associations.  For purposes of this
 9        subsection (g), the  word  "affiliates"  shall  have  the
10        meaning  ascribed  to  that  word in Section 35.2 of this
11        Act.
12             (2)  Notwithstanding the  provisions  of  subsection
13        (g)(1)  of  this Section, the Commissioner may approve an
14        application for a change in control for a bank that is in
15        default  or  in  danger  of  default.  Except  in   those
16        instances in which an application for a change in control
17        is for a bank that is in default or in danger of default,
18        the  Commissioner  may  not  approve  a change in control
19        which does not meet the requirements of subsection (g)(1)
20        of this Section.  The  Commissioner  may  not  waive  the
21        provisions  of subsection (g)(1) of this Section, whether
22        pursuant to Section 3(d)  of  the  federal  Bank  Holding
23        Company  Act  of  1956  or  Section  44(d) of the Federal
24        Deposit Insurance Act, except as  expressly  provided  in
25        this subsection (g)(2).
26        (h)  As  used  in  this Section, the term "control" means
27    the power, directly or indirectly, to direct  the  management
28    or  policies  of  the  bank  or  to  vote  25% or more of the
29    outstanding stock of the bank. the  ownership  of such amount
30    of stock or ability to direct the voting of such stock as to,
31    directly or indirectly, give  power to direct  or  cause  the
32    direction  of  the  management  or  policies  of the bank.  A
33    change in ownership of  stock that would result in direct  or
34    indirect  ownership  by a stockholder, an affiliated group of
 
HB4409 Enrolled            -15-                LRB9212762BDdv
 1    stockholders, or a holding company of  less  than  10% of the
 2    outstanding  stock  shall  not  be  considered  a  change  in
 3    control.  A change in ownership of stock that would result in
 4    direct or indirect ownership by a stockholder, an  affiliated
 5    group  of  stockholders,  or a holding company of 20% or such
 6    lesser amount that would entitle   the   holder  by  applying
 7    cumulative  voting to elect one director shall be presumed to
 8    constitute a change of control for purposes of  this  Section
 9    18.   If  there is any question as to whether a change in the
10    ownership or control of the outstanding stock  is  sufficient
11    to result in obtaining  control thereof or to effect a change
12    in  the  control  application  should  be  filed thereof, the
13    question shall be resolved in favor of filing the application
14    with reporting the facts to the Commissioner.
15        As used in this Section, "substantially all"  the  assets
16    or  liabilities  of  a  State  bank means that portion of the
17    assets or  liabilities  of  a  State  bank  such  that  their
18    purchase  or  transfer  will materially impair the ability of
19    the State  bank  to  continue  successful,  safe,  and  sound
20    operations  or  to continue as a going concern or would cause
21    the bank to lose its federal deposit insurance.
22        As used in this Section, "purchase" includes  a  transfer
23    by gift, bequest, inheritance, or any other means.
24    (Source: P.A. 92-483, eff. 8-23-01.)

25        (205 ILCS 5/46) (from Ch. 17, par. 357)
26        Sec.  46.  Misleading  practices  and  names  prohibited;
27    penalty.
28        (a)  No person, firm, partnership, or corporation that is
29    not  a bank shall transact business in this State in a manner
30    which has a substantial likelihood of misleading  the  public
31    by  implying  that  the  business is a bank, or shall use the
32    word "bank", "banker", or "banking" in  connection  with  the
33    business.   Any  person,  firm,  partnership  or  corporation
 
HB4409 Enrolled            -16-                LRB9212762BDdv
 1    violating this Section shall be deemed guilty of  a  Class  A
 2    misdemeanor,  and the Attorney General or State's Attorney of
 3    the county in which any such violation  occurs  may  restrain
 4    such violation by a complaint for injunctive relief.
 5        (b)  If the Commissioner is of the opinion and finds that
 6    a  person,  firm,  partnership,  or corporation that is not a
 7    bank has transacted or intends to transact business  in  this
 8    State  in  a  manner  which  has  a substantial likelihood of
 9    misleading the public by implying  that  the  business  is  a
10    bank,  or  has  used  or  intends  to  use  the  word "bank",
11    "banker", or "banking" in connection with the business,  then
12    the  Commissioner  may direct that person, firm, partnership,
13    or corporation to  cease  and  desist  from  transacting  the
14    business  or  using  the word "bank", "banker", or "banking".
15    If that person, firm, partnership, or corporation persists in
16    transacting the business or using the word "bank",  "banker",
17    or  "banking",  then  the  Commissioner  may  impose  a civil
18    penalty of up to $10,000 for each violation.  Each  day  that
19    the  person,  firm,  partnership,  or  corporation  continues
20    transacting  the business or using the word "bank", "banker",
21    or "banking" in connection with the business shall constitute
22    a separate violation of these provisions.
23        (c)  A person, firm, partnership, or corporation that  is
24    not  a  bank, and is not transacting or intending to transact
25    business in this State in a manner  that  has  a  substantial
26    likelihood  of  misleading  the  public by implying that such
27    business is  a  bank,  may  apply  to  the  Commissioner  for
28    permission  to use the word "bank", "banker", or "banking" in
29    connection with the business.  If the Commissioner determines
30    that there is no substantial  likelihood  of  misleading  the
31    public,  and  upon  such  conditions  as the Commissioner may
32    impose  to  prevent  the  person,   firm,   partnership,   or
33    corporation  from  holding itself out in a misleading manner,
34    then such person, firm, partnership, or corporation  may  use
 
HB4409 Enrolled            -17-                LRB9212762BDdv
 1    the word "bank", "banker", or "banking".
 2             (d) (1)  Unless  otherwise  expressly  permitted  by
 3        law, no person, firm, partnership, or corporation may use
 4        the  name  of  an  existing  bank,  or a name deceptively
 5        similar to that of an existing bank, when marketing to or
 6        soliciting  business  from   customers   or   prospective
 7        customers  if  the reference to the existing bank is made
 8        (i) without the consent of the existing bank and (ii)  in
 9        a  manner that could cause a reasonable person to believe
10        that the marketing material  or  solicitation  originated
11        from  or  is  endorsed  by  the existing bank or that the
12        existing bank is in any other  way  responsible  for  the
13        marketing material or solicitation.
14             (1.5)  Unless  otherwise expressly permitted by law,
15        no person, firm, partnership, or corporation  may  use  a
16        name  similar  to that of an existing bank when marketing
17        to or soliciting business from customers  or  prospective
18        customers  if  the  similar name is used in a manner that
19        could cause a  reasonable  person  to  believe  that  the
20        marketing  material or solicitation originated from or is
21        endorsed by the existing bank or that the  existing  bank
22        is  in  any  other  way  responsible  for  the  marketing
23        material or solicitation.
24             (2)  An  existing bank may, in addition to any other
25        remedies available  under  the  law,  report  an  alleged
26        violation of this subsection (d) to the Commissioner.  If
27        the   Commissioner   finds   the  marketing  material  or
28        solicitation in question  to  be  in  violation  of  this
29        subsection, the Commissioner may direct the person, firm,
30        partnership,  or  corporation  to  cease  and desist from
31        using  that  marketing  material   or   solicitation   in
32        Illinois.    If   that   person,  firm,  partnership,  or
33        corporation persists in the use of the marketing material
34        or solicitation, then the Commissioner may impose a civil
 
HB4409 Enrolled            -18-                LRB9212762BDdv
 1        penalty of  up  to  $10,000  for  each  violation.   Each
 2        instance  in which the marketing material or solicitation
 3        is sent to  a  customer  or  prospective  customer  shall
 4        constitute a separate violation of these provisions.  The
 5        Commissioner   is   authorized  to  promulgate  rules  to
 6        administer these provisions.
 7             (3)  (Blank) Nothing   in   this   subsection    (d)
 8        prohibits  the  use  of  or  reference  to the name of an
 9        existing bank in marketing  materials  or  solicitations,
10        provided  that  the use or reference would not deceive or
11        confuse  a  reasonable  person  regarding   whether   the
12        marketing material or solicitation originated from or was
13        endorsed  by  the  existing  bank or whether the existing
14        bank was in any other way responsible for  the  marketing
15        material or solicitation.  The Commissioner is authorized
16        to promulgate rules to administer these provisions.
17    (Source: P.A. 92-476, eff. 8-23-01.)

18        (205 ILCS 5/48.4)
19        Sec.  48.4.   Administrative  liens  for  past-due  child
20    support.   Any  bank  governed  by this Act shall encumber or
21    surrender accounts or assets held by the bank  on  behalf  of
22    any  responsible  relative  who is subject to a child support
23    lien, upon notice  of  the  lien  or  levy  of  the  Illinois
24    Department  of Public Aid or its successor agency pursuant to
25    Section 10-25.5 of the Illinois  Public  Aid  Code,  or  upon
26    notice  of  interstate  lien  or  levy from any other state's
27    agency  responsible  for  implementing  the   child   support
28    enforcement  program  set  forth  in  Title IV, Part D of the
29    Social Security Act.
30    (Source: P.A. 90-18, eff. 7-1-97; 90-655, eff. 7-30-98.)

31        Section 15.  The Illinois Savings and Loan Act of 1985 is
32    amended by changing Section 1-6d as follows:
 
HB4409 Enrolled            -19-                LRB9212762BDdv
 1        (205 ILCS 105/1-6d)
 2        Sec.  1-6d.   Administrative  liens  for  past-due  child
 3    support.  Any association governed by this Act shall encumber
 4    or surrender accounts or assets held by  the  association  on
 5    behalf  of any responsible relative who is subject to a child
 6    support lien, upon notice of the lien or levy of the Illinois
 7    Department of Public Aid or its successor agency pursuant  to
 8    Section  10-25.5  of  the  Illinois  Public Aid Code, or upon
 9    notice of interstate lien or  levy  from  any  other  state's
10    agency   responsible   for  implementing  the  child  support
11    enforcement program set forth in Title  IV,  Part  D  of  the
12    Social Security Act.
13    (Source: P.A. 90-18, eff. 7-1-97.)

14        Section  20.  The Savings Bank Act is amended by changing
15    Sections 7007 and 8015 as follows:

16        (205 ILCS 205/7007)
17        Sec.  7007.   Administrative  liens  for  past-due  child
18    support.   Any  savings  bank  governed  by  this  Act  shall
19    encumber or surrender accounts or assets held by the  savings
20    bank  on behalf of any responsible relative who is subject to
21    a child support lien, upon notice of the lien or levy of  the
22    Illinois  Department  of  Public  Aid or its successor agency
23    pursuant to Section 10-25.5 of the Illinois Public Aid  Code,
24    or  upon  notice  of  interstate  lien or levy from any other
25    state's agency responsible for implementing the child support
26    enforcement program set forth in Title  IV,  Part  D  of  the
27    Social Security Act.
28    (Source: P.A. 90-18, eff. 7-1-97.)

29        (205 ILCS 205/8015) (from Ch. 17, par. 7308-15)
30        Sec. 8015.  Change in control.
31        (a)  Any person, whether acting directly or indirectly or
 
HB4409 Enrolled            -20-                LRB9212762BDdv
 1    through  or  in  concert with one or more persons, shall give
 2    the Commissioner 60 days written notice of intent to  acquire
 3    control of a savings bank or savings bank affiliate operating
 4    under  this  Act.  The Commissioner shall promulgate rules to
 5    implement this provision including definitions,  application,
 6    procedures, standards for approval or disapproval.
 7        (b)  The  Commissioner  may examine the books and records
 8    of any person giving notice of intent to acquire control of a
 9    savings bank operating under this Act.
10        (c)  The  Commissioner  may  approve  or  disapprove   an
11    application  for  change  of  control.   In  either case, the
12    decision must be issued within 30 days of the filing  of  the
13    initial  application or the date of receipt of any additional
14    information requested by the Commissioner that  is  necessary
15    for  his  decision  to  be  made.  The request for additional
16    information must be made within 20 days of the filing of  the
17    initial application.
18    (Source: P.A. 92-483, eff. 8-23-01.)

19        Section  25.  The Consumer Deposit Account Act is amended
20    by adding Section 3.5 as follows:

21        (205 ILCS 605/3.5 new)
22        Sec.  3.5.  Notification  to  consumer   of   invalidated
23    routing   number.   At  least  30  days  before  a  financial
24    institution  invalidates  a  routing  number  on  a  consumer
25    deposit account, whether as a result of  a  merger,  purchase
26    and  acquisition, or other transaction, the institution shall
27    send a notice  to  each  affected  consumer  deposit  account
28    holder advising the holder of the invalidation and the effect
29    it  will  have on the account.  The notice shall include, but
30    shall not be limited to, the following information: the  date
31    on  which  the  routing  number  will no longer be effective;
32    procedures  necessary  to  ensure   that   electronic   funds
 
HB4409 Enrolled            -21-                LRB9212762BDdv
 1    transfers,   including   direct   deposits,   are   processed
 2    correctly;  and  information  on  ordering  new checks, debit
 3    cards, and similar items.

 4        Section 30.  The Electronic Fund Transfer Act is  amended
 5    by changing Sections 20 and 45 as follows:

 6        (205 ILCS 616/20)
 7        Sec.   20.   Powers  and  duties  of  Commissioner.   The
 8    Commissioner shall have the following powers and duties:
 9        (1)  to promulgate reasonable rules  in  accordance  with
10    the   Illinois   Administrative   Procedure   Act   for   the
11    administration of this Act;
12        (2)  to  issue orders for the enforcement of this Act and
13    any rule promulgated under this Act;
14        (3)  to  appoint  hearing  officers  or  arbitrators   to
15    exercise any delegated powers;
16        (4)  to  subpoena  witnesses,  compel  their  attendance,
17    administer  oaths, examine any person under oath, and require
18    the production of any relevant books, papers,  accounts,  and
19    documents  in the course of and pursuant to any investigation
20    conducted or action taken by the Commissioner; and
21        (5)  to conduct hearings.; and
22        (6)  to arbitrate disputes as provided in subsection  (c)
23    of Section 45 of this Act.
24    (Source: P.A. 89-310, eff. 1-1-96.)

25        (205 ILCS 616/45)
26        Sec. 45.  Nondiscriminatory access.
27        (a)  Subject to the provisions of Section 35 of this Act,
28    use  of  a terminal through access to a switch and use of any
29    switch shall be available on a nondiscriminatory basis to any
30    switch or financial institution that has its principal  place
31    of  business  within this State.  The terms and conditions of
 
HB4409 Enrolled            -22-                LRB9212762BDdv
 1    use shall be governed by  a  written  agreement  between  the
 2    network   and  the  financial  institution  or  other  switch
 3    obtaining the use.  The written agreement shall  specify  all
 4    of  the  terms  and conditions under which the network may be
 5    utilized, including commercially reasonable fees and charges.
 6    In  case  of  a  dispute  under  the  terms  of  the  written
 7    agreement, the parties shall be  deemed  to  have  agreed  to
 8    accept  the  Commissioner  as  final  arbitrator  unless  the
 9    aggrieved party seeks court action.
10        (b)  The  use  and operation of each terminal served by a
11    switch shall be governed by a written agreement  between  the
12    network  and  the  person  establishing  the  terminal.   The
13    written  agreement shall specify all the terms and conditions
14    under which the network provides  service  to  the  terminal,
15    including  commercially reasonable fees and charges.  In case
16    of a dispute under the terms of the  written  agreement,  the
17    parties  shall  be  deemed  to  have  agreed  to  accept  the
18    Commissioner  as  final arbitrator unless the aggrieved party
19    seeks court action.
20        (c)  (Blank). The Commissioner shall have  the  power  to
21    arbitrate disputes arising under (1) contracts, in accordance
22    with  the  terms  of  those  contracts,  governing  the  use,
23    operation,  and access to switches and terminals, and (2) the
24    use, operation, and access to switches  and  terminals.   Any
25    decision   by   the   Commissioner  in  connection  with  any
26    arbitration shall be determined only after an opportunity for
27    a hearing and shall be subject to judicial review pursuant to
28    the provisions of the Administrative Review Law and the rules
29    adopted pursuant to that Law. Anything  to  the  contrary  in
30    this  Act  notwithstanding,  any right of arbitration granted
31    under this Act is subject to the right  of  either  party  to
32    seek court action.
33    (Source: P.A. 89-310, eff. 1-1-96.)
 
HB4409 Enrolled            -23-                LRB9212762BDdv
 1        Section  35.  The  Corporate  Fiduciary Act is amended by
 2    changing Sections 3-2, 4A-15, and 5-2 as follows:

 3        (205 ILCS 620/3-2) (from Ch. 17, par. 1553-2)
 4        Sec. 3-2.  Change in control.
 5        (a)  Before a  change  may  occur  in  the  ownership  of
 6    outstanding  stock  or  membership  interests  of  any  trust
 7    company  whether  by  sale  and  purchase,  gift,  bequest or
 8    inheritance, or any other means, which will result in control
 9    or a change in the control of the trust company or  before  a
10    change  in the control of a holding company having control of
11    the outstanding stock or  membership  interests  of  a  trust
12    company  whether  by  sale  and  purchase,  gift,  bequest or
13    inheritance, or any other means, which will result in control
14    or a change in  control  of  the  trust  company  or  holding
15    company, the Commissioner shall be of the opinion and find:
16             (1)  that  the  general  character  of  its proposed
17        management, after the change in control, is  such  as  to
18        assure  reasonable promise of competent, successful, safe
19        and sound operation;
20             (2)  that the future earnings prospects,  after  the
21        proposed change in control, are favorable; and
22             (3)  that  the prior business affairs of the persons
23        proposing to obtain control or by the proposed management
24        personnel,  whether  as  stockholder,  director,  member,
25        officer, or customer, were conducted in  a  safe,  sound,
26        and lawful manner.
27        (b)  Persons  desiring to purchase control of an existing
28    trust company and persons obtaining control by gift,  bequest
29    or  inheritance,  or  any  other  means  shall  submit to the
30    Commissioner:
31             (1)  a statement of financial worth; and
32             (2)  satisfactory evidence that the  prior  business
33        affairs  of  the  persons  and  the  proposed  management
 
HB4409 Enrolled            -24-                LRB9212762BDdv
 1        personnel,  whether as stockholder, director, officer, or
 2        customer, were conducted in a  safe,  sound,  and  lawful
 3        manner.
 4        (c)  Whenever  a  bank makes a loan or loans, secured, or
 5    to be secured, by 25% or more of the outstanding stock  of  a
 6    trust company, the president or other chief executive officer
 7    of  the  lending  bank shall promptly report such fact to the
 8    Commissioner upon obtaining knowledge of such loan or  loans,
 9    except  that  no report need be made in those cases where the
10    borrower has been the owner of record  of  the  stock  for  a
11    period  of  one  year  or  more,  or  the  stock is that of a
12    newly-organized trust company prior to its opening.
13        (d) (1)  Before  a  purchase  of  substantially  all  the
14    assets and an assumption of substantially all the liabilities
15    of a trust company or before a purchase of substantially  all
16    the  trust  assets and an assumption of substantially all the
17    trust liabilities of a trust company, the Commissioner  shall
18    be of the opinion and find:
19             (i)  that  the  general  character of the acquirer's
20        proposed management, after the transfer, is  such  as  to
21        assure reasonable promise of competent, successful, safe,
22        and sound operation;
23             (ii)  that the acquirer's future earnings prospects,
24        after the proposed transfer, are favorable;
25             (iii)  that any prior involvement by the acquirer or
26        by   the   proposed   management  personnel,  whether  as
27        stockholder, director, officer, agent, or  customer,  was
28        conducted in a safe, sound, and lawful manner;
29             (iv)  that   customers'   interests   will   not  be
30        jeopardized by the purchase and assumption; and
31             (v)  that adequate provision has been made  for  all
32        obligations  and  trusts as required under Section 7-1 of
33        this Act.
34        (2)  Persons desiring to purchase substantially  all  the
 
HB4409 Enrolled            -25-                LRB9212762BDdv
 1    assets  and  assume  substantially  all  the liabilities of a
 2    trust company or to  purchase  substantially  all  the  trust
 3    assets  and assume substantially all the trust liabilities of
 4    a trust company shall submit to the Commissioner:
 5             (i)  a statement of financial worth; and
 6             (ii)  satisfactory evidence that the prior  business
 7        affairs  of  the  persons  and  the  proposed  management
 8        personnel,  whether as stockholder, director, officer, or
 9        customer, were conducted in a  safe,  sound,  and  lawful
10        manner.
11        (e)  The  reports  required  by subsections (a),(b), (c),
12    and (d) of this  Section  3-2  shall  contain  the  following
13    information  to  the  extent  that  it is known by the person
14    making the report: (1) the number of shares involved; (2) the
15    names of the sellers (or transferors); (3) the names  of  the
16    purchasers  (or transferees); (4) the names of the beneficial
17    owners if the shares are registered in another name; (5)  the
18    purchase  price;  (6) the total number of shares owned by the
19    sellers (or transferors), the purchasers (or transferees) and
20    the beneficial owners both immediately before and  after  the
21    transaction;  and, (7) in the case of a loan, the name of the
22    borrower, the amount of the loan, and the name of  the  trust
23    company issuing the stock securing the loan and the number of
24    shares securing the loan.  In addition to the foregoing, such
25    reports  shall  contain  such  other  information  as  may be
26    available and which  is  requested  by  the  Commissioner  to
27    inform the Commissioner of the effect of the transaction upon
28    the  trust  company  or trust companies whose stock or assets
29    and liabilities are involved.
30        (f)  Whenever such a change as  described  in  subsection
31    (a)  of  this  Section  3-2  occurs, each trust company shall
32    report  promptly  to  the   Commissioner   any   changes   or
33    replacement of its chief executive officer or of any director
34    occurring  in  the  next  12  month  period, including in its
 
HB4409 Enrolled            -26-                LRB9212762BDdv
 1    report a statement of  the  past  and  current  business  and
 2    professional  affiliations of the new chief executive officer
 3    or directors.
 4        (g)  The provisions of this Section do not apply when the
 5    change  in  control   is   the   result   of   organizational
 6    restructuring under a holding company.
 7        (h)  As   used  in this Section, the term "control" means
 8    the power, directly or indirectly, to direct  the  management
 9    or  policies  of  the trust company or to vote 25% or more of
10    the outstanding stock of the trust company. ownership of such
11    amount of stock or membership interests or ability to  direct
12    the  voting  of  such stock or  membership  interests  as to,
13    directly or indirectly, give power to  direct  or  cause  the
14    direction  of  the   management  or   policies  of  the trust
15    company.  A change in ownership of stock that would result in
16    direct or indirect ownership by a stockholder or  member,  an
17    affiliated  group  of  stockholders  or members, or a holding
18    company  of  less  than  10%  of  the  outstanding  stock  or
19    membership  interests  shall not be  considered  a  change of
20    control.  A  change  in  ownership  of  stock  or  membership
21    interests  that would result in direct or indirect  ownership
22    by  a  stockholder  or  member,  an   affiliated   group   of
23    stockholders  or members, or a holding company of 20% or such
24    lesser amount which would  entitle  the  holder  by  applying
25    cumulative  voting to elect one director shall be presumed to
26    constitute a change of control for purposes of this  Section.
27    If  there  is  any  question  as  to  whether a change in the
28    ownership or control of the outstanding stock  or  membership
29    interests  is  sufficient  to  result  in  obtaining  control
30    thereof  or  to  effect  a  change in the control application
31    should be filed thereof, the question shall  be  resolved  in
32    favor  of  filing the application with reporting the facts to
33    the Commissioner.
34        As  used  in   this   Section,  "substantially  all"  the
 
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 1    assets   or   liabilities   or  the  trust  assets  or  trust
 2    liabilities of a trust company means that portion  such  that
 3    their  transfer  will  materially  impair  the ability of the
 4    trust   company  to  continue  successful,  safe,  and  sound
 5    operations or to continue as a going concern.
 6    (Source: P.A. 92-483, eff. 8-23-01.)

 7        (205 ILCS 620/4A-15)
 8        Sec.   4A-15.  Representative    offices.    A    foreign
 9    corporation not conducting fiduciary activities may establish
10    a representative office under the Foreign Bank Representative
11    Office  Act.   At  these offices, the foreign corporation may
12    market and solicit fiduciary services and provide  back  bank
13    office    and   administrative   support   to   the   foreign
14    corporation's fiduciary activities, but it may not engage  in
15    fiduciary activities.
16    (Source: P.A. 92-483, eff. 8-23-01.)

17        (205 ILCS 620/5-2) (from Ch. 17, par. 1555-2)
18        Sec. 5-2.  Examinations of corporate fiduciaries.
19        (a)  The  Commissioner, no less frequently than 18 months
20    following the preceding  examination,  and  whenever  in  his
21    judgment  it is necessary or expedient,  either personally or
22    by one or more competent  persons  appointed  by  him,  shall
23    visit and examine every corporate fiduciary in this State and
24    may,  to  the  extent  the Commissioner determines necessary,
25    examine   the   affairs   of   the   corporate    fiduciary's
26    subsidiaries,  affiliates,  parent  companies and contractual
27    service providers for fiduciary  services  of  the  corporate
28    fiduciary  as  shall  be  necessary  to  fully  disclose  the
29    condition  of such subsidiaries, affiliates, parent companies
30    and contractual service providers and  the  relation  between
31    the  corporate  fiduciary  and such subsidiaries, affiliates,
32    parent companies and contractual service  providers  and  the
 
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 1    effect  of  such relations upon the affairs of such corporate
 2    fiduciary.   Instead   of   the   Commissioner   making   the
 3    examination  provided  by  this  subsection  or  appointing a
 4    competent person to do so, the Commissioner may accept on  an
 5    alternating  basis  the  examination  made  by  the corporate
 6    fiduciary's appropriate federal regulatory  agency,  provided
 7    the  appropriate  federal  regulatory agency has made such an
 8    examination.  Fiduciary services shall include,  but  not  be
 9    limited  to,  clerical, accounting, bookkeeping, statistical,
10    data processing,  safekeeping  or  similar  functions  for  a
11    corporate fiduciary.
12        (b)  The   Commissioner   and  every  such  examiner  may
13    administer an oath to any person whose testimony is  required
14    on  any  such  examination,  and  compel  the  appearance and
15    attendance of any such person for the purpose of examination,
16    by  summons,  subpoena  or  attachment,  in  the  manner  now
17    authorized  in  respect  to  the  attendance  of  persons  as
18    witnesses in the circuit court;  and  all  books  and  papers
19    which  are  necessary  to  be examined by the Commissioner or
20    examiner so appointed shall be produced, and their production
21    may be compelled in like manner.
22        (c)  The expense of every examination, if any,  shall  be
23    paid  by  the corporate fiduciary examined, in such amount as
24    the Commissioner certifies to be just and reasonable.
25        (d)  On every examination, inquiry shall be  made  as  to
26    the  condition  and  resources  of  the  corporate  fiduciary
27    generally,  the  mode of conducting and managing its affairs,
28    the action of its directors or trustees, the  investments  of
29    its  funds,  the  safety  and prudence of its management, the
30    security afforded to those by whom its engagements are  held,
31    and  whether  the requirements of its charter and of the laws
32    have been complied with in the administration of its affairs.
33    The nature and condition of the assets in  or  investment  of
34    any  bonus,  pension,  or profit sharing plan for officers or
 
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 1    employees of a corporate fiduciary  shall  be  deemed  to  be
 2    included  in  the affairs of that corporate fiduciary subject
 3    to examination by the Commissioner.
 4        (e)  Whenever  any  corporate  fiduciary  causes  to   be
 5    performed,  by  contract or otherwise, any fiduciary services
 6    for itself, whether on or off its premises:
 7             (1)  such   performance   shall   be   subject    to
 8        examination  by the Commissioner to the same extent as if
 9        the  services  were  being  performed  by  the  corporate
10        fiduciary itself on its own premises; and
11             (2)  the  corporate  fiduciary  shall   notify   the
12        Commissioner    of   the   existence   of   the   service
13        relationship.   Such  notification  shall  be   submitted
14        within 30 days after the making of such service contract,
15        or  the  performance  of  the  service,  whichever occurs
16        first.   The  Commissioner  shall  be  notified  of  each
17        subsequent contract in the same manner.
18        For purposes of this subsection (e), the term  "fiduciary
19    services"  shall include such services as the computation and
20    posting  of  interest  and   other   credits   and   charges;
21    preparation  and  mailing  of checks, statements, notices and
22    similar items; clerical, bookkeeping, accounting, statistical
23    or similar  functions;  and  any  other  function  which  the
24    corporate  fiduciary, in the ordinary course of its business,
25    could have performed itself.
26        Any report of examination pursuant to  this  Section  and
27    any copies thereof shall be the property of the Commissioner,
28    confidential   and   may   only   be   disclosed   under  the
29    circumstances set forth  in  Section  48.3  of  the  Illinois
30    Banking Act, as now or hereafter amended.
31    (Source: P.A. 89-364, eff. 8-18-95; 90-301, eff. 8-1-97.)

32        Section  99.  Effective date.  This Act takes effect upon
33    becoming law.

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