92nd General Assembly
Summary of HB2538
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House Sponsors:
MEYER-BUGIELSKI-BIGGINS-O'CONNOR-PARKE.

Senate Sponsors:
O'MALLEY

Short description: 
SAVINGS BNK-LOAN ASSOC LENDING                                             

Synopsis of Bill as introduced:
        Amends the Illinois Savings and Loan Act of 1985 and the  Savings      
   Bank Act.  Provides for consideration of the operation of subsidiaries      
   by  the  Commissioner  of  Banks and Real Estate when making decisions      
   regarding certificates  of  authority.   Excludes  obligations  as  an      
   endorser  when  computing lending limits.  Amends the Savings Bank Act      
   to provide that disclosure or use of financial records  by  a  savings      
   bank  in compliance with the Gramm-Leach-Bliley Act shall be permitted      
   notwithstanding other laws.  Provides that in addition to  removal  of      
   officers  and directors of savings banks, the Commissioner may suspend      
   officers and directors and may prohibit them from participation in the      
   affairs of the savings bank.  Amends the Interest Act to provide  that      
   savings and loan associations and savings banks may charge any rate of      
   interest  agreed  upon  with  the borrower.  Removes limit on interest      
   charged by a savings bank in  connection  with  an  installment  loan.      
   Effective immediately.                                                      
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          205 ILCS 205/4013                                                    
          Adds reference to:                                                   
          20 ILCS 3205/5                  from Ch. 17, par. 455                
          20 ILCS 3205/6                  from Ch. 17, par. 456                
          205 ILCS 5/2                    from Ch. 17, par. 302                
          205 ILCS 5/4.9 new                                                   
          205 ILCS 5/5                    from Ch. 17, par. 311                
          205 ILCS 5/5b                   from Ch. 17, par. 312.1              
          205 ILCS 5/7                    from Ch. 17, par. 314                
          205 ILCS 5/8                    from Ch. 17, par. 315                
          205 ILCS 5/10                   from Ch. 17, par. 317                
          205 ILCS 5/12                   from Ch. 17, par. 319                
          205 ILCS 5/13                   from Ch. 17, par. 320                
          205 ILCS 5/13.5                                                      
          205 ILCS 5/14                   from Ch. 17, par. 321                
          205 ILCS 5/15                   from Ch. 17, par. 322                
          205 ILCS 5/16.1                 from Ch. 17, par. 323.1              
          205 ILCS 5/17                   from Ch. 17, par. 324                
          205 ILCS 5/18                   from Ch. 17, par. 325                
          205 ILCS 5/21.2                                                      
          205 ILCS 5/22                   from Ch. 17, par. 329                
          205 ILCS 5/25                   from Ch. 17, par. 332                
          205 ILCS 5/30.5                                                      
          205 ILCS 5/31                   from Ch. 17, par. 338                
          205 ILCS 5/33                   from Ch. 17, par. 341                
          205 ILCS 5/37                   from Ch. 17, par. 347                
          205 ILCS 5/47                   from Ch. 17, par. 358                
          205 ILCS 5/48                   from Ch. 17, par. 359                
          205 ILCS 5/48.5                                                      
          205 ILCS 5/48.7 new                                                  
          205 ILCS 5/49                   from Ch. 17, par. 361                
          205 ILCS 5/51                   from Ch. 17, par. 363                
          205 ILCS 5/53                   from Ch. 17, par. 365                
          205 ILCS 10/3.074               from Ch. 17, par. 2510.04            
          205 ILCS 105/1-6                from Ch. 17, par. 3301-6             
          205 ILCS 105/2B-2               from Ch. 17, par. 3302B-2            
          205 ILCS 105/2B-5               from Ch. 17, par. 3302B-5            
          205 ILCS 105/5-16               from Ch. 17, par. 3305-16            
          205 ILCS 205/1007.35            from Ch. 17, par. 7301-7.35          
          205 ILCS 205/1008               from Ch. 17, par. 7301-8             
          205 ILCS 205/4005               from Ch. 17, par. 7304-5             
          205 ILCS 205/5010 new                                                
          205 ILCS 205/6013               from Ch. 17, par. 7306-13            
          205 ILCS 205/8015               from Ch. 17, par. 7308-15            
          205 ILCS 205/10001              from Ch. 17, par. 7310-1             
          205 ILCS 205/11003              from Ch. 17, par. 7311-3             
          205 ILCS 205/11004              from Ch. 17, par. 7311-4             
          205 ILCS 205/11008              from Ch. 17, par. 7311-8             
          815 ILCS 205/4                  from Ch. 17, par. 6404               
          815 ILCS 205/4a                 from Ch. 17, par. 6410               
          205 ILCS 610/1                  from Ch. 17, par. 1001               
          205 ILCS 610/2                  from Ch. 17, par. 1002               
          205 ILCS 620/1-8                from Ch. 17, par. 1551-8             
          205 ILCS 620/3-1                from Ch. 17, par. 1553-1             
          205 ILCS 620/3-2                from Ch. 17, par. 1553-2             
          205 ILCS 620/4-3                from Ch. 17, par. 1554-3             
          205 ILCS 620/4-4                from Ch. 17, par. 1554-4             
          205 ILCS 620/4-5                from Ch. 17, par. 1554-5             
          205 ILCS 620/Art. IVA heading new                                    
          205 ILCS 620/4A-1 new                                                
          205 ILCS 620/4A-5 new                                                
          205 ILCS 620/4A-10 new                                               
          205 ILCS 620/4A-15 new                                               
          205 ILCS 620/4A-20 new                                               
          205 ILCS 620/4A-25 new                                               
          205 ILCS 620/5-3                from Ch. 17, par. 1555-3             
          205 ILCS 620/5-6                from Ch. 17, par. 1555-6             
          205 ILCS 620/6-2                from Ch. 17, par. 1556-2             
          205 ILCS 645/11                 from Ch. 17, par. 2718               
          205 ILCS 645/12                 from Ch. 17, par. 2719               
          205 ILCS 650/4                  from Ch. 17, par. 2854               
          205 ILCS 650/6                  from Ch. 17, par. 2856               
          205 ILCS 650/8                                                       
        Replaces  everything  after  the  enacting  clause.   Amends  the      
   Illinois Savings and Loan Act  of  1985  and  the  Savings  Bank  Act.      
   Provides  for  consideration  of  the operation of subsidiaries by the      
   Commissioner of Banks and Real Estate when making decisions  regarding      
   certificates  of  authority.  Excludes obligations as an endorser when      
   computing lending limits.  Provides that in  addition  to  removal  of      
   officers  and directors of savings banks, the Commissioner may suspend      
   officers and directors and may prohibit them from participation in the      
   affairs of the savings bank.  Amends the Interest Act to provide  that      
   savings and loan associations and savings banks may charge any rate of      
   interest  agreed  upon  with  the borrower.  Removes limit on interest      
   charged by a savings bank in  connection  with  an  installment  loan.      
   Amends  various  Acts  relating  to financial institutions. Amends the      
   Office of Banks and Real Estate Act.  Authorizes the  Commissioner  of      
   Banks  and  Real  Estate  to  impose  conditions  with  respect to the      
   issuance of charters, permits, and licenses.  Permits the Commissioner      
   to designate an employee to make findings and take actions  on  behalf      
   of  the  Commissioner.    Amends  the Illinois Banking Act. Limits the      
   power of the Commissioner of Banks and Real Estate to  stop  or  limit      
   payment  with respect to qualified contracts of banks whose capital is      
   impaired.  Removes requirement that the Commissioner record  a  bank's      
   organizational  capital  requirement  with  the  Secretary  of  State.      
   Removes requirement that incorporators subscribe to stock in the bank.      
   Removes   restriction  on  ownership  of  travel  agencies  by  banks.      
   Authorizes shareholders to remove directors without cause. Amends  the      
   Illinois   Bank  Holding  Company  Act  of  1957.  Provides  that  the      
   Commissioner of Banks  and  Real  Estate  may  order  the  removal  of      
   directors,  officers,  agents, and employees of bank holding companies      
   for violating the law or safe banking  practice.  Amends  the  Banking      
   Emergencies  Act.  Specifies  computer failure as a cause of a banking      
   emergency. Authorizes the Commissioner to proclaim that  an  emergency      
   exists  on  a  state-wide  basis  rather  than  only  in  a  county or      
   municipality. Amends the  Corporate  Fiduciary  Act.    Excludes  from      
   change  of  control  provisions  changes  of  control  resulting  from      
   organizational  restructuring  under  a  holding  company.  Authorizes      
   corporate fiduciaries to establish  operations  in  other  states  and      
   allows  corporate  fiduciaries  organized in other states to establish      
   operations in Illinois. Provides that  foreign  banking  offices  must      
   keep  on  deposit  at  a  depository approved by the Commissioner such      
   amounts the Commissioner deems necessary for protection of depositors.      
   Authorizes the Commissioner to transfer assets of a liquidated foreign      
   banking office to liquidators in other jurisdictions if  necessary  to      
   pay  claims  there. Amends the Foreign Bank Representative Office Act.      
   Provides  for  fees  to  be  established  by  rule.   Authorizes   the      
   Commissioner  of  Banks and Real Estate to revoke licenses rather than      
   certify  findings  to  the  State  Banking  Board  for  revocation  of      
   licenses.  Authorizes  the  Commissioner   to   impose   charges   for      
   examinations. Effective immediately.                                        
        HOUSE AMENDMENT NO. 2.                                                 
          Adds reference to:                                                   
          205 ILCS 105/7-3.2 new                                               
          205 ILCS 105/7-3.3 new                                               
          205 ILCS 105/11-5 rep.                                               
          205 ILCS 205/1006               from Ch. 17, par. 7301-6             
          205 ILCS 205/9019 new                                                
          205 ILCS 205/11012 rep.                                              
        Amends the Illinois Savings and Loan Act of 1985.  Provides  that      
   the  Commissioner  of  Banks  and  Real Estate may issue opinions that      
   reduce any disadvantage an association has doing business  under  that      
   Act  when compared to associations doing business under federal law or      
   the law of other states.  Amends the Savings Bank Act and the Illinois      
   Savings and Loan Act of 1985 to  provide  that  the  Commissioner  may      
   issue  opinion letters and that savings banks and associations are not      
   liable for acts in reliance on the opinions.                                
        HOUSE AMENDMENT NO. 3.                                                 
        Further amends the Office  of  Banks  and  Real  Estate  Act,  as      
   amended  by  House  Amendment No. 1.  Deletes the requirement that the      
   terms the Commissioner of  Banks  and  Real  Estate  may  impose  when      
   issuing  charters,  permits, licenses, or other authorizations must be      
   made to  ensure  that  the  issuance  is  consistent  with  applicable      
   statutes,  rules,  and  policies.  Provides that when the Commissioner      
   delegates or appoints an officer or employee of the  Office  of  Banks      
   and  Real  Estate to take certain actions or make certain findings, he      
   or she shall do so in writing.  Further amends  the  Illinois  Banking      
   Act  as  amended by House Amendment No. 1.  Deletes certain provisions      
   authorizing the Commissioner to  limit  the  power  of  banks.   Makes      
   changes  concerning the chartering of an interim bank as a State bank.      
   Makes  changes  concerning  the  submission  of  information  to   the      
   Commissioner  by  persons  desiring to purchase control of an existing      
   State bank or to purchase substantially all the assets  or  to  assume      
   substantially   all  the  liabilities  of  the  State  bank.   Deletes      
   provisions stating that an out-of-state bank or a national bank  whose      
   main  banking  premises  is located in a state other than Illinois and      
   that has existed and operated for 5 years or less may not  merge  with      
   an  Illinois bank that has existed and continuously operated as a bank      
   for more than 5 years unless that state would permit an Illinois  bank      
   to  perform  the  same  transaction  if each of the merging banks were      
   situated  in  the  other  state.   Makes  changes  concerning   merger      
   procedures.    Makes   changes   concerning   the  findings  that  the      
   Commissioner must make before a change in the control of  a  bank  may      
   occur. Provides that compliance with the time frames prescribed by the      
   United   States   Department   of   the  Treasury's  Financial  Crimes      
   Enforcement Network shall be deemed compliance with provisions in  the      
   Illinois  Banking  Act  concerning reports to the Commissioner.  Makes      
   changes concerning the powers of the Commissioner.  Deletes provisions      
   concerning the dissemination of an opinion by the Commissioner.             
        HOUSE AMENDMENT NO. 4.                                                 
          Adds reference to:                                                   
          205 ILCS 5/48.1                 from Ch. 17, par. 360                
          205 ILCS 105/3-8                from Ch. 17, par. 3303-8             
          205 ILCS 205/4013               from Ch. 17, par. 7304-13            
          205 ILCS 305/10                 from Ch. 17, par. 4411               
        Amends the Illinois Banking Act, the Illinois  Savings  and  Loan      
   Act  of  1985, and the Savings Bank Act, and the Illinois Credit Union      
   Act.  Authorizes those financial  institutions  to  disclose  customer      
   financial  information  as  necessary  to  prevent actual or potential      
   fraud,  unauthorized  transactions,  claims,   or   other   liability.      
   Authorizes  the  disclosure  of  financial  records in connection with      
   services or products made available by the financial  institution,  as      
   necessary  to  enforce a transaction, and in connection with secondary      
   market sales related to a customer transaction.                             
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          205 ILCS 5/48.7 new                                                  
          205 ILCS 105/7-3.3 new                                               
          205 ILCS 205/1006                                                    
        Deletes provisions authorizing the Commissioner of Banks and Real      
   Estate  to  issue  opinions  that  eliminate  or  reduce   competitive      
   disadvantages  banks, savings and loan associations, and savings banks      
   incur when compared to financial  institutions  doing  business  under      
   federal law or the law of other states.                                     
        SENATE AMENDMENT NO. 2.                                                
          Deletes reference to:                                                
          205 ILCS 5010 new                                                    
        Deletes a provision prohibiting entry against savings banks of         
   judgments that would reduce capital below statutory minimums.               
 
Last action on Bill: PUBLIC ACT.............................. 92-0483

   Last action date: AUG-23-2001

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   4     SENATE -   2


   END OF INQUIRY 
                                                                               



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