Public Act 093-0271
Public Act 93-0271 of the 93rd General Assembly
Public Act 93-0271
HB3663 Enrolled LRB093 09178 JLS 09410 b
AN ACT concerning financial institutions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Savings and Loan Act of 1985 is
amended by changing Sections 1-10.10, 1-10.16, 1-10.19, 1-11,
2-1, 3-8, 4-2, 7-6, 7-7, 7-9, 7-11, and 7-23 as follows:
(205 ILCS 105/1-10.10) (from Ch. 17, par. 3301-10.10)
Sec. 1-10.10. "Insurance corporation": The Federal
Savings and Loan Insurance Corporation, the Federal Deposit
Insurance Corporation or such other instrumentality of or
corporation chartered by and backed by the full faith and
credit of the United States.
(Source: P.A. 86-137.)
(205 ILCS 105/1-10.16) (from Ch. 17, par. 3301-10.16)
Sec. 1-10.16. "Profits": gross income less the aggregate
of operating and real estate expenses, losses actually
sustained and not charged to reserves under the provision of
this Act, interest paid or accrued on borrowings and
non-recurring charges as determined by application of
generally accepted accounting principles or regulatory
accounting principles permitted, recognized or authorized by
the Office of Thrift Supervision Federal Home Loan Bank Board
for a federal association and subject to the rules and
regulations of the Commissioner.
(Source: P.A. 84-543.)
(205 ILCS 105/1-10.19) (from Ch. 17, par. 3301-10.19)
Sec. 1-10.19. "Total assets": the total value of all
loan contracts without deduction for the withdrawal value of
any capital accounts of the association held as collateral
for loans, and the total value of all other assets of the
association, as determined by the application of generally
accepted accounting principles or regulatory accounting
principles permitted, recognized or authorized by the Office
of Thrift Supervision Federal Home Loan Bank Board for a
federal association and subject to the rules and regulations
of the Commissioner.
(Source: P.A. 84-543.)
(205 ILCS 105/1-11) (from Ch. 17, par. 3301-11)
Sec. 1-11. Insurance of withdrawable capital. An
association operating under this Act shall obtain and
maintain insurance of the association's withdrawable capital
by an insurance corporation as defined in this Act in an
amount at least equal to that provided by the Federal Savings
and Loan Insurance Corporation, except that such insurance of
accounts is not required in cases where the association is
employer-sponsored, does not occupy a ground floor location,
does not seek business from the general public by advertising
or otherwise and primarily serves the employees of the
employer which sponsors the association or the employees of a
wholly-owned subsidiary of the employer. In the event that
the insurance of accounts is not required by this Section,
the Commissioner may adjust the bond requirements for
officers, directors and employees of such association, but in
no case shall the adjusted bond be required to be in an
amount greater than twice that which would otherwise be
required.
(Source: P.A. 84-543.)
(205 ILCS 105/2-1) (from Ch. 17, par. 3302-1)
Sec. 2-1. Applicants and initial capital. Any 5 or more
adult individuals, residents of this State, may apply for a
permit to organize an association under this Act. The
minimum initial capital which an association must have shall
be determined by the Commissioner but in no case shall be
less than that which would be required in order to obtain
insurance of accounts backed by the full faith and credit of
the United States government by the Federal Savings and Loan
Insurance Corporation.
(Source: P.A. 84-543.)
(205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
Sec. 3-8. Access to books and records; communication
with members.
(a) Every member or holder of capital shall have the
right to inspect the books and records of the association
that pertain to his account. Otherwise, the right of
inspection and examination of the books and records shall be
limited as provided in this Act, and no other person shall
have access to the books and records or shall be entitled to
a list of the members.
(b) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (i)
a document granting signature authority over a deposit or
account; (ii) a statement, ledger card, or other record on
any deposit or account that shows each transaction in or with
respect to that account; (iii) a check, draft, or money order
drawn on an association or issued and payable by an
association; or (iv) any other item containing information
pertaining to any relationship established in the ordinary
course of an association's business between an association
and its customer, including financial statements or other
financial information provided by the member or holder of
capital.
(c) This Section does not prohibit:
(1) The preparation, examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of an association having custody of
those records or the examination of those records by a
certified public accountant engaged by the association to
perform an independent audit.
(2) The examination of any financial records by, or
the furnishing of financial records by an association to,
any officer, employee, or agent of the Commissioner of
Banks and Real Estate or federal depository institution
regulator, Federal Savings and Loan Insurance Corporation
and its successors, Federal Deposit Insurance
Corporation, Resolution Trust Corporation and its
successors, Federal Home Loan Bank Board and its
successors, Office of Thrift Supervision, Federal Housing
Finance Board, Board of Governors of the Federal Reserve
System, any Federal Reserve Bank, or the Office of the
Comptroller of the Currency for use solely in the
exercise of his duties as an officer, employee, or agent.
(3) The publication of data furnished from
financial records relating to members or holders of
capital where the data cannot be identified to any
particular member, holder of capital, or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor
of any negotiable instrument permitted to be disclosed
under the Uniform Commercial Code.
(6) The exchange in the regular course of business
of (i) credit information between an association and
other associations or financial institutions or
commercial enterprises, directly or through a consumer
reporting agency or (ii) financial records or information
derived from financial records between an association and
other associations or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the
association or assets or liabilities of the association.
(7) The furnishing of information to the
appropriate law enforcement authorities where the
association reasonably believes it has been the victim of
a crime.
(8) The furnishing of information pursuant to the
Uniform Disposition of Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal "Currency and Foreign Transactions Reporting
Act", (Title 31, United States Code, Section 1051 et
seq.).
(11) The furnishing of information pursuant to any
other statute that by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons,
warrant, or court order.
(12) The exchange of information between an
association and an affiliate of the association; as used
in this item, "affiliate" includes any company,
partnership, or organization that controls, is controlled
by, or is under common control with an association.
(13) The furnishing of information in accordance
with the federal Personal Responsibility and Work
Opportunity Reconciliation Act of 1996. Any association
governed by this Act shall enter into an agreement for
data exchanges with a State agency provided the State
agency pays to the association a reasonable fee not to
exceed its actual cost incurred. An association
providing information in accordance with this item shall
not be liable to any account holder or other person for
any disclosure of information to a State agency, for
encumbering or surrendering any assets held by the
association in response to a lien or order to withhold
and deliver issued by a State agency, or for any other
action taken pursuant to this item, including individual
or mechanical errors, provided the action does not
constitute gross negligence or willful misconduct. An
association shall have no obligation to hold, encumber,
or surrender assets until it has been served with a
subpoena, summons, warrant, court or administrative
order, lien, or levy.
(14) The furnishing of information to law
enforcement authorities, the Illinois Department on Aging
and its regional administrative and provider agencies,
the Department of Human Services Office of Inspector
General, or public guardians, if the association suspects
that a customer who is an elderly or disabled person has
been or may become the victim of financial exploitation.
For the purposes of this item (14), the term: (i)
"elderly person" means a person who is 60 or more years
of age, (ii) "disabled person" means a person who has or
reasonably appears to the association to have a physical
or mental disability that impairs his or her ability to
seek or obtain protection from or prevent financial
exploitation, and (iii) "financial exploitation" means
tortious or illegal use of the assets or resources of an
elderly or disabled person, and includes, without
limitation, misappropriation of the elderly or disabled
person's assets or resources by undue influence, breach
of fiduciary relationship, intimidation, fraud,
deception, extortion, or the use of assets or resources
in any manner contrary to law. An association or person
furnishing information pursuant to this item (14) shall
be entitled to the same rights and protections as a
person furnishing information under the Elder Abuse and
Neglect Act and the Illinois Domestic Violence Act of
1986.
(15) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
member or holder of capital, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by the
member or holder of capital;
(B) maintaining or servicing an account of a
member or holder of capital with the association; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or
holder of capital.
Nothing in this item (15), however, authorizes the
sale of the financial records or information of a member
or holder of capital without the consent of the member or
holder of capital.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17) (a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program.
Such information is limited to outstanding balance,
available credit, payment and performance and account
history, product references, purchase information, and
information related to the identity of the customer.
(b) (l) For purposes of this paragraph (17) of
subsection (c) of Section 3-8, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (17) of
subsection (c) of Section 3-8, a "private label party"
means, with respect to a private label credit program,
any of the following: a retailer, a merchant, a
manufacturer, a trade group, or any such person's
affiliate, subsidiary, member, agent, or service
provider.
(d) An association may not disclose to any person,
except to the member or holder of capital or his duly
authorized agent, any financial records relating to that
member or holder of capital of that association unless:
(1) The member or holder of capital has authorized
disclosure to the person; or
(2) The financial records are disclosed in response
to a lawful subpoena, summons, warrant, or court order
that meets the requirements of subsection (e) of this
Section.
(e) An association shall disclose financial records
under subsection (d) of this Section pursuant to a lawful
subpoena, summons, warrant, or court order only after the
association mails a copy of the subpoena, summons, warrant,
or court order to the person establishing the relationship
with the association, if living, and, otherwise, his personal
representative, if known, at his last known address by first
class mail, postage prepaid, unless the association is
specifically prohibited from notifying that person by order
of court.
(f) (1) Any officer or employee of an association who
knowingly and willfully furnishes financial records in
violation of this Section is guilty of a business offense
and, upon conviction, shall be fined not more than $1,000.
(2) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of an association
to disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(g) However, if any member desires to communicate with
the other members of the association with reference to any
question pending or to be presented at a meeting of the
members, the association shall give him upon request a
statement of the approximate number of members entitled to
vote at the meeting and an estimate of the cost of preparing
and mailing the communication. The requesting member then
shall submit the communication to the Commissioner who, if he
finds it to be appropriate and truthful, shall direct that it
be prepared and mailed to the members upon the requesting
member's payment or adequate provision for payment of the
expenses of preparation and mailing.
(h) An association shall be reimbursed for costs that
are necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data of a customer required to be
reproduced pursuant to a lawful subpoena, warrant, or court
order.
(Source: P.A. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01;
92-543, eff. 6-12-02.)
(205 ILCS 105/4-2) (from Ch. 17, par. 3304-2)
Sec. 4-2. Withdrawable capital. Withdrawable capital
accounts shall be:
(a) Withdrawable and subject to enforced retirement as
provided in this Article. Nothing in this Act shall prevent
the withdrawal of funds from an association by non-negotiable
order;
(b) Entitled to dividends as provided in this Article;
(c) Nonassessable for either debts or losses of the
association; and
(d) Issued on such plan or plans of payment therefor or
thereon and such series or classes as the by-laws and
Commissioner's regulations may provide.
There shall be no penalty, such as loss of interest
thereon, on accounts transferred at interest or dividend
payment date from passbook types to certificate of deposit
within the same facility and not otherwise inconsistent with
regulations of the Federal Deposit Insurance Corporation and
the Office of Thrift Supervision Savings and Loan Insurance
Corporation or the Federal Home Loan Bank Board.
(Source: P.A. 84-543.)
(205 ILCS 105/7-6) (from Ch. 17, par. 3307-6)
Sec. 7-6. Annual audit. At least once in each year, but
in no case more than 12 months after the last audit conducted
pursuant to this Section, it shall be mandatory for each
association to cause its books and accounts to be audited by
a licensed public accountant not connected with such
association. The Commissioner may prescribe the scope of such
audit within the generally acceptable auditing principles and
standards. The report of such audit shall be given to a
committee composed of not less than 3 members of the board of
directors, none of whom shall be officers, employees or
agents of such association, and such committee shall, at the
meeting of the board of directors following receipt of the
report, present in detail the nature, extent and result of
the report. A written summary of such committee's
presentation, including a detailed listing of all criticisms
made by the accountant conducting the audit and any responses
thereto made by any member of the board of directors or any
officer of the association, shall be sent by registered mail
to all members of the board of directors not present at the
meeting at which the committee made its presentation. A copy
of the audit report, including a balance sheet of the
association on the date of audit and a statement of income
and expenses of the association during the year ending with
the date of audit and, if and when such is used, a copy of
any written summary prepared for absent members of the board
of directors, shall be filed with the Commissioner by the
committee receiving the report within 90 days of the audit
date; except that the Commissioner may, for good cause shown,
extend the filing date for up to 60 additional days. The
report filed with the Commissioner shall be certified by the
licensed public accountant conducting the audit. If any
association required to make an audit shall fail to cause an
audit to be made, the Commissioner shall cause the same to be
made by a licensed public accountant at the association's
expense. In lieu of the audit required by this Section, the
Commissioner may accept any audit or portion thereof made
exclusively for the Federal Deposit Insurance Corporation and
the Office of Thrift Supervision Home Loan Bank, the Federal
Home Loan Bank Board or the Federal Savings and Loan
Insurance Corporation.
(Source: P.A. 84-543.)
(205 ILCS 105/7-7) (from Ch. 17, par. 3307-7)
Sec. 7-7. Reports to Commissioner and members; penalty.
(a) Every association operating under this Act shall
file with the Commissioner within 90 days following the close
of each fiscal year of such association a statement showing
its financial condition at the close of the fiscal year and
its operations for the year then ended. For good cause shown
in writing directed to the Commissioner within the 90 day
period, the Commissioner may authorize up to 60 additional
days for filing of the statement of financial condition. Each
such statement shall be on forms prescribed by the
Commissioner and in conformity with generally accepted
accounting principles or regulatory accounting principles
permitted, recognized or authorized by the Office of Thrift
Supervision Federal Home Loan Bank Board for a federal
association and subject to the rules and regulations of the
Commissioner and in accord with the provisions of this Act.
Each such statement shall contain such information and be in
such form as prescribed by the Commissioner and shall be
verified by the secretary and certified by a licensed public
accountant appointed by the board of directors or by 2
officers of the association, if a licensed public accountant
has been appointed to audit the books and records of the
association as provided in the preceding Section of this Act.
Every association including its holding company and
subsidiaries shall also file such other reports as the
Commissioner may require from time to time.
Any association which, after notice from the Commissioner
sent by certified or registered mail, wilfully fails to
submit within the time prescribed the annual financial report
required by this Section is subject to a civil penalty of not
more than $500 for each such failure. Any association which,
after notice from the Commissioner sent by certified or
registered mail, wilfully fails to submit within the time
prescribed any other report required by this Section is
subject to a civil penalty of not more than $100 for each
such failure (which penalties shall be cumulative to any
other remedies). For the purposes of this Section, the date
on which any report required by this Section is postmarked is
the date of filing of any such report. The knowing or
intentional filing of any such report which is false in any
material respect constitutes a felony, and any person
convicted thereof shall be punished by a fine of not more
than $10,000, or imprisonment in the penitentiary for one to
5 years, or both.
(b) An association shall file with the Commissioner a
report of change of ownership of permanent reserve shares
when such change of ownership results in any person as
defined by this Act holding 10% or more, through any one
transaction or related series of transactions, of the
outstanding permanent reserves shares of the association.
Such report shall include owners who hold as beneficiaries or
through nominees as well as in their own names. The report
shall be made within 5 business days after knowledge of such
change has been obtained by the officer authorized or
required to make reports to the Commissioner. The
Commissioner also may require any such person owning 10% or
more of permanent reserve shares to report the beneficiary or
beneficiaries for whom he is holding title.
Whenever there is a change in the managing officer of an
association or a change amounting to a majority of the
directors of an association elected at a regular or special
meeting of the members, such change shall likewise be
reported within 5 business days to the Commissioner.
The willful failure by any person required to report or
disclose change of ownership or control as defined in this
Section constitutes a Class 4 felony.
(c) Within 60 days after the date of filing the
Statement of Financial Condition with the Commissioner, the
association shall mail to each member or make available at
each of its offices the annual statement of condition or a
condensed form thereof approved by the Commissioner, or shall
publish the same at least once, and shall also furnish upon
the written or personal request of any member a copy of the
complete annual statement of condition. The annual statement
of condition, or any condensed form thereof, made available
to members by publication, mailing, or at the association's
offices shall include a statement setting forth the
association's assets, liabilities, regulatory capital and
deposits. In addition, the statement shall include a
statement of the association's goals and intentions in regard
to investment of the association's funds in order to
reasonably inform the member as to the security of his
interest. Notification of the availability of the complete
annual statement shall be prominently and conspicuously
posted in areas of public access at each of the association's
branches or offices.
(d) Any change of control or ownership of 25% or more of
the permanent reserve shares or stock of (a) any association
operating under this Act, or (b) of the shares or stock of a
subsidiary of the parent or a subsidiary of any association
operating under this Act, must be submitted to the
Commissioner for review and approval on forms, conditions and
terms to be specified by the Commissioner. The Commissioner
may accept in satisfaction of this requirement, submissions
required under federal statutes and regulations for changes
of control. Any doubt as to whether a change of ownership or
other change in the outstanding voting stock of any
association is sufficient to result in a change of ownership
or control, shall be resolved in favor of reporting the facts
to the Commissioner. Compliance with this provision shall
not relieve an association, its parent or affiliate from
complying with other applicable State or federal statutes or
regulations. The Commissioner may disapprove any proposed
acquisition if:
(1) The proposed acquisition of control would
result in a monopoly or would be in furtherance of any
combination or conspiracy to monopolize or to attempt to
monopolize the savings and loan business in any part of
Illinois;
(2) The effect of the proposed acquisition of
control in any section of the State may be substantially
to lessen competition or to tend to create a monopoly or
the proposed acquisition of control would in any other
manner be in restraint of trade, and the anticompetitive
effects of the proposed acquisition of control are not
clearly outweighed in the public interest by the probable
effect of the transaction in meeting the convenience and
needs of the community to be served;
(3) The financial condition or history of any
acquiring person is such as might jeopardize the
financial stability of the institution or prejudice the
interests of the depositors of the institution;
(4) The competence, experience, or integrity of any
acquiring person or any of the proposed management
personnel indicates that it would not be in the interest
of the depositors of the institution or in the interest
of the public to permit such person to control the
institution; or
(5) Any acquiring person neglects, fails or refuses
to furnish the Commissioner all the information required
by the Commissioner.
(Source: P.A. 89-320, eff. 1-1-96; 89-603, eff. 8-2-96.)
(205 ILCS 105/7-9) (from Ch. 17, par. 3307-9)
Sec. 7-9. Disclosure of reports of examinations and
confidential supervisory information; limitations.
(a) Any report of examination, visitation, or
investigation prepared by the Commissioner under this Act,
any report of examination, visitation, or investigation
prepared by the state regulatory authority of another state
that examines a branch of an Illinois State association in
that state, any document or record prepared or obtained in
connection with or relating to any examination, visitation,
or investigation, and any record prepared or obtained by the
Commissioner to the extent that the record summarizes or
contains information derived from any report, document, or
record described in this subsection shall be deemed
confidential supervisory information. "Confidential
supervisory information" shall not include any information or
record routinely prepared by an association and maintained in
the ordinary course of business or any information or record
that is required to be made publicly available pursuant to
State or federal law or rule. Confidential supervisory
information shall be the property of the Commissioner and
shall only be disclosed under the circumstances and for the
purposes set forth in this Section.
The Commissioner may disclose confidential supervisory
information only under the following circumstances:
(1) The Commissioner may furnish confidential
supervisory information to federal and state depository
institution regulators, or any official or examiner
thereof duly accredited for the purpose. Nothing
contained in this Act shall be construed to limit the
obligation of any association to comply with the
requirements relative to examinations and reports nor to
limit in any way the powers of the Commissioner relative
to examinations and reports.
(2) The Commissioner may furnish confidential
supervisory information to the United States or any
agency thereof that to any extent has insured an
association's deposits, or any official or examiner
thereof duly accredited for the purpose. Nothing
contained in this Act shall be construed to limit the
obligation relative to examinations and reports of any
association in which deposits are to any extent insured
by the United States or any agency thereof nor to limit
in any way the powers of the Commissioner with reference
to examination and reports of the association.
(3) The Commissioner may furnish confidential
supervisory information to the appropriate law
enforcement authorities when the Commissioner reasonably
believes an association, which the Commissioner has
caused to be examined, has been a victim of a crime.
(4) The Commissioner may furnish confidential
supervisory information related to an association, which
the Commissioner has caused to be examined, to the
administrator of the Uniform Disposition of Unclaimed
Property Act.
(5) The Commissioner may furnish confidential
supervisory information relating to an association, which
the Commissioner has caused to be examined, relating to
its performance of obligations under the Illinois Income
Tax Act and the Illinois Estate and Generation-Skipping
Transfer Tax Act to the Illinois Department of Revenue.
(6) The Commissioner may furnish confidential
supervisory information relating to an association, which
the Commissioner has caused to be examined, under the
federal Currency and Foreign Transactions Reporting Act,
31 United States Code, Section 1051 et seq.
(7) The Commissioner may furnish confidential
supervisory information to any other agency or entity
that the Commissioner determines to have a legitimate
regulatory interest.
(8) The Commissioner may furnish confidential
supervisory information as otherwise permitted or
required by this Act and may furnish confidential
supervisory information under any other statute that by
its terms or by regulations promulgated thereunder
requires the disclosure of financial records other than
by subpoena, summons, warrant, or court order.
(9) At the request of the affected association, the
Commissioner may furnish confidential supervisory
information relating to the association, which the
Commissioner has caused to be examined, in connection
with the obtaining of insurance coverage or the pursuit
of an insurance claim for or on behalf of the
association; provided that, when possible, the
Commissioner shall disclose only relevant information
while maintaining the confidentiality of financial
records not relevant to such insurance coverage or claim
and, when appropriate, may delete identifying data
relating to any person.
(10) The Commissioner may furnish a copy of a
report of any examination performed by the Commissioner
of the condition and affairs of any electronic data
processing entity to the associations serviced by the
electronic data processing entity.
(11) In addition to the foregoing circumstances,
the Commissioner may, but is not required to, furnish
confidential supervisory information under the same
circumstances authorized for the association pursuant to
subsection (b) of this Section, except that the
Commissioner shall provide confidential supervisory
information under circumstances described in paragraph
(3) of subsection (b) of this Section only upon the
request of the association.
(b) An association or its officers, agents, and
employees may disclose confidential supervisory information
only under the following circumstances:
(1) to the board of directors of the association,
as well as the president, vice-president, cashier, and
other officers of the association to whom the board of
directors may delegate duties with respect to compliance
with recommendations for action, and to the board of
directors of an association holding company that owns at
least 80% of the outstanding stock of the association or
other financial institution.
(2) to attorneys for the association and to a
certified public accountant engaged by the association to
perform an independent audit; provided that the attorney
or certified public accountant shall not permit the
confidential supervisory information to be further
disseminated.
(3) to any person who seeks to acquire a controlling
interest in, or who seeks to merge with, the association;
provided that the person shall agree to be bound to
respect the confidentiality of the confidential
supervisory information and to not further disseminate
the information other than to attorneys, certified public
accountants, officers, agents, or employees of that
person who likewise shall agree to be bound to respect
the confidentiality of the confidential supervisory
information and to not further disseminate the
information.
(4) to the association's insurance company, if the
supervisory information contains information that is
otherwise unavailable and is strictly necessary to
obtaining insurance coverage or pursuing an insurance
claim for or on behalf of the association; provided that,
when possible, the association shall disclose only
information that is relevant to obtaining insurance
coverage or pursuing an insurance claim, while
maintaining the confidentiality of financial information
pertaining to customers; and provided further that, when
appropriate, the association may delete identifying data
relating to any person.
The disclosure of confidential supervisory information by
an association pursuant to this subsection (b) and the
disclosure of information to the Commissioner or other
regulatory agency in connection with any examination,
visitation, or investigation shall not constitute a waiver of
any legal privilege otherwise available to the association
with respect to the information.
(c) (1) Notwithstanding any other provision of this Act
or any other law, confidential supervisory information shall
be the property of the Commissioner and shall be privileged
from disclosure to any person except as provided in this
Section. No person in possession of confidential supervisory
information may disclose that information for any reason or
under any circumstances not specified in this Section without
the prior authorization of the Commissioner. Any person upon
whom a demand for production of confidential supervisory
information is made, whether by subpoena, order, or other
judicial or administrative process, must withhold production
of the confidential supervisory information and must notify
the Commissioner of the demand, at which time the
Commissioner is authorized to intervene for the purpose of
enforcing the limitations of this Section or seeking the
withdrawal or termination of the attempt to compel production
of the confidential supervisory information.
(2) Any request for discovery or disclosure of
confidential supervisory information, whether by
subpoena, order, or other judicial or administrative
process, shall be made to the Commissioner, and the
Commissioner shall determine within 15 days whether to
disclose the information pursuant to procedures and
standards that the Commissioner shall establish by rule.
If the Commissioner determines that such information will
not be disclosed, the Commissioner's decision shall be
subject to judicial review under the provisions of the
Administrative Review Law, and venue shall be in either
Sangamon County or Cook County.
(3) Any court order that compels disclosure of
confidential supervisory information may be immediately
appealed by the Commissioner, and the order shall be
automatically stayed pending the outcome of the appeal.
(d) If any officer, agent, attorney, or employee of an
association knowingly and willfully furnishes confidential
supervisory information in violation of this Section, the
Commissioner may impose a civil monetary penalty up to $1,000
for the violation against the officer, agent, attorney, or
employee. Information to Federal Authorities. (a) The
Commissioner may give copies of reports of his examinations
of an association and copies of the association's reports to
him and any other information which he has concerning the
association to: the Federal Home Loan Bank (or its successor
instrumentality) of which the association is a member; the
insurance corporation which has insured the association's
deposits; other regulatory agencies of this State; regulatory
agencies of financial institutions in other states; and law
enforcement agencies of this State, other states or of the
United States.
(b) No such action by the Commissioner shall relieve the
association from compliance with any requirements of such
Federal institution concerning examinations or reports or
limit the Commissioner's powers to examine or to require
reports from the association.
(c) No other party shall be entitled to any reports of
examination, reports to the Commissioner or any other
information concerning the association derived from such
reports.
(Source: P.A. 86-137.)
(205 ILCS 105/7-11) (from Ch. 17, par. 3307-11)
Sec. 7-11. Commissioner's authority to take custody and
appoint a conservator. The Commissioner in his discretion may
take custody of, and appoint a conservator for, the property,
liabilities, books, records, business and assets of every
kind and character of any association, trust or association
in liquidation, for any of the purposes hereinafter
enumerated, if it appears from reports made to the
Commissioner, or from examination made by or on behalf of the
Commissioner:
(a) That the directors, officers, trustees or
liquidators have neglected, failed or refused to take any
action which the Commissioner may deem necessary for the
protection of the association or trust or have impeded or
obstructed an examination; or
(b) That the withdrawable capital of the
association is impaired to the extent that the realizable
value of its assets is insufficient to pay in full its
creditors and holders of its withdrawable capital; or
that its permanent reserve capital is impaired; or
(c) That the association is unable to continue
operation; or
(d) That the business of the association, trust or
association in liquidation is being conducted in a
fraudulent, illegal or unsafe manner; or
(e) That the officers, employees, trustees or
liquidators have continued to assume duties or perform
acts without giving bond as required by the provisions of
this Act.
Unless the Commissioner finds that an emergency exists
which may result in loss to members or creditors and requires
that he take custody immediately, he first shall give written
notice to the directors, trustees or liquidators specifying
the conditions criticized and state a reasonable time within
which correction may be made. If however, an association
whose accounts are insured by the Federal Savings and Loan
insurance corporation is impaired within the meaning of
paragraph (b) above, or any other condition exists which
would give the Commissioner authority to take custody of an
insured institution, the action of the Commissioner can be
withheld provided that the Commissioner determines from
reports made to him by the association, and such other
examinations as may be deemed necessary, that the association
has sufficient liquid assets and has adopted and implemented
an operating plan satisfactory to the Commissioner. In such
case the Commissioner may defer a custody action pending a
satisfactory resolution of the impairment as suggested by
either the association or the Federal Savings and Loan
insurance corporation.
If any condition exists that would give the Commissioner
authority to take custody of an association, the action of
the Commissioner may be withheld pending a satisfactory
resolution of the condition as suggested by the insurance
corporation provided the association has sufficient liquidity
and has adopted and implemented an operating plan the
Commissioner considers prudent.
No action or inaction of the Commissioner taken pursuant
to this Article shall cause the Commissioner to be personally
liable for such action or inaction unless the Commissioner's
action or inaction is found to be in violation of a criminal
statute. The Commissioner shall promulgate rules and
regulations to govern the determination of a need for a
conservator and the selection, appointment and conduct of a
conservatorship, including allocation of payment and costs.
(Source: P.A. 91-97, eff. 7-9-99.)
(205 ILCS 105/7-23) (from Ch. 17, par. 3307-23)
Sec. 7-23. Proceedings on objections to Commissioner's
action. Any person aggrieved by any decision, order, or
action of the Commissioner, except one under paragraph (b) of
Section 1-9, Section 2-3, or paragraph (j) of Section 3-4, or
Section 7-9 of this Act, or under Section 1006(b), or Section
3005, or Section 9012 of the Savings Bank Act, or involving a
change of location of an office or the establishment of an
additional office under the Savings Bank Act, may receive a
hearing as provided in Sections 7-24 through 7-27 of this
Act.
(Source: P.A. 89-508, eff. 7-3-96.)
Section 10. The Savings Bank Act is amended by changing
Sections 4013 and 9012 as follows:
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
Sec. 4013. Access to books and records; communication
with members and shareholders.
(a) Every member or shareholder shall have the right to
inspect books and records of the savings bank that pertain to
his accounts. Otherwise, the right of inspection and
examination of the books and records shall be limited as
provided in this Act, and no other person shall have access
to the books and records nor shall be entitled to a list of
the members or shareholders.
(b) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (1)
a document granting signature authority over a deposit or
account; (2) a statement, ledger card, or other record on any
deposit or account that shows each transaction in or with
respect to that account; (3) a check, draft, or money order
drawn on a savings bank or issued and payable by a savings
bank; or (4) any other item containing information pertaining
to any relationship established in the ordinary course of a
savings bank's business between a savings bank and its
customer, including financial statements or other financial
information provided by the member or shareholder.
(c) This Section does not prohibit:
(1) The preparation examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of a savings bank having custody of
records or examination of records by a certified public
accountant engaged by the savings bank to perform an
independent audit.
(2) The examination of any financial records by, or
the furnishing of financial records by a savings bank to,
any officer, employee, or agent of the Commissioner of
Banks and Real Estate or the federal depository
institution regulator Federal Deposit Insurance
Corporation for use solely in the exercise of his duties
as an officer, employee, or agent.
(3) The publication of data furnished from
financial records relating to members or holders of
capital where the data cannot be identified to any
particular member, shareholder, or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor
of any negotiable instrument permitted to be disclosed
under the Uniform Commercial Code.
(6) The exchange in the regular course of business
of (i) credit information between a savings bank and
other savings banks or financial institutions or
commercial enterprises, directly or through a consumer
reporting agency or (ii) financial records or information
derived from financial records between a savings bank and
other savings banks or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the
savings bank or assets or liabilities of the savings
bank.
(7) The furnishing of information to the
appropriate law enforcement authorities where the savings
bank reasonably believes it has been the victim of a
crime.
(8) The furnishing of information pursuant to the
Uniform Disposition of Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal "Currency and Foreign Transactions Reporting
Act", (Title 31, United States Code, Section 1051 et
seq.).
(11) The furnishing of information pursuant to any
other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons,
warrant, or court order.
(12) The furnishing of information in accordance
with the federal Personal Responsibility and Work
Opportunity Reconciliation Act of 1996. Any savings bank
governed by this Act shall enter into an agreement for
data exchanges with a State agency provided the State
agency pays to the savings bank a reasonable fee not to
exceed its actual cost incurred. A savings bank
providing information in accordance with this item shall
not be liable to any account holder or other person for
any disclosure of information to a State agency, for
encumbering or surrendering any assets held by the
savings bank in response to a lien or order to withhold
and deliver issued by a State agency, or for any other
action taken pursuant to this item, including individual
or mechanical errors, provided the action does not
constitute gross negligence or willful misconduct. A
savings bank shall have no obligation to hold, encumber,
or surrender assets until it has been served with a
subpoena, summons, warrant, court or administrative
order, lien, or levy.
(13) The furnishing of information to law
enforcement authorities, the Illinois Department on Aging
and its regional administrative and provider agencies,
the Department of Human Services Office of Inspector
General, or public guardians, if the savings bank
suspects that a customer who is an elderly or disabled
person has been or may become the victim of financial
exploitation. For the purposes of this item (13), the
term: (i) "elderly person" means a person who is 60 or
more years of age, (ii) "disabled person" means a person
who has or reasonably appears to the savings bank to have
a physical or mental disability that impairs his or her
ability to seek or obtain protection from or prevent
financial exploitation, and (iii) "financial
exploitation" means tortious or illegal use of the assets
or resources of an elderly or disabled person, and
includes, without limitation, misappropriation of the
elderly or disabled person's assets or resources by undue
influence, breach of fiduciary relationship,
intimidation, fraud, deception, extortion, or the use of
assets or resources in any manner contrary to law. A
savings bank or person furnishing information pursuant to
this item (13) shall be entitled to the same rights and
protections as a person furnishing information under the
Elder Abuse and Neglect Act and the Illinois Domestic
Violence Act of 1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
member or holder of capital, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by the
member or holder of capital;
(B) maintaining or servicing an account of a
member or holder of capital with the savings bank;
or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or
holder of capital.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
or holder of capital without the consent of the member or
holder of capital.
(15) The exchange in the regular course of business
of information between a savings bank and any commonly
owned affiliate of the savings bank, subject to the
provisions of the Financial Institutions Insurance Sales
Law.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17) (a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program.
Such information is limited to outstanding balance,
available credit, payment and performance and account
history, product references, purchase information, and
information related to the identity of the customer.
(b) (l) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label party"
means, with respect to a private label credit program,
any of the following: a retailer, a merchant, a
manufacturer, a trade group, or any such person's
affiliate, subsidiary, member, agent, or service
provider.
(d) A savings bank may not disclose to any person,
except to the member or holder of capital or his duly
authorized agent, any financial records relating to that
member or shareholder of the savings bank unless:
(1) the member or shareholder has authorized
disclosure to the person; or
(2) the financial records are disclosed in response
to a lawful subpoena, summons, warrant, or court order
that meets the requirements of subsection (e) of this
Section.
(e) A savings bank shall disclose financial records
under subsection (d) of this Section pursuant to a lawful
subpoena, summons, warrant, or court order only after the
savings bank mails a copy of the subpoena, summons, warrant,
or court order to the person establishing the relationship
with the savings bank, if living, and otherwise, his personal
representative, if known, at his last known address by first
class mail, postage prepaid, unless the savings bank is
specifically prohibited from notifying the person by order of
court.
(f) Any officer or employee of a savings bank who
knowingly and willfully furnishes financial records in
violation of this Section is guilty of a business offense
and, upon conviction, shall be fined not more than $1,000.
(g) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a savings bank
to disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(h) If any member or shareholder desires to communicate
with the other members or shareholders of the savings bank
with reference to any question pending or to be presented at
an annual or special meeting, the savings bank shall give
that person, upon request, a statement of the approximate
number of members or shareholders entitled to vote at the
meeting and an estimate of the cost of preparing and mailing
the communication. The requesting member shall submit the
communication to the Commissioner who, upon finding it to be
appropriate and truthful, shall direct that it be prepared
and mailed to the members upon the requesting member's or
shareholder's payment or adequate provision for payment of
the expenses of preparation and mailing.
(i) A savings bank shall be reimbursed for costs that
are necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data of a customer required to be
reproduced pursuant to a lawful subpoena, warrant, or court
order.
(j) Notwithstanding the provisions of this Section, a
savings bank may sell or otherwise make use of lists of
customers' names and addresses. All other information
regarding a customer's account are subject to the disclosure
provisions of this Section. At the request of any customer,
that customer's name and address shall be deleted from any
list that is to be sold or used in any other manner beyond
identification of the customer's accounts.
(Source: P.A. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01;
92-543, eff. 6-12-02.)
(205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
Sec. 9012. Disclosure of reports of examinations and
confidential supervisory information; limitations.
(a) Any report of examination, visitation, or
investigation prepared by the Commissioner under this Act,
any report of examination, visitation, or investigation
prepared by the state regulatory authority of another state
that examines a branch of an Illinois State savings bank in
that state, any document or record prepared or obtained in
connection with or relating to any examination, visitation,
or investigation, and any record prepared or obtained by the
Commissioner to the extent that the record summarizes or
contains information derived from any report, document, or
record described in this subsection shall be deemed
confidential supervisory information. "Confidential
supervisory information" shall not include any information or
record routinely prepared by a savings bank and maintained in
the ordinary course of business or any information or record
that is required to be made publicly available pursuant to
State or federal law or rule. Confidential supervisory
information shall be the property of the Commissioner and
shall only be disclosed under the circumstances and for the
purposes set forth in this Section.
The Commissioner may disclose confidential supervisory
information only under the following circumstances:
(1) The Commissioner may furnish confidential
supervisory information to federal and state depository
institution regulators, or any official or examiner
thereof duly accredited for the purpose. Nothing
contained in this Act shall be construed to limit the
obligation of any savings bank to comply with the
requirements relative to examinations and reports nor to
limit in any way the powers of the Commissioner relative
to examinations and reports.
(2) The Commissioner may furnish confidential
supervisory information to the United States or any
agency thereof that to any extent has insured a savings
bank's deposits, or any official or examiner thereof duly
accredited for the purpose. Nothing contained in this Act
shall be construed to limit the obligation relative to
examinations and reports of any savings bank in which
deposits are to any extent insured by the United States
or any agency thereof nor to limit in any way the powers
of the Commissioner with reference to examination and
reports of the savings bank.
(3) The Commissioner may furnish confidential
supervisory information to the appropriate law
enforcement authorities when the Commissioner reasonably
believes a savings bank, which the Commissioner has
caused to be examined, has been a victim of a crime.
(4) The Commissioner may furnish confidential
supervisory information related to a savings bank, which
the Commissioner has caused to be examined, to the
administrator of the Uniform Disposition of Unclaimed
Property Act.
(5) The Commissioner may furnish confidential
supervisory information relating to a savings bank, which
the Commissioner has caused to be examined, relating to
its performance of obligations under the Illinois Income
Tax Act and the Illinois Estate and Generation-Skipping
Transfer Tax Act to the Illinois Department of Revenue.
(6) The Commissioner may furnish confidential
supervisory information relating to a savings bank, which
the Commissioner has caused to be examined, under the
federal Currency and Foreign Transactions Reporting Act,
31 United States Code, Section 1051 et seq.
(7) The Commissioner may furnish confidential
supervisory information to any other agency or entity
that the Commissioner determines to have a legitimate
regulatory interest.
(8) The Commissioner may furnish confidential
supervisory information as otherwise permitted or
required by this Act and may furnish confidential
supervisory information under any other statute that by
its terms or by regulations promulgated thereunder
requires the disclosure of financial records other than
by subpoena, summons, warrant, or court order.
(9) At the request of the affected savings bank,
the Commissioner may furnish confidential supervisory
information relating to the savings bank, which the
Commissioner has caused to be examined, in connection
with the obtaining of insurance coverage or the pursuit
of an insurance claim for or on behalf of the savings
bank; provided that, when possible, the Commissioner
shall disclose only relevant information while
maintaining the confidentiality of financial records not
relevant to such insurance coverage or claim and, when
appropriate, may delete identifying data relating to any
person.
(10) The Commissioner may furnish a copy of a
report of any examination performed by the Commissioner
of the condition and affairs of any electronic data
processing entity to the savings banks serviced by the
electronic data processing entity.
(11) In addition to the foregoing circumstances,
the Commissioner may, but is not required to, furnish
confidential supervisory information under the same
circumstances authorized for the savings bank pursuant to
subsection (b) of this Section, except that the
Commissioner shall provide confidential supervisory
information under circumstances described in paragraph
(3) of subsection (b) of this Section only upon the
request of the savings bank.
(b) A savings bank or its officers, agents, and
employees may disclose confidential supervisory information
only under the following circumstances:
(1) to the board of directors of the savings bank,
as well as the president, vice-president, cashier, and
other officers of the savings bank to whom the board of
directors may delegate duties with respect to compliance
with recommendations for action, and to the board of
directors of a savings bank holding company that owns at
least 80% of the outstanding stock of the savings bank or
other financial institution.
(2) to attorneys for the savings bank and to a
certified public accountant engaged by the savings bank
to perform an independent audit; provided that the
attorney or certified public accountant shall not permit
the confidential supervisory information to be further
disseminated.
(3) to any person who seeks to acquire a
controlling interest in, or who seeks to merge with, the
savings bank; provided that the person shall agree to be
bound to respect the confidentiality of the confidential
supervisory information and to not further disseminate
the information other than to attorneys, certified public
accountants, officers, agents, or employees of that
person who likewise shall agree to be bound to respect
the confidentiality of the confidential supervisory
information and to not further disseminate the
information.
(4) to the savings bank's insurance company, if the
supervisory information contains information that is
otherwise unavailable and is strictly necessary to
obtaining insurance coverage or pursuing an insurance
claim for or on behalf of the savings bank; provided
that, when possible, the savings bank shall disclose only
information that is relevant to obtaining insurance
coverage or pursuing an insurance claim, while
maintaining the confidentiality of financial information
pertaining to customers; and provided further that, when
appropriate, the savings bank may delete identifying data
relating to any person.
The disclosure of confidential supervisory information by
a savings bank pursuant to this subsection (b) and the
disclosure of information to the Commissioner or other
regulatory agency in connection with any examination,
visitation, or investigation shall not constitute a waiver of
any legal privilege otherwise available to the savings bank
with respect to the information.
(c) (1) Notwithstanding any other provision of this Act
or any other law, confidential supervisory information shall
be the property of the Commissioner and shall be privileged
from disclosure to any person except as provided in this
Section. No person in possession of confidential supervisory
information may disclose that information for any reason or
under any circumstances not specified in this Section without
the prior authorization of the Commissioner. Any person upon
whom a demand for production of confidential supervisory
information is made, whether by subpoena, order, or other
judicial or administrative process, must withhold production
of the confidential supervisory information and must notify
the Commissioner of the demand, at which time the
Commissioner is authorized to intervene for the purpose of
enforcing the limitations of this Section or seeking the
withdrawal or termination of the attempt to compel production
of the confidential supervisory information.
(2) Any request for discovery or disclosure of
confidential supervisory information, whether by
subpoena, order, or other judicial or administrative
process, shall be made to the Commissioner, and the
Commissioner shall determine within 15 days whether to
disclose the information pursuant to procedures and
standards that the Commissioner shall establish by rule.
If the Commissioner determines that such information will
not be disclosed, the Commissioner's decision shall be
subject to judicial review under the provisions of the
Administrative Review Law, and venue shall be in either
Sangamon County or Cook County.
(3) Any court order that compels disclosure of
confidential supervisory information may be immediately
appealed by the Commissioner, and the order shall be
automatically stayed pending the outcome of the appeal.
(d) If any officer, agent, attorney, or employee of a
savings bank knowingly and willfully furnishes confidential
supervisory information in violation of this Section, the
Commissioner may impose a civil monetary penalty up to $1,000
for the violation against the officer, agent, attorney, or
employee. Disclosure of examination reports and other
records.
(a) Except as provided in subsection (b) the
Commissioner may disclose information gathered by examination
of and through reports from a savings bank only to the board
of directors of the savings bank, other federal and state
financial services regulators, law enforcement or
prosecutorial agencies, and the savings bank's independent
licensed public accountants.
(e) (b) Subject to the limits of this Section, the
Commissioner also may promulgate regulations to set
procedures and standards for allow disclosure of other than
as provided in subsection (a), but only for the following
items:
(1) All fixed orders and opinions made in cases of
appeals of the Commissioner's actions.
(2) Statements of policy and interpretations
adopted by the Commissioner's office, but not otherwise
made public.
(3) Nonconfidential portions of application files,
including applications for new charters. The
Commissioner shall specify by rule as to what part of the
files are confidential.
(4) Quarterly reports of income, deposits, and
financial condition.
(Source: P.A. 86-1213.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Effective Date: 07/22/03
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