Illinois General Assembly - Full Text of Public Act 095-0526
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Public Act 095-0526


 

Public Act 0526 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0526
 
HB0497 Enrolled LRB095 05354 MJR 25438 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Banking Act is amended by adding
Section 21.5 as follows:
 
    (205 ILCS 5/21.5 new)
    Sec. 21.5. Prohibition against establishment of branches
on or near the premises of certain affiliates.
    (a) For purposes of this Section:
    "Affiliate" has the meaning ascribed to that term in item
(1) of subsection (b) of Section 35.2 of this Act, except that
for purposes of this Section, the provisions in item (1) of
subsection (b) of Section 35.2 shall apply to all banks.
    "Bank" has the meaning ascribed to that term in the Federal
Deposit Insurance Act and includes any out-of-state bank.
    "Bank holding company" and "financial holding company"
have the meanings ascribed to those terms in the federal Bank
Holding Company Act of 1956.
    (b) Notwithstanding any other law of this State, no bank
may establish or maintain a branch that accepts deposits on or
adjacent to the premises of an affiliate of the bank if the
affiliate engages in any commercial activity that could not
lawfully be conducted by a bank holding company, a financial
holding company, or a subsidiary of the bank holding company or
financial holding company, pursuant to federal law.
    (c) This Section shall not apply to an affiliate that
operates solely for the purpose of owning or leasing the real
estate on which the branch that accepts deposits is located.
    (d) This Section shall not be construed to prohibit the
maintenance of a branch that was established prior to May 10,
2007, or the conduct of any transactions that were lawfully
being conducted at the branch prior to May 10, 2007.
    (e) The Commissioner may make and enforce reasonable rules,
regulations, directions, orders, decisions, and findings as
the execution and enforcement of the provisions of this Section
require.
 
    Section 10. The Savings Bank Act is amended by adding
Section 1006.10 as follows:
 
    (205 ILCS 205/1006.10 new)
    Sec. 1006.10. Prohibition against establishment of offices
or branches on or adjacent to the premises of certain
affiliates.
    (a) For purposes of this Section:
    "Affiliate" has the meaning ascribed to that term in item
(1) of subsection (b) of Section 35.2 of the Illinois Banking
Act, except that for purposes of this Section, the provisions
in item (1) of subsection (b) of Section 35.2 shall apply to
all savings banks.
    "Savings bank" means a savings bank operating under this
Act, an out-of-state savings bank as defined under this Act, or
a savings association defined in the Federal Deposit Insurance
Act.
    "Savings bank holding company" has the meaning ascribed in
this Act.
    (b) Notwithstanding any other law of this State, no savings
bank may establish or maintain a branch that accepts deposits
on or adjacent to the premises of an affiliate of the savings
bank if the affiliate engages in any commercial activity that
could not lawfully be conducted by a savings bank holding
company or a subsidiary of the savings bank holding company
pursuant to federal law.
    (c) This Section shall not apply to an affiliate that
operates solely for the purpose of owning or leasing the real
estate on which the branch that accepts deposits is located.
    (d) This Section shall not be construed to prohibit the
maintenance of a branch that was established prior to May 10,
2007, or the conduct of any transactions that were lawfully
being conducted at the branch prior to May 10, 2007.
    (e) The Commissioner may make and enforce such reasonable
rules, regulations, directions, orders, decisions, and
findings as the execution and enforcement of the provisions of
this Section require.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/28/2007