Illinois General Assembly - Full Text of Public Act 099-0362
Illinois General Assembly

Previous General Assemblies

Public Act 099-0362





Public Act 099-0362
SB1861 EnrolledLRB099 11039 MGM 31419 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 changing
Sections 5 and 14.1 as follows:
    (205 ILCS 5/5)  (from Ch. 17, par. 311)
    Sec. 5. General corporate powers. A bank organized under
this Act or subject hereto shall be a body corporate and
politic and shall, without specific mention thereof in the
charter, have all the powers conferred by this Act and the
following additional general corporate powers:
        (1) To sue and be sued, complain, and defend in its
    corporate name.
        (2) To have a corporate seal, which may be altered at
    pleasure, and to use the same by causing it or a facsimile
    thereof to be impressed or affixed or in any manner
    reproduced, provided that the affixing of a corporate seal
    to an instrument shall not give the instrument additional
    force or effect, or change the construction thereof, and
    the use of a corporate seal is not mandatory.
        (3) To make, alter, amend, and repeal bylaws, not
    inconsistent with its charter or with law, for the
    administration of the affairs of the bank. If this Act does
    not provide specific guidance in matters of corporate
    governance, the provisions of the Business Corporation Act
    of 1983 may be used if so provided in the bylaws, and if
    the bank is a limited liability company, the provisions of
    the Limited Liability Company Act shall be used.
        (4) To elect or appoint and remove officers and agents
    of the bank and define their duties and fix their
        (5) To adopt and operate reasonable bonus plans,
    profit-sharing plans, stock-bonus plans, stock-option
    plans, pension plans and similar incentive plans for its
    directors, officers and employees.
        (5.1) To manage, operate and administer a fund for the
    investment of funds by a public agency or agencies,
    including any unit of local government or school district,
    or any person. The fund for a public agency shall invest in
    the same type of investments and be subject to the same
    limitations provided for the investment of public funds.
    The fund for public agencies shall maintain a separate
    ledger showing the amount of investment for each public
    agency in the fund. "Public funds" and "public agency" as
    used in this Section shall have the meanings ascribed to
    them in Section 1 of the Public Funds Investment Act.
        (6) To make reasonable donations for the public welfare
    or for charitable, scientific, religious or educational
        (7) To borrow or incur an obligation; and to pledge its
            (a) to secure its borrowings, its lease of personal
        or real property or its other nondeposit obligations;
            (b) to enable it to act as agent for the sale of
        obligations of the United States;
            (c) to secure deposits of public money of the
        United States, whenever required by the laws of the
        United States, including without being limited to,
        revenues and funds the deposit of which is subject to
        the control or regulation of the United States or any
        of its officers, agents, or employees and Postal
        Savings funds;
            (d) to secure deposits of public money of any state
        or of any political corporation or subdivision thereof
        including, without being limited to, revenues and
        funds the deposit of which is subject to the control or
        regulation of any state or of any political corporation
        or subdivisions thereof or of any of their officers,
        agents, or employees;
            (e) to secure deposits of money whenever required
        by the National Bankruptcy Act;
            (f) (blank); and
            (g) to secure trust funds commingled with the
        bank's funds, whether deposited by the bank or an
        affiliate of the bank, pursuant to Section 2-8 of the
        Corporate Fiduciary Act.
        (8) To own, possess, and carry as assets all or part of
    the real estate necessary in or with which to do its
    banking business, either directly or indirectly through
    the ownership of all or part of the capital stock, shares
    or interests in any corporation, association, trust
    engaged in holding any part or parts or all of the bank
    premises, engaged in such business and in conducting a safe
    deposit business in the premises or part of them, or
    engaged in any activity that the bank is permitted to
    conduct in a subsidiary pursuant to paragraph (12) of this
    Section 5.
        (9) To own, possess, and carry as assets other real
    estate to which it may obtain title in the collection of
    its debts or that was formerly used as a part of the bank
    premises, but title to any real estate except as herein
    permitted shall not be retained by the bank, either
    directly or by or through a subsidiary, as permitted by
    subsection (12) of this Section for a total period of more
    than 10 years after acquiring title, either directly or
        (10) To do any act, including the acquisition of stock,
    necessary to obtain insurance of its deposits, or part
    thereof, and any act necessary to obtain a guaranty, in
    whole or in part, of any of its loans or investments by the
    United States or any agency thereof, and any act necessary
    to sell or otherwise dispose of any of its loans or
    investments to the United States or any agency thereof, and
    to acquire and hold membership in the Federal Reserve
        (11) Notwithstanding any other provisions of this Act
    or any other law, to do any act and to own, possess, and
    carry as assets property of the character, including stock,
    that is at the time authorized or permitted to national
    banks by an Act of Congress, but subject always to the same
    limitations and restrictions as are applicable to national
    banks by the pertinent federal law and subject to
    applicable provisions of the Financial Institutions
    Insurance Sales Law.
        (12) To own, possess, and carry as assets stock of one
    or more corporations that is, or are, engaged in one or
    more of the following businesses:
            (a) holding title to and administering assets
        acquired as a result of the collection or liquidating
        of loans, investments, or discounts; or
            (b) holding title to and administering personal
        property acquired by the bank, directly or indirectly
        through a subsidiary, for the purpose of leasing to
        others, provided the lease or leases and the investment
        of the bank, directly or through a subsidiary, in that
        personal property otherwise comply with Section 35.1
        of this Act; or
            (c) carrying on or administering any of the
        activities excepting the receipt of deposits or the
        payment of checks or other orders for the payment of
        money in which a bank may engage in carrying on its
        general banking business; provided, however, that
        nothing contained in this paragraph (c) shall be deemed
        to permit a bank organized under this Act or subject
        hereto to do, either directly or indirectly through any
        subsidiary, any act, including the making of any loan
        or investment, or to own, possess, or carry as assets
        any property that if done by or owned, possessed, or
        carried by the State bank would be in violation of or
        prohibited by any provision of this Act.
        The provisions of this subsection (12) shall not apply
    to and shall not be deemed to limit the powers of a State
    bank with respect to the ownership, possession, and
    carrying of stock that a State bank is permitted to own,
    possess, or carry under this Act.
        Any bank intending to establish a subsidiary under this
    subsection (12) shall give written notice to the
    Commissioner 60 days prior to the subsidiary's commencing
    of business or, as the case may be, prior to acquiring
    stock in a corporation that has already commenced business.
    After receiving the notice, the Commissioner may waive or
    reduce the balance of the 60 day notice period. The
    Commissioner may specify the form of the notice, may
    designate the types of subsidiaries not subject to this
    notice requirement, and may promulgate rules and
    regulations to administer this subsection (12).
        (13) To accept for payment at a future date not
    exceeding one year from the date of acceptance, drafts
    drawn upon it by its customers; and to issue, advise, or
    confirm letters of credit authorizing the holders thereof
    to draw drafts upon it or its correspondents.
        (14) To own and lease personal property acquired by the
    bank at the request of a prospective lessee and upon the
    agreement of that person to lease the personal property
    provided that the lease, the agreement with respect
    thereto, and the amount of the investment of the bank in
    the property comply with Section 35.1 of this Act.
        (15)(a) To establish and maintain, in addition to the
    main banking premises, branches offering any banking
    services permitted at the main banking premises of a State
        (b) To establish and maintain, after May 31, 1997,
    branches in another state that may conduct any activity in
    that state that is authorized or permitted for any bank
    that has a banking charter issued by that state, subject to
    the same limitations and restrictions that are applicable
    to banks chartered by that state.
        (16) (Blank).
        (17) To establish and maintain terminals, as
    authorized by the Electronic Fund Transfer Act.
        (18) To establish and maintain temporary service
    booths at any International Fair held in this State which
    is approved by the United States Department of Commerce,
    for the duration of the international fair for the sole
    purpose of providing a convenient place for foreign trade
    customers at the fair to exchange their home countries'
    currency into United States currency or the converse. This
    power shall not be construed as establishing a new place or
    change of location for the bank providing the service
        (19) To indemnify its officers, directors, employees,
    and agents, as authorized for corporations under Section
    8.75 of the Business Corporation Act of 1983.
        (20) To own, possess, and carry as assets stock of, or
    be or become a member of, any corporation, mutual company,
    association, trust, or other entity formed exclusively for
    the purpose of providing directors' and officers'
    liability and bankers' blanket bond insurance or
    reinsurance to and for the benefit of the stockholders,
    members, or beneficiaries, or their assets or businesses,
    or their officers, directors, employees, or agents, and not
    to or for the benefit of any other person or entity or the
    public generally.
        (21) To make debt or equity investments in corporations
    or projects, whether for profit or not for profit, designed
    to promote the development of the community and its
    welfare, provided that the aggregate investment in all of
    these corporations and in all of these projects does not
    exceed 10% of the unimpaired capital and unimpaired surplus
    of the bank and provided that this limitation shall not
    apply to creditworthy loans by the bank to those
    corporations or projects. Upon written application to the
    Commissioner, a bank may make an investment that would,
    when aggregated with all other such investments, exceed 10%
    of the unimpaired capital and unimpaired surplus of the
    bank. The Commissioner may approve the investment if he is
    of the opinion and finds that the proposed investment will
    not have a material adverse effect on the safety and
    soundness of the bank.
        (22) To own, possess, and carry as assets the stock of
    a corporation engaged in the ownership or operation of a
    travel agency or to operate a travel agency as a part of
    its business.
        (23) With respect to affiliate facilities:
            (a) to conduct at affiliate facilities for and on
        behalf of another commonly owned bank, if so authorized
        by the other bank, all transactions that the other bank
        is authorized or permitted to perform; and
            (b) to authorize a commonly owned bank to conduct
        for and on behalf of it any of the transactions it is
        authorized or permitted to perform at one or more
        affiliate facilities.
        Any bank intending to conduct or to authorize a
    commonly owned bank to conduct at an affiliate facility any
    of the transactions specified in this paragraph (23) shall
    give written notice to the Commissioner at least 30 days
    before any such transaction is conducted at the affiliate
        (24) To act as the agent for any fire, life, or other
    insurance company authorized by the State of Illinois, by
    soliciting and selling insurance and collecting premiums
    on policies issued by such company; and to receive for
    services so rendered such fees or commissions as may be
    agreed upon between the bank and the insurance company for
    which it may act as agent; provided, however, that no such
    bank shall in any case assume or guarantee the payment of
    any premium on insurance policies issued through its agency
    by its principal; and provided further, that the bank shall
    not guarantee the truth of any statement made by an assured
    in filing his application for insurance.
        (25) Notwithstanding any other provisions of this Act
    or any other law, to offer any product or service that is
    at the time authorized or permitted to any insured savings
    association or out-of-state bank by applicable law,
    provided that powers conferred only by this subsection
            (a) shall always be subject to the same limitations
        and restrictions that are applicable to the insured
        savings association or out-of-state bank for the
        product or service by such applicable law;
            (b) shall be subject to applicable provisions of
        the Financial Institutions Insurance Sales Law;
            (c) shall not include the right to own or conduct a
        real estate brokerage business for which a license
        would be required under the laws of this State; and
            (d) shall not be construed to include the
        establishment or maintenance of a branch, nor shall
        they be construed to limit the establishment or
        maintenance of a branch pursuant to subsection (11).
        Not less than 30 days before engaging in any activity
    under the authority of this subsection, a bank shall
    provide written notice to the Commissioner of its intent to
    engage in the activity. The notice shall indicate the
    specific federal or state law, rule, regulation, or
    interpretation the bank intends to use as authority to
    engage in the activity.
        (26) Nothing in this Section shall be construed to
    require the filing of a notice or application for approval
    with the United States Office of the Comptroller of the
    Currency or a bank supervisor of another state as a
    condition to the right of a State bank to exercise any of
    the powers conferred by this Section in this State.
(Source: P.A. 98-44, eff. 6-28-13.)
    (205 ILCS 5/14.1)  (from Ch. 17, par. 321.1)
    Sec. 14.1. Quasi-Reorganization of Capital Upon a Change in
    (a) For the purposes of declaring dividends pursuant to
Section 14(8)(b) of this Act upon a change in control, if a
    (1) incurs a change in ownership of more than 50% of its
voting stock; and
    (2) has a deficit in its net profits then on hand at the
time of such change in ownership; and
    (3) receives the prior written approval of the Secretary
Commissioner; such bank may restate its asset and liability
accounts to fair value for the purpose of reorganizing the
capital accounts of the bank so that net profits then on hand
are restated to zero; provided that in no event may total
capital be increased as a result of a capital reorganization
made pursuant to this Section.
    (b) A bank may reorganize its capital accounts pursuant to
item (3) of subsection (a) of this Section without a change in
control to the same extent and in the same manner authorized
for national banks, subject to the same limitations and
restrictions as are applicable to national banks, upon
receiving the prior written approval of the Secretary.
(Source: P.A. 87-841.)
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/13/2015