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Public Act 91-0148
SB461 Enrolled LRB9103138LDdv
AN ACT to amend the Illinois Savings and Loan Act of 1985
by changing Section 4-6.
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 Section 4-6 as follows:
(205 ILCS 105/4-6) (from Ch. 17, par. 3304-6)
Sec. 4-6. Issuance, delivery and transfer of
certificates and account books. (a) Every capital account
shall be evidenced by one or more appropriate certificates or
account book; and either such certificates or an account
book, or both, shall be delivered to the holder of such
account. The wording, type and form of the certificates and
account books issued by an association shall be subject to
the approval of the Commissioner.
(b) The holder of a withdrawable capital account may
transfer his rights therein absolutely or conditionally to
any other person eligible to hold the same by written
assignment accompanied by delivery of the appropriate
certificate or account book; but notwithstanding the
effectiveness of such a transfer between the parties thereto,
the association may treat the holder of record as the owner
of the account for payment, voting and all other purposes
until such assignment and any accompanying certificate or
account book have been received by the association with a
request for the transfer on the association's records.
(c) Withdrawable capital certificates, account books and
any other evidences of membership shall be nonnegotiable and
not subject to Article 8 of the Uniform Commercial Code, as
amended concerning Investment Securities. Permanent reserve
share certificates shall be subject to the provisions of
Article 8 of the Uniform Commercial Code, as amended,
concerning Investment Securities.
(d) All withdrawable capital certificates and account
books, delivered to the holders as prescribed by this
Article, shall be subject to attachment and execution as
provided by the laws of this State., and the association
shall not be subject to garnishment proceedings concerning
any capital account, except with respect to a certificate or
account book in the association's possession, and when
(1) Neither a certificate nor an account book has been
delivered to the holder as required by this Section, or
(2) The certificate and account book (or either of them
if only one has been delivered) have been returned to the
association's possession.
(e) If the holder of a withdrawable capital account, or
the personal representative of any such person, shall file
with the association an affidavit to the effect that his
account book or certificate has been lost or destroyed, and
that such account book or certificate has not been pledged or
assigned either in whole or in part, then such association
may issue a substitute account book or certificate in the
name of such holder, with a statement therein that such
account book or certificate is issued in lieu of the one lost
or destroyed. The association shall not be liable thereafter
with respect to the original account book or certificate; but
the board of directors may require a bond in sufficient
amount to indemnify the association against any loss which
might result from the issuance of such substitute account
book or certificate.
(Source: P.A. 84-543.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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