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Public Act 92-0811
HB4409 Enrolled LRB9212762BDdv
AN ACT concerning financial institutions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Metropolitan Transit Authority Act is
amended by changing Section 25 as follows:
(70 ILCS 3605/25) (from Ch. 111 2/3, par. 325)
Sec. 25. All funds deposited by the treasurer in any
bank, savings bank, or savings and loan association shall be
placed in the name of the Authority and shall be withdrawn or
paid out only by check or draft upon the bank, savings bank,
or savings and loan association, signed by the treasurer or
an assistant treasurer and countersigned by the chairman of
the Board or a vice-chairman of the Board. The Board may
designate any of its members or any officer or employee of
the Authority to affix the signature of the chairman and
another to affix the signature of the treasurer to any check
or draft for payment of salaries or wages and for the payment
of any other obligation of not more than $2500.00.
No bank, savings bank, or savings and loan association
shall receive public funds as permitted by this Section,
unless it has complied with the requirements established
pursuant to Section 6 of "An Act relating to certain
investments of public funds by public agencies", approved
July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
Section 10. The Illinois Banking Act is amended by
changing Sections 5, 18, 46, and 48.4 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.
(4) To elect or appoint and remove officers and agents
of the bank and define their duties and fix their
compensation.
(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
purposes.
(7) To borrow or incur an obligation; and to pledge its
assets:
(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 indirectly.
(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 System.
(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 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 bank.
(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 booth.
(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 facility.
(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 (25):
(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.
(Source: P.A. 91-330, eff. 7-29-99; 91-849, eff. 6-22-00;
92-483, eff. 8-23-01.)
(205 ILCS 5/18) (from Ch. 17, par. 325)
Sec. 18. Change in control.
(a) Before a change may occur in the ownership of
outstanding stock of any State bank, whether by sale and
purchase, gift, bequest or inheritance, or any other means,
including the acquisition of stock of the State bank by any
bank holding company, which will result in control or a
change in the control of the bank or before a change in the
control of a holding company having control of the
outstanding stock of a State bank whether by sale and
purchase, gift, bequest or inheritance, or any other means,
including the acquisition of stock of such holding company by
any other bank holding company, which will result in control
or a change in control of the bank or holding company, or
before a transfer of substantially all the assets or
liabilities of the State bank, the Commissioner shall be of
the opinion and find:
(1) that the general character of proposed
management or of the person desiring to purchase
substantially all the assets or to assume substantially
all the liabilities of the State bank, after the change
in control, is such as to assure reasonable promise of
successful, safe and sound operation;
(1.1) that depositors' interests will not be
jeopardized by the purchase or assumption and that
adequate provision has been made for all liabilities as
required for a voluntary liquidation under Section 68 of
this Act;
(2) that the future earnings prospects of the
person desiring to purchase substantially all assets or
to assume substantially all the liabilities of the State
bank, after the proposed change in control, are
favorable;
(3) that any prior involvement by the persons
proposing to obtain control, to purchase substantially
all the assets, or to assume substantially all the
liabilities of the State bank or by the proposed
management personnel with any other financial
institution, whether as stockholder, director, officer or
customer, was conducted in a safe and sound manner; and
(4) that if the acquisition is being made by a bank
holding company, the acquisition is authorized under the
Illinois Bank Holding Company Act of 1957.
(b) Persons desiring to purchase control of an existing
state bank, to purchase substantially all the assets, or to
assume substantially all the liabilities of the State bank
shall, prior to that purchase, submit to the Commissioner:
(1) a statement of financial worth;
(2) satisfactory evidence that any prior
involvement by the persons and the proposed management
personnel with any other financial institution, whether
as stockholder, director, officer or customer, was
conducted in a safe and sound manner; and
(3) such other relevant information as the
Commissioner may request to substantiate the findings
under subsection (a) of this Section.
A person who has submitted information to the
Commissioner pursuant to this subsection (b) is under a
continuing obligation until the Commissioner takes action on
the application to immediately supplement that information if
there are any material changes in the information previously
furnished or if there are any material changes in any
circumstances that may affect the Commissioner's opinion and
findings. In addition, a person submitting information under
this subsection shall notify the Commissioner of the date
when the change in control is finally effected.
The Commissioner may impose such terms and conditions on
the approval of the change in control application as he deems
necessary or appropriate.
If an applicant, whose application for a change in
control has been approved pursuant to subsection (a) of this
Section, fails to effect the change in control within 180
days after the date of the Commissioner's approval, the
Commissioner shall revoke that approval unless a request has
been submitted, in writing, to the Commissioner for an
extension and the request has been approved.
(b-1) Any person who obtains ownership of stock of an
existing State bank or stock of a holding company that
controls the State bank by gift, bequest, or inheritance such
that ownership of the stock would constitute control of the
State bank or holding company may obtain title and ownership
of the stock, but may not exercise management or control of
the business and affairs of the bank or vote his or her
shares so as to exercise management or control unless and
until the Commissioner approves an application for the change
of control as provided in subsection (b) of this Section.
(c) Whenever a state bank makes a loan or loans,
secured, or to be secured, by 25% or more of the outstanding
stock of a state bank, the president or other chief executive
officer of the lending bank shall promptly report such fact
to the Commissioner upon obtaining knowledge of such loan or
loans, except that no report need be made in those cases
where the borrower has been the owner of record of the stock
for a period of one year or more, or the stock is that of a
newly organized bank prior to its opening.
(d) The reports required by subsections (b) and (c) of
this Section 18, other than those relating to a transfer of
assets or assumption of liabilities, shall contain the
following information to the extent that it is known by the
person making the report: (1) the number of shares involved;
(2) the names of the sellers (or transferors); (3) the names
of the purchasers (or transferees); (4) the names of the
beneficial owners if the shares are registered in another
name: (5) the purchase price, if applicable; (6) the total
number of shares owned by the sellers (or transferors), the
purchasers (or transferees) and the beneficial owners both
immediately before and after the transaction; and, (7) in the
case of a loan, the name of the borrower, the amount of the
loan, the name of the bank issuing the stock securing the
loan and the number of shares securing the loan. In addition
to the foregoing, such reports shall contain such other
information which is requested by the Commissioner to inform
the Commissioner of the effect of the transaction upon
control of the bank whose stock is involved.
(d-1) The reports required by subsection (b) of this
Section 18 that relate to purchase of assets and assumption
of liabilities shall contain the following information to the
extent that it is known by the person making the report: (1)
the value, amount, and description of the assets transferred;
(2) the amount, type, and to whom each type of liabilities
are owed; (3) the names of the purchasers (or transferees);
(4) the names of the beneficial owners if the shares of a
purchaser or transferee are registered in another name; (5)
the purchase price, if applicable; and, (6) in the case of a
loan obtained to effect a purchase, the name of the borrower,
the amount and terms of the loan, and the description of the
assets securing the loan. In addition to the foregoing,
these reports shall contain any other information that is
requested by the Commissioner to inform the Commissioner of
the effect of the transaction upon the bank from which assets
are purchased or liabilities are transferred.
(e) Whenever such a change as described in subsection
(a) of this Section 18 occurs, each state bank shall report
promptly to the Commissioner any changes or replacement of
its chief executive officer or of any director occurring in
the next 12 month period, including in its report a statement
of the past and current business and professional
affiliations of the new chief executive officer or directors.
(f) (Blank).
(g) (1) Except as otherwise expressly provided in this
subsection (g), the Commissioners shall not approve an
application for a change in control if upon consummation
of the change in control the persons applying for the
change in control, including any affiliates of the
persons applying, would control 30% or more of the total
amount of deposits which are located in this State at
insured depository institutions. For purposes of this
subsection (g), the words "insured depository
institution" shall mean State banks, national banks, and
insured savings associations. For purposes of this
subsection (g), the word "deposits" shall have the
meaning ascribed to that word in Section 3(1) of the
Federal Deposit Insurance Act. For purposes of this
subsection (g), the total amount of deposits which are
considered to be located in this State at insured
depository institutions shall equal the sum of all
deposits held at the main banking premises and branches
in the State of Illinois of State banks, national banks,
or insured savings associations. For purposes of this
subsection (g), the word "affiliates" shall have the
meaning ascribed to that word in Section 35.2 of this
Act.
(2) Notwithstanding the provisions of subsection
(g)(1) of this Section, the Commissioner may approve an
application for a change in control for a bank that is in
default or in danger of default. Except in those
instances in which an application for a change in control
is for a bank that is in default or in danger of default,
the Commissioner may not approve a change in control
which does not meet the requirements of subsection (g)(1)
of this Section. The Commissioner may not waive the
provisions of subsection (g)(1) of this Section, whether
pursuant to Section 3(d) of the federal Bank Holding
Company Act of 1956 or Section 44(d) of the Federal
Deposit Insurance Act, except as expressly provided in
this subsection (g)(2).
(h) As used in this Section, the term "control" means
the power, directly or indirectly, to direct the management
or policies of the bank or to vote 25% or more of the
outstanding stock of the bank. the ownership of such amount
of stock or ability to direct the voting of such stock as to,
directly or indirectly, give power to direct or cause the
direction of the management or policies of the bank. A
change in ownership of stock that would result in direct or
indirect ownership by a stockholder, an affiliated group of
stockholders, or a holding company of less than 10% of the
outstanding stock shall not be considered a change in
control. A change in ownership of stock that would result in
direct or indirect ownership by a stockholder, an affiliated
group of stockholders, or a holding company of 20% or such
lesser amount that would entitle the holder by applying
cumulative voting to elect one director shall be presumed to
constitute a change of control for purposes of this Section
18. If there is any question as to whether a change in the
ownership or control of the outstanding stock is sufficient
to result in obtaining control thereof or to effect a change
in the control application should be filed thereof, the
question shall be resolved in favor of filing the application
with reporting the facts to the Commissioner.
As used in this Section, "substantially all" the assets
or liabilities of a State bank means that portion of the
assets or liabilities of a State bank such that their
purchase or transfer will materially impair the ability of
the State bank to continue successful, safe, and sound
operations or to continue as a going concern or would cause
the bank to lose its federal deposit insurance.
As used in this Section, "purchase" includes a transfer
by gift, bequest, inheritance, or any other means.
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 5/46) (from Ch. 17, par. 357)
Sec. 46. Misleading practices and names prohibited;
penalty.
(a) No person, firm, partnership, or corporation that is
not a bank shall transact business in this State in a manner
which has a substantial likelihood of misleading the public
by implying that the business is a bank, or shall use the
word "bank", "banker", or "banking" in connection with the
business. Any person, firm, partnership or corporation
violating this Section shall be deemed guilty of a Class A
misdemeanor, and the Attorney General or State's Attorney of
the county in which any such violation occurs may restrain
such violation by a complaint for injunctive relief.
(b) If the Commissioner is of the opinion and finds that
a person, firm, partnership, or corporation that is not a
bank has transacted or intends to transact business in this
State in a manner which has a substantial likelihood of
misleading the public by implying that the business is a
bank, or has used or intends to use the word "bank",
"banker", or "banking" in connection with the business, then
the Commissioner may direct that person, firm, partnership,
or corporation to cease and desist from transacting the
business or using the word "bank", "banker", or "banking".
If that person, firm, partnership, or corporation persists in
transacting the business or using the word "bank", "banker",
or "banking", then the Commissioner may impose a civil
penalty of up to $10,000 for each violation. Each day that
the person, firm, partnership, or corporation continues
transacting the business or using the word "bank", "banker",
or "banking" in connection with the business shall constitute
a separate violation of these provisions.
(c) A person, firm, partnership, or corporation that is
not a bank, and is not transacting or intending to transact
business in this State in a manner that has a substantial
likelihood of misleading the public by implying that such
business is a bank, may apply to the Commissioner for
permission to use the word "bank", "banker", or "banking" in
connection with the business. If the Commissioner determines
that there is no substantial likelihood of misleading the
public, and upon such conditions as the Commissioner may
impose to prevent the person, firm, partnership, or
corporation from holding itself out in a misleading manner,
then such person, firm, partnership, or corporation may use
the word "bank", "banker", or "banking".
(d) (1) Unless otherwise expressly permitted by
law, no person, firm, partnership, or corporation may use
the name of an existing bank, or a name deceptively
similar to that of an existing bank, when marketing to or
soliciting business from customers or prospective
customers if the reference to the existing bank is made
(i) without the consent of the existing bank and (ii) in
a manner that could cause a reasonable person to believe
that the marketing material or solicitation originated
from or is endorsed by the existing bank or that the
existing bank is in any other way responsible for the
marketing material or solicitation.
(1.5) Unless otherwise expressly permitted by law,
no person, firm, partnership, or corporation may use a
name similar to that of an existing bank when marketing
to or soliciting business from customers or prospective
customers if the similar name is used in a manner that
could cause a reasonable person to believe that the
marketing material or solicitation originated from or is
endorsed by the existing bank or that the existing bank
is in any other way responsible for the marketing
material or solicitation.
(2) An existing bank may, in addition to any other
remedies available under the law, report an alleged
violation of this subsection (d) to the Commissioner. If
the Commissioner finds the marketing material or
solicitation in question to be in violation of this
subsection, the Commissioner may direct the person, firm,
partnership, or corporation to cease and desist from
using that marketing material or solicitation in
Illinois. If that person, firm, partnership, or
corporation persists in the use of the marketing material
or solicitation, then the Commissioner may impose a civil
penalty of up to $10,000 for each violation. Each
instance in which the marketing material or solicitation
is sent to a customer or prospective customer shall
constitute a separate violation of these provisions. The
Commissioner is authorized to promulgate rules to
administer these provisions.
(3) (Blank) Nothing in this subsection (d)
prohibits the use of or reference to the name of an
existing bank in marketing materials or solicitations,
provided that the use or reference would not deceive or
confuse a reasonable person regarding whether the
marketing material or solicitation originated from or was
endorsed by the existing bank or whether the existing
bank was in any other way responsible for the marketing
material or solicitation. The Commissioner is authorized
to promulgate rules to administer these provisions.
(Source: P.A. 92-476, eff. 8-23-01.)
(205 ILCS 5/48.4)
Sec. 48.4. Administrative liens for past-due child
support. Any bank governed by this Act shall encumber or
surrender accounts or assets held by the bank on behalf of
any responsible relative who is subject to a child support
lien, upon notice of the lien or levy of the Illinois
Department of Public Aid or its successor agency pursuant to
Section 10-25.5 of the Illinois Public Aid Code, or upon
notice of interstate lien or levy from any other state's
agency responsible for implementing the child support
enforcement program set forth in Title IV, Part D of the
Social Security Act.
(Source: P.A. 90-18, eff. 7-1-97; 90-655, eff. 7-30-98.)
Section 15. The Illinois Savings and Loan Act of 1985 is
amended by changing Section 1-6d as follows:
(205 ILCS 105/1-6d)
Sec. 1-6d. Administrative liens for past-due child
support. Any association governed by this Act shall encumber
or surrender accounts or assets held by the association on
behalf of any responsible relative who is subject to a child
support lien, upon notice of the lien or levy of the Illinois
Department of Public Aid or its successor agency pursuant to
Section 10-25.5 of the Illinois Public Aid Code, or upon
notice of interstate lien or levy from any other state's
agency responsible for implementing the child support
enforcement program set forth in Title IV, Part D of the
Social Security Act.
(Source: P.A. 90-18, eff. 7-1-97.)
Section 20. The Savings Bank Act is amended by changing
Sections 7007 and 8015 as follows:
(205 ILCS 205/7007)
Sec. 7007. Administrative liens for past-due child
support. Any savings bank governed by this Act shall
encumber or surrender accounts or assets held by the savings
bank on behalf of any responsible relative who is subject to
a child support lien, upon notice of the lien or levy of the
Illinois Department of Public Aid or its successor agency
pursuant to Section 10-25.5 of the Illinois Public Aid Code,
or upon notice of interstate lien or levy from any other
state's agency responsible for implementing the child support
enforcement program set forth in Title IV, Part D of the
Social Security Act.
(Source: P.A. 90-18, eff. 7-1-97.)
(205 ILCS 205/8015) (from Ch. 17, par. 7308-15)
Sec. 8015. Change in control.
(a) Any person, whether acting directly or indirectly or
through or in concert with one or more persons, shall give
the Commissioner 60 days written notice of intent to acquire
control of a savings bank or savings bank affiliate operating
under this Act. The Commissioner shall promulgate rules to
implement this provision including definitions, application,
procedures, standards for approval or disapproval.
(b) The Commissioner may examine the books and records
of any person giving notice of intent to acquire control of a
savings bank operating under this Act.
(c) The Commissioner may approve or disapprove an
application for change of control. In either case, the
decision must be issued within 30 days of the filing of the
initial application or the date of receipt of any additional
information requested by the Commissioner that is necessary
for his decision to be made. The request for additional
information must be made within 20 days of the filing of the
initial application.
(Source: P.A. 92-483, eff. 8-23-01.)
Section 25. The Consumer Deposit Account Act is amended
by adding Section 3.5 as follows:
(205 ILCS 605/3.5 new)
Sec. 3.5. Notification to consumer of invalidated
routing number. At least 30 days before a financial
institution invalidates a routing number on a consumer
deposit account, whether as a result of a merger, purchase
and acquisition, or other transaction, the institution shall
send a notice to each affected consumer deposit account
holder advising the holder of the invalidation and the effect
it will have on the account. The notice shall include, but
shall not be limited to, the following information: the date
on which the routing number will no longer be effective;
procedures necessary to ensure that electronic funds
transfers, including direct deposits, are processed
correctly; and information on ordering new checks, debit
cards, and similar items.
Section 30. The Electronic Fund Transfer Act is amended
by changing Sections 20 and 45 as follows:
(205 ILCS 616/20)
Sec. 20. Powers and duties of Commissioner. The
Commissioner shall have the following powers and duties:
(1) to promulgate reasonable rules in accordance with
the Illinois Administrative Procedure Act for the
administration of this Act;
(2) to issue orders for the enforcement of this Act and
any rule promulgated under this Act;
(3) to appoint hearing officers or arbitrators to
exercise any delegated powers;
(4) to subpoena witnesses, compel their attendance,
administer oaths, examine any person under oath, and require
the production of any relevant books, papers, accounts, and
documents in the course of and pursuant to any investigation
conducted or action taken by the Commissioner; and
(5) to conduct hearings.; and
(6) to arbitrate disputes as provided in subsection (c)
of Section 45 of this Act.
(Source: P.A. 89-310, eff. 1-1-96.)
(205 ILCS 616/45)
Sec. 45. Nondiscriminatory access.
(a) Subject to the provisions of Section 35 of this Act,
use of a terminal through access to a switch and use of any
switch shall be available on a nondiscriminatory basis to any
switch or financial institution that has its principal place
of business within this State. The terms and conditions of
use shall be governed by a written agreement between the
network and the financial institution or other switch
obtaining the use. The written agreement shall specify all
of the terms and conditions under which the network may be
utilized, including commercially reasonable fees and charges.
In case of a dispute under the terms of the written
agreement, the parties shall be deemed to have agreed to
accept the Commissioner as final arbitrator unless the
aggrieved party seeks court action.
(b) The use and operation of each terminal served by a
switch shall be governed by a written agreement between the
network and the person establishing the terminal. The
written agreement shall specify all the terms and conditions
under which the network provides service to the terminal,
including commercially reasonable fees and charges. In case
of a dispute under the terms of the written agreement, the
parties shall be deemed to have agreed to accept the
Commissioner as final arbitrator unless the aggrieved party
seeks court action.
(c) (Blank). The Commissioner shall have the power to
arbitrate disputes arising under (1) contracts, in accordance
with the terms of those contracts, governing the use,
operation, and access to switches and terminals, and (2) the
use, operation, and access to switches and terminals. Any
decision by the Commissioner in connection with any
arbitration shall be determined only after an opportunity for
a hearing and shall be subject to judicial review pursuant to
the provisions of the Administrative Review Law and the rules
adopted pursuant to that Law. Anything to the contrary in
this Act notwithstanding, any right of arbitration granted
under this Act is subject to the right of either party to
seek court action.
(Source: P.A. 89-310, eff. 1-1-96.)
Section 35. The Corporate Fiduciary Act is amended by
changing Sections 3-2, 4A-15, and 5-2 as follows:
(205 ILCS 620/3-2) (from Ch. 17, par. 1553-2)
Sec. 3-2. Change in control.
(a) Before a change may occur in the ownership of
outstanding stock or membership interests of any trust
company whether by sale and purchase, gift, bequest or
inheritance, or any other means, which will result in control
or a change in the control of the trust company or before a
change in the control of a holding company having control of
the outstanding stock or membership interests of a trust
company whether by sale and purchase, gift, bequest or
inheritance, or any other means, which will result in control
or a change in control of the trust company or holding
company, the Commissioner shall be of the opinion and find:
(1) that the general character of its proposed
management, after the change in control, is such as to
assure reasonable promise of competent, successful, safe
and sound operation;
(2) that the future earnings prospects, after the
proposed change in control, are favorable; and
(3) that the prior business affairs of the persons
proposing to obtain control or by the proposed management
personnel, whether as stockholder, director, member,
officer, or customer, were conducted in a safe, sound,
and lawful manner.
(b) Persons desiring to purchase control of an existing
trust company and persons obtaining control by gift, bequest
or inheritance, or any other means shall submit to the
Commissioner:
(1) a statement of financial worth; and
(2) satisfactory evidence that the prior business
affairs of the persons and the proposed management
personnel, whether as stockholder, director, officer, or
customer, were conducted in a safe, sound, and lawful
manner.
(c) Whenever a bank makes a loan or loans, secured, or
to be secured, by 25% or more of the outstanding stock of a
trust company, the president or other chief executive officer
of the lending bank shall promptly report such fact to the
Commissioner upon obtaining knowledge of such loan or loans,
except that no report need be made in those cases where the
borrower has been the owner of record of the stock for a
period of one year or more, or the stock is that of a
newly-organized trust company prior to its opening.
(d) (1) Before a purchase of substantially all the
assets and an assumption of substantially all the liabilities
of a trust company or before a purchase of substantially all
the trust assets and an assumption of substantially all the
trust liabilities of a trust company, the Commissioner shall
be of the opinion and find:
(i) that the general character of the acquirer's
proposed management, after the transfer, is such as to
assure reasonable promise of competent, successful, safe,
and sound operation;
(ii) that the acquirer's future earnings prospects,
after the proposed transfer, are favorable;
(iii) that any prior involvement by the acquirer or
by the proposed management personnel, whether as
stockholder, director, officer, agent, or customer, was
conducted in a safe, sound, and lawful manner;
(iv) that customers' interests will not be
jeopardized by the purchase and assumption; and
(v) that adequate provision has been made for all
obligations and trusts as required under Section 7-1 of
this Act.
(2) Persons desiring to purchase substantially all the
assets and assume substantially all the liabilities of a
trust company or to purchase substantially all the trust
assets and assume substantially all the trust liabilities of
a trust company shall submit to the Commissioner:
(i) a statement of financial worth; and
(ii) satisfactory evidence that the prior business
affairs of the persons and the proposed management
personnel, whether as stockholder, director, officer, or
customer, were conducted in a safe, sound, and lawful
manner.
(e) The reports required by subsections (a),(b), (c),
and (d) of this Section 3-2 shall contain the following
information to the extent that it is known by the person
making the report: (1) the number of shares involved; (2) the
names of the sellers (or transferors); (3) the names of the
purchasers (or transferees); (4) the names of the beneficial
owners if the shares are registered in another name; (5) the
purchase price; (6) the total number of shares owned by the
sellers (or transferors), the purchasers (or transferees) and
the beneficial owners both immediately before and after the
transaction; and, (7) in the case of a loan, the name of the
borrower, the amount of the loan, and the name of the trust
company issuing the stock securing the loan and the number of
shares securing the loan. In addition to the foregoing, such
reports shall contain such other information as may be
available and which is requested by the Commissioner to
inform the Commissioner of the effect of the transaction upon
the trust company or trust companies whose stock or assets
and liabilities are involved.
(f) Whenever such a change as described in subsection
(a) of this Section 3-2 occurs, each trust company shall
report promptly to the Commissioner any changes or
replacement of its chief executive officer or of any director
occurring in the next 12 month period, including in its
report a statement of the past and current business and
professional affiliations of the new chief executive officer
or directors.
(g) The provisions of this Section do not apply when the
change in control is the result of organizational
restructuring under a holding company.
(h) As used in this Section, the term "control" means
the power, directly or indirectly, to direct the management
or policies of the trust company or to vote 25% or more of
the outstanding stock of the trust company. ownership of such
amount of stock or membership interests or ability to direct
the voting of such stock or membership interests as to,
directly or indirectly, give power to direct or cause the
direction of the management or policies of the trust
company. A change in ownership of stock that would result in
direct or indirect ownership by a stockholder or member, an
affiliated group of stockholders or members, or a holding
company of less than 10% of the outstanding stock or
membership interests shall not be considered a change of
control. A change in ownership of stock or membership
interests that would result in direct or indirect ownership
by a stockholder or member, an affiliated group of
stockholders or members, or a holding company of 20% or such
lesser amount which would entitle the holder by applying
cumulative voting to elect one director shall be presumed to
constitute a change of control for purposes of this Section.
If there is any question as to whether a change in the
ownership or control of the outstanding stock or membership
interests is sufficient to result in obtaining control
thereof or to effect a change in the control application
should be filed thereof, the question shall be resolved in
favor of filing the application with reporting the facts to
the Commissioner.
As used in this Section, "substantially all" the
assets or liabilities or the trust assets or trust
liabilities of a trust company means that portion such that
their transfer will materially impair the ability of the
trust company to continue successful, safe, and sound
operations or to continue as a going concern.
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 620/4A-15)
Sec. 4A-15. Representative offices. A foreign
corporation not conducting fiduciary activities may establish
a representative office under the Foreign Bank Representative
Office Act. At these offices, the foreign corporation may
market and solicit fiduciary services and provide back bank
office and administrative support to the foreign
corporation's fiduciary activities, but it may not engage in
fiduciary activities.
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 620/5-2) (from Ch. 17, par. 1555-2)
Sec. 5-2. Examinations of corporate fiduciaries.
(a) The Commissioner, no less frequently than 18 months
following the preceding examination, and whenever in his
judgment it is necessary or expedient, either personally or
by one or more competent persons appointed by him, shall
visit and examine every corporate fiduciary in this State and
may, to the extent the Commissioner determines necessary,
examine the affairs of the corporate fiduciary's
subsidiaries, affiliates, parent companies and contractual
service providers for fiduciary services of the corporate
fiduciary as shall be necessary to fully disclose the
condition of such subsidiaries, affiliates, parent companies
and contractual service providers and the relation between
the corporate fiduciary and such subsidiaries, affiliates,
parent companies and contractual service providers and the
effect of such relations upon the affairs of such corporate
fiduciary. Instead of the Commissioner making the
examination provided by this subsection or appointing a
competent person to do so, the Commissioner may accept on an
alternating basis the examination made by the corporate
fiduciary's appropriate federal regulatory agency, provided
the appropriate federal regulatory agency has made such an
examination. Fiduciary services shall include, but not be
limited to, clerical, accounting, bookkeeping, statistical,
data processing, safekeeping or similar functions for a
corporate fiduciary.
(b) The Commissioner and every such examiner may
administer an oath to any person whose testimony is required
on any such examination, and compel the appearance and
attendance of any such person for the purpose of examination,
by summons, subpoena or attachment, in the manner now
authorized in respect to the attendance of persons as
witnesses in the circuit court; and all books and papers
which are necessary to be examined by the Commissioner or
examiner so appointed shall be produced, and their production
may be compelled in like manner.
(c) The expense of every examination, if any, shall be
paid by the corporate fiduciary examined, in such amount as
the Commissioner certifies to be just and reasonable.
(d) On every examination, inquiry shall be made as to
the condition and resources of the corporate fiduciary
generally, the mode of conducting and managing its affairs,
the action of its directors or trustees, the investments of
its funds, the safety and prudence of its management, the
security afforded to those by whom its engagements are held,
and whether the requirements of its charter and of the laws
have been complied with in the administration of its affairs.
The nature and condition of the assets in or investment of
any bonus, pension, or profit sharing plan for officers or
employees of a corporate fiduciary shall be deemed to be
included in the affairs of that corporate fiduciary subject
to examination by the Commissioner.
(e) Whenever any corporate fiduciary causes to be
performed, by contract or otherwise, any fiduciary services
for itself, whether on or off its premises:
(1) such performance shall be subject to
examination by the Commissioner to the same extent as if
the services were being performed by the corporate
fiduciary itself on its own premises; and
(2) the corporate fiduciary shall notify the
Commissioner of the existence of the service
relationship. Such notification shall be submitted
within 30 days after the making of such service contract,
or the performance of the service, whichever occurs
first. The Commissioner shall be notified of each
subsequent contract in the same manner.
For purposes of this subsection (e), the term "fiduciary
services" shall include such services as the computation and
posting of interest and other credits and charges;
preparation and mailing of checks, statements, notices and
similar items; clerical, bookkeeping, accounting, statistical
or similar functions; and any other function which the
corporate fiduciary, in the ordinary course of its business,
could have performed itself.
Any report of examination pursuant to this Section and
any copies thereof shall be the property of the Commissioner,
confidential and may only be disclosed under the
circumstances set forth in Section 48.3 of the Illinois
Banking Act, as now or hereafter amended.
(Source: P.A. 89-364, eff. 8-18-95; 90-301, eff. 8-1-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 30, 2002.
Approved August 21, 2002.
Effective August 21, 2002.
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