Rep. Dagmara Avelar
Filed: 4/17/2024
 
 
 




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1
AMENDMENT TO HOUSE BILL 5428 


2 AMENDMENT NO. ______. Amend House Bill 5428 by replacing 
3everything after the enacting clause with the following:

4 "Section 5. The Illinois Banking Act is amended by 
5changing Sections 2, 5, 13, 15, 16, 16.5, 32.1, 48, 48.1, and 
648.2 as follows:

7 (205 ILCS 5/2) (from Ch. 17, par. 302)
8 Sec. 2. General definitions. In this Act, unless the 
9context otherwise requires, the following words and phrases 
10shall have the following meanings:
11 "Accommodation party" shall have the meaning ascribed to 
12that term in Section 3-419 of the Uniform Commercial Code.
13 "Action" in the sense of a judicial proceeding includes 
14recoupments, counterclaims, set-off, and any other proceeding 
15in which rights are determined.
16 "Affiliate facility" of a bank means a main banking 
 
 
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1premises or branch of another commonly owned bank. The main 
2banking premises or any branch of a bank may be an "affiliate 
3facility" with respect to one or more other commonly owned 
4banks.
5 "Appropriate federal banking agency" means the Federal 
6Deposit Insurance Corporation, the Federal Reserve Bank of 
7Chicago, or the Federal Reserve Bank of St. Louis, as 
8determined by federal law.
9 "Bank" means any person doing a banking business whether 
10subject to the laws of this or any other jurisdiction.
11 A "banking house", "branch", "branch bank" or "branch 
12office" shall mean any place of business of a bank at which 
13deposits are received, checks paid, or loans made, but shall 
14not include any place at which only records thereof are made, 
15posted, or kept. A place of business at which deposits are 
16received, checks paid, or loans made shall not be deemed to be 
17a branch, branch bank, or branch office if the place of 
18business is adjacent to and connected with the main banking 
19premises, or if it is separated from the main banking premises 
20by not more than an alley; provided always that (i) if the 
21place of business is separated by an alley from the main 
22banking premises there is a connection between the 2 two by 
23public or private way or by subterranean or overhead passage, 
24and (ii) if the place of business is in a building not wholly 
25occupied by the bank, the place of business shall not be within 
26any office or room in which any other business or service of 
 
 
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1any kind or nature other than the business of the bank is 
2conducted or carried on. A place of business at which deposits 
3are received, checks paid, or loans made shall not be deemed to 
4be a branch, branch bank, or branch office (i) of any bank if 
5the place is a terminal established and maintained in 
6accordance with paragraph (17) of Section 5 of this Act, or 
7(ii) of a commonly owned bank by virtue of transactions 
8conducted at that place on behalf of the other commonly owned 
9bank under paragraph (23) of Section 5 of this Act if the place 
10is an affiliate facility with respect to the other bank.
11 "Branch of an out-of-state bank" means a branch 
12established or maintained in Illinois by an out-of-state bank 
13as a result of a merger between an Illinois bank and the 
14out-of-state bank that occurs on or after May 31, 1997, or any 
15branch established by the out-of-state bank following the 
16merger.
17 "Bylaws" means the bylaws of a bank that are adopted by the 
18bank's board of directors or shareholders for the regulation 
19and management of the bank's affairs. If the bank operates as a 
20limited liability company, however, "bylaws" means the 
21operating agreement of the bank.
22 "Call report fee" means the fee to be paid to the 
23Commissioner by each State bank pursuant to paragraph (a) of 
24subsection (3) of Section 48 of this Act.
25 "Capital" includes the aggregate of outstanding capital 
26stock and preferred stock.
 
 
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1 "Cash flow reserve account" means the account within the 
2books and records of the Commissioner of Banks and Real Estate 
3used to record funds designated to maintain a reasonable Bank 
4and Trust Company Fund operating balance to meet agency 
5obligations on a timely basis.
6 "Charter" includes the original charter and all amendments 
7thereto and articles of merger or consolidation.
8 "Commissioner" means the Commissioner of Banks and Real 
9Estate, except that beginning on April 6, 2009 (the effective 
10date of Public Act 95-1047), all references in this Act to the 
11Commissioner of Banks and Real Estate are deemed, in 
12appropriate contexts, to be references to the Secretary of 
13Financial and Professional Regulation.
14 "Commonly owned banks" means 2 or more banks that each 
15qualify as a bank subsidiary of the same bank holding company 
16pursuant to Section 18 of the Federal Deposit Insurance Act; 
17"commonly owned bank" refers to one of a group of commonly 
18owned banks but only with respect to one or more of the other 
19banks in the same group.
20 "Community" means a city, village, or incorporated town 
21and also includes the area served by the banking offices of a 
22bank, but need not be limited or expanded to conform to the 
23geographic boundaries of units of local government.
24 "Company" means a corporation, limited liability company, 
25partnership, business trust, association, or similar 
26organization and, unless specifically excluded, includes a 
 
 
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1"State bank" and a "bank".
2 "Consolidating bank" means a party to a consolidation.
3 "Consolidation" takes place when 2 or more banks, or a 
4trust company and a bank, are extinguished and by the same 
5process a new bank is created, taking over the assets and 
6assuming the liabilities of the banks or trust company passing 
7out of existence.
8 "Continuing bank" means a merging bank, the charter of 
9which becomes the charter of the resulting bank.
10 "Converting bank" means a State bank converting to become 
11a national bank, or a national bank converting to become a 
12State bank.
13 "Converting trust company" means a trust company 
14converting to become a State bank.
15 "Court" means a court of competent jurisdiction.
16 "Director" means a member of the board of directors of a 
17bank. In the case of a manager-managed limited liability 
18company, however, "director" means a manager of the bank and, 
19in the case of a member-managed limited liability company, 
20"director" means a member of the bank. The term "director" 
21does not include an advisory director, honorary director, 
22director emeritus, or similar person, unless the person is 
23otherwise performing functions similar to those of a member of 
24the board of directors.
25 "Director of Banking" means the Director of the Division 
26of Banking of the Department of Financial and Professional 
 
 
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1Regulation. 
2 "Eligible depository institution" means an insured savings 
3association that is in default, an insured savings association 
4that is in danger of default, a State or national bank that is 
5in default or a State or national bank that is in danger of 
6default, as those terms are defined in this Section, or a new 
7bank as that term is defined in Section 11(m) of the Federal 
8Deposit Insurance Act or a bridge bank as that term is defined 
9in Section 11(n) of the Federal Deposit Insurance Act or a new 
10federal savings association authorized under Section 
1111(d)(2)(f) of the Federal Deposit Insurance Act.
12 "Fiduciary" means trustee, agent, executor, administrator, 
13committee, guardian for a minor or for a person under legal 
14disability, receiver, trustee in bankruptcy, assignee for 
15creditors, or any holder of similar position of trust.
16 "Financial institution" means a bank, savings bank, 
17savings and loan association, credit union, or any licensee 
18under the Consumer Installment Loan Act or the Sales Finance 
19Agency Act and, for purposes of Section 48.3, any proprietary 
20network, funds transfer corporation, or other entity providing 
21electronic funds transfer services, or any corporate 
22fiduciary, its subsidiaries, affiliates, parent company, or 
23contractual service provider that is examined by the 
24Commissioner. For purposes of Section 5c and subsection (b) of 
25Section 13 of this Act, "financial institution" includes any 
26proprietary network, funds transfer corporation, or other 
 
 
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1entity providing electronic funds transfer services, and any 
2corporate fiduciary. 
3 "Foundation" means the Illinois Bank Examiners' Education 
4Foundation.
5 "General obligation" means a bond, note, debenture, 
6security, or other instrument evidencing an obligation of the 
7government entity that is the issuer that is supported by the 
8full available resources of the issuer, the principal and 
9interest of which is payable in whole or in part by taxation.
10 "Guarantee" means an undertaking or promise to answer for 
11payment of another's debt or performance of another's duty, 
12liability, or obligation whether "payment guaranteed" or 
13"collection guaranteed".
14 "In danger of default" means a State or national bank, a 
15federally chartered insured savings association or an Illinois 
16state chartered insured savings association with respect to 
17which the Commissioner or the appropriate federal banking 
18agency has advised the Federal Deposit Insurance Corporation 
19that: 
20  (1) in the opinion of the Commissioner or the 
21 appropriate federal banking agency, 
22   (A) the State or national bank or insured savings 
23 association is not likely to be able to meet the 
24 demands of the State or national bank's or savings 
25 association's obligations in the normal course of 
26 business; and 
 
 
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1   (B) there is no reasonable prospect that the State 
2 or national bank or insured savings association will 
3 be able to meet those demands or pay those obligations 
4 without federal assistance; or 
5  (2) in the opinion of the Commissioner or the 
6 appropriate federal banking agency, 
7   (A) the State or national bank or insured savings 
8 association has incurred or is likely to incur losses 
9 that will deplete all or substantially all of its 
10 capital; and 
11   (B) there is no reasonable prospect that the 
12 capital of the State or national bank or insured 
13 savings association will be replenished without 
14 federal assistance.
15 "In default" means, with respect to a State or national 
16bank or an insured savings association, any adjudication or 
17other official determination by any court of competent 
18jurisdiction, the Commissioner, the appropriate federal 
19banking agency, or other public authority pursuant to which a 
20conservator, receiver, or other legal custodian is appointed 
21for a State or national bank or an insured savings 
22association.
23 "Insured savings association" means any federal savings 
24association chartered under Section 5 of the federal Home 
25Owners' Loan Act and any State savings association chartered 
26under the Illinois Savings and Loan Act of 1985 or a 
 
 
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1predecessor Illinois statute, the deposits of which are 
2insured by the Federal Deposit Insurance Corporation. The term 
3also includes a savings bank organized or operating under the 
4Savings Bank Act.
5 "Insured savings association in recovery" means an insured 
6savings association that is not an eligible depository 
7institution and that does not meet the minimum capital 
8requirements applicable with respect to the insured savings 
9association.
10 "Issuer" means for purposes of Section 33 every person who 
11shall have issued or proposed to issue any security; except 
12that (1) with respect to certificates of deposit, voting trust 
13certificates, collateral-trust certificates, and certificates 
14of interest or shares in an unincorporated investment trust 
15not having a board of directors (or persons performing similar 
16functions), "issuer" means the person or persons performing 
17the acts and assuming the duties of depositor or manager 
18pursuant to the provisions of the trust, agreement, or 
19instrument under which the securities are issued; (2) with 
20respect to trusts other than those specified in clause (1) 
21above, where the trustee is a corporation authorized to accept 
22and execute trusts, "issuer" means the entrusters, depositors, 
23or creators of the trust and any manager or committee charged 
24with the general direction of the affairs of the trust 
25pursuant to the provisions of the agreement or instrument 
26creating the trust; and (3) with respect to equipment trust 
 
 
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1certificates or like securities, "issuer" means the person to 
2whom the equipment or property is or is to be leased or 
3conditionally sold.
4 "Letter of credit" and "customer" shall have the same 
5meaning as that term is given meanings ascribed to those terms 
6in Section 5-102 of the Uniform Commercial Code.
7 "Main banking premises" means the location that is 
8designated in a bank's charter as its main office.
9 "Maker or obligor" means for purposes of Section 33 the 
10issuer of a security, the promisor in a debenture or other debt 
11security, or the mortgagor or grantor of a trust deed or 
12similar conveyance of a security interest in real or personal 
13property.
14 "Merged bank" means a merging bank that is not the 
15continuing, resulting, or surviving bank in a consolidation or 
16merger.
17 "Merger" includes consolidation.
18 "Merging bank" means a party to a bank merger.
19 "Merging trust company" means a trust company party to a 
20merger with a State bank.
21 "Mid-tier bank holding company" means a corporation that 
22(a) owns 100% of the issued and outstanding shares of each 
23class of stock of a State bank, (b) has no other subsidiaries, 
24and (c) 100% of the issued and outstanding shares of the 
25corporation are owned by a parent bank holding company.
26 "Municipality" means any municipality, political 
 
 
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1subdivision, school district, taxing district, or agency.
2 "National bank" means a national banking association 
3located in this State and after May 31, 1997, means a national 
4banking association without regard to its location.
5 "Out-of-state bank" means a bank chartered under the laws 
6of a state other than Illinois, a territory of the United 
7States, or the District of Columbia.
8 "Parent bank holding company" means a corporation that is 
9a bank holding company as that term is defined in the Illinois 
10Bank Holding Company Act of 1957 and owns 100% of the issued 
11and outstanding shares of a mid-tier bank holding company.
12 "Person" means an individual, corporation, limited 
13liability company, partnership, joint venture, trust, estate, 
14or unincorporated association.
15 "Public agency" means the State of Illinois, the various 
16counties, townships, cities, towns, villages, school 
17districts, educational service regions, special road 
18districts, public water supply districts, fire protection 
19districts, drainage districts, levee districts, sewer 
20districts, housing authorities, the Illinois Bank Examiners' 
21Education Foundation, the Chicago Park District, and all other 
22political corporations or subdivisions of the State of 
23Illinois, whether now or hereafter created, whether herein 
24specifically mentioned or not, and shall also include any 
25other state or any political corporation or subdivision of 
26another state.
 
 
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1 "Public funds" or "public money" means current operating 
2funds, special funds, interest and sinking funds, and funds of 
3any kind or character belonging to, in the custody of, or 
4subject to the control or regulation of the United States or a 
5public agency. "Public funds" or "public money" shall include 
6funds held by any of the officers, agents, or employees of the 
7United States or of a public agency in the course of their 
8official duties and, with respect to public money of the 
9United States, shall include Postal Savings funds.
10 "Published" means, unless the context requires otherwise, 
11the publishing of the notice or instrument referred to in some 
12newspaper of general circulation in the community in which the 
13bank is located at least once each week for 3 successive weeks. 
14Publishing shall be accomplished by, and at the expense of, 
15the bank required to publish. Where publishing is required, 
16the bank shall submit to the Commissioner that evidence of the 
17publication as the Commissioner shall deem appropriate.
18 "Qualified financial contract" means any security 
19contract, commodity contract, forward contract, including spot 
20and forward foreign exchange contracts, repurchase agreement, 
21swap agreement, and any similar agreement, any option to enter 
22into any such agreement, including any combination of the 
23foregoing, and any master agreement for such agreements. A 
24master agreement, together with all supplements thereto, shall 
25be treated as one qualified financial contract. The contract, 
26option, agreement, or combination of contracts, options, or 
 
 
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1agreements shall be reflected upon the books, accounts, or 
2records of the bank, or a party to the contract shall provide 
3documentary evidence of such agreement.
4 "Recorded" means the filing or recording of the notice or 
5instrument referred to in the office of the Recorder of the 
6county wherein the bank is located.
7 "Resulting bank" means the bank resulting from a merger or 
8conversion.
9 "Secretary" means the Secretary of Financial and 
10Professional Regulation, or a person authorized by the 
11Secretary or by this Act to act in the Secretary's stead. 
12 "Securities" means stocks, bonds, debentures, notes, or 
13other similar obligations.
14 "Stand-by letter of credit" means a letter of credit under 
15which drafts are payable upon the condition the customer has 
16defaulted in performance of a duty, liability, or obligation.
17 "State bank" means any banking corporation that has a 
18banking charter issued by the Commissioner under this Act.
19 "State Banking Board" means the State Banking Board of 
20Illinois.
21 "Subsidiary" with respect to a specified company means a 
22company that is controlled by the specified company. For 
23purposes of paragraphs (8) and (12) of Section 5 of this Act, 
24"control" means the exercise of operational or managerial 
25control of a corporation by the bank, either alone or together 
26with other affiliates of the bank.
 
 
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1 "Surplus" means the aggregate of (i) amounts paid in 
2excess of the par value of capital stock and preferred stock; 
3(ii) amounts contributed other than for capital stock and 
4preferred stock and allocated to the surplus account; and 
5(iii) amounts transferred from undivided profits.
6 "Tier 1 Capital" and "Tier 2 Capital" have the meanings 
7assigned to those terms in regulations promulgated for the 
8appropriate federal banking agency of a state bank, as those 
9regulations are now or hereafter amended.
10 "Trust company" means a limited liability company or 
11corporation incorporated in this State for the purpose of 
12accepting and executing trusts.
13 "Undivided profits" means undistributed earnings less 
14discretionary transfers to surplus.
15 "Unimpaired capital and unimpaired surplus", for the 
16purposes of paragraph (21) of Section 5 and Sections 32, 33, 
1734, 35.1, 35.2, and 47 of this Act means the sum of the state 
18bank's Tier 1 Capital and Tier 2 Capital plus such other 
19shareholder equity as may be included by regulation of the 
20Commissioner. Unimpaired capital and unimpaired surplus shall 
21be calculated on the basis of the date of the last quarterly 
22call report filed with the Commissioner preceding the date of 
23the transaction for which the calculation is made, provided 
24that: (i) when a material event occurs after the date of the 
25last quarterly call report filed with the Commissioner that 
26reduces or increases the bank's unimpaired capital and 
 
 
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1unimpaired surplus by 10% or more, then the unimpaired capital 
2and unimpaired surplus shall be calculated from the date of 
3the material event for a transaction conducted after the date 
4of the material event; and (ii) if the Commissioner determines 
5for safety and soundness reasons that a state bank should 
6calculate unimpaired capital and unimpaired surplus more 
7frequently than provided by this paragraph, the Commissioner 
8may by written notice direct the bank to calculate unimpaired 
9capital and unimpaired surplus at a more frequent interval. In 
10the case of a state bank newly chartered under Section 13 or a 
11state bank resulting from a merger, consolidation, or 
12conversion under Sections 21 through 26 for which no preceding 
13quarterly call report has been filed with the Commissioner, 
14unimpaired capital and unimpaired surplus shall be calculated 
15for the first calendar quarter on the basis of the effective 
16date of the charter, merger, consolidation, or conversion.
17(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09; 
1896-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)

19 (205 ILCS 5/5) (from Ch. 17, par. 311)
20 Sec. 5. General corporate powers. A bank organized under 
21this Act or subject hereto shall be a body corporate and 
22politic and shall, without specific mention thereof in the 
23charter, have all the powers conferred by this Act and the 
24following additional general corporate powers:
25  (1) To sue and be sued, complain, and defend in its 
 
 
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1 corporate name.
2  (2) To have a corporate seal, which may be altered at 
3 pleasure, and to use the same by causing it or a facsimile 
4 thereof to be impressed or affixed or in any manner 
5 reproduced, provided that the affixing of a corporate seal 
6 to an instrument shall not give the instrument additional 
7 force or effect, or change the construction thereof, and 
8 the use of a corporate seal is not mandatory.
9  (3) To make, alter, amend, and repeal bylaws, not 
10 inconsistent with its charter or with law, for the 
11 administration of the affairs of the bank. If this Act 
12 does not provide specific guidance in matters of corporate 
13 governance, the provisions of the Business Corporation Act 
14 of 1983 may be used if so provided in the bylaws, and if 
15 the bank is a limited liability company, the provisions of 
16 the Limited Liability Company Act shall be used.
17  (4) To elect or appoint and remove officers and agents 
18 of the bank and define their duties and fix their 
19 compensation.
20  (5) To adopt and operate reasonable bonus plans, 
21 profit-sharing plans, stock-bonus plans, stock-option 
22 plans, pension plans, and similar incentive plans for its 
23 directors, officers and employees.
24  (5.1) To manage, operate, and administer a fund for 
25 the investment of funds by a public agency or agencies, 
26 including any unit of local government or school district, 
 
 
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1 or any person. The fund for a public agency shall invest in 
2 the same type of investments and be subject to the same 
3 limitations provided for the investment of public funds. 
4 The fund for public agencies shall maintain a separate 
5 ledger showing the amount of investment for each public 
6 agency in the fund. "Public funds" and "public agency" as 
7 used in this Section shall have the meanings ascribed to 
8 them in Section 1 of the Public Funds Investment Act.
9  (6) To make reasonable donations for the public 
10 welfare or for charitable, scientific, religious or 
11 educational purposes.
12  (7) To borrow or incur an obligation; and to pledge 
13 its assets:
14   (a) to secure its borrowings, its lease of 
15 personal or real property or its other nondeposit 
16 obligations;
17   (b) to enable it to act as agent for the sale of 
18 obligations of the United States;
19   (c) to secure deposits of public money of the 
20 United States, whenever required by the laws of the 
21 United States, including, without being limited to, 
22 revenues and funds the deposit of which is subject to 
23 the control or regulation of the United States or any 
24 of its officers, agents, or employees and Postal 
25 Savings funds;
26   (d) to secure deposits of public money of any 
 
 
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1 state or of any political corporation or subdivision 
2 thereof, including, without being limited to, revenues 
3 and funds the deposit of which is subject to the 
4 control or regulation of any state or of any political 
5 corporation or subdivisions thereof or of any of their 
6 officers, agents, or employees;
7   (e) to secure deposits of money whenever required 
8 by the National Bankruptcy Act;
9   (f) (blank); and
10   (g) to secure trust funds commingled with the 
11 bank's funds, whether deposited by the bank or an 
12 affiliate of the bank, pursuant to Section 2-8 of the 
13 Corporate Fiduciary Act; and .
14   (h) to secure deposits. 
15  (8) To own, possess, and carry as assets all or part of 
16 the real estate necessary in or with which to do its 
17 banking business, either directly or indirectly through 
18 the ownership of all or part of the capital stock, shares 
19 or interests in any corporation, association, trust 
20 engaged in holding any part or parts or all of the bank 
21 premises, engaged in such business and in conducting a 
22 safe deposit business in the premises or part of them, or 
23 engaged in any activity that the bank is permitted to 
24 conduct in a subsidiary pursuant to paragraph (12) of this 
25 Section 5.
26  (9) To own, possess, and carry as assets other real 
 
 
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1 estate to which it may obtain title in the collection of 
2 its debts or that was formerly used as a part of the bank 
3 premises, but title to any real estate except as herein 
4 permitted may only shall not be retained by the bank, 
5 either directly or by or through a subsidiary, as 
6 permitted by subsection (12) of this Section for a total 
7 period of more than 10 years after acquiring title or for a 
8 total period equal to the maximum period, including the 
9 maximum extensions, permitted to a national bank under 
10 federal law after acquiring title, whichever is greater, 
11 either directly or indirectly.
12  (10) To do any act, including the acquisition of 
13 stock, necessary to obtain insurance of its deposits, or 
14 part thereof, and any act necessary to obtain a guaranty, 
15 in whole or in part, of any of its loans or investments by 
16 the United States or any agency thereof, and any act 
17 necessary to sell or otherwise dispose of any of its loans 
18 or investments to the United States or any agency thereof, 
19 and to acquire and hold membership in the Federal Reserve 
20 System.
21  (11) Notwithstanding any other provisions of this Act 
22 or any other law, to do any act and to own, possess, and 
23 carry as assets property of the character, including 
24 stock, that is at the time authorized or permitted to 
25 national banks by an Act of Congress, but subject always 
26 to the same limitations and restrictions as are applicable 
 
 
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1 to national banks by the pertinent federal law and subject 
2 to applicable provisions of the Financial Institutions 
3 Insurance Sales Law.
4  (12) To own, possess, and carry as assets stock of one 
5 or more corporations that is, or are, engaged in one or 
6 more of the following businesses:
7   (a) holding title to and administering assets 
8 acquired as a result of the collection or liquidating 
9 of loans, investments, or discounts; or
10   (b) holding title to and administering personal 
11 property acquired by the bank, directly or indirectly 
12 through a subsidiary, for the purpose of leasing to 
13 others, provided the lease or leases and the 
14 investment of the bank, directly or through a 
15 subsidiary, in that personal property otherwise comply 
16 with Section 35.1 of this Act; or
17   (c) carrying on or administering any of the 
18 activities excepting the receipt of deposits or the 
19 payment of checks or other orders for the payment of 
20 money in which a bank may engage in carrying on its 
21 general banking business; provided, however, that 
22 nothing contained in this paragraph (c) shall be 
23 deemed to permit a bank organized under this Act or 
24 subject hereto to do, either directly or indirectly 
25 through any subsidiary, any act, including the making 
26 of any loan or investment, or to own, possess, or carry 
 
 
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1 as assets any property that if done by or owned, 
2 possessed, or carried by the State bank would be in 
3 violation of or prohibited by any provision of this 
4 Act.
5  The provisions of this subsection (12) shall not apply 
6 to and shall not be deemed to limit the powers of a State 
7 bank with respect to the ownership, possession, and 
8 carrying of stock that a State bank is permitted to own, 
9 possess, or carry under this Act.
10  Any bank intending to establish a subsidiary under 
11 this subsection (12) shall give written notice to the 
12 Commissioner 60 days prior to the subsidiary's commencing 
13 of business or, as the case may be, prior to acquiring 
14 stock in a corporation that has already commenced 
15 business. After receiving the notice, the Commissioner may 
16 waive or reduce the balance of the 60-day notice period. 
17 The Commissioner may specify the form of the notice, may 
18 designate the types of subsidiaries not subject to this 
19 notice requirement, and may promulgate rules and 
20 regulations to administer this subsection (12).
21  (13) To accept for payment at a future date not 
22 exceeding one year from the date of acceptance, drafts 
23 drawn upon it by its customers; and to issue, advise, or 
24 confirm letters of credit authorizing the holders thereof 
25 to draw drafts upon it or its correspondents.
26  (14) To own and lease personal property acquired by 
 
 
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1 the bank at the request of a prospective lessee and upon 
2 the agreement of that person to lease the personal 
3 property provided that the lease, the agreement with 
4 respect thereto, and the amount of the investment of the 
5 bank in the property comply with Section 35.1 of this Act.
6  (15)(a) To establish and maintain, in addition to the 
7 main banking premises, branches offering any banking 
8 services permitted at the main banking premises of a State 
9 bank.
10  (b) To establish and maintain, after May 31, 1997, 
11 branches in another state that may conduct any activity in 
12 that state that is authorized or permitted for any bank 
13 that has a banking charter issued by that state, subject 
14 to the same limitations and restrictions that are 
15 applicable to banks chartered by that state.
16  (16) (Blank).
17  (17) To establish and maintain terminals, as 
18 authorized by the Electronic Fund Transfer Act.
19  (18) To establish and maintain temporary service 
20 booths at any International Fair held in this State which 
21 is approved by the United States Department of Commerce, 
22 for the duration of the international fair for the sole 
23 purpose of providing a convenient place for foreign trade 
24 customers at the fair to exchange their home countries' 
25 currency into United States currency or the converse. This 
26 power shall not be construed as establishing a new place 
 
 
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1 or change of location for the bank providing the service 
2 booth.
3  (19) To indemnify its officers, directors, employees, 
4 and agents, as authorized for corporations under Section 
5 8.75 of the Business Corporation Act of 1983.
6  (20) To own, possess, and carry as assets stock of, or 
7 be or become a member of, any corporation, mutual company, 
8 association, trust, or other entity formed exclusively for 
9 the purpose of providing directors' and officers' 
10 liability and bankers' blanket bond insurance or 
11 reinsurance to and for the benefit of the stockholders, 
12 members, or beneficiaries, or their assets or businesses, 
13 or their officers, directors, employees, or agents, and 
14 not to or for the benefit of any other person or entity or 
15 the public generally.
16  (21) To make debt or equity investments in 
17 corporations or projects, whether for profit or not for 
18 profit, designed to promote the development of the 
19 community and its welfare, provided that the aggregate 
20 investment in all of these corporations and in all of 
21 these projects does not exceed 10% of the unimpaired 
22 capital and unimpaired surplus of the bank and provided 
23 that this limitation shall not apply to creditworthy loans 
24 by the bank to those corporations or projects. Upon 
25 written application to the Commissioner, a bank may make 
26 an investment that would, when aggregated with all other 
 
 
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1 such investments, exceed 10% of the unimpaired capital and 
2 unimpaired surplus of the bank. The Commissioner may 
3 approve the investment if he is of the opinion and finds 
4 that the proposed investment will not have a material 
5 adverse effect on the safety and soundness of the bank.
6  (22) To own, possess, and carry as assets the stock of 
7 a corporation engaged in the ownership or operation of a 
8 travel agency or to operate a travel agency as a part of 
9 its business.
10  (23) With respect to affiliate facilities:
11   (a) to conduct at affiliate facilities for and on 
12 behalf of another commonly owned bank, if so 
13 authorized by the other bank, all transactions that 
14 the other bank is authorized or permitted to perform; 
15 and
16   (b) to authorize a commonly owned bank to conduct 
17 for and on behalf of it any of the transactions it is 
18 authorized or permitted to perform at one or more 
19 affiliate facilities.
20  Any bank intending to conduct or to authorize a 
21 commonly owned bank to conduct at an affiliate facility 
22 any of the transactions specified in this paragraph (23) 
23 shall give written notice to the Commissioner at least 30 
24 days before any such transaction is conducted at the 
25 affiliate facility.
26  (24) To act as the agent for any fire, life, or other 
 
 
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1 insurance company authorized by the State of Illinois, by 
2 soliciting and selling insurance and collecting premiums 
3 on policies issued by such company; and to receive for 
4 services so rendered such fees or commissions as may be 
5 agreed upon between the bank and the insurance company for 
6 which it may act as agent; provided, however, that no such 
7 bank shall in any case assume or guarantee the payment of 
8 any premium on insurance policies issued through its 
9 agency by its principal; and provided further, that the 
10 bank shall not guarantee the truth of any statement made 
11 by an assured in filing his application for insurance.
12  (25) Notwithstanding any other provisions of this Act 
13 or any other law, to offer any product or service that is 
14 at the time authorized or permitted to any insured savings 
15 association or out-of-state bank by applicable law, 
16 provided that powers conferred only by this subsection 
17 (25):
18   (a) shall always be subject to the same 
19 limitations and restrictions that are applicable to 
20 the insured savings association or out-of-state bank 
21 for the product or service by such applicable law;
22   (b) shall be subject to applicable provisions of 
23 the Financial Institutions Insurance Sales Law;
24   (c) shall not include the right to own or conduct a 
25 real estate brokerage business for which a license 
26 would be required under the laws of this State; and
 
 
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1   (d) shall not be construed to include the 
2 establishment or maintenance of a branch, nor shall 
3 they be construed to limit the establishment or 
4 maintenance of a branch pursuant to subsection (11).
5  Not less than 30 days before engaging in any activity 
6 under the authority of this subsection, a bank shall 
7 provide written notice to the Commissioner of its intent 
8 to engage in the activity. The notice shall indicate the 
9 specific federal or state law, rule, regulation, or 
10 interpretation the bank intends to use as authority to 
11 engage in the activity.
12  (26) To provide data processing services to a person 
13 for profit. The total revenue attributable to the bank's 
14 data processing activities must be derived predominantly 
15 from processing banking, financial, or economic data, and 
16 other types of data if the derivative or resultant product 
17 is banking, financial, or economic data.
18  (27) To invest in commodities derivatives, with the 
19 management and controls necessary to ensure that such 
20 activities are carried out according to safe and sound 
21 banking practices. 
22 Nothing in this Section shall be construed to require the 
23filing of a notice or application for approval with the United 
24States Office of the Comptroller of the Currency or a bank 
25supervisor of another state as a condition to the right of a 
26State bank to exercise any of the powers conferred by this 
 
 
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1Section in this State. 
2(Source: P.A. 99-362, eff. 8-13-15; 100-863, eff. 8-14-18.)

3 (205 ILCS 5/13) (from Ch. 17, par. 320)
4 Sec. 13. Issuance of charter. 
5 (a) When the directors have organized as provided in 
6Section 12 of this Act, and the capital stock and the preferred 
7stock, if any, together with a surplus of not less than 50% of 
8the capital, has been all fully paid in and a record of the 
9same filed with the Commissioner, the Commissioner or some 
10competent person of the Commissioner's appointment shall make 
11a thorough examination into the affairs of the proposed bank, 
12and if satisfied (i) that all the requirements of this Act have 
13been complied with, (ii) that no intervening circumstance has 
14occurred to change the Commissioner's findings made pursuant 
15to Section 10 of this Act, and (iii) that the prior involvement 
16by any stockholder who will own a sufficient amount of stock to 
17have control, as defined in Section 18 of this Act, of the 
18proposed bank with any other financial institution, whether as 
19stockholder, director, officer, or customer, was conducted in 
20a safe and sound manner, upon payment into the Commissioner's 
21office of the reasonable expenses of the examination, as 
22determined by the Commissioner, the Commissioner shall issue a 
23charter authorizing the bank to commence business as 
24authorized in this Act. All charters issued by the 
25Commissioner or any predecessor agency which chartered State 
 
 
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1banks, including any charter outstanding as of September 1, 
21989, shall be perpetual. For the 2 years after the 
3Commissioner has issued a charter to a bank, the bank shall 
4request and obtain from the Commissioner prior written 
5approval before it may change senior management personnel or 
6directors.
7 The original charter, duly certified by the Commissioner, 
8or a certified copy shall be evidence in all courts and places 
9of the existence and authority of the bank to do business. Upon 
10the issuance of the charter by the Commissioner, the bank 
11shall be deemed fully organized and may proceed to do 
12business. The Commissioner may, in the Commissioner's 
13discretion, withhold the issuing of the charter when the 
14Commissioner has reason to believe that the bank is organized 
15for any purpose other than that contemplated by this Act. The 
16Commissioner shall revoke the charter and order liquidation in 
17the event that the bank does not commence a general banking 
18business within one year from the date of the issuance of the 
19charter, unless a request has been submitted, in writing, to 
20the Commissioner for an extension and the request has been 
21approved. After commencing a general banking business, a bank 
22may change its name by filing written notice with the 
23Commissioner at least 30 days prior to the effective date of 
24such change. A bank chartered under this Act may change its 
25main banking premises by filing written notice application 
26with the Commissioner, on forms prescribed by the 
 
 
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1Commissioner, provided (i) the change shall not be a removal 
2to a new location without complying with the capital 
3requirements of Section 7 and of subsection (1) of Section 10 
4of this Act; and (ii) the Commissioner approves the relocation 
5or change; and (iii) the bank complies with any applicable 
6federal law or regulation. The application shall be deemed to 
7be approved if the Commissioner has not acted on the 
8application within 30 days after receipt of the application, 
9unless within the 30-day time frame the Commissioner informs 
10the bank that an extension of time is necessary prior to the 
11Commissioner's action on the application. 
12 (b)(1) The Commissioner may also issue a charter to a bank 
13that is owned exclusively by other depository institutions or 
14depository institution holding companies and is organized to 
15engage exclusively in providing services to or for other 
16financial institutions, their holding companies, and the 
17officers, directors, and employees of such institutions and 
18companies, and in providing services at the request of other 
19financial institutions or their holding companies (also 
20referred to as a "bankers' bank"). The bank may also provide 
21products and services to its officers, directors, and 
22employees.  
23 (2) A bank chartered pursuant to paragraph (1) shall, 
24except as otherwise specifically determined or limited by the 
25Commissioner in an order or pursuant to a rule, be vested with 
26the same rights and privileges and subject to the same duties, 
 
 
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1restrictions, penalties, and liabilities now or hereafter 
2imposed under this Act.
3 (c) A bank chartered under this Act shall, at all times 
4while it accepts or retains deposits, maintain with the 
5Federal Deposit Insurance Corporation, or such other 
6instrumentality of or corporation chartered by the United 
7States, deposit insurance as authorized under federal law. 
8 (d)(i) A bank that has a banking charter issued by the 
9Commissioner under this Act may, pursuant to a written 
10purchase and assumption agreement, transfer substantially all 
11of its assets to another State bank or national bank in 
12consideration, in whole or in part, for the transferee banks' 
13assumption of any part or all of its liabilities. Such a 
14transfer shall in no way be deemed to impair the charter of the 
15transferor bank or cause the transferor bank to forfeit any of 
16its rights, powers, interests, franchises, or privileges as a 
17State bank, nor shall any voluntary reduction in the 
18transferor bank's activities resulting from the transfer have 
19any such effect; provided, however, that a State bank that 
20transfers substantially all of its assets pursuant to this 
21subsection (d) and following the transfer does not accept 
22deposits and make loans, shall not have any rights, powers, 
23interests, franchises, or privileges under subsection (15) of 
24Section 5 of this Act until the bank has resumed accepting 
25deposits and making loans. 
26 (ii) The fact that a State bank does not resume accepting 
 
 
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1deposits and making loans for a period of 24 months commencing 
2on September 11, 1989 or on a date of the transfer of 
3substantially all of a State bank's assets, whichever is 
4later, or such longer period as the Commissioner may allow in 
5writing, may be the basis for a finding by the Commissioner 
6under Section 51 of this Act that the bank is unable to 
7continue operations. 
8 (iii) The authority provided by subdivision (i) of this 
9subsection (d) shall terminate on May 31, 1997, and no bank 
10that has transferred substantially all of its assets pursuant 
11to this subsection (d) shall continue in existence after May 
1231, 1997.
13(Source: P.A. 95-924, eff. 8-26-08; 96-1365, eff. 7-28-10.)

14 (205 ILCS 5/15) (from Ch. 17, par. 322)
15 Sec. 15. Stock and stockholders. Unless otherwise provided 
16for in this Act, provisions of general application to capital 
17stock, preferred stock, and stockholders of a State bank shall 
18be as follows:
19 (1) There shall be an annual meeting of the stockholders 
20for the election of directors each year on the first business 
21day in January, unless some other date shall be fixed by the 
22by-laws. A special meeting of the stockholders may be called 
23at any time by the board of directors, and otherwise as may be 
24provided in the bylaws.
25 (2) Written or printed notice stating the place, day, and 
 
 
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1hour of the meeting, and in case of a special meeting, the 
2purpose or purposes for which the meeting is called, shall be 
3delivered not less than 10 nor more than 40 days before the 
4date of the meeting either personally, electronically, or by 
5mail, by or at the direction of the president, or the 
6secretary, or the officer or persons calling the meeting, to 
7each stockholder of record entitled to vote at the meeting. If 
8mailed, the notice shall be deemed to be delivered when 
9deposited in the United States mail with postage thereon 
10prepaid addressed to the stockholder at his address as it 
11appears on the records of the bank.
12 (3) Except as provided below in this paragraph (3), each 
13outstanding share shall be entitled to one vote on each matter 
14submitted to a vote at a meeting of stockholders. Shares of its 
15own stock belonging to a bank shall not be voted, directly or 
16indirectly, at any meeting and shall not be counted in 
17determining the total number of outstanding shares at any 
18given time, but shares of its own stock held by it in a 
19fiduciary capacity may be voted and shall be counted in 
20determining the total number of outstanding shares at any 
21given time. A stockholder may vote either in person or by proxy 
22executed in writing by the stockholder or by his duly 
23authorized attorney-in-fact. No proxy shall be valid after 11 
24months from the date of its execution, unless otherwise 
25provided in the proxy. Except as provided below in this 
26paragraph (3), in all elections for directors every 
 
 
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1stockholder (or subscriber to the stock prior to the issuance 
2of a charter) shall have the right to vote, in person or by 
3proxy, for the number of shares of stock owned by him, for as 
4many persons as there are directors to be elected, or to 
5cumulate the shares and give one candidate as many votes as the 
6number of directors multiplied by the number of his or her 
7shares of stock shall equal, or to distribute them on the same 
8principle among as many candidates as he or she shall think 
9fit. The bank charter of any bank organized on or after January 
101, 1984 may limit or eliminate cumulative voting rights in all 
11or specified circumstances, or may eliminate voting rights 
12entirely, as to any class or classes or series of stock of the 
13bank; provided that one class of shares or series thereof 
14shall always have voting rights in respect of all matters in 
15the bank. A bank organized prior to January 1, 1984 may amend 
16its charter to eliminate cumulative voting rights under all or 
17specified circumstances, or to eliminate voting rights 
18entirely, as to any class or classes or series of stock of the 
19bank; provided that one class of shares or series thereof 
20shall always have voting rights in respect of all matters in 
21the bank, and provided further that the proposal to eliminate 
22the voting rights receives the approval of the holders of 70% 
23of the outstanding shares of stock entitled to vote as 
24provided in paragraph (b) (7) of Section 17. A majority of the 
25outstanding shares represented in person or by proxy shall 
26constitute a quorum at a meeting of stockholders. In the 
 
 
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1absence of a quorum a meeting may be adjourned from time to 
2time without notice to the stockholders.
3 (4) Whenever additional stock of a class is offered for 
4sale, stockholders of record of the same class on the date of 
5the offer shall have the right to subscribe to the proportion 
6of the shares as the stock of the class held by them bears to 
7the total of the outstanding stock of the class, and the price 
8thereof may be in excess of par value. This right shall be 
9transferable but shall terminate if not exercised within 60 
10days of the offer, unless the Commissioner shall authorize a 
11shorter time. If the right is not exercised, the stock shall 
12not be re-offered for sale to others at a lower price without 
13the stockholders of the same class again being accorded a 
14preemptive right to subscribe at the lower price. 
15Notwithstanding any of the provisions of this paragraph (4) or 
16any other provision of law, stockholders shall not have any 
17preemptive or other right to subscribe for or to purchase or 
18acquire shares of capital stock issued or to be issued under a 
19stock-option plan or upon conversion of preferred stock or 
20convertible debentures or other convertible indebtedness that 
21has been approved by stockholders in the manner required by 
22the provisions of subsection (5) of Section 14 hereof or to 
23treasury stock acquired pursuant to subsection (6) of Section 
2414.
25 (5) For the purpose of determining stockholders entitled 
26to notice of or to vote at any meeting of stockholders, or 
 
 
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1stockholders entitled to receive payment of any dividend, or 
2in order to make a determination of stockholders for any other 
3proper purpose, the board of directors of a bank may provide 
4that the stock transfer books shall be closed for a stated 
5period not to exceed, in any case, 40 days. In lieu of closing 
6the stock transfer books, the board of directors may fix in 
7advance a date as the record date for any determination of 
8stockholders, the date in any case to be not more than 40 days, 
9and in case of a meeting of stockholders, not less than 10 days 
10prior to the date on which the particular action, requiring 
11the determination of stockholders, is to be taken. If the 
12stock transfer books are not closed and no record date is fixed 
13for the determination of stockholders entitled to notice of or 
14to vote at a meeting of stockholders, or stockholders entitled 
15to receive payment of a dividend, the date on which notice of a 
16meeting is delivered mailed or the date on which the 
17resolution of the board of directors declaring the dividend is 
18adopted, as the case may be, shall be the record date for the 
19determination of stockholders.
20 (6) Stock standing in the name of another corporation, 
21domestic or foreign, may be voted by the officer, agent, or 
22proxy as the by-laws of the corporation may prescribe, or, in 
23the absence of such provision, as the board of directors of the 
24corporation may determine. Stock standing in the name of a 
25deceased person may be voted by his or her administrator or 
26executor, either in person or by proxy. Stock standing in the 
 
 
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1name of a guardian or trustee may be voted by that fiduciary 
2either in person or by proxy. Shares standing in the name of a 
3receiver may be voted by the receiver, and shares held by or 
4under control of a receiver may be voted by the receiver 
5without the transfer thereof into his or her name if authority 
6so to do be contained in an appropriate order of the court by 
7which the receiver was appointed. A stockholder whose shares 
8of stock are pledged shall be entitled to vote those shares 
9until the shares have been transferred into the name of the 
10pledgee, and thereafter the pledgee shall be entitled to vote 
11the shares so transferred.
12 (7) Shares of stock shall be transferable in accordance 
13with the general laws of this State governing the transfer of 
14corporate shares.
15 (8) The president and any other officer designated by the 
16board of directors of every State bank shall cause to be kept 
17at all times a full and correct list of the names and 
18residences of all the shareholders in the State bank and the 
19number of shares held by each in the office where its business 
20is transacted. The list shall be subject to the inspection of 
21all the shareholders of the State bank and the officers 
22authorized to assess taxes under State authority during 
23business hours of each day in which business may be legally 
24transacted or shall be kept on a reasonably accessible 
25electronic network, at the State bank's election. A copy of 
26the list, verified by the oath of the president or cashier, 
 
 
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1shall be transmitted to the Commissioner of Banks and Real 
2Estate within 10 days of any demand therefor made by the 
3Commissioner.
4 (9) Any number of shareholders of a bank may create a 
5voting trust for the purpose of conferring upon a trustee or 
6trustees the right to vote or otherwise represent their shares 
7for a period of not to exceed 10 years by entering into a 
8written voting trust agreement specifying the terms and 
9conditions of the voting trust and by transferring their 
10shares to the trustee or trustees for the purposes of the 
11agreement. The trust agreement shall not become effective 
12until a counterpart of the agreement is deposited with the 
13bank at its main banking premises. The counterpart of the 
14voting trust agreement so deposited with the bank shall be 
15subject to the same right of examination by a shareholder of 
16the bank, in person or by agent or attorney, as is the record 
17of shareholders of the bank and shall be subject to 
18examination by any holder of a beneficial interest in the 
19voting trust, either in person or by agent or attorney, at any 
20reasonable time for any proper purpose.
21 (10) Voting agreements. Shareholders may provide for the 
22voting of their shares by signing an agreement for that 
23purpose. A voting agreement created under this paragraph is 
24not subject to the provisions of paragraph (9).
25 A voting agreement created under this paragraph is 
26specifically enforceable in accordance with the principles of 
 
 
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1equity.
2 (11) Unless expressly prohibited by the charter or bylaws 
3and subject to applicable requirements of this Act, the board 
4of directors may provide by resolution that stockholders may 
5attend, participate in, act in, and vote at an annual meeting 
6or special meeting through the use of a conference telephone 
7or interactive technology, including, but not limited to, 
8electronic transmission, Internet usage, or remote 
9communication, by means of which all persons participating in 
10the meeting can communicate with each other. Participation 
11through the use of a conference telephone or interactive 
12technology shall constitute attendance, presence, and 
13representation in person at the annual meeting or special 
14meeting of the person or persons so participating and count 
15toward the quorum required to conduct business at the meeting. 
16The following conditions shall apply to any virtual meeting of 
17the stockholders:
18  (a) the bank must internally possess or retain the 
19 technological capacity to facilitate virtual meeting 
20 attendance, participation, communication, and voting; and
21  (b) the stockholders must receive notice of the use of 
22 a virtual meeting format and appropriate instructions for 
23 joining, participating, and voting during the virtual 
24 meeting at least 7 days before the virtual meeting. 
25(Source: P.A. 95-924, eff. 8-26-08.)

 
 
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1 (205 ILCS 5/16) (from Ch. 17, par. 323)
2 Sec. 16. Directors. The business and affairs of a State 
3bank shall be managed by its board of directors that shall 
4exercise its powers as follows:
5 (1) Directors shall be elected as provided in this Act. 
6Any omission to elect a director or directors shall not impair 
7any of the rights and privileges of the bank or of any person 
8in any way interested. The existing directors shall hold 
9office until their successors are elected and qualify. 
10 (2) (a) Notwithstanding the provisions of any charter 
11 heretofore or hereafter issued, the number of directors, 
12 not fewer than 5 nor more than 25, may be fixed from time 
13 to time by the stockholders at any meeting of the 
14 stockholders called for the purpose of electing directors 
15 or changing the number thereof by the affirmative vote of 
16 at least two-thirds of the outstanding stock entitled to 
17 vote at the meeting, and the number so fixed shall be the 
18 board regardless of vacancies until the number of 
19 directors is thereafter changed by similar action. 
20  (b) Notwithstanding the minimum number of directors 
21 specified in paragraph (a) of this subsection, a State 
22 bank that has been in existence for 10 years or more and 
23 has less than $20,000,000 in assets, as of the December 31 
24 immediately preceding the annual meeting of shareholders 
25 at which directors are elected, may, subject to the 
26 approval of the Commissioner, have a minimum of 3 
 
 
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1 directors; provided that if a State bank has fewer than 5 
2 directors, at least one director shall not be an officer 
3 or employee of the bank. The Commissioner shall annually 
4 review the appropriateness of the grant of authority to 
5 have a reduced minimum number of directors pursuant to 
6 this paragraph (b).
7 (3) Except as otherwise provided in this paragraph (3), 
8directors shall hold office until the next annual meeting of 
9the stockholders succeeding their election or until their 
10successors are elected and qualify. If the board of directors 
11consists of 6 or more members, in lieu of electing the 
12membership of the whole board of directors annually, the 
13charter or by-laws of a State bank may provide that the 
14directors shall be divided into either 2 or 3 classes, each 
15class to be as nearly equal in number as is possible. The term 
16of office of directors of the first class shall expire at the 
17first annual meeting of the stockholders after their election, 
18that of the second class shall expire at the second annual 
19meeting after their election, and that of the third class, if 
20any, shall expire at the third annual meeting after their 
21election. At each annual meeting after classification, the 
22number of directors equal to the number of the class whose 
23terms expire at the time of the meeting shall be elected to 
24hold office until the second succeeding annual meeting, if 
25there be 2 classes, or until the third succeeding annual 
26meeting, if there be 3 classes. Vacancies may be filled by 
 
 
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1stockholders at a special meeting called for the purpose.
2 If authorized by the bank's by-laws or an amendment 
3thereto, the directors of a State bank may properly fill a 
4vacancy or vacancies arising between shareholders' meetings, 
5but at no time may the number of directors selected to fill a 
6vacancy in this manner during any interim period between 
7shareholders' meetings exceed 33 1/3% of the total membership 
8of the board of directors.
9 (4) The board of directors shall hold regular meetings at 
10least once each month, provided that, upon prior written 
11approval by the Commissioner, the board of directors may hold 
12regular meetings less frequently than once each month but at 
13least once each calendar quarter. A special meeting of the 
14board of directors may be held as provided by the by-laws. A 
15special meeting of the board of directors may also be held upon 
16call by the Commissioner or a bank examiner appointed under 
17the provisions of this Act upon not less than 12 hours notice 
18of the meeting by personal service of the notice, by 
19electronic delivery of the notice, or by mailing the notice to 
20each of the directors at his residence as shown by the books of 
21the bank. A majority of the board of directors shall 
22constitute a quorum for the transaction of business unless a 
23greater number is required by the charter or the by-laws. The 
24act of the majority of the directors present at a meeting at 
25which a quorum is present shall be the act of the board of 
26directors unless the act of a greater number is required by the 
 
 
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1charter or by the by-laws.
2 (5) A member of the board of directors shall be elected 
3president. The board of directors may appoint other officers, 
4as the by-laws may provide, and fix their salaries to carry on 
5the business of the bank. The board of directors may make and 
6amend by-laws (not inconsistent with this Act) for the 
7government of the bank and may, by the affirmative vote of a 
8majority of the board of directors, establish reasonable 
9compensation of all directors for services to the corporation 
10as directors, officers, or otherwise. An officer, whether 
11elected or appointed by the board of directors or appointed 
12pursuant to the by-laws, may be removed by the board of 
13directors at any time.
14 (6) The board of directors shall cause suitable books and 
15records of all the bank's transactions to be kept. 
16 (7) (a) In discharging the duties of their respective 
17 positions, the board of directors, committees of the 
18 board, and individual directors may, in considering the 
19 best long-term long term and short-term short term 
20 interests of the bank, consider the effects of any action 
21 (including, without limitation, action that may involve or 
22 relate to a merger or potential merger or to a change or 
23 potential change in control of the bank) upon employees, 
24 depositors, suppliers, and customers of the corporation or 
25 its subsidiaries, communities in which the main banking 
26 premises, branches, offices, or other establishments of 
 
 
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1 the bank or its subsidiaries are located, and all 
2 pertinent factors. 
3  (b) In discharging the duties of their respective 
4 positions, the board of directors, committees of the 
5 board, and individual directors shall be entitled to rely 
6 on advice, information, opinions, reports or statements, 
7 including financial statements and financial data, 
8 prepared or presented by: (i) one or more officers or 
9 employees of the bank whom the director believes to be 
10 reliable and competent in the matter presented; (ii) one 
11 or more counsels, accountants, or other consultants as to 
12 matters that the director believes to be within that 
13 person's professional or expert competence; or (iii) a 
14 committee of the board upon which the director does not 
15 serve, as to matters within that committee's designated 
16 authority; provided that the director's reliance under 
17 this paragraph (b) is placed in good faith, after 
18 reasonable inquiry if the need for such inquiry is 
19 apparent under the circumstances and without knowledge 
20 that would cause such reliance to be unreasonable.
21(Source: P.A. 91-452, eff. 1-1-00; 92-476, eff. 8-23-01.)

22 (205 ILCS 5/16.5)
23 Sec. 16.5. Employment of persons with convictions. Except 
24with the prior written consent of the Commissioner, no State 
25bank shall knowingly employ or otherwise permit an individual 
 
 
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1to serve as an officer, director, employee, or agent of the 
2State bank if the individual has been convicted of a felony or 
3of any criminal offense relating to dishonesty or breach of 
4trust. Notwithstanding the provisions of this Section, a State 
5bank in compliance with the provisions of 12 U.S.C. 1829 and 
6administrative rules issued under 12 U.S.C. 1829 by the State 
7bank's primary federal financial institution regulator shall 
8be deemed in compliance with this Section. 
9(Source: P.A. 90-301, eff. 8-1-97.)

10 (205 ILCS 5/32.1) (from Ch. 17, par. 340)
11 Sec. 32.1. Loans to single individuals Single Females. 
12 (a) For purposes of this Section, "single" means not 
13currently married. 
14 (b) No State bank shall require that single individuals 
15who have reached the age of majority females to whom loans are 
16made have cosigners on promissory notes negotiated to secure 
17such loans unless such bank shall, under the same or similar 
18circumstances, also require that single males who have reached 
19the age of majority have cosigners on promissory notes 
20negotiated to secure loans.
21(Source: P.A. 79-556.)

22 (205 ILCS 5/48)
23 Sec. 48. Secretary's powers; duties. The Secretary shall 
24have the powers and authority, and is charged with the duties 
 
 
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1and responsibilities designated in this Act, and a State bank 
2shall not be subject to any other visitorial power other than 
3as authorized by this Act, except those vested in the courts, 
4or upon prior consultation with the Secretary, a foreign bank 
5regulator with an appropriate supervisory interest in the 
6parent or affiliate of a State bank. In the performance of the 
7Secretary's duties:
8  (1) The Commissioner shall call for statements from 
9 all State banks as provided in Section 47 at least one time 
10 during each calendar quarter.
11  (2) (a) The Commissioner, as often as the Commissioner 
12 shall deem necessary or proper, and no less frequently 
13 than 18 months following the preceding examination, shall 
14 appoint a suitable person or persons to make an 
15 examination of the affairs of every State bank, except 
16 that for every eligible State bank, as defined by 
17 regulation, the Commissioner in lieu of the examination 
18 may accept on an alternating basis the examination made by 
19 the eligible State bank's appropriate federal banking 
20 agency pursuant to Section 111 of the Federal Deposit 
21 Insurance Corporation Improvement Act of 1991, provided 
22 the appropriate federal banking agency has made such an 
23 examination. A person so appointed shall not be a 
24 stockholder or officer or employee of any bank which that 
25 person may be directed to examine, and shall have powers 
26 to make a thorough examination into all the affairs of the 
 
 
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1 bank and in so doing to examine any of the officers or 
2 agents or employees thereof on oath and shall make a full 
3 and detailed report of the condition of the bank to the 
4 Commissioner. In making the examination the examiners 
5 shall include an examination of the affairs of all the 
6 affiliates of the bank, as defined in subsection (b) of 
7 Section 35.2 of this Act, or subsidiaries of the bank as 
8 shall be necessary to disclose fully the conditions of the 
9 subsidiaries or affiliates, the relations between the bank 
10 and the subsidiaries or affiliates and the effect of those 
11 relations upon the affairs of the bank, and in connection 
12 therewith shall have power to examine any of the officers, 
13 directors, agents, or employees of the subsidiaries or 
14 affiliates on oath. After May 31, 1997, the Commissioner 
15 may enter into cooperative agreements with state 
16 regulatory authorities of other states to provide for 
17 examination of State bank branches in those states, and 
18 the Commissioner may accept reports of examinations of 
19 State bank branches from those state regulatory 
20 authorities. These cooperative agreements may set forth 
21 the manner in which the other state regulatory authorities 
22 may be compensated for examinations prepared for and 
23 submitted to the Commissioner.
24  (b) After May 31, 1997, the Commissioner is authorized 
25 to examine, as often as the Commissioner shall deem 
26 necessary or proper, branches of out-of-state banks. The 
 
 
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1 Commissioner may establish and may assess fees to be paid 
2 to the Commissioner for examinations under this subsection 
3 (b). The fees shall be borne by the out-of-state bank, 
4 unless the fees are borne by the state regulatory 
5 authority that chartered the out-of-state bank, as 
6 determined by a cooperative agreement between the 
7 Commissioner and the state regulatory authority that 
8 chartered the out-of-state bank.
9  (2.1) Pursuant to paragraph (a) of subsection (6) of 
10 this Section, the Secretary shall adopt rules that ensure 
11 consistency and due process in the examination process. 
12 The Secretary may also establish guidelines that (i) 
13 define the scope of the examination process and (ii) 
14 clarify examination items to be resolved. The rules, 
15 formal guidance, interpretive letters, or opinions 
16 furnished to State banks by the Secretary may be relied 
17 upon by the State banks. 
18  (2.5) Whenever any State bank, any subsidiary or 
19 affiliate of a State bank, or after May 31, 1997, any 
20 branch of an out-of-state bank causes to be performed, by 
21 contract or otherwise, any bank services for itself, 
22 whether on or off its premises:
23   (a) that performance shall be subject to 
24 examination by the Commissioner to the same extent as 
25 if services were being performed by the bank or, after 
26 May 31, 1997, branch of the out-of-state bank itself 
 
 
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1 on its own premises; and
2   (b) the bank or, after May 31, 1997, branch of the 
3 out-of-state bank shall notify the Commissioner of the 
4 existence of a service relationship. The notification 
5 shall be submitted with the first statement of 
6 condition (as required by Section 47 of this Act) due 
7 after the making of the service contract or the 
8 performance of the service, whichever occurs first. 
9 The Commissioner shall be notified of each subsequent 
10 contract in the same manner.
11  For purposes of this subsection (2.5), the term "bank 
12 services" means services such as sorting and posting of 
13 checks and deposits, computation and posting of interest 
14 and other credits and charges, preparation and mailing of 
15 checks, statements, notices, and similar items, or any 
16 other clerical, bookkeeping, accounting, statistical, or 
17 similar functions performed for a State bank, including, 
18 but not limited to, electronic data processing related to 
19 those bank services.
20  (3) The expense of administering this Act, including 
21 the expense of the examinations of State banks as provided 
22 in this Act, shall to the extent of the amounts resulting 
23 from the fees provided for in paragraphs (a), (a-2), and 
24 (b) of this subsection (3) be assessed against and borne 
25 by the State banks:
26   (a) Each bank shall pay to the Secretary a Call 
 
 
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1 Report Fee which shall be paid in quarterly 
2 installments equal to one-fourth of the sum of the 
3 annual fixed fee of $800, plus a variable fee based on 
4 the assets shown on the quarterly statement of 
5 condition delivered to the Secretary in accordance 
6 with Section 47 for the preceding quarter according to 
7 the following schedule: 16¢ per $1,000 of the first 
8 $5,000,000 of total assets, 15¢ per $1,000 of the next 
9 $20,000,000 of total assets, 13¢ per $1,000 of the 
10 next $75,000,000 of total assets, 9¢ per $1,000 of the 
11 next $400,000,000 of total assets, 7¢ per $1,000 of 
12 the next $500,000,000 of total assets, and 5¢ per 
13 $1,000 of all assets in excess of $1,000,000,000, of 
14 the State bank. The Call Report Fee shall be 
15 calculated by the Secretary and billed to the banks 
16 for remittance at the time of the quarterly statements 
17 of condition provided for in Section 47. The Secretary 
18 may require payment of the fees provided in this 
19 Section by an electronic transfer of funds or an 
20 automatic debit of an account of each of the State 
21 banks. In case more than one examination of any bank is 
22 deemed by the Secretary to be necessary in any 
23 examination frequency cycle specified in subsection 
24 2(a) of this Section, and is performed at his 
25 direction, the Secretary may assess a reasonable 
26 additional fee to recover the cost of the additional 
 
 
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1 examination. In lieu of the method and amounts set 
2 forth in this paragraph (a) for the calculation of the 
3 Call Report Fee, the Secretary may specify by rule 
4 that the Call Report Fees provided by this Section may 
5 be assessed semiannually or some other period and may 
6 provide in the rule the formula to be used for 
7 calculating and assessing the periodic Call Report 
8 Fees to be paid by State banks.
9   (a-1) If in the opinion of the Commissioner an 
10 emergency exists or appears likely, the Commissioner 
11 may assign an examiner or examiners to monitor the 
12 affairs of a State bank with whatever frequency he 
13 deems appropriate, including, but not limited to, a 
14 daily basis. The reasonable and necessary expenses of 
15 the Commissioner during the period of the monitoring 
16 shall be borne by the subject bank. The Commissioner 
17 shall furnish the State bank a statement of time and 
18 expenses if requested to do so within 30 days of the 
19 conclusion of the monitoring period.
20   (a-2) On and after January 1, 1990, the reasonable 
21 and necessary expenses of the Commissioner during 
22 examination of the performance of electronic data 
23 processing services under subsection (2.5) shall be 
24 borne by the banks for which the services are 
25 provided. An amount, based upon a fee structure 
26 prescribed by the Commissioner, shall be paid by the 
 
 
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1 banks or, after May 31, 1997, branches of out-of-state 
2 banks receiving the electronic data processing 
3 services along with the Call Report Fee assessed under 
4 paragraph (a) of this subsection (3).
5   (a-3) After May 31, 1997, the reasonable and 
6 necessary expenses of the Commissioner during 
7 examination of the performance of electronic data 
8 processing services under subsection (2.5) at or on 
9 behalf of branches of out-of-state banks shall be 
10 borne by the out-of-state banks, unless those expenses 
11 are borne by the state regulatory authorities that 
12 chartered the out-of-state banks, as determined by 
13 cooperative agreements between the Commissioner and 
14 the state regulatory authorities that chartered the 
15 out-of-state banks.
16   (b) "Fiscal year" for purposes of this Section 48 
17 is defined as a period beginning July 1 of any year and 
18 ending June 30 of the next year. The Commissioner 
19 shall receive for each fiscal year, commencing with 
20 the fiscal year ending June 30, 1987, a contingent fee 
21 equal to the lesser of the aggregate of the fees paid 
22 by all State banks under paragraph (a) of subsection 
23 (3) for that year, or the amount, if any, whereby the 
24 aggregate of the administration expenses, as defined 
25 in paragraph (c), for that fiscal year exceeds the sum 
26 of the aggregate of the fees payable by all State banks 
 
 
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1 for that year under paragraph (a) of subsection (3), 
2 plus any amounts transferred into the Bank and Trust 
3 Company Fund from the State Pensions Fund for that 
4 year, plus all other amounts collected by the 
5 Commissioner for that year under any other provision 
6 of this Act, plus the aggregate of all fees collected 
7 for that year by the Commissioner under the Corporate 
8 Fiduciary Act, excluding the receivership fees 
9 provided for in Section 5-10 of the Corporate 
10 Fiduciary Act, and the Foreign Banking Office Act. The 
11 aggregate amount of the contingent fee thus arrived at 
12 for any fiscal year shall be apportioned among, 
13 assessed upon, and paid by the State banks and foreign 
14 banking corporations, respectively, in the same 
15 proportion that the fee of each under paragraph (a) of 
16 subsection (3), respectively, for that year bears to 
17 the aggregate for that year of the fees collected 
18 under paragraph (a) of subsection (3). The aggregate 
19 amount of the contingent fee, and the portion thereof 
20 to be assessed upon each State bank and foreign 
21 banking corporation, respectively, shall be determined 
22 by the Commissioner and shall be paid by each, 
23 respectively, within 120 days of the close of the 
24 period for which the contingent fee is computed and is 
25 payable, and the Commissioner shall give 20 days' 
26 advance notice of the amount of the contingent fee 
 
 
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1 payable by the State bank and of the date fixed by the 
2 Commissioner for payment of the fee.
3   (c) The "administration expenses" for any fiscal 
4 year shall mean the ordinary and contingent expenses 
5 for that year incident to making the examinations 
6 provided for by, and for otherwise administering, this 
7 Act, the Corporate Fiduciary Act, excluding the 
8 expenses paid from the Corporate Fiduciary 
9 Receivership account in the Bank and Trust Company 
10 Fund, the Foreign Banking Office Act, the Electronic 
11 Fund Transfer Act, and the Illinois Bank Examiners' 
12 Education Foundation Act, including all salaries and 
13 other compensation paid for personal services rendered 
14 for the State by officers or employees of the State, 
15 including the Commissioner and the Deputy 
16 Commissioners, communication equipment and services, 
17 office furnishings, surety bond premiums, and travel 
18 expenses of those officers and employees, employees, 
19 expenditures or charges for the acquisition, 
20 enlargement or improvement of, or for the use of, any 
21 office space, building, or structure, or expenditures 
22 for the maintenance thereof or for furnishing heat, 
23 light, or power with respect thereto, all to the 
24 extent that those expenditures are directly incidental 
25 to such examinations or administration. The 
26 Commissioner shall not be required by paragraph (c) or 
 
 
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1 (d-1) of this subsection (3) to maintain in any fiscal 
2 year's budget appropriated reserves for accrued 
3 vacation and accrued sick leave that is required to be 
4 paid to employees of the Commissioner upon termination 
5 of their service with the Commissioner in an amount 
6 that is more than is reasonably anticipated to be 
7 necessary for any anticipated turnover in employees, 
8 whether due to normal attrition or due to layoffs, 
9 terminations, or resignations.
10   (c-1) At the conclusion of each fiscal year, 
11 beginning in fiscal year 2025, the Department shall 
12 separately identify the direct administrative and 
13 operational expenses and allocable indirect costs of 
14 the Division of Banking of the Department incidental 
15 to conducting the examinations required or authorized 
16 by the Illinois Community Reinvestment Act and 
17 implementing rules adopted by the Department. Pursuant 
18 to Section 2105-300 of the Department of Professional 
19 Regulation Law of the Civil Administrative Code of 
20 Illinois, the Department shall make copies of the 
21 analyses available to the banking industry in a timely 
22 manner. The administrative and operational expenses of 
23 the Division of Banking of the Department in 
24 conducting examinations required or authorized by the 
25 Illinois Community Reinvestment Act shall have the 
26 same meaning and scope as the administration expenses 
 
 
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1 of the Division of Banking of the Department, as 
2 defined in paragraph (c) of subsection (3). 
3   (d) The aggregate of all fees collected by the 
4 Secretary under this Act, the Corporate Fiduciary Act, 
5 or the Foreign Banking Office Act on and after July 1, 
6 1979, and from State banks and savings banks pursuant 
7 to the Illinois Community Reinvestment Act shall be 
8 paid promptly after receipt of the same, accompanied 
9 by a detailed statement thereof, into the State 
10 treasury and shall be set apart in a special fund to be 
11 known as the Bank and Trust Company Fund, except as 
12 provided in paragraph (c) of subsection (11) of this 
13 Section. All earnings received from investments of 
14 funds in the Bank and Trust Company Fund shall be 
15 deposited into the Bank and Trust Company Fund and may 
16 be used for the same purposes as fees deposited into 
17 that Fund. The amount from time to time deposited into 
18 the Bank and Trust Company Fund shall be used: (i) to 
19 offset the ordinary administrative expenses of the 
20 Secretary as defined in this Section or (ii) as a 
21 credit against fees under paragraph (d-1) of this 
22 subsection (3). Nothing in Public Act 81-131 shall 
23 prevent continuing the practice of paying expenses 
24 involving salaries, retirement, social security, and 
25 State-paid insurance premiums of State officers by 
26 appropriations from the General Revenue Fund. However, 
 
 
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1 the General Revenue Fund shall be reimbursed for those 
2 payments made on and after July 1, 1979, by an annual 
3 transfer of funds from the Bank and Trust Company 
4 Fund. Moneys in the Bank and Trust Company Fund may be 
5 transferred to the Professions Indirect Cost Fund, as 
6 authorized under Section 2105-300 of the Department of 
7 Professional Regulation Law of the Civil 
8 Administrative Code of Illinois. 
9   Notwithstanding provisions in the State Finance 
10 Act, as now or hereafter amended, or any other law to 
11 the contrary, the Governor may, during any fiscal year 
12 through January 10, 2011, from time to time direct the 
13 State Treasurer and Comptroller to transfer a 
14 specified sum not exceeding 10% of the revenues to be 
15 deposited into the Bank and Trust Company Fund during 
16 that fiscal year from that Fund to the General Revenue 
17 Fund in order to help defray the State's operating 
18 costs for the fiscal year. Notwithstanding provisions 
19 in the State Finance Act, as now or hereafter amended, 
20 or any other law to the contrary, the total sum 
21 transferred during any fiscal year through January 10, 
22 2011, from the Bank and Trust Company Fund to the 
23 General Revenue Fund pursuant to this provision shall 
24 not exceed during any fiscal year 10% of the revenues 
25 to be deposited into the Bank and Trust Company Fund 
26 during that fiscal year. The State Treasurer and 
 
 
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1 Comptroller shall transfer the amounts designated 
2 under this Section as soon as may be practicable after 
3 receiving the direction to transfer from the Governor. 
4   (d-1) Adequate funds shall be available in the 
5 Bank and Trust Company Fund to permit the timely 
6 payment of administration expenses. In each fiscal 
7 year the total administration expenses shall be 
8 deducted from the total fees collected by the 
9 Commissioner and the remainder transferred into the 
10 Cash Flow Reserve Account, unless the balance of the 
11 Cash Flow Reserve Account prior to the transfer equals 
12 or exceeds one-fourth of the total initial 
13 appropriations from the Bank and Trust Company Fund 
14 for the subsequent year, in which case the remainder 
15 shall be credited to State banks and foreign banking 
16 corporations and applied against their fees for the 
17 subsequent year. The amount credited to each State 
18 bank and foreign banking corporation shall be in the 
19 same proportion as the Call Report Fees paid by each 
20 for the year bear to the total Call Report Fees 
21 collected for the year. If, after a transfer to the 
22 Cash Flow Reserve Account is made or if no remainder is 
23 available for transfer, the balance of the Cash Flow 
24 Reserve Account is less than one-fourth of the total 
25 initial appropriations for the subsequent year and the 
26 amount transferred is less than 5% of the total Call 
 
 
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1 Report Fees for the year, additional amounts needed to 
2 make the transfer equal to 5% of the total Call Report 
3 Fees for the year shall be apportioned among, assessed 
4 upon, and paid by the State banks and foreign banking 
5 corporations in the same proportion that the Call 
6 Report Fees of each, respectively, for the year bear 
7 to the total Call Report Fees collected for the year. 
8 The additional amounts assessed shall be transferred 
9 into the Cash Flow Reserve Account. For purposes of 
10 this paragraph (d-1), the calculation of the fees 
11 collected by the Commissioner shall exclude the 
12 receivership fees provided for in Section 5-10 of the 
13 Corporate Fiduciary Act.
14   (e) The Commissioner may upon request certify to 
15 any public record in his keeping and shall have 
16 authority to levy a reasonable charge for issuing 
17 certifications of any public record in his keeping.
18   (f) In addition to fees authorized elsewhere in 
19 this Act, the Commissioner may, in connection with a 
20 review, approval, or provision of a service, levy a 
21 reasonable charge to recover the cost of the review, 
22 approval, or service.
23  (4) Nothing contained in this Act shall be construed 
24 to limit the obligation relative to examinations and 
25 reports of any State bank, deposits in which are to any 
26 extent insured by the United States or any agency thereof, 
 
 
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1 nor to limit in any way the powers of the Commissioner with 
2 reference to examinations and reports of that bank.
3  (5) The nature and condition of the assets in or 
4 investment of any bonus, pension, or profit sharing plan 
5 for officers or employees of every State bank or, after 
6 May 31, 1997, branch of an out-of-state bank shall be 
7 deemed to be included in the affairs of that State bank or 
8 branch of an out-of-state bank subject to examination by 
9 the Commissioner under the provisions of subsection (2) of 
10 this Section, and if the Commissioner shall find from an 
11 examination that the condition of or operation of the 
12 investments or assets of the plan is unlawful, fraudulent, 
13 or unsafe, or that any trustee has abused his trust, the 
14 Commissioner shall, if the situation so found by the 
15 Commissioner shall not be corrected to his satisfaction 
16 within 60 days after the Commissioner has given notice to 
17 the board of directors of the State bank or out-of-state 
18 bank of his findings, report the facts to the Attorney 
19 General who shall thereupon institute proceedings against 
20 the State bank or out-of-state bank, the board of 
21 directors thereof, or the trustees under such plan as the 
22 nature of the case may require.
23  (6) The Commissioner shall have the power:
24   (a) To promulgate reasonable rules for the purpose 
25 of administering the provisions of this Act.
26   (a-5) To impose conditions on any approval issued 
 
 
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1 by the Commissioner if he determines that the 
2 conditions are necessary or appropriate. These 
3 conditions shall be imposed in writing and shall 
4 continue in effect for the period prescribed by the 
5 Commissioner.
6   (b) To issue orders against any person, if the 
7 Commissioner has reasonable cause to believe that an 
8 unsafe or unsound banking practice has occurred, is 
9 occurring, or is about to occur, if any person has 
10 violated, is violating, or is about to violate any 
11 law, rule, or written agreement with the Commissioner, 
12 or for the purpose of administering the provisions of 
13 this Act and any rule promulgated in accordance with 
14 this Act.
15   (b-1) To enter into agreements with a bank 
16 establishing a program to correct the condition of the 
17 bank or its practices.
18   (c) To appoint hearing officers to execute any of 
19 the powers granted to the Commissioner under this 
20 Section for the purpose of administering this Act and 
21 any rule promulgated in accordance with this Act and 
22 otherwise to authorize, in writing, an officer or 
23 employee of the Office of Banks and Real Estate to 
24 exercise his powers under this Act.
25   (d) To subpoena witnesses, to compel their 
26 attendance, to administer an oath, to examine any 
 
 
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1 person under oath, and to require the production of 
2 any relevant books, papers, accounts, and documents in 
3 the course of and pursuant to any investigation being 
4 conducted, or any action being taken, by the 
5 Commissioner in respect of any matter relating to the 
6 duties imposed upon, or the powers vested in, the 
7 Commissioner under the provisions of this Act or any 
8 rule promulgated in accordance with this Act.
9   (e) To conduct hearings.
10  (7) Whenever, in the opinion of the Secretary, any 
11 director, officer, employee, or agent of a State bank or 
12 any subsidiary or bank holding company of the bank or, 
13 after May 31, 1997, of any branch of an out-of-state bank 
14 or any subsidiary or bank holding company of the bank 
15 shall have violated any law, rule, or order relating to 
16 that bank or any subsidiary or bank holding company of the 
17 bank, shall have obstructed or impeded any examination or 
18 investigation by the Secretary, shall have engaged in an 
19 unsafe or unsound practice in conducting the business of 
20 that bank or any subsidiary or bank holding company of the 
21 bank, or shall have violated any law or engaged or 
22 participated in any unsafe or unsound practice in 
23 connection with any financial institution or other 
24 business entity such that the character and fitness of the 
25 director, officer, employee, or agent does not assure 
26 reasonable promise of safe and sound operation of the 
 
 
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1 State bank, the Secretary may issue an order of removal. 
2 If, in the opinion of the Secretary, any former director, 
3 officer, employee, or agent of a State bank or any 
4 subsidiary or bank holding company of the bank, prior to 
5 the termination of his or her service with that bank or any 
6 subsidiary or bank holding company of the bank, violated 
7 any law, rule, or order relating to that State bank or any 
8 subsidiary or bank holding company of the bank, obstructed 
9 or impeded any examination or investigation by the 
10 Secretary, engaged in an unsafe or unsound practice in 
11 conducting the business of that bank or any subsidiary or 
12 bank holding company of the bank, or violated any law or 
13 engaged or participated in any unsafe or unsound practice 
14 in connection with any financial institution or other 
15 business entity such that the character and fitness of the 
16 director, officer, employee, or agent would not have 
17 assured reasonable promise of safe and sound operation of 
18 the State bank, the Secretary may issue an order 
19 prohibiting that person from further service with a bank 
20 or any subsidiary or bank holding company of the bank as a 
21 director, officer, employee, or agent. An order issued 
22 pursuant to this subsection shall be served upon the 
23 director, officer, employee, or agent. A copy of the order 
24 shall be sent to each director of the bank affected by 
25 registered mail. A copy of the order shall also be served 
26 upon the bank of which he is a director, officer, 
 
 
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1 employee, or agent, whereupon he shall cease to be a 
2 director, officer, employee, or agent of that bank. The 
3 Secretary may institute a civil action against the 
4 director, officer, or agent of the State bank or, after 
5 May 31, 1997, of the branch of the out-of-state bank 
6 against whom any order provided for by this subsection (7) 
7 of this Section 48 has been issued, and against the State 
8 bank or, after May 31, 1997, out-of-state bank, to enforce 
9 compliance with or to enjoin any violation of the terms of 
10 the order. Any person who has been the subject of an order 
11 of removal or an order of prohibition issued by the 
12 Secretary under this subsection or Section 5-6 of the 
13 Corporate Fiduciary Act may not thereafter serve as 
14 director, officer, employee, or agent of any State bank or 
15 of any branch of any out-of-state bank, or of any 
16 corporate fiduciary, as defined in Section 1-5.05 of the 
17 Corporate Fiduciary Act, or of any other entity that is 
18 subject to licensure or regulation by the Division of 
19 Banking unless the Secretary has granted prior approval in 
20 writing.
21  For purposes of this paragraph (7), "bank holding 
22 company" has the meaning prescribed in Section 2 of the 
23 Illinois Bank Holding Company Act of 1957.
24  (7.5) Notwithstanding the provisions of this Section, 
25 the Secretary shall not:
26   (1) issue an order against a State bank or any 
 
 
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1 subsidiary organized under this Act for unsafe or 
2 unsound banking practices solely because the entity 
3 provides or has provided financial services to a 
4 cannabis-related legitimate business;
5   (2) prohibit, penalize, or otherwise discourage a 
6 State bank or any subsidiary from providing financial 
7 services to a cannabis-related legitimate business 
8 solely because the entity provides or has provided 
9 financial services to a cannabis-related legitimate 
10 business;
11   (3) recommend, incentivize, or encourage a State 
12 bank or any subsidiary not to offer financial services 
13 to an account holder or to downgrade or cancel the 
14 financial services offered to an account holder solely 
15 because:
16    (A) the account holder is a manufacturer or 
17 producer, or is the owner, operator, or employee 
18 of a cannabis-related legitimate business;
19    (B) the account holder later becomes an owner 
20 or operator of a cannabis-related legitimate 
21 business; or
22    (C) the State bank or any subsidiary was not 
23 aware that the account holder is the owner or 
24 operator of a cannabis-related legitimate 
25 business; and
26   (4) take any adverse or corrective supervisory 
 
 
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1 action on a loan made to an owner or operator of:
2    (A) a cannabis-related legitimate business 
3 solely because the owner or operator owns or 
4 operates a cannabis-related legitimate business; 
5 or
6    (B) real estate or equipment that is leased to 
7 a cannabis-related legitimate business solely 
8 because the owner or operator of the real estate 
9 or equipment leased the equipment or real estate 
10 to a cannabis-related legitimate business. 
11  (8) The Commissioner may impose civil penalties of up 
12 to $100,000 against any person for each violation of any 
13 provision of this Act, any rule promulgated in accordance 
14 with this Act, any order of the Commissioner, or any other 
15 action which in the Commissioner's discretion is an unsafe 
16 or unsound banking practice.
17  (9) The Commissioner may impose civil penalties of up 
18 to $100 against any person for the first failure to comply 
19 with reporting requirements set forth in the report of 
20 examination of the bank and up to $200 for the second and 
21 subsequent failures to comply with those reporting 
22 requirements.
23  (10) All final administrative decisions of the 
24 Commissioner hereunder shall be subject to judicial review 
25 pursuant to the provisions of the Administrative Review 
26 Law. For matters involving administrative review, venue 
 
 
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1 shall be in either Sangamon County or Cook County.
2  (11) The endowment fund for the Illinois Bank 
3 Examiners' Education Foundation shall be administered as 
4 follows:
5   (a) (Blank).
6   (b) The Foundation is empowered to receive 
7 voluntary contributions, gifts, grants, bequests, and 
8 donations on behalf of the Illinois Bank Examiners' 
9 Education Foundation from national banks and other 
10 persons for the purpose of funding the endowment of 
11 the Illinois Bank Examiners' Education Foundation.
12   (c) The aggregate of all special educational fees 
13 collected by the Secretary and property received by 
14 the Secretary on behalf of the Illinois Bank 
15 Examiners' Education Foundation under this subsection 
16 (11) on or after June 30, 1986, shall be either (i) 
17 promptly paid after receipt of the same, accompanied 
18 by a detailed statement thereof, into the State 
19 treasury and shall be set apart in a special fund to be 
20 known as the Illinois Bank Examiners' Education Fund 
21 to be invested by either the Treasurer of the State of 
22 Illinois in the Public Treasurers' Investment Pool or 
23 in any other investment he is authorized to make or by 
24 the Illinois State Board of Investment as the State 
25 Banking Board of Illinois may direct or (ii) deposited 
26 into an account maintained in a commercial bank or 
 
 
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1 corporate fiduciary in the name of the Illinois Bank 
2 Examiners' Education Foundation pursuant to the order 
3 and direction of the Board of Trustees of the Illinois 
4 Bank Examiners' Education Foundation.
5  (12) (Blank).
6  (13) The Secretary may borrow funds from the General 
7 Revenue Fund on behalf of the Bank and Trust Company Fund 
8 if the Director of Banking certifies to the Governor that 
9 there is an economic emergency affecting banking that 
10 requires a borrowing to provide additional funds to the 
11 Bank and Trust Company Fund. The borrowed funds shall be 
12 paid back within 3 years and shall not exceed the total 
13 funding appropriated to the Agency in the previous year.
14  (14) In addition to the fees authorized in this Act, 
15 the Secretary may assess reasonable receivership fees 
16 against any State bank that does not maintain insurance 
17 with the Federal Deposit Insurance Corporation. All fees 
18 collected under this subsection (14) shall be paid into 
19 the Non-insured Institutions Receivership account in the 
20 Bank and Trust Company Fund, as established by the 
21 Secretary. The fees assessed under this subsection (14) 
22 shall provide for the expenses that arise from the 
23 administration of the receivership of any such institution 
24 required to pay into the Non-insured Institutions 
25 Receivership account, whether pursuant to this Act, the 
26 Corporate Fiduciary Act, the Foreign Banking Office Act, 
 
 
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1 or any other Act that requires payments into the 
2 Non-insured Institutions Receivership account. The 
3 Secretary may establish by rule a reasonable manner of 
4 assessing fees under this subsection (14).
5(Source: P.A. 102-558, eff. 8-20-21; 103-154, eff. 6-30-23.)

6 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
7 Sec. 48.1. Customer financial records; confidentiality. 
8  (a) For the purpose of this Section, the term "financial 
9records" means any original, any copy, or any summary of:
10  (1) a document granting signature authority over a 
11 deposit or account;
12  (2) a statement, ledger card or other record on any 
13 deposit or account, which shows each transaction in or 
14 with respect to that account;
15  (3) a check, draft or money order drawn on a bank or 
16 issued and payable by a bank; or
17  (4) any other item containing information pertaining 
18 to any relationship established in the ordinary course of 
19 a bank's business between a bank and its customer, 
20 including financial statements or other financial 
21 information provided by the customer.
22  (b) This Section does not prohibit:
23  (1) The preparation, examination, handling or 
24 maintenance of any financial records by any officer, 
25 employee or agent of a bank having custody of the records, 
 
 
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1 or the examination of the records by a certified public 
2 accountant engaged by the bank to perform an independent 
3 audit.
4  (2) The examination of any financial records by, or 
5 the furnishing of financial records by a bank to, any 
6 officer, employee or agent of (i) the Commissioner of 
7 Banks and Real Estate, (ii) after May 31, 1997, a state 
8 regulatory authority authorized to examine a branch of a 
9 State bank located in another state, (iii) the Comptroller 
10 of the Currency, (iv) the Federal Reserve Board, or (v) 
11 the Federal Deposit Insurance Corporation for use solely 
12 in the exercise of his duties as an officer, employee, or 
13 agent.
14  (3) The publication of data furnished from financial 
15 records relating to customers where the data cannot be 
16 identified to any particular customer or account.
17  (4) The making of reports or returns required under 
18 Chapter 61 of the Internal Revenue Code of 1986.
19  (5) Furnishing information concerning the dishonor of 
20 any negotiable instrument permitted to be disclosed under 
21 the Uniform Commercial Code.
22  (6) The exchange in the regular course of business of 
23 (i) credit information between a bank and other banks or 
24 financial institutions or commercial enterprises, directly 
25 or through a consumer reporting agency or (ii) financial 
26 records or information derived from financial records 
 
 
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1 between a bank and other banks or financial institutions 
2 or commercial enterprises for the purpose of conducting 
3 due diligence pursuant to a purchase or sale involving the 
4 bank or assets or liabilities of the bank.
5  (7) The furnishing of information to the appropriate 
6 law enforcement authorities where the bank reasonably 
7 believes it has been the victim of a crime.
8  (8) The furnishing of information under the Revised 
9 Uniform Unclaimed Property Act.
10  (9) The furnishing of information under the Illinois 
11 Income Tax Act and the Illinois Estate and 
12 Generation-Skipping Transfer Tax Act.
13  (10) The furnishing of information under the federal 
14 Currency and Foreign Transactions Reporting Act Title 31, 
15 United States Code, Section 1051 et seq.
16  (11) The furnishing of information under any other 
17 statute that by its terms or by regulations promulgated 
18 thereunder requires the disclosure of financial records 
19 other than by subpoena, summons, warrant, or court order.
20  (12) The furnishing of information about the existence 
21 of an account of a person to a judgment creditor of that 
22 person who has made a written request for that 
23 information.
24  (13) The exchange in the regular course of business of 
25 information between commonly owned banks in connection 
26 with a transaction authorized under paragraph (23) of 
 
 
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1 Section 5 and conducted at an affiliate facility.
2  (14) The furnishing of information in accordance with 
3 the federal Personal Responsibility and Work Opportunity 
4 Reconciliation Act of 1996. Any bank governed by this Act 
5 shall enter into an agreement for data exchanges with a 
6 State agency provided the State agency pays to the bank a 
7 reasonable fee not to exceed its actual cost incurred. A 
8 bank providing information in accordance with this item 
9 shall not be liable to any account holder or other person 
10 for any disclosure of information to a State agency, for 
11 encumbering or surrendering any assets held by the bank in 
12 response to a lien or order to withhold and deliver issued 
13 by a State agency, or for any other action taken pursuant 
14 to this item, including individual or mechanical errors, 
15 provided the action does not constitute gross negligence 
16 or willful misconduct. A bank shall have no obligation to 
17 hold, encumber, or surrender assets until it has been 
18 served with a subpoena, summons, warrant, court or 
19 administrative order, lien, or levy.
20  (15) The exchange in the regular course of business of 
21 information between a bank and any commonly owned 
22 affiliate of the bank, subject to the provisions of the 
23 Financial Institutions Insurance Sales Law.
24  (16) The furnishing of information to law enforcement 
25 authorities, the Illinois Department on Aging and its 
26 regional administrative and provider agencies, the 
 
 
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1 Department of Human Services Office of Inspector General, 
2 or public guardians: (i) upon subpoena by the 
3 investigatory entity or the guardian, or (ii) if there is 
4 suspicion by the bank that a customer who is an elderly 
5 person or person with a disability has been or may become 
6 the victim of financial exploitation. For the purposes of 
7 this item (16), the term: (i) "elderly person" means a 
8 person who is 60 or more years of age, (ii) "disabled 
9 person with a disability" means a person who has or 
10 reasonably appears to the bank to have a physical or 
11 mental disability that impairs his or her ability to seek 
12 or obtain protection from or prevent financial 
13 exploitation, and (iii) "financial exploitation" means 
14 tortious or illegal use of the assets or resources of an 
15 elderly or disabled person or person with a disability, 
16 and includes, without limitation, misappropriation of the 
17 elderly or disabled person's assets or resources of the 
18 elderly person or person with a disability by undue 
19 influence, breach of fiduciary relationship, intimidation, 
20 fraud, deception, extortion, or the use of assets or 
21 resources in any manner contrary to law. A bank or person 
22 furnishing information pursuant to this item (16) shall be 
23 entitled to the same rights and protections as a person 
24 furnishing information under the Adult Protective Services 
25 Act and the Illinois Domestic Violence Act of 1986.
26  (17) The disclosure of financial records or 
 
 
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1 information as necessary to effect, administer, or enforce 
2 a transaction requested or authorized by the customer, or 
3 in connection with:
4   (A) servicing or processing a financial product or 
5 service requested or authorized by the customer;
6   (B) maintaining or servicing a customer's account 
7 with the bank; or
8   (C) a proposed or actual securitization or 
9 secondary market sale (including sales of servicing 
10 rights) related to a transaction of a customer.
11  Nothing in this item (17), however, authorizes the 
12 sale of the financial records or information of a customer 
13 without the consent of the customer.
14  (18) The disclosure of financial records or 
15 information as necessary to protect against actual or 
16 potential fraud, unauthorized transactions, claims, or 
17 other liability.
18  (19)(A) The disclosure of financial records or 
19 information related to a private label credit program 
20 between a financial institution and a private label party 
21 in connection with that private label credit program. Such 
22 information is limited to outstanding balance, available 
23 credit, payment and performance and account history, 
24 product references, purchase information, and information 
25 related to the identity of the customer.
26  (B)(1) For purposes of this paragraph (19) of 
 
 
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1 subsection (b) of Section 48.1, a "private label credit 
2 program" means a credit program involving a financial 
3 institution and a private label party that is used by a 
4 customer of the financial institution and the private 
5 label party primarily for payment for goods or services 
6 sold, manufactured, or distributed by a private label 
7 party. 
8  (2) For purposes of this paragraph (19) of subsection 
9 (b) of Section 48.1, a "private label party" means, with 
10 respect to a private label credit program, any of the 
11 following: a retailer, a merchant, a manufacturer, a trade 
12 group, or any such person's affiliate, subsidiary, member, 
13 agent, or service provider. 
14  (20)(A) The furnishing of financial records of a 
15 customer to the Department to aid the Department's initial 
16 determination or subsequent re-determination of the 
17 customer's eligibility for Medicaid and Medicaid long-term 
18 care benefits for long-term care services, provided that 
19 the bank receives the written consent and authorization of 
20 the customer, which shall:
21   (1) have the customer's signature notarized;
22   (2) be signed by at least one witness who 
23 certifies that he or she believes the customer to be of 
24 sound mind and memory;
25   (3) be tendered to the bank at the earliest 
26 practicable time following its execution, 
 
 
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1 certification, and notarization;
2   (4) specifically limit the disclosure of the 
3 customer's financial records to the Department; and
4   (5) be in substantially the following form: 

5
CUSTOMER CONSENT AND AUTHORIZATION 
6
FOR RELEASE OF FINANCIAL RECORDS 


7I, ......................................., hereby authorize 
8 (Name of Customer) 

9............................................................. 
10(Name of Financial Institution)

11............................................................. 
12(Address of Financial Institution)

13to disclose the following financial records:

14any and all information concerning my deposit, savings, money 
15market, certificate of deposit, individual retirement, 
16retirement plan, 401(k) plan, incentive plan, employee benefit 
17plan, mutual fund and loan accounts (including, but not 
18limited to, any indebtedness or obligation for which I am a 
19co-borrower, co-obligor, guarantor, or surety), and any and 
20all other accounts in which I have an interest and any other 
 
 
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1information regarding me in the possession of the Financial 
2Institution,

3to the Illinois Department of Human Services or the Illinois 
4Department of Healthcare and Family Services, or both ("the 
5Department"), for the following purpose(s): 

6to aid in the initial determination or re-determination by the 
7State of Illinois of my eligibility for Medicaid long-term 
8care benefits, pursuant to applicable law. 

9I understand that this Consent and Authorization may be 
10revoked by me in writing at any time before my financial 
11records, as described above, are disclosed, and that this 
12Consent and Authorization is valid until the Financial 
13Institution receives my written revocation. This Consent and 
14Authorization shall constitute valid authorization for the 
15Department identified above to inspect all such financial 
16records set forth above, and to request and receive copies of 
17such financial records from the Financial Institution (subject 
18to such records search and reproduction reimbursement policies 
19as the Financial Institution may have in place). An executed 
20copy of this Consent and Authorization shall be sufficient and 
21as good as the original and permission is hereby granted to 
22honor a photostatic or electronic copy of this Consent and 
23Authorization. Disclosure is strictly limited to the 
 
 
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1Department identified above and no other person or entity 
2shall receive my financial records pursuant to this Consent 
3and Authorization. By signing this form, I agree to indemnify 
4and hold the Financial Institution harmless from any and all 
5claims, demands, and losses, including reasonable attorneys 
6fees and expenses, arising from or incurred in its reliance on 
7this Consent and Authorization. As used herein, "Customer" 
8shall mean "Member" if the Financial Institution is a credit 
9union.

10....................... ...................... 
11(Date) (Signature of Customer) 

12 ...................... 
13 ...................... 
14 (Address of Customer) 

15 ...................... 
16 (Customer's birth date) 
17 (month/day/year) 

18The undersigned witness certifies that ................., 
19known to me to be the same person whose name is subscribed as 
20the customer to the foregoing Consent and Authorization, 
21appeared before me and the notary public and acknowledged 
22signing and delivering the instrument as his or her free and 
 
 
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1voluntary act for the uses and purposes therein set forth. I 
2believe him or her to be of sound mind and memory. The 
3undersigned witness also certifies that the witness is not an 
4owner, operator, or relative of an owner or operator of a 
5long-term care facility in which the customer is a patient or 
6resident. 

7Dated: ................. ...................... 
8 (Signature of Witness) 

9 ...................... 
10 (Print Name of Witness) 

11 ...................... 
12 ...................... 
13 (Address of Witness) 

14State of Illinois)
15 ) ss.
16County of .......)

17The undersigned, a notary public in and for the above county 
18and state, certifies that .........., known to me to be the 
19same person whose name is subscribed as the customer to the 
20foregoing Consent and Authorization, appeared before me 
21together with the witness, .........., in person and 
 
 
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1acknowledged signing and delivering the instrument as the free 
2and voluntary act of the customer for the uses and purposes 
3therein set forth. 

4Dated:....................................................... 
5Notary Public:............................................... 
6My commission expires:....................................... 

7  (B) In no event shall the bank distribute the 
8 customer's financial records to the long-term care 
9 facility from which the customer seeks initial or 
10 continuing residency or long-term care services.
11  (C) A bank providing financial records of a customer 
12 in good faith relying on a consent and authorization 
13 executed and tendered in accordance with this paragraph 
14 (20) shall not be liable to the customer or any other 
15 person in relation to the bank's disclosure of the 
16 customer's financial records to the Department. The 
17 customer signing the consent and authorization shall 
18 indemnify and hold the bank harmless that relies in good 
19 faith upon the consent and authorization and incurs a loss 
20 because of such reliance. The bank recovering under this 
21 indemnification provision shall also be entitled to 
22 reasonable attorney's fees and the expenses of recovery.
23  (D) A bank shall be reimbursed by the customer for all 
24 costs reasonably necessary and directly incurred in 
 
 
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1 searching for, reproducing, and disclosing a customer's 
2 financial records required or requested to be produced 
3 pursuant to any consent and authorization executed under 
4 this paragraph (20). The requested financial records shall 
5 be delivered to the Department within 10 days after 
6 receiving a properly executed consent and authorization or 
7 at the earliest practicable time thereafter if the 
8 requested records cannot be delivered within 10 days, but 
9 delivery may be delayed until the final reimbursement of 
10 all costs is received by the bank. The bank may honor a 
11 photostatic or electronic copy of a properly executed 
12 consent and authorization.
13  (E) Nothing in this paragraph (20) shall impair, 
14 abridge, or abrogate the right of a customer to:
15   (1) directly disclose his or her financial records 
16 to the Department or any other person; or
17   (2) authorize his or her attorney or duly 
18 appointed agent to request and obtain the customer's 
19 financial records and disclose those financial records 
20 to the Department.
21  (F) For purposes of this paragraph (20), "Department" 
22 means the Department of Human Services and the Department 
23 of Healthcare and Family Services or any successor 
24 administrative agency of either agency. 
25  (21) The furnishing of financial records of a deceased 
26 customer to a public administrator of any county or other 
 
 
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1 governmental jurisdiction for the purpose of facilitating 
2 burial of the customer. 
3  (c) Except as otherwise provided by this Act, a bank may 
4not disclose to any person, except to the customer or his duly 
5authorized agent, any financial records or financial 
6information obtained from financial records relating to that 
7customer of that bank unless:
8  (1) the customer has authorized disclosure to the 
9 person;
10  (2) the financial records are disclosed in response to 
11 a lawful subpoena, summons, warrant, citation to discover 
12 assets, or court order which meets the requirements of 
13 subsection (d) of this Section; or
14  (3) the bank is attempting to collect an obligation 
15 owed to the bank and the bank complies with the provisions 
16 of Section 2I of the Consumer Fraud and Deceptive Business 
17 Practices Act.
18  (d) A bank shall disclose financial records under 
19paragraph (2) of subsection (c) of this Section under a lawful 
20subpoena, summons, warrant, citation to discover assets, or 
21court order only after the bank sends a copy of the subpoena, 
22summons, warrant, citation to discover assets, or court order 
23to the person establishing the relationship with the bank, if 
24living, and, otherwise the person's personal representative, 
25if known, at the person's last known address by first class 
26mail, postage prepaid, through a third-party commercial 
 
 
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1carrier or courier with delivery charge fully prepaid, by hand 
2delivery, or by electronic delivery at an email address on 
3file with the bank (if the person establishing the 
4relationship with the bank has consented to receive electronic 
5delivery and, if the person establishing the relationship with 
6the bank is a consumer, the person has consented under the 
7consumer consent provisions set forth in Section 7001 of Title 
815 of the United States Code), unless the bank is specifically 
9prohibited from notifying the person by order of court or by 
10applicable State or federal law. A bank shall not mail a copy 
11of a subpoena to any person pursuant to this subsection if the 
12subpoena was issued by a grand jury under the Statewide Grand 
13Jury Act.
14  (e) Any officer or employee of a bank who knowingly and 
15willfully furnishes financial records in violation of this 
16Section is guilty of a business offense and, upon conviction, 
17shall be fined not more than $1,000.
18  (f) Any person who knowingly and willfully induces or 
19attempts to induce any officer or employee of a bank to 
20disclose financial records in violation of this Section is 
21guilty of a business offense and, upon conviction, shall be 
22fined not more than $1,000.
23  (g) A bank shall be reimbursed for costs that are 
24reasonably necessary and that have been directly incurred in 
25searching for, reproducing, or transporting books, papers, 
26records, or other data required or requested to be produced 
 
 
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1pursuant to a lawful subpoena, summons, warrant, citation to 
2discover assets, or court order. The Commissioner shall 
3determine the rates and conditions under which payment may be 
4made.
5(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)

6 (205 ILCS 5/48.2) (from Ch. 17, par. 360.1)
7 Sec. 48.2. Prohibition against certain activities. 
8 (a) Any bank, subsidiary, affiliate, officer or employee 
9of such bank subject to this Act shall not: 
10  (1) grant any loan on the prior condition, agreement 
11 or understanding that the borrower contract with any 
12 specific person or organization for the following: 
13   (A) insurance services of an agent or broker; 
14   (B) legal services rendered to the borrower; 
15   (C) services of a real estate agent or broker; or 
16   (D) real estate or property management services; 
17  (2) require that insurance services, legal services, 
18 real estate services or property management services be 
19 placed with any subsidiary, affiliate, officer or employee 
20 of any bank.
21 (b) Any bank or subsidiary, affiliate, employee, officer, 
22banking house, branch bank, branch office, additional office 
23or agency of such bank that is transacting an insurance 
24business in this State shall comply with Article XLIV of the 
25Illinois Insurance Code.
 
 
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1 (c) Any officer or employee of a bank or its affiliates or 
2subsidiaries who violates this Section is guilty of a business 
3offense, and upon conviction shall be fined not more than 
4$1,000. This Section does not create a private cause of action 
5for civil damages.
6 (d) In any contract or loan which is secured by a mortgage, 
7deed of trust, or conveyance in the nature of a mortgage, on 
8residential real estate, the interest which is computed, 
9calculated, charged, or collected pursuant to such contract or 
10loan, or pursuant to any regulation or rule promulgated 
11pursuant to this Act, may not be computed, calculated, charged 
12or collected for any period of time occurring after the date on 
13which the total indebtedness, with the exception of late 
14payment penalties, is paid in full. For purposes of this 
15subsection (d) of this Section 48.2, a prepayment shall mean 
16the payment of the total indebtedness, with the exception of 
17late payment penalties if incurred or charged, on any date 
18before the date specified in the contract or loan agreement on 
19which the total indebtedness shall be paid in full, or before 
20the date on which all payments, if timely made, shall have been 
21made. In the event of a prepayment of the indebtedness which is 
22made on a date after the date on which interest on the 
23indebtedness was last computed, calculated, charged, or 
24collected but before the next date on which interest on the 
25indebtedness was to be calculated, computed, charged, or 
26collected, the lender may calculate, charge and collect 
 
 
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1interest on the indebtedness for the period which elapsed 
2between the date on which the prepayment is made and the date 
3on which interest on the indebtedness was last computed, 
4calculated, charged or collected at a rate equal to 1/360 of 
5the annual rate for each day which so elapsed, which rate shall 
6be applied to the indebtedness outstanding as of the date of 
7prepayment. The lender shall refund to the borrower any 
8interest charged or collected which exceeds that which the 
9lender may charge or collect pursuant to the preceding 
10sentence. The provisions of this amendatory Act of 1985 shall 
11apply only to contracts or loans entered into on or after 
12January 1, 1986.
13 (e) Any bank, affiliate or subsidiary of such bank which 
14shall engage in making residential mortgage financing 
15transactions, shall with respect to each such transaction, 
16provide the following: 
17  (1) if a contractual obligation is intended to a 
18 borrower, a mortgage commitment which shall set forth the 
19 material terms, conditions and contingencies of such 
20 commitment; 
21  (2) if the servicing of a residential mortgage shall 
22 be transferred from the original mortgagee, within 45 days 
23 of such transfer, written notice sent by certified mail, 
24 return receipt requested, to the mortgagor at the address 
25 of the property, unless the mortgagor shall have directed 
26 correspondence from the mortgagee shall be sent to another 
 
 
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1 address, which notice shall set forth: the name and 
2 address of the transferee; the name, address and telephone 
3 number to which inquiries by the residential mortgagor 
4 should be addressed; and the name and address to which the 
5 next 3 monthly installments are to be submitted to the 
6 transferee and the amount of each of such monthly 
7 installment; and 
8  (3) if the servicing of a residential mortgage shall 
9 be transferred again or if the information in paragraph 
10 (2) above shall change, the notice with the corrected 
11 information shall be provided within 45 days of such 
12 subsequent transfer or change in information by the 
13 transferee of the servicing of the mortgage at that time.
14(Source: P.A. 90-41, eff. 10-1-97.)

15 Section 10. The Savings Bank Act is amended by changing 
16Sections 1008, 4002, 4003, 4013, 6002, 7005, 8002, 8016, and 
1711008 as follows:

18 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
19 Sec. 1008. General corporate powers. 
20 (a) A savings bank operating under this Act shall be a body 
21corporate and politic and shall have all of the powers 
22conferred by this Act including, but not limited to, the 
23following powers:
24  (1) To sue and be sued, complain, and defend in its 
 
 
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1 corporate name and to have a common seal, which it may 
2 alter or renew at pleasure.
3  (2) To obtain and maintain insurance by a deposit 
4 insurance corporation as defined in this Act.
5  (3) To act as a fiscal agent for the United States, the 
6 State of Illinois or any department, branch, arm, or 
7 agency of the State or any unit of local government or 
8 school district in the State, when duly designated for 
9 that purpose, and as agent to perform reasonable functions 
10 as may be required of it.
11  (4) To become a member of or deal with any corporation 
12 or agency of the United States or the State of Illinois, to 
13 the extent that the agency assists in furthering or 
14 facilitating its purposes or powers and to that end to 
15 purchase stock or securities thereof or deposit money 
16 therewith, and to comply with any other conditions of 
17 membership or credit.
18  (5) To make donations in reasonable amounts for the 
19 public welfare or for charitable, scientific, religious, 
20 or educational purposes.
21  (6) To adopt and operate reasonable insurance, bonus, 
22 profit sharing, and retirement plans for officers and 
23 employees and for directors including, but not limited to, 
24 advisory, honorary, and emeritus directors, who are not 
25 officers or employees.
26  (7) To reject any application for membership; to 
 
 
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1 retire deposit accounts by enforced retirement as provided 
2 in this Act and the bylaws; and to limit the issuance of, 
3 or payments on, deposit accounts, subject, however, to 
4 contractual obligations.
5  (8) To purchase stock or membership interests in 
6 service corporations and to invest in any form of 
7 indebtedness of any service corporation as defined in this 
8 Act, subject to regulations of the Secretary.
9  (9) To purchase stock of a corporation whose principal 
10 purpose is to operate a safe deposit company or escrow 
11 service company.
12  (10) To exercise all the powers necessary to qualify 
13 as a trustee or custodian under federal or State law, 
14 provided that the authority to accept and execute trusts 
15 is subject to the provisions of the Corporate Fiduciary 
16 Act and to the supervision of those activities by the 
17 Secretary.
18  (11) (Blank).
19  (12) To establish, maintain, and operate terminals as 
20 authorized by the Electronic Fund Transfer Act.
21  (13) To borrow or incur an obligation; and to pledge 
22 its assets:
23   (A) to enable it to act as agent for the sale of 
24 obligations of the United States;
25   (B) to secure deposits;
26   (C) to secure deposits of money whenever required 
 
 
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1 by the National Bankruptcy Act;
2   (D) (blank); and
3   (E) to secure trust funds commingled with the 
4 savings bank's funds, whether deposited by the savings 
5 bank or an affiliate of the savings bank, as required 
6 under Section 2-8 of the Corporate Fiduciary Act.
7  (14) To accept for payment at a future date not to 
8 exceed one year from the date of acceptance, drafts drawn 
9 upon it by its customers; and to issue, advise, or confirm 
10 letters of credit authorizing holders thereof to draw 
11 drafts upon it or its correspondents.
12  (15) Subject to the regulations of the Secretary, to 
13 own and lease personal property acquired by the savings 
14 bank at the request of a prospective lessee and, upon the 
15 agreement of that person, to lease the personal property.
16  (16) To establish temporary service booths at any 
17 International Fair in this State that is approved by the 
18 United States Department of Commerce for the duration of 
19 the international fair for the purpose of providing a 
20 convenient place for foreign trade customers to exchange 
21 their home countries' currency into United States currency 
22 or the converse. To provide temporary periodic service to 
23 persons residing in a bona fide nursing home, senior 
24 citizens' retirement home, or long-term care facility. 
25 These powers shall not be construed as establishing a new 
26 place or change of location for the savings bank providing 
 
 
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1 the service booth.
2  (17) To indemnify its officers, directors, employees, 
3 and agents, as authorized for corporations under Section 
4 8.75 of the Business Corporation Act of 1983.
5  (18) To provide data processing services to others on 
6 a for-profit basis.
7  (19) To utilize any electronic technology to provide 
8 customers with home banking services.
9  (20) Subject to the regulations of the Secretary, to 
10 enter into an agreement to act as a surety.
11  (21) Subject to the regulations of the Secretary, to 
12 issue credit cards, extend credit therewith, and otherwise 
13 engage in or participate in credit card operations.
14  (22) To purchase for its own account shares of stock 
15 of a bankers' bank, described in Section 13(b)(1) of the 
16 Illinois Banking Act, on the same terms and conditions as 
17 a bank may purchase such shares. In no event shall the 
18 total amount of such stock held by a savings bank in such 
19 bankers' bank exceed 10% of its capital and surplus 
20 (including undivided profits) and in no event shall a 
21 savings bank acquire more than 15% 5% of any class of 
22 voting securities of such bankers' bank.
23  (23) With respect to affiliate facilities:
24   (A) to conduct at affiliate facilities any of the 
25 following transactions for and on behalf of any 
26 affiliated depository institution, if so authorized by 
 
 
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1 the affiliate or affiliates: receiving deposits; 
2 renewing deposits; cashing and issuing checks, drafts, 
3 money orders, travelers checks, or similar 
4 instruments; changing money; receiving payments on 
5 existing indebtedness; and conducting ministerial 
6 functions with respect to loan applications, servicing 
7 loans, and providing loan account information; and, on 
8 behalf of another commonly owned bank, if so 
9 authorized by the other bank, all transactions that 
10 the other bank is authorized or permitted to perform; 
11 and
12   (B) to authorize an affiliated depository 
13 institution to conduct for and on behalf of it, any of 
14 the transactions listed in this subsection at one or 
15 more affiliate facilities.
16  A savings bank intending to conduct or to authorize an 
17 affiliated depository institution to conduct at an 
18 affiliate facility any of the transactions specified in 
19 this subsection shall give written notice to the Secretary 
20 at least 30 days before any such transaction is conducted 
21 at an affiliate facility. All conduct under this 
22 subsection shall be on terms consistent with safe and 
23 sound banking practices and applicable law.
24  (24) Subject to Article XLIV of the Illinois Insurance 
25 Code, to act as the agent for any fire, life, or other 
26 insurance company authorized by the State of Illinois, by 
 
 
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1 soliciting and selling insurance and collecting premiums 
2 on policies issued by such company; and may receive for 
3 services so rendered such fees or commissions as may be 
4 agreed upon between the said savings bank and the 
5 insurance company for which it may act as agent; provided, 
6 however, that no such savings bank shall in any case 
7 assume or guarantee the payment of any premium on 
8 insurance policies issued through its agency by its 
9 principal; and provided further, that the savings bank 
10 shall not guarantee the truth of any statement made by an 
11 assured in filing his application for insurance.
12  (25) To become a member of the Federal Home Loan Bank 
13 and to have the powers granted to a savings association 
14 organized under the Illinois Savings and Loan Act of 1985 
15 or the laws of the United States, subject to regulations 
16 of the Secretary.
17  (26) To offer any product or service that is at the 
18 time authorized or permitted to a bank by applicable law, 
19 but subject always to the same limitations and 
20 restrictions that are applicable to the bank for the 
21 product or service by such applicable law and subject to 
22 the applicable provisions of the Financial Institutions 
23 Insurance Sales Law and rules of the Secretary.
24 (b) If this Act or the regulations adopted under this Act 
25fail to provide specific guidance in matters of corporate 
26governance, the provisions of the Business Corporation Act of 
 
 
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11983 may be used, or if the savings bank is a limited liability 
2company, the provisions of the Limited Liability Company Act 
3shall be used.
4 (c) A savings bank may be organized as a limited liability 
5company, may convert to a limited liability company, or may 
6merge with and into a limited liability company, under the 
7applicable laws of this State and of the United States, 
8including any rules promulgated thereunder. A savings bank 
9organized as a limited liability company shall be subject to 
10the provisions of the Limited Liability Company Act in 
11addition to this Act, provided that if a provision of the 
12Limited Liability Company Act conflicts with a provision of 
13this Act or with any rule of the Secretary, the provision of 
14this Act or the rule of the Secretary shall apply.
15 Any filing required to be made under the Limited Liability 
16Company Act shall be made exclusively with the Secretary, and 
17the Secretary shall possess the exclusive authority to 
18regulate the savings bank as provided in this Act.
19 Any organization as, conversion to, and merger with or 
20into a limited liability company shall be subject to the prior 
21approval of the Secretary.
22 A savings bank that is a limited liability company shall 
23be subject to all of the provisions of this Act in the same 
24manner as a savings bank that is organized in stock form.
25 The Secretary may promulgate rules to ensure that a 
26savings bank that is a limited liability company (i) is 
 
 
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1operating in a safe and sound manner and (ii) is subject to the 
2Secretary's authority in the same manner as a savings bank 
3that is organized in stock form.
4(Source: P.A. 102-558, eff. 8-20-21.)

5 (205 ILCS 205/4002) (from Ch. 17, par. 7304-2)
6 Sec. 4002. Annual and special meetings. Dates of annual 
7meetings of members or stockholders shall be specified in the 
8bylaws. Failure to hold an annual meeting shall not cause a 
9forfeiture or dissolution of the savings bank. Special 
10meetings may be called by the board of directors, the holders 
11of not less than 25% of the outstanding capital stock shares, 
12or by any other person as the bylaws may designate. The 
13Commissioner may also call a special meeting with not less 
14than 12 hours written or oral notice. Every annual or special 
15meeting shall be held at the business office of the savings 
16bank or, if the space is inadequate, in another place within 
17the same county as shall be specifically designated in the 
18notice of the meeting, or virtually. Unless expressly 
19prohibited by the articles of incorporation or bylaws and 
20subject to applicable requirements of this Act, the board of 
21directors may provide by resolution that members or 
22stockholders may attend, participate in, act in, and vote at 
23an annual meeting or special meeting through the use of a 
24conference telephone or interactive technology, including, but 
25not limited to, electronic transmission, Internet usage, or 
 
 
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1remote communication, by means of which all persons 
2participating in the meeting can communicate with each other. 
3Participation through the use of a conference telephone or 
4interactive technology shall constitute attendance, presence, 
5and representation in person at the annual meeting or special 
6meeting of the person or persons so participating and count 
7toward the quorum required to conduct business at the meeting. 
8The following conditions shall apply to any virtual meeting of 
9members or stockholders:
10 (a) the savings bank must internally possess or retain the 
11technological capacity to facilitate virtual meeting 
12attendance, participation, communication, and voting; and
13 (b) members or stockholders must receive notice of the use 
14of a virtual meeting format and appropriate instructions for 
15joining, participating, and voting during the virtual meeting 
16at least 7 days before the virtual meeting.
17(Source: P.A. 86-1213.)

18 (205 ILCS 205/4003) (from Ch. 17, par. 7304-3)
19 Sec. 4003. Notice of meetings. 
20 (a) Notice of an annual meeting shall be published once 
21not fewer than 10 days nor more than 40 days before the date of 
22the meeting. The notice shall also be displayed at the place of 
23business of the savings bank in a manner to be prescribed by 
24the Commissioner. The notice must state the time, place, and 
25purpose of the meeting.
 
 
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1 (b) For any special meeting or for any annual meeting that 
2is to consider any proposition that requires an affirmative 
3vote of two-thirds of the members or stockholders or any 
4proposition to amend the articles of incorporation of the 
5savings bank, the notice must be delivered personally, 
6electronically, or by mail to the holders of stock, capital 
7accounts, and membership entitled to notice of or to vote at 
8the meeting, by mail, postmarked between 10 and 40 days before 
9the date of the meeting, and must also be posted at the savings 
10bank's offices as if for an annual meeting, beginning on the 
11date notice is given. All notices must state the time, place, 
12and purpose of the meeting. If mailed, the notice shall be 
13deemed to be delivered on the date on which it has been 
14postmarked. 
15(Source: P.A. 89-74, eff. 6-30-95.)

16 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
17 Sec. 4013. Access to books and records; communication with 
18members and shareholders.
19 (a) Every member or shareholder shall have the right to 
20inspect books and records of the savings bank that pertain to 
21his accounts. Otherwise, the right of inspection and 
22examination of the books and records shall be limited as 
23provided in this Act, and no other person shall have access to 
24the books and records nor shall be entitled to a list of the 
25members or shareholders.
 
 
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1 (b) For the purpose of this Section, the term "financial 
2records" means any original, any copy, or any summary of (1) a 
3document granting signature authority over a deposit or 
4account; (2) a statement, ledger card, or other record on any 
5deposit or account that shows each transaction in or with 
6respect to that account; (3) a check, draft, or money order 
7drawn on a savings bank or issued and payable by a savings 
8bank; or (4) any other item containing information pertaining 
9to any relationship established in the ordinary course of a 
10savings bank's business between a savings bank and its 
11customer, including financial statements or other financial 
12information provided by the member or shareholder.
13 (c) This Section does not prohibit:
14  (1) The preparation, examination, handling, or 
15 maintenance of any financial records by any officer, 
16 employee, or agent of a savings bank having custody of 
17 records or examination of records by a certified public 
18 accountant engaged by the savings bank to perform an 
19 independent audit.
20  (2) The examination of any financial records by, or 
21 the furnishing of financial records by a savings bank to, 
22 any officer, employee, or agent of the Commissioner of 
23 Banks and Real Estate or the federal depository 
24 institution regulator for use solely in the exercise of 
25 his duties as an officer, employee, or agent.
26  (3) The publication of data furnished from financial 
 
 
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1 records relating to members or holders of capital where 
2 the data cannot be identified to any particular member, 
3 shareholder, or account.
4  (4) The making of reports or returns required under 
5 Chapter 61 of the Internal Revenue Code of 1986.
6  (5) Furnishing information concerning the dishonor of 
7 any negotiable instrument permitted to be disclosed under 
8 the Uniform Commercial Code.
9  (6) The exchange in the regular course of business of 
10 (i) credit information between a savings bank and other 
11 savings banks or financial institutions or commercial 
12 enterprises, directly or through a consumer reporting 
13 agency or (ii) financial records or information derived 
14 from financial records between a savings bank and other 
15 savings banks or financial institutions or commercial 
16 enterprises for the purpose of conducting due diligence 
17 pursuant to a purchase or sale involving the savings bank 
18 or assets or liabilities of the savings bank.
19  (7) The furnishing of information to the appropriate 
20 law enforcement authorities where the savings bank 
21 reasonably believes it has been the victim of a crime.
22  (8) The furnishing of information pursuant to the 
23 Revised Uniform Unclaimed Property Act.
24  (9) The furnishing of information pursuant to the 
25 Illinois Income Tax Act and the Illinois Estate and 
26 Generation-Skipping Transfer Tax Act.
 
 
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1  (10) The furnishing of information pursuant to the 
2 federal Currency and Foreign Transactions Reporting Act, 
3 (Title 31, United States Code, Section 1051 et seq.).
4  (11) The furnishing of information pursuant to any 
5 other statute which by its terms or by regulations 
6 promulgated thereunder requires the disclosure of 
7 financial records other than by subpoena, summons, 
8 warrant, or court order.
9  (12) The furnishing of information in accordance with 
10 the federal Personal Responsibility and Work Opportunity 
11 Reconciliation Act of 1996. Any savings bank governed by 
12 this Act shall enter into an agreement for data exchanges 
13 with a State agency provided the State agency pays to the 
14 savings bank a reasonable fee not to exceed its actual 
15 cost incurred. A savings bank providing information in 
16 accordance with this item shall not be liable to any 
17 account holder or other person for any disclosure of 
18 information to a State agency, for encumbering or 
19 surrendering any assets held by the savings bank in 
20 response to a lien or order to withhold and deliver issued 
21 by a State agency, or for any other action taken pursuant 
22 to this item, including individual or mechanical errors, 
23 provided the action does not constitute gross negligence 
24 or willful misconduct. A savings bank shall have no 
25 obligation to hold, encumber, or surrender assets until it 
26 has been served with a subpoena, summons, warrant, court 
 
 
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1 or administrative order, lien, or levy.
2  (13) The furnishing of information to law enforcement 
3 authorities, the Illinois Department on Aging and its 
4 regional administrative and provider agencies, the 
5 Department of Human Services Office of Inspector General, 
6 or public guardians: (i) upon subpoena by the 
7 investigatory entity or the guardian, or (ii) if there is 
8 suspicion by the savings bank that a customer who is an 
9 elderly person or person with a disability has been or may 
10 become the victim of financial exploitation. For the 
11 purposes of this item (13), the term: (i) "elderly person" 
12 means a person who is 60 or more years of age, (ii) "person 
13 with a disability" means a person who has or reasonably 
14 appears to the savings bank to have a physical or mental 
15 disability that impairs his or her ability to seek or 
16 obtain protection from or prevent financial exploitation, 
17 and (iii) "financial exploitation" means tortious or 
18 illegal use of the assets or resources of an elderly 
19 person or person with a disability, and includes, without 
20 limitation, misappropriation of the assets or resources of 
21 the elderly person or person with a disability by undue 
22 influence, breach of fiduciary relationship, intimidation, 
23 fraud, deception, extortion, or the use of assets or 
24 resources in any manner contrary to law. A savings bank or 
25 person furnishing information pursuant to this item (13) 
26 shall be entitled to the same rights and protections as a 
 
 
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1 person furnishing information under the Adult Protective 
2 Services Act and the Illinois Domestic Violence Act of 
3 1986.
4  (14) The disclosure of financial records or 
5 information as necessary to effect, administer, or enforce 
6 a transaction requested or authorized by the member or 
7 holder of capital, or in connection with:
8   (A) servicing or processing a financial product or 
9 service requested or authorized by the member or 
10 holder of capital;
11   (B) maintaining or servicing an account of a 
12 member or holder of capital with the savings bank; or
13   (C) a proposed or actual securitization or 
14 secondary market sale (including sales of servicing 
15 rights) related to a transaction of a member or holder 
16 of capital.
17  Nothing in this item (14), however, authorizes the 
18 sale of the financial records or information of a member 
19 or holder of capital without the consent of the member or 
20 holder of capital.
21  (15) The exchange in the regular course of business of 
22 information between a savings bank and any commonly owned 
23 affiliate of the savings bank, subject to the provisions 
24 of the Financial Institutions Insurance Sales Law.
25  (16) The disclosure of financial records or 
26 information as necessary to protect against or prevent 
 
 
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1 actual or potential fraud, unauthorized transactions, 
2 claims, or other liability.
3  (17)(a) The disclosure of financial records or 
4 information related to a private label credit program 
5 between a financial institution and a private label party 
6 in connection with that private label credit program. Such 
7 information is limited to outstanding balance, available 
8 credit, payment and performance and account history, 
9 product references, purchase information, and information 
10 related to the identity of the customer.
11  (b)(1) For purposes of this paragraph (17) of 
12 subsection (c) of Section 4013, a "private label credit 
13 program" means a credit program involving a financial 
14 institution and a private label party that is used by a 
15 customer of the financial institution and the private 
16 label party primarily for payment for goods or services 
17 sold, manufactured, or distributed by a private label 
18 party.
19  (2) For purposes of this paragraph (17) of subsection 
20 (c) of Section 4013, a "private label party" means, with 
21 respect to a private label credit program, any of the 
22 following: a retailer, a merchant, a manufacturer, a trade 
23 group, or any such person's affiliate, subsidiary, member, 
24 agent, or service provider.
25  (18)(a) The furnishing of financial records of a 
26 customer to the Department to aid the Department's initial 
 
 
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1 determination or subsequent re-determination of the 
2 customer's eligibility for Medicaid and Medicaid long-term 
3 care benefits for long-term care services, provided that 
4 the savings bank receives the written consent and 
5 authorization of the customer, which shall:
6   (1) have the customer's signature notarized;
7   (2) be signed by at least one witness who 
8 certifies that he or she believes the customer to be of 
9 sound mind and memory;
10   (3) be tendered to the savings bank at the 
11 earliest practicable time following its execution, 
12 certification, and notarization;
13   (4) specifically limit the disclosure of the 
14 customer's financial records to the Department; and
15   (5) be in substantially the following form: 

16
CUSTOMER CONSENT AND AUTHORIZATION 
17
FOR RELEASE OF FINANCIAL RECORDS 


18I, ......................................., hereby authorize 
19 (Name of Customer) 

20............................................................. 
21(Name of Financial Institution)

22............................................................. 
 
 
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1(Address of Financial Institution)

2to disclose the following financial records:

3any and all information concerning my deposit, savings, money 
4market, certificate of deposit, individual retirement, 
5retirement plan, 401(k) plan, incentive plan, employee benefit 
6plan, mutual fund and loan accounts (including, but not 
7limited to, any indebtedness or obligation for which I am a 
8co-borrower, co-obligor, guarantor, or surety), and any and 
9all other accounts in which I have an interest and any other 
10information regarding me in the possession of the Financial 
11Institution,

12to the Illinois Department of Human Services or the Illinois 
13Department of Healthcare and Family Services, or both ("the 
14Department"), for the following purpose(s):

15to aid in the initial determination or re-determination by the 
16State of Illinois of my eligibility for Medicaid long-term 
17care benefits, pursuant to applicable law. 

18I understand that this Consent and Authorization may be 
19revoked by me in writing at any time before my financial 
20records, as described above, are disclosed, and that this 
21Consent and Authorization is valid until the Financial 
 
 
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1Institution receives my written revocation. This Consent and 
2Authorization shall constitute valid authorization for the 
3Department identified above to inspect all such financial 
4records set forth above, and to request and receive copies of 
5such financial records from the Financial Institution (subject 
6to such records search and reproduction reimbursement policies 
7as the Financial Institution may have in place). An executed 
8copy of this Consent and Authorization shall be sufficient and 
9as good as the original and permission is hereby granted to 
10honor a photostatic or electronic copy of this Consent and 
11Authorization. Disclosure is strictly limited to the 
12Department identified above and no other person or entity 
13shall receive my financial records pursuant to this Consent 
14and Authorization. By signing this form, I agree to indemnify 
15and hold the Financial Institution harmless from any and all 
16claims, demands, and losses, including reasonable attorneys 
17fees and expenses, arising from or incurred in its reliance on 
18this Consent and Authorization. As used herein, "Customer" 
19shall mean "Member" if the Financial Institution is a credit 
20union.

21....................... ...................... 
22(Date) (Signature of Customer) 

23 ...................... 
24 ...................... 
 
 
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1 (Address of Customer) 

2 ...................... 
3 (Customer's birth date) 
4 (month/day/year) 

5The undersigned witness certifies that ................., 
6known to me to be the same person whose name is subscribed as 
7the customer to the foregoing Consent and Authorization, 
8appeared before me and the notary public and acknowledged 
9signing and delivering the instrument as his or her free and 
10voluntary act for the uses and purposes therein set forth. I 
11believe him or her to be of sound mind and memory. The 
12undersigned witness also certifies that the witness is not an 
13owner, operator, or relative of an owner or operator of a 
14long-term care facility in which the customer is a patient or 
15resident. 

16Dated: ................. ...................... 
17 (Signature of Witness) 

18 ...................... 
19 (Print Name of Witness) 

20 ...................... 
21 ...................... 
 
 
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1 (Address of Witness) 

2State of Illinois)
3 ) ss.
4County of .......)

5The undersigned, a notary public in and for the above county 
6and state, certifies that .........., known to me to be the 
7same person whose name is subscribed as the customer to the 
8foregoing Consent and Authorization, appeared before me 
9together with the witness, .........., in person and 
10acknowledged signing and delivering the instrument as the free 
11and voluntary act of the customer for the uses and purposes 
12therein set forth. 

13Dated:....................................................... 
14Notary Public:............................................... 
15My commission expires:....................................... 

16  (b) In no event shall the savings bank distribute the 
17 customer's financial records to the long-term care 
18 facility from which the customer seeks initial or 
19 continuing residency or long-term care services.
20  (c) A savings bank providing financial records of a 
21 customer in good faith relying on a consent and 
22 authorization executed and tendered in accordance with 
 
 
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1 this paragraph (18) shall not be liable to the customer or 
2 any other person in relation to the savings bank's 
3 disclosure of the customer's financial records to the 
4 Department. The customer signing the consent and 
5 authorization shall indemnify and hold the savings bank 
6 harmless that relies in good faith upon the consent and 
7 authorization and incurs a loss because of such reliance. 
8 The savings bank recovering under this indemnification 
9 provision shall also be entitled to reasonable attorney's 
10 fees and the expenses of recovery.
11  (d) A savings bank shall be reimbursed by the customer 
12 for all costs reasonably necessary and directly incurred 
13 in searching for, reproducing, and disclosing a customer's 
14 financial records required or requested to be produced 
15 pursuant to any consent and authorization executed under 
16 this paragraph (18). The requested financial records shall 
17 be delivered to the Department within 10 days after 
18 receiving a properly executed consent and authorization or 
19 at the earliest practicable time thereafter if the 
20 requested records cannot be delivered within 10 days, but 
21 delivery may be delayed until the final reimbursement of 
22 all costs is received by the savings bank. The savings 
23 bank may honor a photostatic or electronic copy of a 
24 properly executed consent and authorization.
25  (e) Nothing in this paragraph (18) shall impair, 
26 abridge, or abrogate the right of a customer to:
 
 
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1   (1) directly disclose his or her financial records 
2 to the Department or any other person; or
3   (2) authorize his or her attorney or duly 
4 appointed agent to request and obtain the customer's 
5 financial records and disclose those financial records 
6 to the Department.
7  (f) For purposes of this paragraph (18), "Department" 
8 means the Department of Human Services and the Department 
9 of Healthcare and Family Services or any successor 
10 administrative agency of either agency. 
11  (19) The furnishing of financial records of a deceased 
12 customer to a public administrator of any county or other 
13 governmental jurisdiction for the purpose of facilitating 
14 burial of the customer. 
15 (d) A savings bank may not disclose to any person, except 
16to the member or holder of capital or his duly authorized 
17agent, any financial records relating to that member or 
18shareholder of the savings bank unless:
19  (1) the member or shareholder has authorized 
20 disclosure to the person; or
21  (2) the financial records are disclosed in response to 
22 a lawful subpoena, summons, warrant, citation to discover 
23 assets, or court order that meets the requirements of 
24 subsection (e) of this Section.
25 (e) A savings bank shall disclose financial records under 
26subsection (d) of this Section pursuant to a lawful subpoena, 
 
 
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1summons, warrant, citation to discover assets, or court order 
2only after the savings bank sends a copy of the subpoena, 
3summons, warrant, citation to discover assets, or court order 
4to the person establishing the relationship with the savings 
5bank, if living, and otherwise, the person's personal 
6representative, if known, at the person's last known address 
7by first class mail, postage prepaid, through a third-party 
8commercial carrier or courier with delivery charge fully 
9prepaid, by hand delivery, or by electronic delivery at an 
10email address on file with the savings bank (if the person 
11establishing the relationship with the savings bank has 
12consented to receive electronic delivery and, if the person 
13establishing the relationship with the savings bank is a 
14consumer, the person has consented under the consumer consent 
15provisions set forth in Section 7001 of Title 15 of the United 
16States Code), unless the savings bank is specifically 
17prohibited from notifying the person by order of court or by 
18applicable State or federal law. A savings bank shall not mail 
19a copy of a subpoena to any customer pursuant to this 
20subsection if the subpoena was issued by a grand jury.
21 (f) Any officer or employee of a savings bank who 
22knowingly and willfully furnishes financial records in 
23violation of this Section is guilty of a business offense and, 
24upon conviction, shall be fined not more than $1,000.
25 (g) Any person who knowingly and willfully induces or 
26attempts to induce any officer or employee of a savings bank to 
 
 
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1disclose financial records in violation of this Section is 
2guilty of a business offense and, upon conviction, shall be 
3fined not more than $1,000.
4 (h) If any member or shareholder desires to communicate 
5with the other members or shareholders of the savings bank 
6with reference to any question pending or to be presented at an 
7annual or special meeting, the savings bank shall give that 
8person, upon request, a statement of the approximate number of 
9members or shareholders entitled to vote at the meeting and an 
10estimate of the cost of preparing and delivering mailing the 
11communication. The requesting member shall submit the 
12communication to the Commissioner who, upon finding it to be 
13appropriate and truthful, shall direct that it be prepared and 
14delivered mailed to the members upon the requesting member's 
15or shareholder's payment or adequate provision for payment of 
16the expenses of preparation and delivery mailing.
17 (i) A savings bank shall be reimbursed for costs that are 
18necessary and that have been directly incurred in searching 
19for, reproducing, or transporting books, papers, records, or 
20other data of a customer required to be reproduced pursuant to 
21a lawful subpoena, warrant, citation to discover assets, or 
22court order.
23 (j) Notwithstanding the provisions of this Section, a 
24savings bank may sell or otherwise make use of lists of 
25customers' names and addresses of persons who have obtained a 
26financial product or service from the savings bank. All other 
 
 
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1information regarding a customer's account is subject to the 
2disclosure provisions of this Section. At the request of any 
3person who has obtained a financial product or service from 
4the savings bank customer, that person's customer's name and 
5address shall be deleted from any list that is to be sold or 
6used in any other manner beyond identification of the person's 
7customer's accounts.
8(Source: P.A. 102-873, eff. 5-13-22.)

9 (205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
10 Sec. 6002. Investment in loans.  
11 (a) Subject to the regulations of the Commissioner, a 
12savings bank may loan funds as follows:
13  (1) On the security of deposit accounts, but no such 
14 loan shall exceed the withdrawal value of the pledged 
15 account.
16  (2) On the security of real estate: 
17   (A) of a value, determined in accordance with this 
18 Act, sufficient to provide good and ample security for 
19 the loan; 
20   (B) with a fee simple title or a leasehold title; 
21   (C) with the title established by evidence of 
22 title as is consistent with sound lending practices in 
23 the locality; 
24   (D) with the security interest in the real estate 
25 evidenced by an appropriate written instrument and the 
 
 
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1 loan evidenced by a note, bond, or similar written 
2 instrument; a loan on the security of the whole of the 
3 beneficial interest in a land trust satisfies the 
4 requirements of this paragraph if the title to the 
5 land is held by a corporate trustee and if the real 
6 estate held in the land trust meets the other 
7 requirements of this subsection; 
8   (E) with a mortgage loan not to exceed 40 years.
9  (3) For the purpose of repair, improvement, 
10 rehabilitation, furnishing, or equipment of real estate.
11  (4) For the purpose of financing or refinancing an 
12 existing ownership interest in certificates of stock, 
13 certificates of beneficial interest, other evidence of an 
14 ownership interest in, or a proprietary lease from a 
15 corporation, trust, or partnership formed for the purpose 
16 of the cooperative ownership of real estate, secured by 
17 the assignment or transfer of certificates or other 
18 evidence of ownership of the borrower.
19  (5) Through the purchase of loans that, at the time of 
20 purchase, the savings bank could make in accordance with 
21 this Section and the bylaws.
22  (6) Through the purchase of installment contracts for 
23 the sale of real estate and title thereto that is subject 
24 to the contracts, but in each instance only if the savings 
25 bank, at the time of purchase, could make a mortgage loan 
26 of the same amount and for the same length of time on the 
 
 
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1 security of the real estate.
2  (7) Through loans guaranteed or insured, wholly or in 
3 part, by the United States or any of its 
4 instrumentalities.
5  (8) Subject to regulations adopted by the 
6 Commissioner, through secured or unsecured loans for 
7 business, corporate, commercial, or agricultural purposes; 
8 provided that the total of all loans granted under this 
9 paragraph shall not exceed 15% of the savings bank's total 
10 assets unless a greater amount is authorized in writing by 
11 the Commissioner.
12  (9) For the purpose of manufactured home financing 
13 subject, however, to the regulation of the Commissioner. 
14 As used in this Section, "manufactured home" means a 
15 manufactured home as defined in subdivision (53) of 
16 Section 9-102 of the Uniform Commercial Code. 
17  (10) Through loans secured by the cash surrender value 
18 of any life insurance policy or any collateral that would 
19 be a legal investment under the terms of this Act if made 
20 by the savings bank.
21  (11) Any provision of this Act or any other law, 
22 except for paragraph (18) of Section 6003, to the contrary 
23 notwithstanding, but subject to the Financial Institutions 
24 Insurance Sales Law and subject to the Commissioner's 
25 regulations, any savings bank may make any loan or 
26 investment or engage in any activity that it could make or 
 
 
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1 engage in if it were organized under State law as a savings 
2 and loan association or under federal law as a federal 
3 savings and loan association or federal savings bank.
4  (12) A savings bank may issue letters of credit or 
5 other similar arrangements only as provided for by 
6 regulation of the Commissioner with regard to aggregate 
7 amounts permitted, take out commitments for stand-by 
8 letters of credit, underlying documentation and 
9 underwriting, legal limitations on loans of the savings 
10 bank, control and subsidiary records, and other procedures 
11 deemed necessary by the Commissioner.
12  (13) For the purpose of automobile financing, subject 
13 to the regulation of the Commissioner.
14  (14) For the purpose of financing primary, secondary, 
15 undergraduate, or postgraduate education.
16  (15) Through revolving lines of credit on the security 
17 of a first or junior lien on the borrower's personal 
18 residence, based primarily on the borrower's equity, the 
19 proceeds of which may be used for any purpose; those loans 
20 being commonly referred to as home equity loans.
21  (16) As secured or unsecured credit to cover the 
22 payment of checks, drafts, or other funds transfer orders 
23 in excess of the available balance of an account on which 
24 they are drawn, subject to the regulations of the 
25 Commissioner.
26  (17) Through the purchase of fixed rate annuity 
 
 
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1 contracts, if: 
2   (A) the savings bank's purchase of fixed rate 
3 annuities from any one issuer does not exceed 25% of 
4 the amount of the savings bank's unimpaired capital 
5 and unimpaired surplus;
6   (B) consistent with safe and sound operation of 
7 the savings bank and applicable federal regulatory 
8 guidance, and prior to any purchase of fixed rate 
9 annuities, the saving bank establishes reasonable 
10 internal concentration limits for its combined 
11 holdings from all issuers, and the savings bank's 
12 purchase of annuities remains within those limits;
13   (C) consistent with safe and sound operation of 
14 the savings bank and applicable federal regulatory 
15 guidance, and prior to purchasing each fixed rate 
16 annuity, the savings bank conducts an independent 
17 analysis to determine that the annuity will meet the 
18 savings bank's internal underwriting standards. At a 
19 minimum, the savings bank must:
20    (i) perform a full financial statement 
21 analysis on the issuer (obligor);
22    (ii) assess the issuer's industry position, 
23 pricing power, and management strength;
24    (iii) assess and evaluate the issuer's source 
25 of repayment and collateral value, if any;
26    (iv) gain appropriate credit approvals of the 
 
 
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1 savings bank's management and board of directors, 
2 or a committee thereof;
3    (v) assign a risk rating; and
4    (vi) ensure their lending policy addresses the 
5 type of exposure the savings bank plans to 
6 acquire;
7   (D) after purchase of the annuity, the savings 
8 bank reviews the credit exposure on an ongoing basis 
9 and updates the risk rating as appropriate;
10   (E) the terms of the annuity contract include 
11 charges or penalties for early withdrawal (surrender), 
12 the savings bank conducts independent analysis of the 
13 reasonableness of and associated risks of the charges 
14 or penalties;
15   (F) except for payment of charges or penalties 
16 that the savings bank determines reasonable under 
17 subparagraph (C), the savings bank is permitted to 
18 surrender (terminate) the annuity at any time before 
19 maturity and receive immediate access to the full 
20 value of the annuity, including principal and accrued 
21 interest; and
22   (G) the savings bank does not exercise any option 
23 it may have to convert its fixed rate annuity to a 
24 variable return status or any other status other than 
25 a fixed rate annuity as described in this Section. 
26 (b) For purposes of this Section, "real estate" includes a 
 
 
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1manufactured home as defined in subdivision (53) of Section 
29-102 of the Uniform Commercial Code which is real property as 
3defined in Section 5-35 of the Conveyance and Encumbrance of 
4Manufactured Homes as Real Property and Severance Act. 
5(Source: P.A. 98-749, eff. 7-16-14.)

6 (205 ILCS 205/7005) (from Ch. 17, par. 7307-5)
7 Sec. 7005. Holders of deposit accounts. 
8 (a) Deposit accounts of a savings bank may be held as 
9follows:
10  (1) by any individual in his own right, regardless of 
11 age or marital status, or by 2 or more individuals;
12  (2) by a fiduciary when authorized by law;
13  (3) by a government or governmental instrumentality 
14 when authorized by law; and
15  (4) by any corporation or other person when not 
16 prohibited by law.
17 (b) A savings bank may accept deposits made by a minor and 
18may open an account in the name of such minor and the rules and 
19regulations of such savings bank with respect to each such 
20deposit and account shall be as binding upon such minor as if 
21such minor were of full age and legal capacity. The receipt, 
22acquittance, or order of payment of such minor on such account 
23or deposit or any part thereof shall be as binding upon such 
24minor as if such minor were of full age and legal capacity. 
25(Source: P.A. 86-1213.)

 
 
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1 (205 ILCS 205/8002) (from Ch. 17, par. 7308-2)
2 Sec. 8002. Procedure to amend articles. 
3 (a) The procedure to effect an amendment of articles of 
4incorporation shall be as follows: 
5  (1) The board of directors shall adopt a resolution 
6 setting forth the proposed amendment and direct that it be 
7 submitted to a vote at an annual or special meeting of the 
8 members or stockholders. 
9  (2) The proposed amendment shall be set forth in the 
10 notice of meeting delivered mailed as prescribed in 
11 Section 4003 of this Act. 
12  (3) The proposed amendment shall be adopted upon 
13 receiving the affirmative vote of a majority of the votes 
14 entitled to be cast, unless the articles of incorporation 
15 set forth a requirement that amendments of the articles of 
16 incorporation shall be adopted by an affirmative vote of 
17 two-thirds of the total number of votes entitled to be 
18 cast.
19 (b) A report of proceedings, including the notice given, 
20the time of delivery mailing, the amendment adopted, the vote 
21thereon, and the total number of votes entitled to be cast, 
22verified by the president, vice president, or managing officer 
23and attested to by the secretary of the savings bank, shall be 
24filed with the Secretary within 5 business days after the 
25vote.
 
 
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1 (c) Each adopted amendment shall be subject to the same 
2inquiry as the corresponding provision in the original 
3articles. If the Secretary approves an amendment he shall 
4issue to the savings bank a certificate setting forth the 
5amendment and his approval thereof. The Secretary shall 
6approve an amendment, or state any objections to an amendment, 
7within 30 days after the receipt of the amendment adopted by 
8the board. If no objections are specified by the Secretary 
9within that time frame, the amendment will be deemed to be 
10approved by the Secretary. The amendment shall become 
11effective upon issuance of the certificate.
12 (d) An amendment of the articles of incorporation approved 
13by the board of directors, the Secretary, and members as part 
14of merger, sale of substantially all assets, change in 
15control, holding company reorganization, or mutual to stock 
16form conversion need not be approved under this Section.
17 (e) No amendment of articles of incorporation shall affect 
18any existing cause of action either in favor of or against the 
19savings bank or any pending action in which the savings bank 
20shall be a party or the existing rights of persons other than 
21members of the savings bank. 
22(Source: P.A. 97-492, eff. 1-1-12.)

23 (205 ILCS 205/11008) (from Ch. 17, par. 7311-8)
24 Sec. 11008. Unauthorized participation by convicted 
25individual. 
 
 
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1 (a) Except with the prior written consent of the 
2Commissioner, no person who has been convicted of any criminal 
3offense involving dishonesty or a breach of trust may own or 
4control directly or indirectly more than 0.001% of the capital 
5stock of, receive benefit directly or indirectly from, or 
6participate directly or indirectly in any manner in the 
7affairs of a savings bank.
8 (b) A savings bank may not permit participation by a 
9person described in subsection (a).
10 (c) Except with the prior written consent of the 
11Secretary, no savings bank shall knowingly employ or otherwise 
12permit an individual to serve as an officer, director, 
13employee, or agent of the savings bank if the individual has 
14been convicted of a felony or of any criminal offense relating 
15to dishonesty or breach of trust. Notwithstanding the 
16provisions of this Section, a savings bank in compliance with 
17the provisions of 12 U.S.C. 1829 and administrative rules 
18issued under 12 U.S.C. 1829 by the savings bank's primary 
19federal financial institution regulator shall be deemed in 
20compliance with this Section. Whoever knowingly violates 
21subsection (a) or (b) is guilty of a Class 3 felony and may be 
22fined not more than $10,000 for each day of violation.
23(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)

24 (205 ILCS 205/1007.100 rep.)
25 (205 ILCS 205/11011 rep.)
 
 
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1 Section 15. The Savings Bank Act is amended by repealing 
2Sections 1007.100 and 11011.

3 Section 20. The Illinois Credit Union Act is amended by 
4changing Section 10 as follows:

5 (205 ILCS 305/10) (from Ch. 17, par. 4411)
6 Sec. 10. Credit union records; member financial records. 
7 (1) A credit union shall establish and maintain books, 
8records, accounting systems and procedures which accurately 
9reflect its operations and which enable the Department to 
10readily ascertain the true financial condition of the credit 
11union and whether it is complying with this Act.
12 (2) A photostatic or photographic reproduction of any 
13credit union records shall be admissible as evidence of 
14transactions with the credit union. 
15 (3)(a) For the purpose of this Section, the term 
16"financial records" means any original, any copy, or any 
17summary of (1) a document granting signature authority over an 
18account, (2) a statement, ledger card or other record on any 
19account which shows each transaction in or with respect to 
20that account, (3) a check, draft or money order drawn on a 
21financial institution or other entity or issued and payable by 
22or through a financial institution or other entity, or (4) any 
23other item containing information pertaining to any 
24relationship established in the ordinary course of business 
 
 
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1between a credit union and its member, including financial 
2statements or other financial information provided by the 
3member. 
4 (b) This Section does not prohibit:
5  (1) The preparation, examination, handling or 
6 maintenance of any financial records by any officer, 
7 employee or agent of a credit union having custody of such 
8 records, or the examination of such records by a certified 
9 public accountant engaged by the credit union to perform 
10 an independent audit.
11  (2) The examination of any financial records by or the 
12 furnishing of financial records by a credit union to any 
13 officer, employee or agent of the Department, the National 
14 Credit Union Administration, Federal Reserve board or any 
15 insurer of share accounts for use solely in the exercise 
16 of his duties as an officer, employee or agent.
17  (3) The publication of data furnished from financial 
18 records relating to members where the data cannot be 
19 identified to any particular member or customer of 
20 account.
21  (4) The making of reports or returns required under 
22 Chapter 61 of the Internal Revenue Code of 1954.
23  (5) Furnishing information concerning the dishonor of 
24 any negotiable instrument permitted to be disclosed under 
25 the Uniform Commercial Code.
26  (6) The exchange in the regular course of business of 
 
 
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1 (i) credit information between a credit union and other 
2 credit unions or financial institutions or commercial 
3 enterprises, directly or through a consumer reporting 
4 agency or (ii) financial records or information derived 
5 from financial records between a credit union and other 
6 credit unions or financial institutions or commercial 
7 enterprises for the purpose of conducting due diligence 
8 pursuant to a merger or a purchase or sale of assets or 
9 liabilities of the credit union.
10  (7) The furnishing of information to the appropriate 
11 law enforcement authorities where the credit union 
12 reasonably believes it has been the victim of a crime.
13  (8) The furnishing of information pursuant to the 
14 Revised Uniform Unclaimed Property Act.
15  (9) The furnishing of information pursuant to the 
16 Illinois Income Tax Act and the Illinois Estate and 
17 Generation-Skipping Transfer Tax Act.
18  (10) The furnishing of information pursuant to the 
19 federal Currency and Foreign Transactions Reporting Act, 
20 Title 31, United States Code, Section 1051 et sequentia.
21  (11) The furnishing of information pursuant to any 
22 other statute which by its terms or by regulations 
23 promulgated thereunder requires the disclosure of 
24 financial records other than by subpoena, summons, warrant 
25 or court order.
26  (12) The furnishing of information in accordance with 
 
 
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1 the federal Personal Responsibility and Work Opportunity 
2 Reconciliation Act of 1996. Any credit union governed by 
3 this Act shall enter into an agreement for data exchanges 
4 with a State agency provided the State agency pays to the 
5 credit union a reasonable fee not to exceed its actual 
6 cost incurred. A credit union providing information in 
7 accordance with this item shall not be liable to any 
8 account holder or other person for any disclosure of 
9 information to a State agency, for encumbering or 
10 surrendering any assets held by the credit union in 
11 response to a lien or order to withhold and deliver issued 
12 by a State agency, or for any other action taken pursuant 
13 to this item, including individual or mechanical errors, 
14 provided the action does not constitute gross negligence 
15 or willful misconduct. A credit union shall have no 
16 obligation to hold, encumber, or surrender assets until it 
17 has been served with a subpoena, summons, warrant, court 
18 or administrative order, lien, or levy.
19  (13) The furnishing of information to law enforcement 
20 authorities, the Illinois Department on Aging and its 
21 regional administrative and provider agencies, the 
22 Department of Human Services Office of Inspector General, 
23 or public guardians: (i) upon subpoena by the 
24 investigatory entity or the guardian, or (ii) if there is 
25 suspicion by the credit union that a member who is an 
26 elderly person or person with a disability has been or may 
 
 
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1 become the victim of financial exploitation. For the 
2 purposes of this item (13), the term: (i) "elderly person" 
3 means a person who is 60 or more years of age, (ii) "person 
4 with a disability" means a person who has or reasonably 
5 appears to the credit union to have a physical or mental 
6 disability that impairs his or her ability to seek or 
7 obtain protection from or prevent financial exploitation, 
8 and (iii) "financial exploitation" means tortious or 
9 illegal use of the assets or resources of an elderly 
10 person or person with a disability, and includes, without 
11 limitation, misappropriation of the elderly or disabled 
12 person's assets or resources of the elderly person or 
13 person with a disability by undue influence, breach of 
14 fiduciary relationship, intimidation, fraud, deception, 
15 extortion, or the use of assets or resources in any manner 
16 contrary to law. A credit union or person furnishing 
17 information pursuant to this item (13) shall be entitled 
18 to the same rights and protections as a person furnishing 
19 information under the Adult Protective Services Act and 
20 the Illinois Domestic Violence Act of 1986.
21  (14) The disclosure of financial records or 
22 information as necessary to effect, administer, or enforce 
23 a transaction requested or authorized by the member, or in 
24 connection with:
25   (A) servicing or processing a financial product or 
26 service requested or authorized by the member;
 
 
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1   (B) maintaining or servicing a member's account 
2 with the credit union; or
3   (C) a proposed or actual securitization or 
4 secondary market sale (including sales of servicing 
5 rights) related to a transaction of a member.
6  Nothing in this item (14), however, authorizes the 
7 sale of the financial records or information of a member 
8 without the consent of the member.
9  (15) The disclosure of financial records or 
10 information as necessary to protect against or prevent 
11 actual or potential fraud, unauthorized transactions, 
12 claims, or other liability.
13  (16)(a) The disclosure of financial records or 
14 information related to a private label credit program 
15 between a financial institution and a private label party 
16 in connection with that private label credit program. Such 
17 information is limited to outstanding balance, available 
18 credit, payment and performance and account history, 
19 product references, purchase information, and information 
20 related to the identity of the customer.
21  (b)(1) For purposes of this item (16), "private label 
22 credit program" means a credit program involving a 
23 financial institution and a private label party that is 
24 used by a customer of the financial institution and the 
25 private label party primarily for payment for goods or 
26 services sold, manufactured, or distributed by a private 
 
 
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1 label party.
2  (2) For purposes of this item (16), "private label 
3 party" means, with respect to a private label credit 
4 program, any of the following: a retailer, a merchant, a 
5 manufacturer, a trade group, or any such person's 
6 affiliate, subsidiary, member, agent, or service provider.
7  (17)(a) The furnishing of financial records of a 
8 member to the Department to aid the Department's initial 
9 determination or subsequent re-determination of the 
10 member's eligibility for Medicaid and Medicaid long-term 
11 care benefits for long-term care services, provided that 
12 the credit union receives the written consent and 
13 authorization of the member, which shall:
14   (1) have the member's signature notarized;
15   (2) be signed by at least one witness who 
16 certifies that he or she believes the member to be of 
17 sound mind and memory;
18   (3) be tendered to the credit union at the 
19 earliest practicable time following its execution, 
20 certification, and notarization;
21   (4) specifically limit the disclosure of the 
22 member's financial records to the Department; and
23   (5) be in substantially the following form: 

24
CUSTOMER CONSENT AND AUTHORIZATION 
25
FOR RELEASE OF FINANCIAL RECORDS 


 
 
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1I, ......................................., hereby authorize 
2 (Name of Customer) 

3............................................................. 
4(Name of Financial Institution)

5............................................................. 
6(Address of Financial Institution)

7to disclose the following financial records:

8any and all information concerning my deposit, savings, money 
9market, certificate of deposit, individual retirement, 
10retirement plan, 401(k) plan, incentive plan, employee benefit 
11plan, mutual fund and loan accounts (including, but not 
12limited to, any indebtedness or obligation for which I am a 
13co-borrower, co-obligor, guarantor, or surety), and any and 
14all other accounts in which I have an interest and any other 
15information regarding me in the possession of the Financial 
16Institution,

17to the Illinois Department of Human Services or the Illinois 
18Department of Healthcare and Family Services, or both ("the 
19Department"), for the following purpose(s):

 
 
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1to aid in the initial determination or re-determination by the 
2State of Illinois of my eligibility for Medicaid long-term 
3care benefits, pursuant to applicable law. 

4I understand that this Consent and Authorization may be 
5revoked by me in writing at any time before my financial 
6records, as described above, are disclosed, and that this 
7Consent and Authorization is valid until the Financial 
8Institution receives my written revocation. This Consent and 
9Authorization shall constitute valid authorization for the 
10Department identified above to inspect all such financial 
11records set forth above, and to request and receive copies of 
12such financial records from the Financial Institution (subject 
13to such records search and reproduction reimbursement policies 
14as the Financial Institution may have in place). An executed 
15copy of this Consent and Authorization shall be sufficient and 
16as good as the original and permission is hereby granted to 
17honor a photostatic or electronic copy of this Consent and 
18Authorization. Disclosure is strictly limited to the 
19Department identified above and no other person or entity 
20shall receive my financial records pursuant to this Consent 
21and Authorization. By signing this form, I agree to indemnify 
22and hold the Financial Institution harmless from any and all 
23claims, demands, and losses, including reasonable attorneys 
24fees and expenses, arising from or incurred in its reliance on 
25this Consent and Authorization. As used herein, "Customer" 
 
 
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1shall mean "Member" if the Financial Institution is a credit 
2union.

3....................... ...................... 
4(Date) (Signature of Customer) 

5 ...................... 
6 ...................... 
7 (Address of Customer) 

8 ...................... 
9 (Customer's birth date) 
10 (month/day/year) 

11The undersigned witness certifies that ................., 
12known to me to be the same person whose name is subscribed as 
13the customer to the foregoing Consent and Authorization, 
14appeared before me and the notary public and acknowledged 
15signing and delivering the instrument as his or her free and 
16voluntary act for the uses and purposes therein set forth. I 
17believe him or her to be of sound mind and memory. The 
18undersigned witness also certifies that the witness is not an 
19owner, operator, or relative of an owner or operator of a 
20long-term care facility in which the customer is a patient or 
21resident. 

 
 
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1Dated: ................. ...................... 
2 (Signature of Witness) 

3 ...................... 
4 (Print Name of Witness) 

5 ...................... 
6 ...................... 
7 (Address of Witness) 

8State of Illinois)
9 ) ss.
10County of .......)

11The undersigned, a notary public in and for the above county 
12and state, certifies that .........., known to me to be the 
13same person whose name is subscribed as the customer to the 
14foregoing Consent and Authorization, appeared before me 
15together with the witness, .........., in person and 
16acknowledged signing and delivering the instrument as the free 
17and voluntary act of the customer for the uses and purposes 
18therein set forth. 

19Dated:....................................................... 
20Notary Public:............................................... 
21My commission expires:....................................... 

 
 
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1  (b) In no event shall the credit union distribute the 
2 member's financial records to the long-term care facility 
3 from which the member seeks initial or continuing 
4 residency or long-term care services.
5  (c) A credit union providing financial records of a 
6 member in good faith relying on a consent and 
7 authorization executed and tendered in accordance with 
8 this item (17) shall not be liable to the member or any 
9 other person in relation to the credit union's disclosure 
10 of the member's financial records to the Department. The 
11 member signing the consent and authorization shall 
12 indemnify and hold the credit union harmless that relies 
13 in good faith upon the consent and authorization and 
14 incurs a loss because of such reliance. The credit union 
15 recovering under this indemnification provision shall also 
16 be entitled to reasonable attorney's fees and the expenses 
17 of recovery.
18  (d) A credit union shall be reimbursed by the member 
19 for all costs reasonably necessary and directly incurred 
20 in searching for, reproducing, and disclosing a member's 
21 financial records required or requested to be produced 
22 pursuant to any consent and authorization executed under 
23 this item (17). The requested financial records shall be 
24 delivered to the Department within 10 days after receiving 
25 a properly executed consent and authorization or at the 
 
 
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1 earliest practicable time thereafter if the requested 
2 records cannot be delivered within 10 days, but delivery 
3 may be delayed until the final reimbursement of all costs 
4 is received by the credit union. The credit union may 
5 honor a photostatic or electronic copy of a properly 
6 executed consent and authorization.
7  (e) Nothing in this item (17) shall impair, abridge, 
8 or abrogate the right of a member to:
9   (1) directly disclose his or her financial records 
10 to the Department or any other person; or
11   (2) authorize his or her attorney or duly 
12 appointed agent to request and obtain the member's 
13 financial records and disclose those financial records 
14 to the Department.
15  (f) For purposes of this item (17), "Department" means 
16 the Department of Human Services and the Department of 
17 Healthcare and Family Services or any successor 
18 administrative agency of either agency. 
19  (18) The furnishing of the financial records of a 
20 member to an appropriate law enforcement authority, 
21 without prior notice to or consent of the member, upon 
22 written request of the law enforcement authority, when 
23 reasonable suspicion of an imminent threat to the personal 
24 security and safety of the member exists that necessitates 
25 an expedited release of the member's financial records, as 
26 determined by the law enforcement authority. The law 
 
 
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1 enforcement authority shall include a brief explanation of 
2 the imminent threat to the member in its written request 
3 to the credit union. The written request shall reflect 
4 that it has been authorized by a supervisory or managerial 
5 official of the law enforcement authority. The decision to 
6 furnish the financial records of a member to a law 
7 enforcement authority shall be made by a supervisory or 
8 managerial official of the credit union. A credit union 
9 providing information in accordance with this item (18) 
10 shall not be liable to the member or any other person for 
11 the disclosure of the information to the law enforcement 
12 authority. 
13  (19) The furnishing of financial records of a deceased 
14 member to a public administrator of any county or other 
15 governmental jurisdiction for the purpose of facilitating 
16 burial of the customer.  
17 (c) Except as otherwise provided by this Act, a credit 
18union may not disclose to any person, except to the member or 
19his duly authorized agent, any financial records relating to 
20that member of the credit union unless:
21  (1) the member has authorized disclosure to the 
22 person;
23  (2) the financial records are disclosed in response to 
24 a lawful subpoena, summons, warrant, citation to discover 
25 assets, or court order that meets the requirements of 
26 subparagraph (3)(d) of this Section; or
 
 
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1  (3) the credit union is attempting to collect an 
2 obligation owed to the credit union and the credit union 
3 complies with the provisions of Section 2I of the Consumer 
4 Fraud and Deceptive Business Practices Act. 
5 (d) A credit union shall disclose financial records under 
6item (3)(c)(2) of this Section pursuant to a lawful subpoena, 
7summons, warrant, citation to discover assets, or court order 
8only after the credit union sends a copy of the subpoena, 
9summons, warrant, citation to discover assets, or court order 
10to the person establishing the relationship with the credit 
11union, if living, and otherwise the person's personal 
12representative, if known, at the person's last known address 
13by first class mail, postage prepaid, through a third-party 
14commercial carrier or courier with delivery charge fully 
15prepaid, by hand delivery, or by electronic delivery at an 
16email address on file with the credit union (if the person 
17establishing the relationship with the credit union has 
18consented to receive electronic delivery and, if the person 
19establishing the relationship with the credit union is a 
20consumer, the person has consented under the consumer consent 
21provisions set forth in Section 7001 of Title 15 of the United 
22States Code), unless the credit union is specifically 
23prohibited from notifying the person by order of court or by 
24applicable State or federal law. In the case of a grand jury 
25subpoena, a credit union shall not mail a copy of a subpoena to 
26any person pursuant to this subsection if the subpoena was 
 
 
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1issued by a grand jury under the Statewide Grand Jury Act or 
2notifying the person would constitute a violation of the 
3federal Right to Financial Privacy Act of 1978. 
4 (e)(1) Any officer or employee of a credit union who 
5knowingly and willfully furnishes financial records in 
6violation of this Section is guilty of a business offense and 
7upon conviction thereof shall be fined not more than $1,000. 
8 (2) Any person who knowingly and willfully induces or 
9attempts to induce any officer or employee of a credit union to 
10disclose financial records in violation of this Section is 
11guilty of a business offense and upon conviction thereof shall 
12be fined not more than $1,000. 
13 (f) A credit union shall be reimbursed for costs which are 
14reasonably necessary and which have been directly incurred in 
15searching for, reproducing or transporting books, papers, 
16records or other data of a member required or requested to be 
17produced pursuant to a lawful subpoena, summons, warrant, 
18citation to discover assets, or court order. The Secretary and 
19the Director may determine, by rule, the rates and conditions 
20under which payment shall be made. Delivery of requested 
21documents may be delayed until final reimbursement of all 
22costs is received.
23(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)