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| Public Act 099-0362
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| SB1861 Enrolled | LRB099 11039 MGM 31419 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Banking Act is amended by changing |
Sections 5 and 14.1 as follows:
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(205 ILCS 5/5) (from Ch. 17, par. 311)
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Sec. 5. General corporate powers. A bank organized under |
this Act
or subject hereto shall be a body corporate and |
politic and shall,
without specific mention thereof in the |
charter, have all the powers
conferred by this Act and the |
following additional general corporate
powers:
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(1) To sue and be sued, complain, and defend in its |
corporate name.
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(2) To have a corporate seal, which may be altered at |
pleasure, and
to use the same by causing it or a facsimile |
thereof to be impressed or
affixed or in any manner |
reproduced, provided that the affixing of a
corporate
seal |
to an instrument shall not give the instrument additional |
force or effect,
or change the construction thereof, and |
the use of a corporate seal is not
mandatory.
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(3) To make, alter, amend, and repeal bylaws, not |
inconsistent with
its charter or with law, for the |
administration of the affairs of the bank.
If this Act does |
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not provide specific guidance in matters of corporate
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governance, the provisions of the Business Corporation Act |
of 1983 may be
used if so provided in the bylaws, and if |
the bank is a limited liability
company, the provisions of |
the Limited Liability Company Act shall be used.
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(4) To elect or appoint and remove officers and agents |
of the bank
and define their duties and fix their |
compensation.
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(5) To adopt and operate reasonable bonus plans, |
profit-sharing
plans, stock-bonus plans, stock-option |
plans, pension plans and similar
incentive plans for its |
directors, officers and employees.
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(5.1) To manage, operate and administer a fund for the |
investment of funds
by a public agency or agencies, |
including any unit of local government or
school district, |
or any person. The fund for a public agency shall invest in
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the same type of investments and be subject to the same |
limitations provided
for the investment of public funds. |
The fund for public agencies shall
maintain a separate |
ledger showing the amount of investment for each public
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agency in the fund. "Public funds" and "public agency" as |
used in this Section
shall have the meanings ascribed to |
them in Section 1 of the Public Funds
Investment Act.
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(6) To make reasonable donations for the public welfare |
or for charitable,
scientific, religious or educational |
purposes.
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(7) To borrow or incur an obligation; and to pledge its |
assets:
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(a) to secure its borrowings, its lease of personal |
or real property or
its other nondeposit obligations;
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(b) to enable it to act as agent for the sale of |
obligations of the
United States;
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(c) to secure deposits of public money of the |
United States,
whenever required by the laws of the |
United States, including without
being limited to, |
revenues and funds the deposit of which is subject to
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the control or regulation of the United States or any |
of its officers,
agents, or employees and Postal |
Savings funds;
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(d) to secure deposits of public money of any state |
or of any
political corporation or subdivision thereof
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including, without being limited to, revenues and |
funds the deposit of which
is subject to the control or |
regulation of any state or of any political
corporation |
or subdivisions thereof or of any of their officers, |
agents, or
employees;
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(e) to secure deposits of money whenever required |
by the National
Bankruptcy Act;
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(f) (blank); and
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(g) to secure trust funds commingled with the |
bank's funds, whether
deposited by the bank or an |
affiliate of the bank, pursuant to Section 2-8 of
the |
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Corporate Fiduciary Act.
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(8) To own, possess, and carry as assets all or part of |
the real
estate necessary in or with which to do its |
banking business, either
directly or indirectly through |
the ownership of all or part of the
capital stock, shares |
or interests in any corporation, association,
trust |
engaged in holding any part or parts or all of the bank
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premises, engaged in such business and in conducting a safe
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deposit business in the premises or part of them, or |
engaged in any activity
that the bank is permitted to |
conduct in a subsidiary pursuant to paragraph
(12) of this |
Section 5.
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(9) To own, possess, and carry as assets other real |
estate to
which it may obtain title in the collection of |
its debts or that was
formerly used as a part of the bank |
premises, but title to
any real estate except as herein |
permitted shall not be retained by the
bank, either |
directly or by or through a subsidiary, as permitted by
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subsection (12) of this Section for a total period of more |
than 10
years
after acquiring title, either directly or |
indirectly.
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(10) To do any act, including the acquisition of stock, |
necessary to
obtain insurance of its deposits, or part |
thereof, and any act necessary
to obtain a guaranty, in |
whole or in part, of any of its loans or
investments by the |
United States or any agency thereof, and any act
necessary |
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to sell or otherwise dispose of any of its loans or
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investments to the United States or any agency thereof, and |
to acquire
and hold membership in the Federal Reserve |
System.
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(11) Notwithstanding any other provisions of this Act |
or any
other law, to do any act
and to own, possess, and |
carry as assets property of the character,
including stock, |
that is at the time authorized or permitted to
national |
banks by an Act of Congress, but subject always to the same
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limitations and restrictions as are applicable to national |
banks by the
pertinent federal law and subject to |
applicable provisions of the
Financial Institutions |
Insurance Sales Law.
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(12) To own, possess, and carry as assets stock of one |
or more
corporations that is, or are, engaged in one or |
more of the
following businesses:
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(a) holding title to and administering assets |
acquired
as a result of the collection or liquidating |
of loans, investments, or
discounts; or
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(b) holding title to and administering personal |
property acquired by
the bank, directly or indirectly |
through a subsidiary, for the
purpose of leasing to |
others, provided the lease or leases and the
investment |
of the bank, directly or through a subsidiary, in that
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personal property otherwise comply with Section 35.1 |
of this Act; or
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(c) carrying on or administering any of the |
activities excepting the
receipt of deposits or the |
payment of checks or other orders for the
payment of |
money in which a bank may engage in carrying on its |
general
banking business; provided, however, that |
nothing contained in this
paragraph (c) shall be deemed |
to permit a bank organized under this Act or
subject |
hereto to do, either directly or indirectly through any
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subsidiary, any act, including the making of any loan |
or investment, or to
own, possess, or carry as assets |
any property that if done by or owned,
possessed, or |
carried by the State bank would be in violation of or
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prohibited by any provision of this Act.
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The provisions of this subsection (12) shall not apply |
to and shall not
be deemed to limit the powers of a State |
bank with respect to the
ownership, possession, and |
carrying of stock that a State bank is permitted to
own, |
possess, or carry under this Act.
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Any bank intending to establish a subsidiary under this |
subsection
(12) shall give written notice to the |
Commissioner 60 days prior to the
subsidiary's commencing |
of business or, as the case may be, prior to
acquiring |
stock in a corporation that has already commenced business. |
After
receiving the notice, the Commissioner may waive or |
reduce the balance of the
60 day notice period. The
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Commissioner may specify the form of the notice, may |
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designate the types of subsidiaries not subject to this |
notice requirement, and may promulgate rules
and |
regulations to administer this subsection (12).
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(13) To accept for payment at a future date not |
exceeding one year
from the date of acceptance, drafts |
drawn upon it by its customers; and
to issue, advise, or |
confirm letters of credit authorizing the holders
thereof |
to draw drafts upon it or its correspondents.
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(14) To own and lease personal property acquired by the |
bank at the
request of a prospective lessee and upon the |
agreement of that person to
lease the personal property |
provided that the lease, the agreement
with respect |
thereto, and the amount of the investment of the bank in
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the property comply with Section 35.1 of this Act.
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(15)(a) To establish and maintain, in addition to the |
main
banking premises, branches offering any banking |
services permitted at the main
banking premises of a State |
bank.
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(b) To establish and maintain, after May 31, 1997, |
branches in
another state that may conduct any activity in |
that state that is authorized or
permitted for any bank |
that has a banking charter issued by that state, subject
to |
the same limitations and restrictions that are applicable |
to banks chartered
by that state.
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(16) (Blank).
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(17) To establish and maintain terminals, as |
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authorized by the
Electronic Fund Transfer Act.
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(18) To establish and maintain temporary service |
booths at any
International Fair held in this State which |
is approved by the United
States Department of Commerce, |
for the duration of the international fair
for the sole |
purpose of providing a convenient place for foreign trade
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customers at the fair to exchange their home countries' |
currency into
United States currency or the converse. This |
power shall not be construed
as establishing a new place or |
change of location for the bank providing
the service |
booth.
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(19) To indemnify its officers, directors, employees, |
and
agents, as authorized for corporations under Section |
8.75 of the
Business Corporation Act of 1983.
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(20) To own, possess, and carry as assets stock of, or |
be or become a
member of, any corporation, mutual company, |
association, trust, or other
entity formed exclusively for |
the purpose of providing directors' and
officers' |
liability and bankers' blanket bond insurance or |
reinsurance
to and for the benefit of the stockholders, |
members, or beneficiaries, or their
assets or businesses, |
or their officers, directors, employees, or agents, and
not |
to or for the benefit of any other person or entity or the |
public
generally.
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(21) To make debt or equity investments in corporations |
or projects,
whether for profit or not for profit, designed |
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to promote the development
of the community and its |
welfare, provided that the aggregate investment in
all of |
these corporations and in all of these projects does not |
exceed 10% of
the
unimpaired capital and unimpaired surplus |
of the bank and provided that
this
limitation shall not |
apply to creditworthy loans by the bank to those
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corporations or projects. Upon written application to the |
Commissioner, a
bank may make an investment that would, |
when aggregated with all other
such investments, exceed 10% |
of the unimpaired capital and
unimpaired
surplus of the
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bank. The Commissioner may approve the investment if he is |
of the opinion
and finds that the proposed investment will |
not have a material adverse
effect on the safety and |
soundness of the bank.
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(22) To own, possess, and carry as assets the stock of |
a corporation
engaged in the ownership or operation of a |
travel agency or to operate a
travel agency as a part of |
its business.
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(23) With respect to affiliate facilities:
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(a) to conduct at affiliate facilities for and on |
behalf of another
commonly owned bank, if so
authorized |
by the other bank, all transactions that the other bank |
is
authorized or permitted to perform; and
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(b) to authorize a commonly owned bank to conduct |
for and on behalf of
it any of the transactions it is |
authorized or permitted to perform at one or
more
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affiliate facilities.
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Any bank intending to conduct or to authorize a |
commonly owned bank to
conduct at an affiliate facility any |
of the transactions specified in this
paragraph (23) shall |
give written notice to the Commissioner at least 30
days |
before any such transaction is conducted at the affiliate |
facility.
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(24) To act as the agent for any fire, life, or other |
insurance company
authorized by the State of Illinois, by |
soliciting and selling insurance and
collecting premiums |
on policies issued by such company; and to
receive for |
services so rendered such fees or commissions as may be |
agreed upon
between the bank and the insurance company for |
which it may act as
agent; provided, however, that no such |
bank shall in any case assume or
guarantee the payment of |
any premium on insurance policies issued through its
agency |
by its principal; and provided further, that the bank shall |
not
guarantee the truth of any statement made by an assured |
in filing his
application for insurance.
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(25) Notwithstanding any other provisions of this Act |
or any other law,
to offer any product or service that is |
at the time authorized or permitted to
any insured savings |
association or out-of-state bank by applicable law,
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provided that powers
conferred only by this subsection |
(25):
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(a) shall always be subject to the same limitations |
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and restrictions that
are applicable to the insured |
savings association or out-of-state bank for
the |
product or service by
such applicable law;
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(b) shall be subject to applicable provisions of |
the Financial
Institutions Insurance Sales Law;
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(c) shall not include the right to own or conduct a |
real estate brokerage
business for which a license |
would be required under the laws of this State;
and
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(d) shall not be construed to include the |
establishment or maintenance of
a branch, nor shall |
they be construed to limit the establishment or |
maintenance
of a branch pursuant to subsection (11).
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Not less than 30 days before engaging in any activity |
under the authority
of this subsection, a bank shall |
provide written notice to the Commissioner of
its intent to |
engage in the activity. The notice shall indicate the |
specific
federal or state law, rule, regulation, or |
interpretation the bank intends to
use as authority to |
engage in the activity.
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(26) Nothing in this Section shall be construed to |
require the filing of a notice or application for approval |
with the United States Office of the Comptroller of the |
Currency or a bank supervisor of another state as a |
condition to the right of a State bank to exercise any of |
the powers conferred by this Section in this State. |
(Source: P.A. 98-44, eff. 6-28-13.)
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(205 ILCS 5/14.1) (from Ch. 17, par. 321.1)
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Sec. 14.1. Quasi-Reorganization of Capital Upon a Change in |
Control.
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(a) For the purposes of declaring dividends pursuant to |
Section 14(8)(b) of
this Act upon a change in control, if a |
bank:
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(1) incurs a change in ownership of more than 50% of its |
voting stock; and
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(2) has a deficit in its net profits then on hand at the |
time of such
change in ownership; and
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(3) receives the prior written approval of the Secretary |
Commissioner; such bank
may restate its asset and liability |
accounts to fair value for the purpose
of reorganizing the |
capital accounts of the bank so that net profits then
on hand |
are restated to zero; provided that in no event may total |
capital
be increased as a result of a capital reorganization |
made pursuant to this Section.
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(b) A bank may reorganize its capital accounts pursuant to |
item (3) of subsection (a) of this Section without a change in |
control to the same extent and in the same manner authorized |
for national banks, subject to the same limitations and |
restrictions as are applicable to national banks, upon |
receiving the prior written approval of the Secretary. |
(Source: P.A. 87-841.)
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Section 99. Effective date. This Act takes effect upon |
