103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3726
 
Introduced 2/9/2024, by Sen. Mary Edly-Allen
 
SYNOPSIS AS INTRODUCED:

See Index
 Amends the Illinois Banking Act. Makes changes to the membership of the State Banking Board of Illinois. Provides that a bank may borrow or incur an obligation and pledge assets to secure deposits. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in financial futures or options transactions. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a person who makes, or causes to be made, a false statement or false entry with intent to deceive any person or persons authorized to examine into the affairs of the bank or the subsidiary or holding company of that bank, the branch of an out-of-state bank with intent to deceive the Commissioner of Banks and Real Estate or his administrative officers in the performance of their duties under the Act shall be subject to civil penalties imposed by the Commissioner (rather than be guilty of a Class 3 felony). Provides that the Board may authorize the transfer of funds from the Bank and Trust Company Fund. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately.


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A BILL FOR
 
SB3726LRB103 38817 RTM 68954 b


1 AN ACT concerning regulation.

2 Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4 Section 5. The Illinois Banking Act is amended by changing 
5Sections 2, 5, 13, 14, 15, 16, 16.5, 20, 32.1, 40, 48, 48.1, 
648.2, 49, 78, and 80 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 
17premises or branch of another commonly owned bank. The main 
18banking premises or any branch of a bank may be an "affiliate 
19facility" with respect to one or more other commonly owned 
20banks.
21 "Appropriate federal banking agency" means the Federal 
22Deposit Insurance Corporation, the Federal Reserve Bank of 
23Chicago, or the Federal Reserve Bank of St. Louis, as 
 
 
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1determined by federal law.
2 "Bank" means any person doing a banking business whether 
3subject to the laws of this or any other jurisdiction.
4 A "banking house", "branch", "branch bank" or "branch 
5office" shall mean any place of business of a bank at which 
6deposits are received, checks paid, or loans made, but shall 
7not include any place at which only records thereof are made, 
8posted, or kept. A place of business at which deposits are 
9received, checks paid, or loans made shall not be deemed to be 
10a branch, branch bank, or branch office if the place of 
11business is adjacent to and connected with the main banking 
12premises, or if it is separated from the main banking premises 
13by not more than an alley; provided always that (i) if the 
14place of business is separated by an alley from the main 
15banking premises there is a connection between the two by 
16public or private way or by subterranean or overhead passage, 
17and (ii) if the place of business is in a building not wholly 
18occupied by the bank, the place of business shall not be within 
19any office or room in which any other business or service of 
20any kind or nature other than the business of the bank is 
21conducted or carried on. A place of business at which deposits 
22are received, checks paid, or loans made shall not be deemed to 
23be a branch, branch bank, or branch office (i) of any bank if 
24the place is a terminal established and maintained in 
25accordance with paragraph (17) of Section 5 of this Act, or 
26(ii) of a commonly owned bank by virtue of transactions 
 
 
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1conducted at that place on behalf of the other commonly owned 
2bank under paragraph (23) of Section 5 of this Act if the place 
3is an affiliate facility with respect to the other bank.
4 "Branch of an out-of-state bank" means a branch 
5established or maintained in Illinois by an out-of-state bank 
6as a result of a merger between an Illinois bank and the 
7out-of-state bank that occurs on or after May 31, 1997, or any 
8branch established by the out-of-state bank following the 
9merger.
10 "Bylaws" means the bylaws of a bank that are adopted by the 
11bank's board of directors or shareholders for the regulation 
12and management of the bank's affairs. If the bank operates as a 
13limited liability company, however, "bylaws" means the 
14operating agreement of the bank.
15 "Call report fee" means the fee to be paid to the 
16Commissioner by each State bank pursuant to paragraph (a) of 
17subsection (3) of Section 48 of this Act.
18 "Capital" includes the aggregate of outstanding capital 
19stock and preferred stock.
20 "Cash flow reserve account" means the account within the 
21books and records of the Commissioner of Banks and Real Estate 
22used to record funds designated to maintain a reasonable Bank 
23and Trust Company Fund operating balance to meet agency 
24obligations on a timely basis.
25 "Charter" includes the original charter and all amendments 
26thereto and articles of merger or consolidation.
 
 
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1 "Commissioner" means the Commissioner of Banks and Real 
2Estate, except that beginning on April 6, 2009 (the effective 
3date of Public Act 95-1047), all references in this Act to the 
4Commissioner of Banks and Real Estate are deemed, in 
5appropriate contexts, to be references to the Secretary of 
6Financial and Professional Regulation.
7 "Commonly owned banks" means 2 or more banks that each 
8qualify as a bank subsidiary of the same bank holding company 
9pursuant to Section 18 of the Federal Deposit Insurance Act; 
10"commonly owned bank" refers to one of a group of commonly 
11owned banks but only with respect to one or more of the other 
12banks in the same group.
13 "Community" means a city, village, or incorporated town 
14and also includes the area served by the banking offices of a 
15bank, but need not be limited or expanded to conform to the 
16geographic boundaries of units of local government.
17 "Company" means a corporation, limited liability company, 
18partnership, business trust, association, or similar 
19organization and, unless specifically excluded, includes a 
20"State bank" and a "bank".
21 "Consolidating bank" means a party to a consolidation.
22 "Consolidation" takes place when 2 or more banks, or a 
23trust company and a bank, are extinguished and by the same 
24process a new bank is created, taking over the assets and 
25assuming the liabilities of the banks or trust company passing 
26out of existence.
 
 
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1 "Continuing bank" means a merging bank, the charter of 
2which becomes the charter of the resulting bank.
3 "Converting bank" means a State bank converting to become 
4a national bank, or a national bank converting to become a 
5State bank.
6 "Converting trust company" means a trust company 
7converting to become a State bank.
8 "Court" means a court of competent jurisdiction.
9 "Director" means a member of the board of directors of a 
10bank. In the case of a manager-managed limited liability 
11company, however, "director" means a manager of the bank and, 
12in the case of a member-managed limited liability company, 
13"director" means a member of the bank. The term "director" 
14does not include an advisory director, honorary director, 
15director emeritus, or similar person, unless the person is 
16otherwise performing functions similar to those of a member of 
17the board of directors.
18 "Director of Banking" means the Director of the Division 
19of Banking of the Department of Financial and Professional 
20Regulation. 
21 "Eligible depository institution" means an insured savings 
22association that is in default, an insured savings association 
23that is in danger of default, a State or national bank that is 
24in default or a State or national bank that is in danger of 
25default, as those terms are defined in this Section, or a new 
26bank as that term defined in Section 11(m) of the Federal 
 
 
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1Deposit Insurance Act or a bridge bank as that term is defined 
2in Section 11(n) of the Federal Deposit Insurance Act or a new 
3federal savings association authorized under Section 
411(d)(2)(f) of the Federal Deposit Insurance Act.
5 "Fiduciary" means trustee, agent, executor, administrator, 
6committee, guardian for a minor or for a person under legal 
7disability, receiver, trustee in bankruptcy, assignee for 
8creditors, or any holder of similar position of trust.
9 "Financial institution" means a bank, savings bank, 
10savings and loan association, credit union, or any licensee 
11under the Consumer Installment Loan Act or the Sales Finance 
12Agency Act and, for purposes of Section 48.3, any proprietary 
13network, funds transfer corporation, or other entity providing 
14electronic funds transfer services, or any corporate 
15fiduciary, its subsidiaries, affiliates, parent company, or 
16contractual service provider that is examined by the 
17Commissioner. For purposes of Section 5c and subsection (b) of 
18Section 13 of this Act, "financial institution" includes any 
19proprietary network, funds transfer corporation, or other 
20entity providing electronic funds transfer services, and any 
21corporate fiduciary. 
22 "Foundation" means the Illinois Bank Examiners' Education 
23Foundation.
24 "General obligation" means a bond, note, debenture, 
25security, or other instrument evidencing an obligation of the 
26government entity that is the issuer that is supported by the 
 
 
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1full available resources of the issuer, the principal and 
2interest of which is payable in whole or in part by taxation.
3 "Guarantee" means an undertaking or promise to answer for 
4payment of another's debt or performance of another's duty, 
5liability, or obligation whether "payment guaranteed" or 
6"collection guaranteed".
7 "In danger of default" means a State or national bank, a 
8federally chartered insured savings association or an Illinois 
9state chartered insured savings association with respect to 
10which the Commissioner or the appropriate federal banking 
11agency has advised the Federal Deposit Insurance Corporation 
12that: 
13  (1) in the opinion of the Commissioner or the 
14 appropriate federal banking agency, 
15   (A) the State or national bank or insured savings 
16 association is not likely to be able to meet the 
17 demands of the State or national bank's or savings 
18 association's obligations in the normal course of 
19 business; and 
20   (B) there is no reasonable prospect that the State 
21 or national bank or insured savings association will 
22 be able to meet those demands or pay those obligations 
23 without federal assistance; or 
24  (2) in the opinion of the Commissioner or the 
25 appropriate federal banking agency, 
26   (A) the State or national bank or insured savings 
 
 
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1 association has incurred or is likely to incur losses 
2 that will deplete all or substantially all of its 
3 capital; and 
4   (B) there is no reasonable prospect that the 
5 capital of the State or national bank or insured 
6 savings association will be replenished without 
7 federal assistance.
8 "In default" means, with respect to a State or national 
9bank or an insured savings association, any adjudication or 
10other official determination by any court of competent 
11jurisdiction, the Commissioner, the appropriate federal 
12banking agency, or other public authority pursuant to which a 
13conservator, receiver, or other legal custodian is appointed 
14for a State or national bank or an insured savings 
15association.
16 "Insured savings association" means any federal savings 
17association chartered under Section 5 of the federal Home 
18Owners' Loan Act and any State savings association chartered 
19under the Illinois Savings and Loan Act of 1985 or a 
20predecessor Illinois statute, the deposits of which are 
21insured by the Federal Deposit Insurance Corporation. The term 
22also includes a savings bank organized or operating under the 
23Savings Bank Act.
24 "Insured savings association in recovery" means an insured 
25savings association that is not an eligible depository 
26institution and that does not meet the minimum capital 
 
 
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1requirements applicable with respect to the insured savings 
2association.
3 "Issuer" means for purposes of Section 33 every person who 
4shall have issued or proposed to issue any security; except 
5that (1) with respect to certificates of deposit, voting trust 
6certificates, collateral-trust certificates, and certificates 
7of interest or shares in an unincorporated investment trust 
8not having a board of directors (or persons performing similar 
9functions), "issuer" means the person or persons performing 
10the acts and assuming the duties of depositor or manager 
11pursuant to the provisions of the trust, agreement, or 
12instrument under which the securities are issued; (2) with 
13respect to trusts other than those specified in clause (1) 
14above, where the trustee is a corporation authorized to accept 
15and execute trusts, "issuer" means the entrusters, depositors, 
16or creators of the trust and any manager or committee charged 
17with the general direction of the affairs of the trust 
18pursuant to the provisions of the agreement or instrument 
19creating the trust; and (3) with respect to equipment trust 
20certificates or like securities, "issuer" means the person to 
21whom the equipment or property is or is to be leased or 
22conditionally sold.
23 "Letter of credit" and "customer" shall have the same 
24meaning as that term is given meanings ascribed to those terms 
25in Section 5-102 of the Uniform Commercial Code.
26 "Main banking premises" means the location that is 
 
 
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1designated in a bank's charter as its main office.
2 "Maker or obligor" means for purposes of Section 33 the 
3issuer of a security, the promisor in a debenture or other debt 
4security, or the mortgagor or grantor of a trust deed or 
5similar conveyance of a security interest in real or personal 
6property.
7 "Merged bank" means a merging bank that is not the 
8continuing, resulting, or surviving bank in a consolidation or 
9merger.
10 "Merger" includes consolidation.
11 "Merging bank" means a party to a bank merger.
12 "Merging trust company" means a trust company party to a 
13merger with a State bank.
14 "Mid-tier bank holding company" means a corporation that 
15(a) owns 100% of the issued and outstanding shares of each 
16class of stock of a State bank, (b) has no other subsidiaries, 
17and (c) 100% of the issued and outstanding shares of the 
18corporation are owned by a parent bank holding company.
19 "Municipality" means any municipality, political 
20subdivision, school district, taxing district, or agency.
21 "National bank" means a national banking association 
22located in this State and after May 31, 1997, means a national 
23banking association without regard to its location.
24 "Out-of-state bank" means a bank chartered under the laws 
25of a state other than Illinois, a territory of the United 
26States, or the District of Columbia.
 
 
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1 "Parent bank holding company" means a corporation that is 
2a bank holding company as that term is defined in the Illinois 
3Bank Holding Company Act of 1957 and owns 100% of the issued 
4and outstanding shares of a mid-tier bank holding company.
5 "Person" means an individual, corporation, limited 
6liability company, partnership, joint venture, trust, estate, 
7or unincorporated association.
8 "Public agency" means the State of Illinois, the various 
9counties, townships, cities, towns, villages, school 
10districts, educational service regions, special road 
11districts, public water supply districts, fire protection 
12districts, drainage districts, levee districts, sewer 
13districts, housing authorities, the Illinois Bank Examiners' 
14Education Foundation, the Chicago Park District, and all other 
15political corporations or subdivisions of the State of 
16Illinois, whether now or hereafter created, whether herein 
17specifically mentioned or not, and shall also include any 
18other state or any political corporation or subdivision of 
19another state.
20 "Public funds" or "public money" means current operating 
21funds, special funds, interest and sinking funds, and funds of 
22any kind or character belonging to, in the custody of, or 
23subject to the control or regulation of the United States or a 
24public agency. "Public funds" or "public money" shall include 
25funds held by any of the officers, agents, or employees of the 
26United States or of a public agency in the course of their 
 
 
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1official duties and, with respect to public money of the 
2United States, shall include Postal Savings funds.
3 "Published" means, unless the context requires otherwise, 
4the publishing of the notice or instrument referred to in some 
5newspaper of general circulation in the community in which the 
6bank is located at least once each week for 3 successive weeks. 
7Publishing shall be accomplished by, and at the expense of, 
8the bank required to publish. Where publishing is required, 
9the bank shall submit to the Commissioner that evidence of the 
10publication as the Commissioner shall deem appropriate.
11 "Qualified financial contract" means any security 
12contract, commodity contract, forward contract, including spot 
13and forward foreign exchange contracts, repurchase agreement, 
14swap agreement, and any similar agreement, any option to enter 
15into any such agreement, including any combination of the 
16foregoing, and any master agreement for such agreements. A 
17master agreement, together with all supplements thereto, shall 
18be treated as one qualified financial contract. The contract, 
19option, agreement, or combination of contracts, options, or 
20agreements shall be reflected upon the books, accounts, or 
21records of the bank, or a party to the contract shall provide 
22documentary evidence of such agreement.
23 "Recorded" means the filing or recording of the notice or 
24instrument referred to in the office of the Recorder of the 
25county wherein the bank is located.
26 "Resulting bank" means the bank resulting from a merger or 
 
 
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1conversion.
2 "Secretary" means the Secretary of Financial and 
3Professional Regulation, or a person authorized by the 
4Secretary or by this Act to act in the Secretary's stead. 
5 "Securities" means stocks, bonds, debentures, notes, or 
6other similar obligations.
7 "Stand-by letter of credit" means a letter of credit under 
8which drafts are payable upon the condition the customer has 
9defaulted in performance of a duty, liability, or obligation.
10 "State bank" means any banking corporation that has a 
11banking charter issued by the Commissioner under this Act.
12 "State Banking Board" means the State Banking Board of 
13Illinois.
14 "Subsidiary" with respect to a specified company means a 
15company that is controlled by the specified company. For 
16purposes of paragraphs (8) and (12) of Section 5 of this Act, 
17"control" means the exercise of operational or managerial 
18control of a corporation by the bank, either alone or together 
19with other affiliates of the bank.
20 "Surplus" means the aggregate of (i) amounts paid in 
21excess of the par value of capital stock and preferred stock; 
22(ii) amounts contributed other than for capital stock and 
23preferred stock and allocated to the surplus account; and 
24(iii) amounts transferred from undivided profits.
25 "Tier 1 Capital" and "Tier 2 Capital" have the meanings 
26assigned to those terms in regulations promulgated for the 
 
 
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1appropriate federal banking agency of a state bank, as those 
2regulations are now or hereafter amended.
3 "Trust company" means a limited liability company or 
4corporation incorporated in this State for the purpose of 
5accepting and executing trusts.
6 "Undivided profits" means undistributed earnings less 
7discretionary transfers to surplus.
8 "Unimpaired capital and unimpaired surplus", for the 
9purposes of paragraph (21) of Section 5 and Sections 32, 33, 
1034, 35.1, 35.2, and 47 of this Act means the sum of the state 
11bank's Tier 1 Capital and Tier 2 Capital plus such other 
12shareholder equity as may be included by regulation of the 
13Commissioner. Unimpaired capital and unimpaired surplus shall 
14be calculated on the basis of the date of the last quarterly 
15call report filed with the Commissioner preceding the date of 
16the transaction for which the calculation is made, provided 
17that: (i) when a material event occurs after the date of the 
18last quarterly call report filed with the Commissioner that 
19reduces or increases the bank's unimpaired capital and 
20unimpaired surplus by 10% or more, then the unimpaired capital 
21and unimpaired surplus shall be calculated from the date of 
22the material event for a transaction conducted after the date 
23of the material event; and (ii) if the Commissioner determines 
24for safety and soundness reasons that a state bank should 
25calculate unimpaired capital and unimpaired surplus more 
26frequently than provided by this paragraph, the Commissioner 
 
 
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1may by written notice direct the bank to calculate unimpaired 
2capital and unimpaired surplus at a more frequent interval. In 
3the case of a state bank newly chartered under Section 13 or a 
4state bank resulting from a merger, consolidation, or 
5conversion under Sections 21 through 26 for which no preceding 
6quarterly call report has been filed with the Commissioner, 
7unimpaired capital and unimpaired surplus shall be calculated 
8for the first calendar quarter on the basis of the effective 
9date of the charter, merger, consolidation, or conversion.
10(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09; 
1196-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)

12 (205 ILCS 5/5) (from Ch. 17, par. 311)
13 Sec. 5. General corporate powers. A bank organized under 
14this Act or subject hereto shall be a body corporate and 
15politic and shall, without specific mention thereof in the 
16charter, have all the powers conferred by this Act and the 
17following additional general corporate powers:
18  (1) To sue and be sued, complain, and defend in its 
19 corporate name.
20  (2) To have a corporate seal, which may be altered at 
21 pleasure, and to use the same by causing it or a facsimile 
22 thereof to be impressed or affixed or in any manner 
23 reproduced, provided that the affixing of a corporate seal 
24 to an instrument shall not give the instrument additional 
25 force or effect, or change the construction thereof, and 
 
 
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1 the use of a corporate seal is not mandatory.
2  (3) To make, alter, amend, and repeal bylaws, not 
3 inconsistent with its charter or with law, for the 
4 administration of the affairs of the bank. If this Act 
5 does not provide specific guidance in matters of corporate 
6 governance, the provisions of the Business Corporation Act 
7 of 1983 may be used if so provided in the bylaws, and if 
8 the bank is a limited liability company, the provisions of 
9 the Limited Liability Company Act shall be used.
10  (4) To elect or appoint and remove officers and agents 
11 of the bank and define their duties and fix their 
12 compensation.
13  (5) To adopt and operate reasonable bonus plans, 
14 profit-sharing plans, stock-bonus plans, stock-option 
15 plans, pension plans, and similar incentive plans for its 
16 directors, officers and employees.
17  (5.1) To manage, operate, and administer a fund for 
18 the investment of funds by a public agency or agencies, 
19 including any unit of local government or school district, 
20 or any person. The fund for a public agency shall invest in 
21 the same type of investments and be subject to the same 
22 limitations provided for the investment of public funds. 
23 The fund for public agencies shall maintain a separate 
24 ledger showing the amount of investment for each public 
25 agency in the fund. "Public funds" and "public agency" as 
26 used in this Section shall have the meanings ascribed to 
 
 
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1 them in Section 1 of the Public Funds Investment Act.
2  (6) To make reasonable donations for the public 
3 welfare or for charitable, scientific, religious or 
4 educational purposes.
5  (7) To borrow or incur an obligation; and to pledge 
6 its assets:
7   (a) to secure its borrowings, its lease of 
8 personal or real property or its other nondeposit 
9 obligations;
10   (b) to enable it to act as agent for the sale of 
11 obligations of the United States;
12   (c) to secure deposits of public money of the 
13 United States, whenever required by the laws of the 
14 United States, including, without being limited to, 
15 revenues and funds the deposit of which is subject to 
16 the control or regulation of the United States or any 
17 of its officers, agents, or employees and Postal 
18 Savings funds;
19   (d) to secure deposits of public money of any 
20 state or of any political corporation or subdivision 
21 thereof, including, without being limited to, revenues 
22 and funds the deposit of which is subject to the 
23 control or regulation of any state or of any political 
24 corporation or subdivisions thereof or of any of their 
25 officers, agents, or employees;
26   (e) to secure deposits of money whenever required 
 
 
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1 by the National Bankruptcy Act;
2   (f) (blank); and
3   (g) to secure trust funds commingled with the 
4 bank's funds, whether deposited by the bank or an 
5 affiliate of the bank, pursuant to Section 2-8 of the 
6 Corporate Fiduciary Act; and .
7   (h) to secure deposits. 
8  (8) To own, possess, and carry as assets all or part of 
9 the real estate necessary in or with which to do its 
10 banking business, either directly or indirectly through 
11 the ownership of all or part of the capital stock, shares 
12 or interests in any corporation, association, trust 
13 engaged in holding any part or parts or all of the bank 
14 premises, engaged in such business and in conducting a 
15 safe deposit business in the premises or part of them, or 
16 engaged in any activity that the bank is permitted to 
17 conduct in a subsidiary pursuant to paragraph (12) of this 
18 Section 5.
19  (9) To own, possess, and carry as assets other real 
20 estate to which it may obtain title in the collection of 
21 its debts or that was formerly used as a part of the bank 
22 premises, but title to any real estate except as herein 
23 permitted may only shall not be retained by the bank, 
24 either directly or by or through a subsidiary, as 
25 permitted by subsection (12) of this Section for a total 
26 period of more than 10 years after acquiring title or for 
 
 
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1 the period set by federal law for national banks, 
2 whichever is greater, either directly or indirectly.
3  (10) To do any act, including the acquisition of 
4 stock, necessary to obtain insurance of its deposits, or 
5 part thereof, and any act necessary to obtain a guaranty, 
6 in whole or in part, of any of its loans or investments by 
7 the United States or any agency thereof, and any act 
8 necessary to sell or otherwise dispose of any of its loans 
9 or investments to the United States or any agency thereof, 
10 and to acquire and hold membership in the Federal Reserve 
11 System.
12  (11) Notwithstanding any other provisions of this Act 
13 or any other law, to do any act and to own, possess, and 
14 carry as assets property of the character, including 
15 stock, that is at the time authorized or permitted to 
16 national banks by an Act of Congress, but subject always 
17 to the same limitations and restrictions as are applicable 
18 to national banks by the pertinent federal law and subject 
19 to applicable provisions of the Financial Institutions 
20 Insurance Sales Law.
21  (12) To own, possess, and carry as assets stock of one 
22 or more corporations that is, or are, engaged in one or 
23 more of the following businesses:
24   (a) holding title to and administering assets 
25 acquired as a result of the collection or liquidating 
26 of loans, investments, or discounts; or
 
 
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1   (b) holding title to and administering personal 
2 property acquired by the bank, directly or indirectly 
3 through a subsidiary, for the purpose of leasing to 
4 others, provided the lease or leases and the 
5 investment of the bank, directly or through a 
6 subsidiary, in that personal property otherwise comply 
7 with Section 35.1 of this Act; or
8   (c) carrying on or administering any of the 
9 activities excepting the receipt of deposits or the 
10 payment of checks or other orders for the payment of 
11 money in which a bank may engage in carrying on its 
12 general banking business; provided, however, that 
13 nothing contained in this paragraph (c) shall be 
14 deemed to permit a bank organized under this Act or 
15 subject hereto to do, either directly or indirectly 
16 through any subsidiary, any act, including the making 
17 of any loan or investment, or to own, possess, or carry 
18 as assets any property that if done by or owned, 
19 possessed, or carried by the State bank would be in 
20 violation of or prohibited by any provision of this 
21 Act.
22  The provisions of this subsection (12) shall not apply 
23 to and shall not be deemed to limit the powers of a State 
24 bank with respect to the ownership, possession, and 
25 carrying of stock that a State bank is permitted to own, 
26 possess, or carry under this Act.
 
 
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1  Any bank intending to establish a subsidiary under 
2 this subsection (12) shall give written notice to the 
3 Commissioner 60 days prior to the subsidiary's commencing 
4 of business or, as the case may be, prior to acquiring 
5 stock in a corporation that has already commenced 
6 business. After receiving the notice, the Commissioner may 
7 waive or reduce the balance of the 60-day notice period. 
8 The Commissioner may specify the form of the notice, may 
9 designate the types of subsidiaries not subject to this 
10 notice requirement, and may promulgate rules and 
11 regulations to administer this subsection (12).
12  (13) To accept for payment at a future date not 
13 exceeding one year from the date of acceptance, drafts 
14 drawn upon it by its customers; and to issue, advise, or 
15 confirm letters of credit authorizing the holders thereof 
16 to draw drafts upon it or its correspondents.
17  (14) To own and lease personal property acquired by 
18 the bank at the request of a prospective lessee and upon 
19 the agreement of that person to lease the personal 
20 property provided that the lease, the agreement with 
21 respect thereto, and the amount of the investment of the 
22 bank in the property comply with Section 35.1 of this Act.
23  (15)(a) To establish and maintain, in addition to the 
24 main banking premises, branches offering any banking 
25 services permitted at the main banking premises of a State 
26 bank.
 
 
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1  (b) To establish and maintain, after May 31, 1997, 
2 branches in another state that may conduct any activity in 
3 that state that is authorized or permitted for any bank 
4 that has a banking charter issued by that state, subject 
5 to the same limitations and restrictions that are 
6 applicable to banks chartered by that state.
7  (16) (Blank).
8  (17) To establish and maintain terminals, as 
9 authorized by the Electronic Fund Transfer Act.
10  (18) To establish and maintain temporary service 
11 booths at any International Fair held in this State which 
12 is approved by the United States Department of Commerce, 
13 for the duration of the international fair for the sole 
14 purpose of providing a convenient place for foreign trade 
15 customers at the fair to exchange their home countries' 
16 currency into United States currency or the converse. This 
17 power shall not be construed as establishing a new place 
18 or change of location for the bank providing the service 
19 booth.
20  (19) To indemnify its officers, directors, employees, 
21 and agents, as authorized for corporations under Section 
22 8.75 of the Business Corporation Act of 1983.
23  (20) To own, possess, and carry as assets stock of, or 
24 be or become a member of, any corporation, mutual company, 
25 association, trust, or other entity formed exclusively for 
26 the purpose of providing directors' and officers' 
 
 
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1 liability and bankers' blanket bond insurance or 
2 reinsurance to and for the benefit of the stockholders, 
3 members, or beneficiaries, or their assets or businesses, 
4 or their officers, directors, employees, or agents, and 
5 not to or for the benefit of any other person or entity or 
6 the public generally.
7  (21) To make debt or equity investments in 
8 corporations or projects, whether for profit or not for 
9 profit, designed to promote the development of the 
10 community and its welfare, provided that the aggregate 
11 investment in all of these corporations and in all of 
12 these projects does not exceed 10% of the unimpaired 
13 capital and unimpaired surplus of the bank and provided 
14 that this limitation shall not apply to creditworthy loans 
15 by the bank to those corporations or projects. Upon 
16 written application to the Commissioner, a bank may make 
17 an investment that would, when aggregated with all other 
18 such investments, exceed 10% of the unimpaired capital and 
19 unimpaired surplus of the bank. The Commissioner may 
20 approve the investment if he is of the opinion and finds 
21 that the proposed investment will not have a material 
22 adverse effect on the safety and soundness of the bank.
23  (22) To own, possess, and carry as assets the stock of 
24 a corporation engaged in the ownership or operation of a 
25 travel agency or to operate a travel agency as a part of 
26 its business.
 
 
SB3726- 24 -LRB103 38817 RTM 68954 b


1  (23) With respect to affiliate facilities:
2   (a) to conduct at affiliate facilities for and on 
3 behalf of another commonly owned bank, if so 
4 authorized by the other bank, all transactions that 
5 the other bank is authorized or permitted to perform; 
6 and
7   (b) to authorize a commonly owned bank to conduct 
8 for and on behalf of it any of the transactions it is 
9 authorized or permitted to perform at one or more 
10 affiliate facilities.
11  Any bank intending to conduct or to authorize a 
12 commonly owned bank to conduct at an affiliate facility 
13 any of the transactions specified in this paragraph (23) 
14 shall give written notice to the Commissioner at least 30 
15 days before any such transaction is conducted at the 
16 affiliate facility.
17  (24) To act as the agent for any fire, life, or other 
18 insurance company authorized by the State of Illinois, by 
19 soliciting and selling insurance and collecting premiums 
20 on policies issued by such company; and to receive for 
21 services so rendered such fees or commissions as may be 
22 agreed upon between the bank and the insurance company for 
23 which it may act as agent; provided, however, that no such 
24 bank shall in any case assume or guarantee the payment of 
25 any premium on insurance policies issued through its 
26 agency by its principal; and provided further, that the 
 
 
SB3726- 25 -LRB103 38817 RTM 68954 b


1 bank shall not guarantee the truth of any statement made 
2 by an assured in filing his application for insurance.
3  (25) Notwithstanding any other provisions of this Act 
4 or any other law, to offer any product or service that is 
5 at the time authorized or permitted to any insured savings 
6 association or out-of-state bank by applicable law, 
7 provided that powers conferred only by this subsection 
8 (25):
9   (a) shall always be subject to the same 
10 limitations and restrictions that are applicable to 
11 the insured savings association or out-of-state bank 
12 for the product or service by such applicable law;
13   (b) shall be subject to applicable provisions of 
14 the Financial Institutions Insurance Sales Law;
15   (c) shall not include the right to own or conduct a 
16 real estate brokerage business for which a license 
17 would be required under the laws of this State; and
18   (d) shall not be construed to include the 
19 establishment or maintenance of a branch, nor shall 
20 they be construed to limit the establishment or 
21 maintenance of a branch pursuant to subsection (11).
22  Before Not less than 30 days before engaging in any 
23 activity under the authority of this subsection, a bank 
24 shall provide written notice to the Commissioner of its 
25 intent to engage in the activity. The notice shall 
26 indicate the specific federal or state law, rule, 
 
 
SB3726- 26 -LRB103 38817 RTM 68954 b


1 regulation, or interpretation the bank intends to use as 
2 authority to engage in the activity.
3  (26) To provide data processing services to a person 
4 for profit.
5  (27) To invest in financial futures or options 
6 transactions subject to the regulations of the Secretary. 
7 Nothing in this Section shall be construed to require the 
8filing of a notice or application for approval with the United 
9States Office of the Comptroller of the Currency or a bank 
10supervisor of another state as a condition to the right of a 
11State bank to exercise any of the powers conferred by this 
12Section in this State. 
13(Source: P.A. 99-362, eff. 8-13-15; 100-863, eff. 8-14-18.)

14 (205 ILCS 5/13) (from Ch. 17, par. 320)
15 Sec. 13. Issuance of charter. 
16 (a) When the directors have organized as provided in 
17Section 12 of this Act, and the capital stock and the preferred 
18stock, if any, together with a surplus of not less than 50% of 
19the capital, has been all fully paid in and a record of the 
20same filed with the Commissioner, the Commissioner or some 
21competent person of the Commissioner's appointment shall make 
22a thorough examination into the affairs of the proposed bank, 
23and if satisfied (i) that all the requirements of this Act have 
24been complied with, (ii) that no intervening circumstance has 
25occurred to change the Commissioner's findings made pursuant 
 
 
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1to Section 10 of this Act, and (iii) that the prior involvement 
2by any stockholder who will own a sufficient amount of stock to 
3have control, as defined in Section 18 of this Act, of the 
4proposed bank with any other financial institution, whether as 
5stockholder, director, officer, or customer, was conducted in 
6a safe and sound manner, upon payment into the Commissioner's 
7office of the reasonable expenses of the examination, as 
8determined by the Commissioner, the Commissioner shall issue a 
9charter authorizing the bank to commence business as 
10authorized in this Act. All charters issued by the 
11Commissioner or any predecessor agency which chartered State 
12banks, including any charter outstanding as of September 1, 
131989, shall be perpetual. For the 2 years after the 
14Commissioner has issued a charter to a bank, the bank shall 
15request and obtain from the Commissioner prior written 
16approval before it may change senior management personnel or 
17directors.
18 The original charter, duly certified by the Commissioner, 
19or a certified copy shall be evidence in all courts and places 
20of the existence and authority of the bank to do business. Upon 
21the issuance of the charter by the Commissioner, the bank 
22shall be deemed fully organized and may proceed to do 
23business. The Commissioner may, in the Commissioner's 
24discretion, withhold the issuing of the charter when the 
25Commissioner has reason to believe that the bank is organized 
26for any purpose other than that contemplated by this Act. The 
 
 
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1Commissioner shall revoke the charter and order liquidation in 
2the event that the bank does not commence a general banking 
3business within one year from the date of the issuance of the 
4charter, unless a request has been submitted, in writing, to 
5the Commissioner for an extension and the request has been 
6approved. After commencing a general banking business, a bank 
7may change its name by filing written notice with the 
8Commissioner at least 30 days prior to the effective date of 
9such change. A bank chartered under this Act may change its 
10main banking premises by filing written application with the 
11Commissioner, on forms prescribed by the Commissioner, 
12provided (i) the change shall not be a removal to a new 
13location without complying with the capital requirements of 
14Section 7 and of subsection (1) of Section 10 of this Act; (ii) 
15the Commissioner approves the relocation or change; and (iii) 
16the bank complies with any applicable federal law or 
17regulation. The application shall be deemed to be approved if 
18the Commissioner has not acted on the application within 30 
19days after receipt of the application, unless within the 
2030-day time frame the Commissioner informs the bank that an 
21extension of time is necessary prior to the Commissioner's 
22action on the application. 
23 (b)(1) The Commissioner may also issue a charter to a bank 
24that is owned exclusively by other depository institutions or 
25depository institution holding companies and is organized to 
26engage exclusively in providing services to or for other 
 
 
SB3726- 29 -LRB103 38817 RTM 68954 b


1financial institutions, their holding companies, and the 
2officers, directors, and employees of such institutions and 
3companies, and in providing services at the request of other 
4financial institutions or their holding companies (also 
5referred to as a "bankers' bank"). The bank may also provide 
6products and services to its officers, directors, and 
7employees.  
8 (2) A bank chartered pursuant to paragraph (1) shall, 
9except as otherwise specifically determined or limited by the 
10Commissioner in an order or pursuant to a rule, be vested with 
11the same rights and privileges and subject to the same duties, 
12restrictions, penalties, and liabilities now or hereafter 
13imposed under this Act.
14 (c) A bank chartered under this Act shall, at all times 
15while it accepts or retains deposits, maintain with the 
16Federal Deposit Insurance Corporation, or such other 
17instrumentality of or corporation chartered by the United 
18States, deposit insurance as authorized under federal law. 
19 (d)(i) A bank that has a banking charter issued by the 
20Commissioner under this Act may, pursuant to a written 
21purchase and assumption agreement, transfer substantially all 
22of its assets to another State bank or national bank in 
23consideration, in whole or in part, for the transferee banks' 
24assumption of any part or all of its liabilities. Such a 
25transfer shall in no way be deemed to impair the charter of the 
26transferor bank or cause the transferor bank to forfeit any of 
 
 
SB3726- 30 -LRB103 38817 RTM 68954 b


1its rights, powers, interests, franchises, or privileges as a 
2State bank, nor shall any voluntary reduction in the 
3transferor bank's activities resulting from the transfer have 
4any such effect; provided, however, that a State bank that 
5transfers substantially all of its assets pursuant to this 
6subsection (d) and following the transfer does not accept 
7deposits and make loans, shall not have any rights, powers, 
8interests, franchises, or privileges under subsection (15) of 
9Section 5 of this Act until the bank has resumed accepting 
10deposits and making loans. 
11 (ii) The fact that a State bank does not resume accepting 
12deposits and making loans for a period of 24 months commencing 
13on September 11, 1989 or on a date of the transfer of 
14substantially all of a State bank's assets, whichever is 
15later, or such longer period as the Commissioner may allow in 
16writing, may be the basis for a finding by the Commissioner 
17under Section 51 of this Act that the bank is unable to 
18continue operations. 
19 (iii) The authority provided by subdivision (i) of this 
20subsection (d) shall terminate on May 31, 1997, and no bank 
21that has transferred substantially all of its assets pursuant 
22to this subsection (d) shall continue in existence after May 
2331, 1997.
24(Source: P.A. 95-924, eff. 8-26-08; 96-1365, eff. 7-28-10.)

25 (205 ILCS 5/14) (from Ch. 17, par. 321)
 
 
SB3726- 31 -LRB103 38817 RTM 68954 b


1 Sec. 14. Stock. Unless otherwise provided for in this Act 
2provisions of general application to stock of a state bank 
3shall be as follows:
4 (1) All banks shall have their capital divided into shares 
5of a par value of not less than $1 each and not more than $100 
6each, however, the par value of shares of a bank effecting a 
7reverse stock split pursuant to item (8) of subsection (a) of 
8Section 17 may temporarily exceed this limit provided it 
9conforms to the limits immediately after the reverse stock 
10split is completed. No issue of capital stock or preferred 
11stock shall be valid until not less than the par value of all 
12such stock so issued shall be paid in and notice thereof by the 
13president, a vice-president or cashier of the bank has been 
14transmitted to the Commissioner. In the case of an increase in 
15capital stock by the declaration of a stock dividend, the 
16capitalization of retained earnings effected by such stock 
17dividend shall constitute the payment for such shares required 
18by the preceding sentence, provided that the surplus of said 
19bank after such stock dividend shall be at least equal to fifty 
20per cent of the capital as increased. The charter shall not 
21limit or deny the voting power of the shares of any class of 
22stock except as provided in Section 15(3) of this Act.
23 (2) Pursuant to action taken in accordance with the 
24requirements of Section 17, a bank may issue preferred stock 
25of one or more classes as shall be approved by the Commissioner 
26as hereinafter provided, and make such amendment to its 
 
 
SB3726- 32 -LRB103 38817 RTM 68954 b


1charter as may be necessary for this purpose; but in the case 
2of any newly organized bank which has not yet issued capital 
3stock the requirements of Section 17 shall not apply.
4 (3) Without limiting the authority herein contained a 
5bank, when so provided in its charter and when approved by the 
6Commissioner, may issue shares of preferred stock: 
7  (a) Subject to the right of the bank to redeem any of 
8 such shares at not exceeding the price fixed by the 
9 charter for the redemption thereof; 
10  (b) Subject to the provisions of subsection (8) of 
11 this Section 14 entitling the holders thereof to 
12 cumulative or noncumulative dividends; 
13  (c) Having preference over any other class or classes 
14 of shares as to the payment of dividends; 
15  (d) Having preference as to the assets of the bank 
16 over any other class or classes of shares upon the 
17 voluntary or involuntary liquidation of the bank; 
18  (e) Convertible into shares of any other class of 
19 stock, provided that preferred shares shall not be 
20 converted into shares of a different par value unless that 
21 part of the capital of the bank represented by such 
22 preferred shares is at the time of the conversion equal to 
23 the aggregate par value of the shares into which the 
24 preferred shares are to be converted.
25 (4) If any part of the capital of a bank consists of 
26preferred stock, the determination of whether or not the 
 
 
SB3726- 33 -LRB103 38817 RTM 68954 b


1capital of such bank is impaired and the amount of such 
2impairment shall be based upon the par value of its stock even 
3though the amount which the holders of such preferred stock 
4shall be entitled to receive in the event of retirement or 
5liquidation shall be in excess of the par value of such 
6preferred stock.
7 (5) Pursuant to action taken in accordance with the 
8requirements of Section 17 of this Act, a state bank may 
9provide for a specified number of authorized but unissued 
10shares of capital stock for one or more of the following 
11purposes: 
12  (a) Reserved for issuance under stock option plan or 
13 plans to directors, officers or employees; 
14  (b) Reserved for issuance upon conversion of 
15 convertible preferred stock issued pursuant to and in 
16 compliance with the provisions of subsections (2) and (3) 
17 of this Section 14. 
18  (c) Reserved for issuance upon conversion of 
19 convertible debentures or other convertible evidences of 
20 indebtedness issued by a state bank, provided always that 
21 the terms of such conversion have been approved by the 
22 Commissioner; 
23  (d) Reserved for issuance by the declaration of a 
24 stock dividend. If and when any shares of capital stock 
25 are proposed to be authorized and reserved for any of the 
26 purposes set forth in subparagraphs (a), (b) or (c) above, 
 
 
SB3726- 34 -LRB103 38817 RTM 68954 b


1 the notice of the meeting, whether special or annual, of 
2 stockholders at which such proposition is to be considered 
3 shall be accompanied by a statement setting forth or 
4 summarizing the terms upon which the shares of capital 
5 stock so reserved are to be issued, and the extent to which 
6 any preemptive rights of stockholders are inapplicable to 
7 the issuance of the shares so reserved or to the 
8 convertible preferred stock or convertible debentures or 
9 other convertible evidences of indebtedness, and the 
10 approving vote of the holders of at least two-thirds of 
11 the outstanding shares of stock entitled to vote at such 
12 meeting of the terms of such issuance shall be requisite 
13 for the adoption of any amendment providing for the 
14 reservation of authorized but unissued shares for any of 
15 said purposes. Nothing in this subsection (5) contained 
16 shall be deemed to authorize the issuance of any capital 
17 stock for a consideration less than the par value thereof.
18 (6) Upon written application to the Commissioner 60 days 
19prior to the proposed purchase and receipt of the written 
20approval of the Commissioner, a state bank may purchase and 
21hold as treasury stock such amounts of the total number of 
22issued and outstanding shares of its capital and preferred 
23stock outstanding as the Commissioner determines is consistent 
24with safety and soundness of the bank. The Commissioner may 
25specify the manner of accounting for the treasury stock and 
26the form of notice prior to ultimate disposition of the 
 
 
SB3726- 35 -LRB103 38817 RTM 68954 b


1shares. Except as authorized in this subsection, it shall not 
2be lawful for a state bank to purchase or hold any additional 
3such shares or securities described in subsection (2) of 
4Section 37 unless necessary to prevent loss upon a debt 
5previously contracted in good faith, in which event such 
6shares or securities so purchased or acquired shall, within 6 
7months from the time of purchase or acquisition, be sold or 
8disposed of at public or private sale. Any state bank which 
9intends to purchase and hold treasury stock as authorized in 
10this subsection (6) shall file a written application with the 
11Commissioner 60 days prior to any such proposed purchase. The 
12application shall state the number of shares to be purchased, 
13the consideration for the shares, the name and address of the 
14person from whom the shares are to be purchased, if known, and 
15the total percentage of its issued and outstanding shares to 
16be held by the bank after the purchase. The total 
17consideration paid by a state bank for treasury stock shall 
18reduce capital and surplus of the bank for purposes of 
19Sections of this Act relating to lending and investment limits 
20which require computation of capital and surplus. After 
21considering and approving an application to purchase and hold 
22treasury stock under this subsection, the Commissioner may 
23waive or reduce the balance of the 60 day application period. 
24The Commissioner may specify the form of the application for 
25approval to acquire treasury stock and promulgate rules and 
26regulations for the administration of this subsection (6). A 
 
 
SB3726- 36 -LRB103 38817 RTM 68954 b


1state bank may acquire or resell its own shares as treasury 
2stock pursuant to this subsection (6) without a change in its 
3charter pursuant to Section 17. Such stock may be held for any 
4purpose permitted in subsection (5) of this Section 14 or may 
5be resold upon such reasonable terms as the board of directors 
6may determine provided notice is given to the Commissioner 
7prior to the resale of such stock.
8 (7) During the time that a state bank shall continue its 
9banking business, it shall not withdraw or permit to be 
10withdrawn, either in the form of dividends or otherwise, any 
11portion of its capital, but nothing in this subsection shall 
12prevent a reduction or change of the capital stock or the 
13preferred stock under the provisions of Sections 17 through 30 
14of this Act, a purchase of treasury stock under the provisions 
15of subsection (6) of this Section 14 or a redemption of 
16preferred stock pursuant to charter provisions therefor. 
17 (8) (a) Subject to the provisions of this Act, the board of 
18 directors of a state bank from time to time may declare a 
19 dividend of so much of the net profits of such bank as it 
20 shall judge expedient, but each bank before the 
21 declaration of a dividend shall carry at least one-tenth 
22 of its net profits since the date of the declaration of the 
23 last preceding dividend, or since the issuance of its 
24 charter in the case of its first dividend, to its surplus 
25 until the same shall be equal to its capital. 
26  (b) No dividends shall be paid by a state bank while it 
 
 
SB3726- 37 -LRB103 38817 RTM 68954 b


1 continues its banking business to an amount greater than 
2 its net profits then on hand, deducting first therefrom 
3 its losses and bad debts. All debts due to a state bank on 
4 which interest is past due and unpaid for a period of 6 
5 months or more, unless the same are well secured and in the 
6 process of collection, shall be considered bad debts.
7 (9) A State bank may, but shall not be obliged to, issue a 
8certificate for a fractional share, and, by action of its 
9board of directors, may in lieu thereof, pay cash equal to the 
10value of the fractional share. A certificate for a fractional 
11share shall entitle the holder to exercise fractional voting 
12rights, to receive dividends, and to participate in any of the 
13assets of the bank in the event of liquidation.
14(Source: P.A. 92-483, eff. 8-23-01; 92-651, eff. 7-11-02.)

15 (205 ILCS 5/15) (from Ch. 17, par. 322)
16 Sec. 15. Stock and stockholders. Unless otherwise provided 
17for in this Act, provisions of general application to capital 
18stock, preferred stock, and stockholders of a State bank shall 
19be as follows:
20 (1) There shall be an annual meeting of the stockholders 
21for the election of directors each year on the first business 
22day in January, unless some other date shall be fixed by the 
23by-laws. A special meeting of the stockholders may be called 
24at any time by the board of directors, and otherwise as may be 
25provided in the bylaws.
 
 
SB3726- 38 -LRB103 38817 RTM 68954 b


1 (2) Written or printed notice stating the place, day, and 
2hour of the meeting, and in case of a special meeting, the 
3purpose or purposes for which the meeting is called, shall be 
4delivered not less than 10 nor more than 40 days before the 
5date of the meeting either personally, electronically, or by 
6mail, by or at the direction of the president, or the 
7secretary, or the officer or persons calling the meeting, to 
8each stockholder of record entitled to vote at the meeting. If 
9mailed, the notice shall be deemed to be delivered when 
10deposited in the United States mail with postage thereon 
11prepaid addressed to the stockholder at his address as it 
12appears on the records of the bank.
13 (3) Except as provided below in this paragraph (3), each 
14outstanding share shall be entitled to one vote on each matter 
15submitted to a vote at a meeting of stockholders. Shares of its 
16own stock belonging to a bank shall not be voted, directly or 
17indirectly, at any meeting and shall not be counted in 
18determining the total number of outstanding shares at any 
19given time, but shares of its own stock held by it in a 
20fiduciary capacity may be voted and shall be counted in 
21determining the total number of outstanding shares at any 
22given time. A stockholder may vote either in person or by proxy 
23executed in writing by the stockholder or by his duly 
24authorized attorney-in-fact. No proxy shall be valid after 11 
25months from the date of its execution, unless otherwise 
26provided in the proxy. Except as provided below in this 
 
 
SB3726- 39 -LRB103 38817 RTM 68954 b


1paragraph (3), in all elections for directors every 
2stockholder (or subscriber to the stock prior to the issuance 
3of a charter) shall have the right to vote, in person or by 
4proxy, for the number of shares of stock owned by him, for as 
5many persons as there are directors to be elected, or to 
6cumulate the shares and give one candidate as many votes as the 
7number of directors multiplied by the number of his or her 
8shares of stock shall equal, or to distribute them on the same 
9principle among as many candidates as he or she shall think 
10fit. The bank charter of any bank organized on or after January 
111, 1984 may limit or eliminate cumulative voting rights in all 
12or specified circumstances, or may eliminate voting rights 
13entirely, as to any class or classes or series of stock of the 
14bank; provided that one class of shares or series thereof 
15shall always have voting rights in respect of all matters in 
16the bank. A bank organized prior to January 1, 1984 may amend 
17its charter to eliminate cumulative voting rights under all or 
18specified circumstances, or to eliminate voting rights 
19entirely, as to any class or classes or series of stock of the 
20bank; provided that one class of shares or series thereof 
21shall always have voting rights in respect of all matters in 
22the bank, and provided further that the proposal to eliminate 
23the voting rights receives the approval of the holders of 70% 
24of the outstanding shares of stock entitled to vote as 
25provided in paragraph (b) (7) of Section 17. A majority of the 
26outstanding shares represented in person or by proxy shall 
 
 
SB3726- 40 -LRB103 38817 RTM 68954 b


1constitute a quorum at a meeting of stockholders. In the 
2absence of a quorum a meeting may be adjourned from time to 
3time without notice to the stockholders.
4 (4) Whenever additional stock of a class is offered for 
5sale, stockholders of record of the same class on the date of 
6the offer shall have the right to subscribe to the proportion 
7of the shares as the stock of the class held by them bears to 
8the total of the outstanding stock of the class, and the price 
9thereof may be in excess of par value. This right shall be 
10transferable but shall terminate if not exercised within 60 
11days of the offer, unless the Commissioner shall authorize a 
12shorter time. If the right is not exercised, the stock shall 
13not be re-offered for sale to others at a lower price without 
14the stockholders of the same class again being accorded a 
15preemptive right to subscribe at the lower price. 
16Notwithstanding any of the provisions of this paragraph (4) or 
17any other provision of law, stockholders shall not have any 
18preemptive or other right to subscribe for or to purchase or 
19acquire shares of capital stock issued or to be issued under a 
20stock-option plan or upon conversion of preferred stock or 
21convertible debentures or other convertible indebtedness that 
22has been approved by stockholders in the manner required by 
23the provisions of subsection (5) of Section 14 hereof or to 
24treasury stock acquired pursuant to subsection (6) of Section 
2514.
26 (5) For the purpose of determining stockholders entitled 
 
 
SB3726- 41 -LRB103 38817 RTM 68954 b


1to notice of or to vote at any meeting of stockholders, or 
2stockholders entitled to receive payment of any dividend, or 
3in order to make a determination of stockholders for any other 
4proper purpose, the board of directors of a bank may provide 
5that the stock transfer books shall be closed for a stated 
6period not to exceed, in any case, 40 days. In lieu of closing 
7the stock transfer books, the board of directors may fix in 
8advance a date as the record date for any determination of 
9stockholders, the date in any case to be not more than 40 days, 
10and in case of a meeting of stockholders, not less than 10 days 
11prior to the date on which the particular action, requiring 
12the determination of stockholders, is to be taken. If the 
13stock transfer books are not closed and no record date is fixed 
14for the determination of stockholders entitled to notice of or 
15to vote at a meeting of stockholders, or stockholders entitled 
16to receive payment of a dividend, the date on which notice of a 
17meeting is delivered mailed or the date on which the 
18resolution of the board of directors declaring the dividend is 
19adopted, as the case may be, shall be the record date for the 
20determination of stockholders.
21 (6) Stock standing in the name of another corporation, 
22domestic or foreign, may be voted by the officer, agent, or 
23proxy as the by-laws of the corporation may prescribe, or, in 
24the absence of such provision, as the board of directors of the 
25corporation may determine. Stock standing in the name of a 
26deceased person may be voted by his or her administrator or 
 
 
SB3726- 42 -LRB103 38817 RTM 68954 b


1executor, either in person or by proxy. Stock standing in the 
2name of a guardian or trustee may be voted by that fiduciary 
3either in person or by proxy. Shares standing in the name of a 
4receiver may be voted by the receiver, and shares held by or 
5under control of a receiver may be voted by the receiver 
6without the transfer thereof into his or her name if authority 
7so to do be contained in an appropriate order of the court by 
8which the receiver was appointed. A stockholder whose shares 
9of stock are pledged shall be entitled to vote those shares 
10until the shares have been transferred into the name of the 
11pledgee, and thereafter the pledgee shall be entitled to vote 
12the shares so transferred.
13 (7) Shares of stock shall be transferable in accordance 
14with the general laws of this State governing the transfer of 
15corporate shares.
16 (8) The president and any other officer designated by the 
17board of directors of every State bank shall cause to be kept 
18at all times a full and correct list of the names and 
19residences of all the shareholders in the State bank and the 
20number of shares held by each in the office where its business 
21is transacted. The list shall be subject to the inspection of 
22all the shareholders of the State bank and the officers 
23authorized to assess taxes under State authority during 
24business hours of each day in which business may be legally 
25transacted. A copy of the list, verified by the oath of the 
26president or cashier, shall be transmitted to the Commissioner 
 
 
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1of Banks and Real Estate within 10 days of any demand therefor 
2made by the Commissioner.
3 (9) Any number of shareholders of a bank may create a 
4voting trust for the purpose of conferring upon a trustee or 
5trustees the right to vote or otherwise represent their shares 
6for a period of not to exceed 10 years by entering into a 
7written voting trust agreement specifying the terms and 
8conditions of the voting trust and by transferring their 
9shares to the trustee or trustees for the purposes of the 
10agreement. The trust agreement shall not become effective 
11until a counterpart of the agreement is deposited with the 
12bank at its main banking premises. The counterpart of the 
13voting trust agreement so deposited with the bank shall be 
14subject to the same right of examination by a shareholder of 
15the bank, in person or by agent or attorney, as is the record 
16of shareholders of the bank and shall be subject to 
17examination by any holder of a beneficial interest in the 
18voting trust, either in person or by agent or attorney, at any 
19reasonable time for any proper purpose.
20 (10) Voting agreements. Shareholders may provide for the 
21voting of their shares by signing an agreement for that 
22purpose. A voting agreement created under this paragraph is 
23not subject to the provisions of paragraph (9).
24 A voting agreement created under this paragraph is 
25specifically enforceable in accordance with the principles of 
26equity.
 
 
SB3726- 44 -LRB103 38817 RTM 68954 b


1 (11) Unless expressly prohibited by the charter or bylaws 
2and subject to applicable requirements of this Act, the board 
3of directors may provide by resolution that stockholders may 
4attend, participate in, act in, and vote at an annual meeting 
5or special meeting through the use of a conference telephone 
6or interactive technology, including, but not limited to, 
7electronic transmission, internet usage, or remote 
8communication, by means of which all persons participating in 
9the meeting can communicate with each other. Participation 
10through the use of a conference telephone or interactive 
11technology shall constitute attendance, presence, and 
12representation in person at the annual meeting or special 
13meeting of the person or persons so participating and count 
14towards the quorum required to conduct business at the 
15meeting. The following conditions shall apply to any virtual 
16meeting of the stockholders:
17  (a) the bank must internally possess or retain the 
18 technological capacity to facilitate virtual meeting 
19 attendance, participation, communication, and voting; and
20  (b) the stockholders must receive notice of the use of 
21 a virtual meeting format and appropriate instructions for 
22 joining, participating, and voting during the virtual 
23 meeting at least 7 days before the virtual meeting. 
24(Source: P.A. 95-924, eff. 8-26-08.)

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

21 (205 ILCS 5/16.5)
22 Sec. 16.5. Employment of persons with convictions. Except 
23with the prior written consent of the Commissioner, no State 
24bank shall knowingly employ or otherwise permit an individual 
25to serve as an officer, director, employee, or agent of the 
 
 
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1State bank if the individual has been convicted of a felony or 
2of any criminal offense relating to dishonesty or breach of 
3trust.
4(Source: P.A. 90-301, eff. 8-1-97.)

5 (205 ILCS 5/20) (from Ch. 17, par. 327)
6 Sec. 20. Resulting national bank or insured savings 
7association. Nothing in this Act shall be construed to require 
8the approval of any Illinois State authority as a condition to 
9the right of a State bank, pursuant to the laws of the United 
10States or of this State, to be converted into a national bank 
11or insured savings association or to merge with an insured 
12savings association or with a national bank under a national 
13charter. The action to be taken by such merging or converting 
14State bank and its rights and liabilities and those of its 
15stockholders and of its dissenting stockholders shall be the 
16same as those prescribed for a State bank merging with, or 
17converting into, a national bank or insured savings 
18association that has received its charter from an agency of 
19the United States Government at the time of the action by the 
20law of the United States and not by the law of this State 
21unless the State bank merges with or converts to a savings and 
22loan association or savings bank chartered under the laws of 
23this State, except that an affirmative vote of the holders of 
24at least two-thirds of the outstanding shares of stock of a 
25State bank entitled to vote at a meeting called in conformity 
 
 
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1with Section 23 shall be required for the merger or 
2conversion. Upon the completion of a merger or conversion, 
3resulting in a national bank or insured savings association, 
4the charter of any merging or converting State bank shall 
5automatically terminate. Approval by the Commissioner to 
6convert a State bank to a national bank or insured savings 
7association or to merge a State bank into a national bank or 
8insured savings association shall not be required under this 
9Act. However, any such converting or merging State bank shall 
10notify the Commissioner in writing of the proposed conversion 
11or merger not less than 30 days prior to such conversion or 
12merger and shall pay all accrued or outstanding assessments 
13pursuant to Section 48 of this Act as of the date of conversion 
14or merger.
15(Source: P.A. 89-567, eff. 7-26-96.)

16 (205 ILCS 5/32.1) (from Ch. 17, par. 340)
17 Sec. 32.1. Loans to single individuals Single Females. No 
18State bank shall require that single individuals who have 
19reached the age of majority females to whom loans are made have 
20cosigners on promissory notes negotiated to secure such loans 
21unless such bank shall, under the same or similar 
22circumstances, also require that single males who have reached 
23the age of majority have cosigners on promissory notes 
24negotiated to secure loans.
25(Source: P.A. 79-556.)

 
 
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1 (205 ILCS 5/40) (from Ch. 17, par. 350)
2 Sec. 40. Prohibited activities. The Commissioner, deputy 
3commissioners, and employees of the Department of Financial 
4and Professional Regulation Office of Banks and Real Estate 
5shall be subject to the restrictions provided in Section 2.5 
6of the Division of Banking Act including, without limitation, 
7the restrictions on (i) owning shares of stock or holding any 
8other equity interest in an entity regulated under this Act or 
9in any corporation or company that owns or controls an entity 
10regulated under this Act; (ii) being an officer, director, 
11employee, or agent of an entity regulated under this Act; and 
12(iii) obtaining a loan or accepting a gratuity from an entity 
13regulated under this Act.
14(Source: P.A. 96-1365, eff. 7-28-10.)

15 (205 ILCS 5/48)
16 Sec. 48. Secretary's powers; duties. The Secretary shall 
17have the powers and authority, and is charged with the duties 
18and responsibilities designated in this Act, and a State bank 
19shall not be subject to any other visitorial power other than 
20as authorized by this Act, except those vested in the courts, 
21or upon prior consultation with the Secretary, a foreign bank 
22regulator with an appropriate supervisory interest in the 
23parent or affiliate of a State bank. In the performance of the 
24Secretary's duties:
 
 
SB3726- 53 -LRB103 38817 RTM 68954 b


1  (1) The Commissioner shall call for statements from 
2 all State banks as provided in Section 47 at least one time 
3 during each calendar quarter.
4  (2) (a) The Commissioner, as often as the Commissioner 
5 shall deem necessary or proper, and no less frequently 
6 than 18 months following the preceding examination, shall 
7 appoint a suitable person or persons to make an 
8 examination of the affairs of every State bank, except 
9 that for every eligible State bank, as defined by 
10 regulation, the Commissioner in lieu of the examination 
11 may accept on an alternating basis the examination made by 
12 the eligible State bank's appropriate federal banking 
13 agency pursuant to Section 111 of the Federal Deposit 
14 Insurance Corporation Improvement Act of 1991, provided 
15 the appropriate federal banking agency has made such an 
16 examination. A person so appointed shall not be a 
17 stockholder or officer or employee of any bank which that 
18 person may be directed to examine, and shall have powers 
19 to make a thorough examination into all the affairs of the 
20 bank and in so doing to examine any of the officers or 
21 agents or employees thereof on oath and shall make a full 
22 and detailed report of the condition of the bank to the 
23 Commissioner. In making the examination the examiners 
24 shall include an examination of the affairs of all the 
25 affiliates of the bank, as defined in subsection (b) of 
26 Section 35.2 of this Act, or subsidiaries of the bank as 
 
 
SB3726- 54 -LRB103 38817 RTM 68954 b


1 shall be necessary to disclose fully the conditions of the 
2 subsidiaries or affiliates, the relations between the bank 
3 and the subsidiaries or affiliates and the effect of those 
4 relations upon the affairs of the bank, and in connection 
5 therewith shall have power to examine any of the officers, 
6 directors, agents, or employees of the subsidiaries or 
7 affiliates on oath. After May 31, 1997, the Commissioner 
8 may enter into cooperative agreements with state 
9 regulatory authorities of other states to provide for 
10 examination of State bank branches in those states, and 
11 the Commissioner may accept reports of examinations of 
12 State bank branches from those state regulatory 
13 authorities. These cooperative agreements may set forth 
14 the manner in which the other state regulatory authorities 
15 may be compensated for examinations prepared for and 
16 submitted to the Commissioner.
17  (b) After May 31, 1997, the Commissioner is authorized 
18 to examine, as often as the Commissioner shall deem 
19 necessary or proper, branches of out-of-state banks. The 
20 Commissioner may establish and may assess fees to be paid 
21 to the Commissioner for examinations under this subsection 
22 (b). The fees shall be borne by the out-of-state bank, 
23 unless the fees are borne by the state regulatory 
24 authority that chartered the out-of-state bank, as 
25 determined by a cooperative agreement between the 
26 Commissioner and the state regulatory authority that 
 
 
SB3726- 55 -LRB103 38817 RTM 68954 b


1 chartered the out-of-state bank.
2  (2.1) Pursuant to paragraph (a) of subsection (6) of 
3 this Section, the Secretary shall adopt rules that ensure 
4 consistency and due process in the examination process. 
5 The Secretary may also establish guidelines that (i) 
6 define the scope of the examination process and (ii) 
7 clarify examination items to be resolved. The rules, 
8 formal guidance, interpretive letters, or opinions 
9 furnished to State banks by the Secretary may be relied 
10 upon by the State banks. 
11  (2.5) Whenever any State bank, any subsidiary or 
12 affiliate of a State bank, or after May 31, 1997, any 
13 branch of an out-of-state bank causes to be performed, by 
14 contract or otherwise, any bank services for itself, 
15 whether on or off its premises:
16   (a) that performance shall be subject to 
17 examination by the Commissioner to the same extent as 
18 if services were being performed by the bank or, after 
19 May 31, 1997, branch of the out-of-state bank itself 
20 on its own premises; and
21   (b) the bank or, after May 31, 1997, branch of the 
22 out-of-state bank shall notify the Commissioner of the 
23 existence of a service relationship. The notification 
24 shall be submitted with the first statement of 
25 condition (as required by Section 47 of this Act) due 
26 after the making of the service contract or the 
 
 
SB3726- 56 -LRB103 38817 RTM 68954 b


1 performance of the service, whichever occurs first. 
2 The Commissioner shall be notified of each subsequent 
3 contract in the same manner.
4  For purposes of this subsection (2.5), the term "bank 
5 services" means services such as sorting and posting of 
6 checks and deposits, computation and posting of interest 
7 and other credits and charges, preparation and mailing of 
8 checks, statements, notices, and similar items, or any 
9 other clerical, bookkeeping, accounting, statistical, or 
10 similar functions performed for a State bank, including, 
11 but not limited to, electronic data processing related to 
12 those bank services.
13  (3) The expense of administering this Act, including 
14 the expense of the examinations of State banks as provided 
15 in this Act, shall to the extent of the amounts resulting 
16 from the fees provided for in paragraphs (a), (a-2), and 
17 (b) of this subsection (3) be assessed against and borne 
18 by the State banks:
19   (a) Each bank shall pay to the Secretary a Call 
20 Report Fee which shall be paid in quarterly 
21 installments equal to one-fourth of the sum of the 
22 annual fixed fee of $800, plus a variable fee based on 
23 the assets shown on the quarterly statement of 
24 condition delivered to the Secretary in accordance 
25 with Section 47 for the preceding quarter according to 
26 the following schedule: 16¢ per $1,000 of the first 
 
 
SB3726- 57 -LRB103 38817 RTM 68954 b


1 $5,000,000 of total assets, 15¢ per $1,000 of the next 
2 $20,000,000 of total assets, 13¢ per $1,000 of the 
3 next $75,000,000 of total assets, 9¢ per $1,000 of the 
4 next $400,000,000 of total assets, 7¢ per $1,000 of 
5 the next $500,000,000 of total assets, and 5¢ per 
6 $1,000 of all assets in excess of $1,000,000,000, of 
7 the State bank. The Call Report Fee shall be 
8 calculated by the Secretary and billed to the banks 
9 for remittance at the time of the quarterly statements 
10 of condition provided for in Section 47. The Secretary 
11 may require payment of the fees provided in this 
12 Section by an electronic transfer of funds or an 
13 automatic debit of an account of each of the State 
14 banks. In case more than one examination of any bank is 
15 deemed by the Secretary to be necessary in any 
16 examination frequency cycle specified in subsection 
17 2(a) of this Section, and is performed at his 
18 direction, the Secretary may assess a reasonable 
19 additional fee to recover the cost of the additional 
20 examination. In lieu of the method and amounts set 
21 forth in this paragraph (a) for the calculation of the 
22 Call Report Fee, the Secretary may specify by rule 
23 that the Call Report Fees provided by this Section may 
24 be assessed semiannually or some other period and may 
25 provide in the rule the formula to be used for 
26 calculating and assessing the periodic Call Report 
 
 
SB3726- 58 -LRB103 38817 RTM 68954 b


1 Fees to be paid by State banks.
2   (a-1) If in the opinion of the Commissioner an 
3 emergency exists or appears likely, the Commissioner 
4 may assign an examiner or examiners to monitor the 
5 affairs of a State bank with whatever frequency he 
6 deems appropriate, including, but not limited to, a 
7 daily basis. The reasonable and necessary expenses of 
8 the Commissioner during the period of the monitoring 
9 shall be borne by the subject bank. The Commissioner 
10 shall furnish the State bank a statement of time and 
11 expenses if requested to do so within 30 days of the 
12 conclusion of the monitoring period.
13   (a-2) On and after January 1, 1990, the reasonable 
14 and necessary expenses of the Commissioner during 
15 examination of the performance of electronic data 
16 processing services under subsection (2.5) shall be 
17 borne by the banks for which the services are 
18 provided. An amount, based upon a fee structure 
19 prescribed by the Commissioner, shall be paid by the 
20 banks or, after May 31, 1997, branches of out-of-state 
21 banks receiving the electronic data processing 
22 services along with the Call Report Fee assessed under 
23 paragraph (a) of this subsection (3).
24   (a-3) After May 31, 1997, the reasonable and 
25 necessary expenses of the Commissioner during 
26 examination of the performance of electronic data 
 
 
SB3726- 59 -LRB103 38817 RTM 68954 b


1 processing services under subsection (2.5) at or on 
2 behalf of branches of out-of-state banks shall be 
3 borne by the out-of-state banks, unless those expenses 
4 are borne by the state regulatory authorities that 
5 chartered the out-of-state banks, as determined by 
6 cooperative agreements between the Commissioner and 
7 the state regulatory authorities that chartered the 
8 out-of-state banks.
9   (b) "Fiscal year" for purposes of this Section 48 
10 is defined as a period beginning July 1 of any year and 
11 ending June 30 of the next year. The Commissioner 
12 shall receive for each fiscal year, commencing with 
13 the fiscal year ending June 30, 1987, a contingent fee 
14 equal to the lesser of the aggregate of the fees paid 
15 by all State banks under paragraph (a) of subsection 
16 (3) for that year, or the amount, if any, whereby the 
17 aggregate of the administration expenses, as defined 
18 in paragraph (c), for that fiscal year exceeds the sum 
19 of the aggregate of the fees payable by all State banks 
20 for that year under paragraph (a) of subsection (3), 
21 plus any amounts transferred into the Bank and Trust 
22 Company Fund from the State Pensions Fund for that 
23 year, plus all other amounts collected by the 
24 Commissioner for that year under any other provision 
25 of this Act, plus the aggregate of all fees collected 
26 for that year by the Commissioner under the Corporate 
 
 
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1 Fiduciary Act, excluding the receivership fees 
2 provided for in Section 5-10 of the Corporate 
3 Fiduciary Act, and the Foreign Banking Office Act. The 
4 aggregate amount of the contingent fee thus arrived at 
5 for any fiscal year shall be apportioned among, 
6 assessed upon, and paid by the State banks and foreign 
7 banking corporations, respectively, in the same 
8 proportion that the fee of each under paragraph (a) of 
9 subsection (3), respectively, for that year bears to 
10 the aggregate for that year of the fees collected 
11 under paragraph (a) of subsection (3). The aggregate 
12 amount of the contingent fee, and the portion thereof 
13 to be assessed upon each State bank and foreign 
14 banking corporation, respectively, shall be determined 
15 by the Commissioner and shall be paid by each, 
16 respectively, within 120 days of the close of the 
17 period for which the contingent fee is computed and is 
18 payable, and the Commissioner shall give 20 days' 
19 advance notice of the amount of the contingent fee 
20 payable by the State bank and of the date fixed by the 
21 Commissioner for payment of the fee.
22   (c) The "administration expenses" for any fiscal 
23 year shall mean the ordinary and contingent expenses 
24 for that year incident to making the examinations 
25 provided for by, and for otherwise administering, this 
26 Act, the Corporate Fiduciary Act, excluding the 
 
 
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1 expenses paid from the Corporate Fiduciary 
2 Receivership account in the Bank and Trust Company 
3 Fund, the Foreign Banking Office Act, the Electronic 
4 Fund Transfer Act, and the Illinois Bank Examiners' 
5 Education Foundation Act, including all salaries and 
6 other compensation paid for personal services rendered 
7 for the State by officers or employees of the State, 
8 including the Commissioner and the Deputy 
9 Commissioners, communication equipment and services, 
10 office furnishings, surety bond premiums, and travel 
11 expenses of those officers and employees, employees, 
12 expenditures or charges for the acquisition, 
13 enlargement or improvement of, or for the use of, any 
14 office space, building, or structure, or expenditures 
15 for the maintenance thereof or for furnishing heat, 
16 light, or power with respect thereto, all to the 
17 extent that those expenditures are directly incidental 
18 to such examinations or administration. The 
19 Commissioner shall not be required by paragraph (c) or 
20 (d-1) of this subsection (3) to maintain in any fiscal 
21 year's budget appropriated reserves for accrued 
22 vacation and accrued sick leave that is required to be 
23 paid to employees of the Commissioner upon termination 
24 of their service with the Commissioner in an amount 
25 that is more than is reasonably anticipated to be 
26 necessary for any anticipated turnover in employees, 
 
 
SB3726- 62 -LRB103 38817 RTM 68954 b


1 whether due to normal attrition or due to layoffs, 
2 terminations, or resignations.
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, shall be paid promptly after receipt of the 
7 same, accompanied by a detailed statement thereof, 
8 into the State treasury and shall be set apart in a 
9 special fund to be known as the Bank and Trust Company 
10 Fund, except as provided in paragraph (c) of 
11 subsection (11) of this Section. All earnings received 
12 from investments of funds in the Bank and Trust 
13 Company Fund shall be deposited into the Bank and 
14 Trust Company Fund and may be used for the same 
15 purposes as fees deposited into that Fund. The amount 
16 from time to time deposited into the Bank and Trust 
17 Company Fund shall be used: (i) to offset the ordinary 
18 administrative expenses of the Secretary as defined in 
19 this Section or (ii) as a credit against fees under 
20 paragraph (d-1) of this subsection (3). Nothing in 
21 Public Act 81-131 shall prevent continuing the 
22 practice of paying expenses involving salaries, 
23 retirement, social security, and State-paid insurance 
24 premiums of State officers by appropriations from the 
25 General Revenue Fund. However, the General Revenue 
26 Fund shall be reimbursed for those payments made on 
 
 
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1 and after July 1, 1979, by an annual transfer of funds 
2 from the Bank and Trust Company Fund. Moneys in the 
3 Bank and Trust Company Fund may be transferred to the 
4 Professions Indirect Cost Fund, as authorized under 
5 Section 2105-300 of the Department of Professional 
6 Regulation Law of the Civil Administrative Code of 
7 Illinois. 
8   Notwithstanding provisions in the State Finance 
9 Act, as now or hereafter amended, or any other law to 
10 the contrary, the Governor may, during any fiscal year 
11 through January 10, 2011, from time to time direct the 
12 State Treasurer and Comptroller to transfer a 
13 specified sum not exceeding 10% of the revenues to be 
14 deposited into the Bank and Trust Company Fund during 
15 that fiscal year from that Fund to the General Revenue 
16 Fund in order to help defray the State's operating 
17 costs for the fiscal year. Notwithstanding provisions 
18 in the State Finance Act, as now or hereafter amended, 
19 or any other law to the contrary, the total sum 
20 transferred during any fiscal year through January 10, 
21 2011, from the Bank and Trust Company Fund to the 
22 General Revenue Fund pursuant to this provision shall 
23 not exceed during any fiscal year 10% of the revenues 
24 to be deposited into the Bank and Trust Company Fund 
25 during that fiscal year. The State Treasurer and 
26 Comptroller shall transfer the amounts designated 
 
 
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1 under this Section as soon as may be practicable after 
2 receiving the direction to transfer from the Governor. 
3   (d-1) Adequate funds shall be available in the 
4 Bank and Trust Company Fund to permit the timely 
5 payment of administration expenses. In each fiscal 
6 year the total administration expenses shall be 
7 deducted from the total fees collected by the 
8 Commissioner and the remainder transferred into the 
9 Cash Flow Reserve Account, unless the balance of the 
10 Cash Flow Reserve Account prior to the transfer equals 
11 or exceeds one-fourth of the total initial 
12 appropriations from the Bank and Trust Company Fund 
13 for the subsequent year, in which case the remainder 
14 shall be credited to State banks and foreign banking 
15 corporations and applied against their fees for the 
16 subsequent year. The amount credited to each State 
17 bank and foreign banking corporation shall be in the 
18 same proportion as the Call Report Fees paid by each 
19 for the year bear to the total Call Report Fees 
20 collected for the year. If, after a transfer to the 
21 Cash Flow Reserve Account is made or if no remainder is 
22 available for transfer, the balance of the Cash Flow 
23 Reserve Account is less than one-fourth of the total 
24 initial appropriations for the subsequent year and the 
25 amount transferred is less than 5% of the total Call 
26 Report Fees for the year, additional amounts needed to 
 
 
SB3726- 65 -LRB103 38817 RTM 68954 b


1 make the transfer equal to 5% of the total Call Report 
2 Fees for the year shall be apportioned among, assessed 
3 upon, and paid by the State banks and foreign banking 
4 corporations in the same proportion that the Call 
5 Report Fees of each, respectively, for the year bear 
6 to the total Call Report Fees collected for the year. 
7 The additional amounts assessed shall be transferred 
8 into the Cash Flow Reserve Account. For purposes of 
9 this paragraph (d-1), the calculation of the fees 
10 collected by the Commissioner shall exclude the 
11 receivership fees provided for in Section 5-10 of the 
12 Corporate Fiduciary Act.
13   (e) The Commissioner may upon request certify to 
14 any public record in his keeping and shall have 
15 authority to levy a reasonable charge for issuing 
16 certifications of any public record in his keeping.
17   (f) In addition to fees authorized elsewhere in 
18 this Act, the Commissioner may, in connection with a 
19 review, approval, or provision of a service, levy a 
20 reasonable charge to recover the cost of the review, 
21 approval, or service.
22  (4) Nothing contained in this Act shall be construed 
23 to limit the obligation relative to examinations and 
24 reports of any State bank, deposits in which are to any 
25 extent insured by the United States or any agency thereof, 
26 nor to limit in any way the powers of the Commissioner with 
 
 
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1 reference to examinations and reports of that bank.
2  (5) The nature and condition of the assets in or 
3 investment of any bonus, pension, or profit sharing plan 
4 for officers or employees of every State bank or, after 
5 May 31, 1997, branch of an out-of-state bank shall be 
6 deemed to be included in the affairs of that State bank or 
7 branch of an out-of-state bank subject to examination by 
8 the Commissioner under the provisions of subsection (2) of 
9 this Section, and if the Commissioner shall find from an 
10 examination that the condition of or operation of the 
11 investments or assets of the plan is unlawful, fraudulent, 
12 or unsafe, or that any trustee has abused his trust, the 
13 Commissioner shall, if the situation so found by the 
14 Commissioner shall not be corrected to his satisfaction 
15 within 60 days after the Commissioner has given notice to 
16 the board of directors of the State bank or out-of-state 
17 bank of his findings, report the facts to the Attorney 
18 General who shall thereupon institute proceedings against 
19 the State bank or out-of-state bank, the board of 
20 directors thereof, or the trustees under such plan as the 
21 nature of the case may require.
22  (6) The Commissioner shall have the power:
23   (a) To promulgate reasonable rules for the purpose 
24 of administering the provisions of this Act.
25   (a-5) To impose conditions on any approval issued 
26 by the Commissioner if he determines that the 
 
 
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1 conditions are necessary or appropriate. These 
2 conditions shall be imposed in writing and shall 
3 continue in effect for the period prescribed by the 
4 Commissioner.
5   (b) To issue orders against any person, if the 
6 Commissioner has reasonable cause to believe that an 
7 unsafe or unsound banking practice has occurred, is 
8 occurring, or is about to occur, if any person has 
9 violated, is violating, or is about to violate any 
10 law, rule, or written agreement with the Commissioner, 
11 or for the purpose of administering the provisions of 
12 this Act and any rule promulgated in accordance with 
13 this Act.
14   (b-1) To enter into agreements with a bank 
15 establishing a program to correct the condition of the 
16 bank or its practices.
17   (c) To appoint hearing officers to execute any of 
18 the powers granted to the Commissioner under this 
19 Section for the purpose of administering this Act and 
20 any rule promulgated in accordance with this Act and 
21 otherwise to authorize, in writing, an officer or 
22 employee of the Department of Financial and 
23 Professional Regulation Office of Banks and Real 
24 Estate to exercise his powers under this Act.
25   (d) To subpoena witnesses, to compel their 
26 attendance, to administer an oath, to examine any 
 
 
SB3726- 68 -LRB103 38817 RTM 68954 b


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, 
 
 
SB3726- 75 -LRB103 38817 RTM 68954 b


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 
 
 
SB3726- 83 -LRB103 38817 RTM 68954 b


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 
 
 
SB3726- 84 -LRB103 38817 RTM 68954 b


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 
 
 
SB3726- 86 -LRB103 38817 RTM 68954 b


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 
 
 
SB3726- 87 -LRB103 38817 RTM 68954 b


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  (c) Except as otherwise provided by this Act, a bank may 
26not disclose to any person, except to the customer or his duly 
 
 
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1authorized agent, any financial records or financial 
2information obtained from financial records relating to that 
3customer of that bank unless:
4  (1) the customer has authorized disclosure to the 
5 person;
6  (2) the financial records are disclosed in response to 
7 a lawful subpoena, summons, warrant, citation to discover 
8 assets, or court order which meets the requirements of 
9 subsection (d) of this Section; or
10  (3) the bank is attempting to collect an obligation 
11 owed to the bank and the bank complies with the provisions 
12 of Section 2I of the Consumer Fraud and Deceptive Business 
13 Practices Act.
14  (d) A bank shall disclose financial records under 
15paragraph (2) of subsection (c) of this Section under a lawful 
16subpoena, summons, warrant, citation to discover assets, or 
17court order only after the bank sends a copy of the subpoena, 
18summons, warrant, citation to discover assets, or court order 
19to the customer person establishing the relationship with the 
20bank, if living, and, otherwise the customer's person's 
21personal representative, if known, at the customer's person's 
22last known address by first class mail, postage prepaid, 
23through a third-party commercial carrier or courier with 
24delivery charge fully prepaid, by hand delivery, or by 
25electronic delivery at an email address on file with the bank 
26(if the customer person establishing the relationship with the 
 
 
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1bank has consented to receive electronic delivery and the 
2customer , if the person establishing the relationship with 
3the bank is a consumer, the person has consented under the 
4consumer consent provisions set forth in Section 7001 of Title 
515 of the United States Code), unless the bank is specifically 
6prohibited from notifying the customer person by order of 
7court or by applicable State or federal law. A bank shall not 
8mail a copy of a subpoena to any customer person pursuant to 
9this subsection if the subpoena was issued by a grand jury 
10under the Statewide Grand Jury Act.
11  (e) Any officer or employee of a bank who knowingly and 
12willfully furnishes financial records in violation of this 
13Section is guilty of a business offense and, upon conviction, 
14shall be fined not more than $1,000.
15  (f) Any person who knowingly and willfully induces or 
16attempts to induce any officer or employee of a bank to 
17disclose financial records in violation of this Section is 
18guilty of a business offense and, upon conviction, shall be 
19fined not more than $1,000.
20  (g) A bank shall be reimbursed for costs that are 
21reasonably necessary and that have been directly incurred in 
22searching for, reproducing, or transporting books, papers, 
23records, or other data required or requested to be produced 
24pursuant to a lawful subpoena, summons, warrant, citation to 
25discover assets, or court order. The Commissioner shall 
26determine the rates and conditions under which payment may be 
 
 
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1made.
2 (h) For the purposes of this Section, the term "customer" 
3means an individual who obtains a financial product or service 
4primarily for personal, family, or household purposes, or that 
5individual's legal representative. 
6(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)

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

16 (205 ILCS 5/49) (from Ch. 17, par. 361)
17 Sec. 49. False statements; penalty. It is unlawful for any 
18officer, director, or employee of any State bank or subsidiary 
19or holding company of that bank or, after May 31, 1997, branch 
20out of an out-of-state bank subject to examination by the 
21Commissioner or any person filing an application or notice or 
22submitting information in connection with an application or 
23notice with the Commissioner to willfully and knowingly 
24subscribe to or make, or cause to be made, any false statement 
25or false entry with intent to deceive any person or persons 
 
 
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1authorized to examine into the affairs of the bank or the 
2subsidiary or holding company of that bank, the branch of an 
3out-of-state bank, or the applicant or with intent to deceive 
4the Commissioner or his administrative officers in the 
5performance of their duties under this Act. A person who 
6violates this Section shall be subject to the provisions of 
7Section 48. Where financial loss to a bank is caused by those 
8statements, the penalties shall be commensurate with that loss 
9is guilty of a Class 3 felony.
10(Source: P.A. 92-483, eff. 8-23-01.)

11 (205 ILCS 5/78) (from Ch. 17, par. 390)
12 Sec. 78. Board of banks and trust companies; creation, 
13members, appointment.  There is created a Board which shall be 
14known as the State Banking Board of Illinois which shall 
15consist of the Director of Banking, who shall be its chairman, 
16and 12 additional members. The Board shall be comprised of 
17individuals interested in the banking industry. One member Two 
18members shall be from State banks having total assets of not 
19more than $75,000,000 at the time of their appointment; one 
20member 2 members shall be from State banks having total assets 
21of more than $75,000,000, but not more than $150,000,000 at 
22the time of their appointment; one member 2 members shall be 
23from State banks having total assets of more than 
24$150,000,000, but not more than $500,000,000 at the time of 
25their appointment; one member 2 members shall be from State 
 
 
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1banks having total assets of more than $500,000,000, but not 
2more than $2,000,000,000 at the time of their appointment; one 
3member shall be from a State bank having total assets of more 
4than $2,000,000,000 at the time of his or her appointment; 
5five members shall be from State banks and shall be selected by 
6the Secretary with the advice and recommendation of the 
7Illinois Bankers Association and the Community Bankers 
8Association of Illinois; and one member shall be from a 
9savings bank organized under the Savings Bank Act. There shall 
10be one alternate member from a savings bank organized under 
11the Savings Bank Act whose role shall be to attend a meeting of 
12the State Banking Board if and only if the sitting member from 
13a savings bank is unable to attend the meeting. There shall be 
142 public members, neither of whom shall be an officer or 
15director of or owner, whether directly or indirectly, of more 
16than 5% of the outstanding capital stock of any bank or savings 
17bank. Members of the State Banking Board of Illinois cease to 
18be eligible to serve on the Board once they no longer meet the 
19requirements of their original appointment; however, a member 
20from a State bank shall not be disqualified solely due to a 
21change in the bank's asset size.
22(Source: P.A. 99-39, eff. 1-1-16; 100-783, eff. 8-10-18.)

23 (205 ILCS 5/80) (from Ch. 17, par. 392)
24 Sec. 80. Board; powers. The Board shall have the following 
25powers in addition to any others that may be granted to it by 
 
 
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1law:
2 (a) (Blank).
3 (b) To review, consider, and make recommendations to the 
4Director of Banking upon any banking matters.
5 (c) (Blank).
6 (d) (Blank).
7 (e) To review, consider, and submit to the Director of 
8Banking and to the Governor proposals for amendments to this 
9Act or for changes in or additions to the administration 
10thereof which in the opinion of the Board are necessary or 
11desirable in order to assure the safe and sound conduct of the 
12banking business.
13 (f) To require the Secretary to furnish the Board space 
14for meetings to be held by the Board as well as to require the 
15Secretary to provide such clerical and technical assistance as 
16the Board may require.
17 (g) To adopt its own by-laws with respect to Board 
18meetings and procedures. Such by-laws shall provide that: 
19  (i) At least half A majority of the whole Board 
20 constitutes a quorum. 
21  (ii) A majority of the quorum shall constitute 
22 effective action except that a vote of a majority of the 
23 whole Board shall be necessary for recommendations made to 
24 the Director of Banking and to the Governor with regard to 
25 proposed amendments to this Act or to the administrative 
26 practices hereunder. 
 
 
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1  (iii) The Board shall meet at least once in each 
2 calendar year and upon the call of the Director of Banking 
3 or a majority of the Board. The Director of Banking or a 
4 majority of the Board may call such special or additional 
5 meetings as may be deemed necessary or desirable.
6 (h) (Blank).
7 (i) (Blank).
8 (j) (Blank).
9 (k) (Blank).
10 (l) (Blank).
11 (m) To authorize the transfer of funds from the Illinois 
12Bank Examiners' Education Fund to the Bank and Trust Company 
13Fund. Any amount transferred shall be retransferred to the 
14Illinois Bank Examiners' Education Fund from the Bank and 
15Trust Company Fund within 3 years.
16 (n) To maintain and direct the investments of the Illinois 
17Bank Examiners' Education Fund.
18 (o) To evaluate various courses, programs, curricula, and 
19schools of continuing education and professional training that 
20are available from within the United States for State banking 
21department examination personnel and develop a program known 
22as the Illinois Bank Examiners' Education Program. The Board 
23shall determine which courses, programs, curricula, and 
24schools will be included in the Program to be funded by the 
25Foundation. 
26 (p) To authorize the transfer of funds from the Bank and 
 
 
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1Trust Company Fund. 
2(Source: P.A. 96-1163, eff. 1-1-11.)

3 Section 10. The Savings Bank Act is amended by changing 
4Sections 1008, 4002, 4003, 4013, 6002, 7005, 8002, 8016, and 
511008 as follows:

6 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
7 Sec. 1008. General corporate powers. 
8 (a) A savings bank operating under this Act shall be a body 
9corporate and politic and shall have all of the powers 
10conferred by this Act including, but not limited to, the 
11following powers:
12  (1) To sue and be sued, complain, and defend in its 
13 corporate name and to have a common seal, which it may 
14 alter or renew at pleasure.
15  (2) To obtain and maintain insurance by a deposit 
16 insurance corporation as defined in this Act.
17  (3) To act as a fiscal agent for the United States, the 
18 State of Illinois or any department, branch, arm, or 
19 agency of the State or any unit of local government or 
20 school district in the State, when duly designated for 
21 that purpose, and as agent to perform reasonable functions 
22 as may be required of it.
23  (4) To become a member of or deal with any corporation 
24 or agency of the United States or the State of Illinois, to 
 
 
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1 the extent that the agency assists in furthering or 
2 facilitating its purposes or powers and to that end to 
3 purchase stock or securities thereof or deposit money 
4 therewith, and to comply with any other conditions of 
5 membership or credit.
6  (5) To make donations in reasonable amounts for the 
7 public welfare or for charitable, scientific, religious, 
8 or educational purposes.
9  (6) To adopt and operate reasonable insurance, bonus, 
10 profit sharing, and retirement plans for officers and 
11 employees and for directors including, but not limited to, 
12 advisory, honorary, and emeritus directors, who are not 
13 officers or employees.
14  (7) To reject any application for membership; to 
15 retire deposit accounts by enforced retirement as provided 
16 in this Act and the bylaws; and to limit the issuance of, 
17 or payments on, deposit accounts, subject, however, to 
18 contractual obligations.
19  (8) To purchase stock or membership interests in 
20 service corporations and to invest in any form of 
21 indebtedness of any service corporation as defined in this 
22 Act, subject to regulations of the Secretary.
23  (9) To purchase stock of a corporation whose principal 
24 purpose is to operate a safe deposit company or escrow 
25 service company.
26  (10) To exercise all the powers necessary to qualify 
 
 
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1 as a trustee or custodian under federal or State law, 
2 provided that the authority to accept and execute trusts 
3 is subject to the provisions of the Corporate Fiduciary 
4 Act and to the supervision of those activities by the 
5 Secretary.
6  (11) (Blank).
7  (12) To establish, maintain, and operate terminals as 
8 authorized by the Electronic Fund Transfer Act.
9  (13) To borrow or incur an obligation; and to pledge 
10 its assets:
11   (A) to enable it to act as agent for the sale of 
12 obligations of the United States;
13   (B) to secure deposits;
14   (C) to secure deposits of money whenever required 
15 by the National Bankruptcy Act;
16   (D) (blank); and
17   (E) to secure trust funds commingled with the 
18 savings bank's funds, whether deposited by the savings 
19 bank or an affiliate of the savings bank, as required 
20 under Section 2-8 of the Corporate Fiduciary Act.
21  (14) To accept for payment at a future date not to 
22 exceed one year from the date of acceptance, drafts drawn 
23 upon it by its customers; and to issue, advise, or confirm 
24 letters of credit authorizing holders thereof to draw 
25 drafts upon it or its correspondents.
26  (15) Subject to the regulations of the Secretary, to 
 
 
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1 own and lease personal property acquired by the savings 
2 bank at the request of a prospective lessee and, upon the 
3 agreement of that person, to lease the personal property.
4  (16) To establish temporary service booths at any 
5 International Fair in this State that is approved by the 
6 United States Department of Commerce for the duration of 
7 the international fair for the purpose of providing a 
8 convenient place for foreign trade customers to exchange 
9 their home countries' currency into United States currency 
10 or the converse. To provide temporary periodic service to 
11 persons residing in a bona fide nursing home, senior 
12 citizens' retirement home, or long-term care facility. 
13 These powers shall not be construed as establishing a new 
14 place or change of location for the savings bank providing 
15 the service booth.
16  (17) To indemnify its officers, directors, employees, 
17 and agents, as authorized for corporations under Section 
18 8.75 of the Business Corporation Act of 1983.
19  (18) To provide data processing services to others on 
20 a for-profit basis.
21  (19) To utilize any electronic technology to provide 
22 customers with home banking services.
23  (20) Subject to the regulations of the Secretary, to 
24 enter into an agreement to act as a surety.
25  (21) Subject to the regulations of the Secretary, to 
26 issue credit cards, extend credit therewith, and otherwise 
 
 
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1 engage in or participate in credit card operations.
2  (22) To purchase for its own account shares of stock 
3 of a bankers' bank, described in Section 13(b)(1) of the 
4 Illinois Banking Act, on the same terms and conditions as 
5 a bank may purchase such shares. In no event shall the 
6 total amount of such stock held by a savings bank in such 
7 bankers' bank exceed 10% of its capital and surplus 
8 (including undivided profits) and in no event shall a 
9 savings bank acquire more than 5% of any class of voting 
10 securities of such bankers' bank.
11  (23) With respect to affiliate facilities:
12   (A) to conduct at affiliate facilities any of the 
13 following transactions for and on behalf of any 
14 affiliated depository institution, if so authorized by 
15 the affiliate or affiliates: receiving deposits; 
16 renewing deposits; cashing and issuing checks, drafts, 
17 money orders, travelers checks, or similar 
18 instruments; changing money; receiving payments on 
19 existing indebtedness; and conducting ministerial 
20 functions with respect to loan applications, servicing 
21 loans, and providing loan account information; and, on 
22 behalf of another commonly owned bank, if so 
23 authorized by the other bank, all transactions that 
24 the other bank is authorized or permitted to perform; 
25 and
26   (B) to authorize an affiliated depository 
 
 
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1 institution to conduct for and on behalf of it, any of 
2 the transactions listed in this subsection at one or 
3 more affiliate facilities.
4  A savings bank intending to conduct or to authorize an 
5 affiliated depository institution to conduct at an 
6 affiliate facility any of the transactions specified in 
7 this subsection shall give written notice to the Secretary 
8 at least 30 days before any such transaction is conducted 
9 at an affiliate facility. All conduct under this 
10 subsection shall be on terms consistent with safe and 
11 sound banking practices and applicable law.
12  (24) Subject to Article XLIV of the Illinois Insurance 
13 Code, to act as the agent for any fire, life, or other 
14 insurance company authorized by the State of Illinois, by 
15 soliciting and selling insurance and collecting premiums 
16 on policies issued by such company; and may receive for 
17 services so rendered such fees or commissions as may be 
18 agreed upon between the said savings bank and the 
19 insurance company for which it may act as agent; provided, 
20 however, that no such savings bank shall in any case 
21 assume or guarantee the payment of any premium on 
22 insurance policies issued through its agency by its 
23 principal; and provided further, that the savings bank 
24 shall not guarantee the truth of any statement made by an 
25 assured in filing his application for insurance.
26  (25) To become a member of the Federal Home Loan Bank 
 
 
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1 and to have the powers granted to a savings association 
2 organized under the Illinois Savings and Loan Act of 1985 
3 or the laws of the United States, subject to regulations 
4 of the Secretary.
5  (26) To offer any product or service that is at the 
6 time authorized or permitted to a bank by applicable law, 
7 but subject always to the same limitations and 
8 restrictions that are applicable to the bank for the 
9 product or service by such applicable law and subject to 
10 the applicable provisions of the Financial Institutions 
11 Insurance Sales Law and rules of the Secretary.
12 (b) If this Act or the regulations adopted under this Act 
13fail to provide specific guidance in matters of corporate 
14governance, the provisions of the Business Corporation Act of 
151983 may be used, or if the savings bank is a limited liability 
16company, the provisions of the Limited Liability Company Act 
17shall be used.
18 (c) A savings bank may be organized as a limited liability 
19company, may convert to a limited liability company, or may 
20merge with and into a limited liability company, under the 
21applicable laws of this State and of the United States, 
22including any rules promulgated thereunder. A savings bank 
23organized as a limited liability company shall be subject to 
24the provisions of the Limited Liability Company Act in 
25addition to this Act, provided that if a provision of the 
26Limited Liability Company Act conflicts with a provision of 
 
 
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1this Act or with any rule of the Secretary, the provision of 
2this Act or the rule of the Secretary shall apply.
3 Any filing required to be made under the Limited Liability 
4Company Act shall be made exclusively with the Secretary, and 
5the Secretary shall possess the exclusive authority to 
6regulate the savings bank as provided in this Act.
7 Any organization as, conversion to, and merger with or 
8into a limited liability company shall be subject to the prior 
9approval of the Secretary.
10 A savings bank that is a limited liability company shall 
11be subject to all of the provisions of this Act in the same 
12manner as a savings bank that is organized in stock form.
13 The Secretary may promulgate rules to ensure that a 
14savings bank that is a limited liability company (i) is 
15operating in a safe and sound manner and (ii) is subject to the 
16Secretary's authority in the same manner as a savings bank 
17that is organized in stock form.
18(Source: P.A. 102-558, eff. 8-20-21.)

19 (205 ILCS 205/4002) (from Ch. 17, par. 7304-2)
20 Sec. 4002. Annual and special meetings. Dates of annual 
21meetings of members or stockholders shall be specified in the 
22bylaws. Failure to hold an annual meeting shall not cause a 
23forfeiture or dissolution of the savings bank. Special 
24meetings may be called by the board of directors, the holders 
25of not less than 25% of the outstanding capital stock shares, 
 
 
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1or by any other person as the bylaws may designate. The 
2Commissioner may also call a special meeting with not less 
3than 12 hours written or oral notice. Every annual or special 
4meeting shall be held at the business office of the savings 
5bank or, if the space is inadequate, in another place within 
6the same county as shall be specifically designated in the 
7notice of the meeting, or virtually. Unless expressly 
8prohibited by the articles of incorporation or bylaws and 
9subject to applicable requirements of this Act, the board of 
10directors may provide by resolution that members or 
11stockholders may attend, participate in, act in, and vote at 
12an annual meeting or special meeting through the use of a 
13conference telephone or interactive technology, including, but 
14not limited to, electronic transmission, internet usage, or 
15remote communication, by means of which all persons 
16participating in the meeting can communicate with each other. 
17Participation through the use of a conference telephone or 
18interactive technology shall constitute attendance, presence, 
19and representation in person at the annual meeting or special 
20meeting of the person or persons so participating and count 
21towards the quorum required to conduct business at the 
22meeting. The following conditions shall apply to any virtual 
23meeting of members or stockholders:
24 (a) the savings bank must internally possess or retain the 
25technological capacity to facilitate virtual meeting 
26attendance, participation, communication, and voting; and
 
 
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1 (b) members or stockholders must receive notice of the use 
2of a virtual meeting format and appropriate instructions for 
3joining, participating, and voting during the virtual meeting 
4at least 7 days before the virtual meeting.
5(Source: P.A. 86-1213.)

6 (205 ILCS 205/4003) (from Ch. 17, par. 7304-3)
7 Sec. 4003. Notice of meetings. 
8 (a) Notice of an annual meeting shall be published once 
9not fewer than 10 days nor more than 40 days before the date of 
10the meeting. The notice shall also be displayed at the place of 
11business of the savings bank in a manner to be prescribed by 
12the Commissioner. The notice must state the time, place, and 
13purpose of the meeting.
14 (b) For any special meeting or for any annual meeting that 
15is to consider any proposition that requires an affirmative 
16vote of two-thirds of the members or stockholders or any 
17proposition to amend the articles of incorporation of the 
18savings bank, the notice must be delivered personally, 
19electronically, or by mail to the holders of stock, capital 
20accounts, and membership entitled to notice of or to vote at 
21the meeting, by mail, postmarked between 10 and 40 days before 
22the date of the meeting, and must also be posted at the savings 
23bank's offices as if for an annual meeting, beginning on the 
24date notice is given. All notices must state the time, place, 
25and purpose of the meeting. If mailed, the notice shall be 
 
 
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1deemed to be delivered on the date on which it has been 
2postmarked. 
3(Source: P.A. 89-74, eff. 6-30-95.)

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

4
CUSTOMER CONSENT AND AUTHORIZATION 
5
FOR RELEASE OF FINANCIAL RECORDS 


6I, ......................................., hereby authorize 
7 (Name of Customer) 

8............................................................. 
9(Name of Financial Institution)

10............................................................. 
11(Address of Financial Institution)

12to disclose the following financial records:

13any and all information concerning my deposit, savings, money 
14market, certificate of deposit, individual retirement, 
15retirement plan, 401(k) plan, incentive plan, employee benefit 
16plan, mutual fund and loan accounts (including, but not 
17limited to, any indebtedness or obligation for which I am a 
18co-borrower, co-obligor, guarantor, or surety), and any and 
19all other accounts in which I have an interest and any other 
20information regarding me in the possession of the Financial 
 
 
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1Institution,

2to the Illinois Department of Human Services or the Illinois 
3Department of Healthcare and Family Services, or both ("the 
4Department"), for the following purpose(s):

5to aid in the initial determination or re-determination by the 
6State of Illinois of my eligibility for Medicaid long-term 
7care benefits, pursuant to applicable law. 

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

9....................... ...................... 
10(Date) (Signature of Customer) 

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

14 ...................... 
15 (Customer's birth date) 
16 (month/day/year) 

17The undersigned witness certifies that ................., 
18known to me to be the same person whose name is subscribed as 
19the customer to the foregoing Consent and Authorization, 
20appeared before me and the notary public and acknowledged 
21signing and delivering the instrument as his or her free and 
22voluntary act for the uses and purposes therein set forth. I 
 
 
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1believe him or her to be of sound mind and memory. The 
2undersigned witness also certifies that the witness is not an 
3owner, operator, or relative of an owner or operator of a 
4long-term care facility in which the customer is a patient or 
5resident. 

6Dated: ................. ...................... 
7 (Signature of Witness) 

8 ...................... 
9 (Print Name of Witness) 

10 ...................... 
11 ...................... 
12 (Address of Witness) 

13State of Illinois)
14 ) ss.
15County of .......)

16The undersigned, a notary public in and for the above county 
17and state, certifies that .........., known to me to be the 
18same person whose name is subscribed as the customer to the 
19foregoing Consent and Authorization, appeared before me 
20together with the witness, .........., in person and 
21acknowledged signing and delivering the instrument as the free 
 
 
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1and voluntary act of the customer for the uses and purposes 
2therein set forth. 

3Dated:....................................................... 
4Notary Public:............................................... 
5My commission expires:....................................... 

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

16 (205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
17 Sec. 6002. Investment in loans.  
18 (a) Subject to the regulations of the Commissioner, a 
19savings bank may loan funds as follows:
20  (1) On the security of deposit accounts, but no such 
21 loan shall exceed the withdrawal value of the pledged 
22 account.
23  (2) On the security of real estate: 
24   (A) of a value, determined in accordance with this 
25 Act, sufficient to provide good and ample security for 
 
 
SB3726- 124 -LRB103 38817 RTM 68954 b


1 the loan; 
2   (B) with a fee simple title or a leasehold title; 
3   (C) with the title established by evidence of 
4 title as is consistent with sound lending practices in 
5 the locality; 
6   (D) with the security interest in the real estate 
7 evidenced by an appropriate written instrument and the 
8 loan evidenced by a note, bond, or similar written 
9 instrument; a loan on the security of the whole of the 
10 beneficial interest in a land trust satisfies the 
11 requirements of this paragraph if the title to the 
12 land is held by a corporate trustee and if the real 
13 estate held in the land trust meets the other 
14 requirements of this subsection; 
15   (E) with a mortgage loan not to exceed 40 years.
16  (3) For the purpose of repair, improvement, 
17 rehabilitation, furnishing, or equipment of real estate.
18  (4) For the purpose of financing or refinancing an 
19 existing ownership interest in certificates of stock, 
20 certificates of beneficial interest, other evidence of an 
21 ownership interest in, or a proprietary lease from a 
22 corporation, trust, or partnership formed for the purpose 
23 of the cooperative ownership of real estate, secured by 
24 the assignment or transfer of certificates or other 
25 evidence of ownership of the borrower.
26  (5) Through the purchase of loans that, at the time of 
 
 
SB3726- 125 -LRB103 38817 RTM 68954 b


1 purchase, the savings bank could make in accordance with 
2 this Section and the bylaws.
3  (6) Through the purchase of installment contracts for 
4 the sale of real estate and title thereto that is subject 
5 to the contracts, but in each instance only if the savings 
6 bank, at the time of purchase, could make a mortgage loan 
7 of the same amount and for the same length of time on the 
8 security of the real estate.
9  (7) Through loans guaranteed or insured, wholly or in 
10 part, by the United States or any of its 
11 instrumentalities.
12  (8) Subject to regulations adopted by the 
13 Commissioner, through secured or unsecured loans for 
14 business, corporate, commercial, or agricultural purposes; 
15 provided that the total of all loans granted under this 
16 paragraph shall not exceed 15% of the savings bank's total 
17 assets unless a greater amount is authorized in writing by 
18 the Commissioner.
19  (9) For the purpose of manufactured home financing 
20 subject, however, to the regulation of the Commissioner. 
21 As used in this Section, "manufactured home" means a 
22 manufactured home as defined in subdivision (53) of 
23 Section 9-102 of the Uniform Commercial Code. 
24  (10) Through loans secured by the cash surrender value 
25 of any life insurance policy or any collateral that would 
26 be a legal investment under the terms of this Act if made 
 
 
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1 by the savings bank.
2  (11) Any provision of this Act or any other law, 
3 except for paragraph (18) of Section 6003, to the contrary 
4 notwithstanding, but subject to the Financial Institutions 
5 Insurance Sales Law and subject to the Commissioner's 
6 regulations, any savings bank may make any loan or 
7 investment or engage in any activity that it could make or 
8 engage in if it were organized under State law as a savings 
9 and loan association or under federal law as a federal 
10 savings and loan association or federal savings bank.
11  (12) A savings bank may issue letters of credit or 
12 other similar arrangements only as provided for by 
13 regulation of the Commissioner with regard to aggregate 
14 amounts permitted, take out commitments for stand-by 
15 letters of credit, underlying documentation and 
16 underwriting, legal limitations on loans of the savings 
17 bank, control and subsidiary records, and other procedures 
18 deemed necessary by the Commissioner.
19  (13) For the purpose of automobile financing, subject 
20 to the regulation of the Commissioner.
21  (14) For the purpose of financing primary, secondary, 
22 undergraduate, or postgraduate education.
23  (15) Through revolving lines of credit on the security 
24 of a first or junior lien on the borrower's personal 
25 residence, based primarily on the borrower's equity, the 
26 proceeds of which may be used for any purpose; those loans 
 
 
SB3726- 127 -LRB103 38817 RTM 68954 b


1 being commonly referred to as home equity loans.
2  (16) As secured or unsecured credit to cover the 
3 payment of checks, drafts, or other funds transfer orders 
4 in excess of the available balance of an account on which 
5 they are drawn, subject to the regulations of the 
6 Commissioner.
7  (17) Subject to the conditions and limitations imposed 
8 in the Illinois Department of Financial and Professional 
9 Regulation Division of Banking Interpretive Letter 2017-01 
10 (May 2, 2017), through the purchase of fixed rate annuity 
11 contracts. 
12 (b) For purposes of this Section, "real estate" includes a 
13manufactured home as defined in subdivision (53) of Section 
149-102 of the Uniform Commercial Code which is real property as 
15defined in Section 5-35 of the Conveyance and Encumbrance of 
16Manufactured Homes as Real Property and Severance Act. 
17(Source: P.A. 98-749, eff. 7-16-14.)

18 (205 ILCS 205/7005) (from Ch. 17, par. 7307-5)
19 Sec. 7005. Holders of deposit accounts. 
20 (a) Deposit accounts of a savings bank may be held as 
21follows: 
22 (1) by any individual in his own right, regardless of age 
23or marital status, or by 2 or more individuals; 
24 (2) by a fiduciary when authorized by law; 
25 (3) by a government or governmental instrumentality when 
 
 
SB3726- 128 -LRB103 38817 RTM 68954 b


1authorized by law; and 
2 (4) by any corporation or other person when not prohibited 
3by law.
4 (b) A savings bank may accept deposits made by a minor and 
5may open an account in the name of such minor and the rules and 
6regulations of such savings bank with respect to each such 
7deposit and account shall be as binding upon such minor as if 
8such minor were of full age and legal capacity. The receipt, 
9acquittance or order of payment of such minor on such account 
10or deposit or any part thereof shall be as binding upon such 
11minor as if such minor were of full age and legal capacity. 
12(Source: P.A. 86-1213.)

13 (205 ILCS 205/8002) (from Ch. 17, par. 7308-2)
14 Sec. 8002. Procedure to amend articles. 
15 (a) The procedure to effect an amendment of articles of 
16incorporation shall be as follows: 
17  (1) The board of directors shall adopt a resolution 
18 setting forth the proposed amendment and direct that it be 
19 submitted to a vote at an annual or special meeting of the 
20 members or stockholders. 
21  (2) The proposed amendment shall be set forth in the 
22 notice of meeting delivered mailed as prescribed in 
23 Section 4003 of this Act. 
24  (3) The proposed amendment shall be adopted upon 
25 receiving the affirmative vote of a majority of the votes 
 
 
SB3726- 129 -LRB103 38817 RTM 68954 b


1 entitled to be cast, unless the articles of incorporation 
2 set forth a requirement that amendments of the articles of 
3 incorporation shall be adopted by an affirmative vote of 
4 two-thirds of the total number of votes entitled to be 
5 cast.
6 (b) A report of proceedings, including the notice given, 
7the time of delivery mailing, the amendment adopted, the vote 
8thereon, and the total number of votes entitled to be cast, 
9verified by the president, vice president, or managing officer 
10and attested to by the secretary of the savings bank, shall be 
11filed with the Secretary within 5 business days after the 
12vote.
13 (c) Each adopted amendment shall be subject to the same 
14inquiry as the corresponding provision in the original 
15articles. If the Secretary approves an amendment he shall 
16issue to the savings bank a certificate setting forth the 
17amendment and his approval thereof. The Secretary shall 
18approve an amendment, or state any objections to an amendment, 
19within 30 days after the receipt of the amendment adopted by 
20the board. If no objections are specified by the Secretary 
21within that time frame, the amendment will be deemed to be 
22approved by the Secretary. The amendment shall become 
23effective upon issuance of the certificate.
24 (d) An amendment of the articles of incorporation approved 
25by the board of directors, the Secretary, and members as part 
26of merger, sale of substantially all assets, change in 
 
 
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1control, holding company reorganization, or mutual to stock 
2form conversion need not be approved under this Section.
3 (e) No amendment of articles of incorporation shall affect 
4any existing cause of action either in favor of or against the 
5savings bank or any pending action in which the savings bank 
6shall be a party or the existing rights of persons other than 
7members of the savings bank. 
8(Source: P.A. 97-492, eff. 1-1-12.)

9 (205 ILCS 205/8016) (from Ch. 17, par. 7308-16)
10 Sec. 8016. Procedure for conversion from a savings bank 
11charter. 
12 (a) Nothing in this Act shall be construed to require the 
13approval of State authority as a condition to the right of a 
14savings bank, pursuant to the laws of the United States or of 
15this State, to be converted into a national bank or any other 
16depository institution chartered under the laws and 
17regulations of this State or to merge with any other 
18depository institution chartered under the laws and 
19regulations of this State or with a national bank under a 
20national charter. Any savings bank operating under this Act 
21may convert to any other depository institution chartered 
22under the laws and regulations of this State or under the laws 
23and regulations of the United States in accordance with the 
24following requirements: 
25  (1) The converting savings bank shall notify the 
 
 
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1 Secretary of its intent to convert. Notice must should be 
2 submitted when the savings bank first submits a request to 
3 convert to the appropriate State or federal authorities, 
4 but in no case less than 30 days before the conversion. 
5 Approval of the conversion by the Secretary shall not be 
6 required except when the savings bank converts to a 
7 depository institution that is also chartered by the 
8 Secretary in which case the savings bank shall comply with 
9 State law and regulations applicable to the conversion to 
10 such depository institution. 
11  (2) The board of directors shall approve a plan of 
12 conversion by resolution adopted by majority vote of all 
13 of the directors.  
14  (3) Upon notice prescribed by subsection (a) of 
15 Section 4003 of this Act, the plan of conversion shall be 
16 adopted upon receiving in the affirmative two-thirds or 
17 more of the total number of votes that all members of the 
18 savings bank are entitled to cast. A report of 
19 proceedings, certified by the president or a vice 
20 president and attested by the secretary of the savings 
21 bank, shall be filed promptly with the Secretary. 
22  (4) The savings bank shall pay all accrued supervisory 
23 fees and other fees and assessments under this Act as of 
24 the date of conversion. 
25  (5) Upon completion of the conversion, the charter of 
26 the savings bank shall automatically terminate and the 
 
 
SB3726- 132 -LRB103 38817 RTM 68954 b


1 savings bank charter or a true copy of the charter shall be 
2 returned to the Secretary.
3 (b) (Blank).
4(Source: P.A. 97-492, eff. 1-1-12.)

5 (205 ILCS 205/11008) (from Ch. 17, par. 7311-8)
6 Sec. 11008. Unauthorized participation by convicted 
7individual. 
8 (a) Except with the prior written consent of the 
9Commissioner, no person who has been convicted of any criminal 
10offense involving dishonesty or a breach of trust may own or 
11control directly or indirectly more than 0.001% of the capital 
12stock of, receive benefit directly or indirectly from, or 
13participate directly or indirectly in any manner in the 
14affairs of a savings bank.
15 (b) A savings bank may not permit participation by a 
16person described in subsection (a).
17 (c)(Blank).  Whoever knowingly violates subsection (a) or 
18(b) is guilty of a Class 3 felony and may be fined not more 
19than $10,000 for each day of violation.
20(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)

21 (205 ILCS 205/1007.100 rep.)
22 (205 ILCS 205/11011 rep.)
23 Section 15. The Savings Bank Act is amended by repealing 
24Sections 1007.100 and 11011.

 
 
SB3726- 133 -LRB103 38817 RTM 68954 b


1 Section 99. Effective date. This Act takes effect upon 
2becoming law.
 
 
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1
INDEX

2
Statutes amended in order of appearance

3 205 ILCS 5/2from Ch. 17, par. 302
4 205 ILCS 5/5from Ch. 17, par. 311
5 205 ILCS 5/13from Ch. 17, par. 320
6 205 ILCS 5/14from Ch. 17, par. 321
7 205 ILCS 5/15from Ch. 17, par. 322
8 205 ILCS 5/16from Ch. 17, par. 323
9 205 ILCS 5/16.5
10 205 ILCS 5/20from Ch. 17, par. 327
11 205 ILCS 5/32.1from Ch. 17, par. 340
12 205 ILCS 5/40from Ch. 17, par. 350
13 205 ILCS 5/48
14 205 ILCS 5/48.1from Ch. 17, par. 360
15 205 ILCS 5/48.2from Ch. 17, par. 360.1
16 205 ILCS 5/49from Ch. 17, par. 361
17 205 ILCS 5/78from Ch. 17, par. 390
18 205 ILCS 5/80from Ch. 17, par. 392
19 205 ILCS 205/1008from Ch. 17, par. 7301-8
20 205 ILCS 205/4002from Ch. 17, par. 7304-2
21 205 ILCS 205/4003from Ch. 17, par. 7304-3
22 205 ILCS 205/4013from Ch. 17, par. 7304-13
23 205 ILCS 205/6002from Ch. 17, par. 7306-2
24 205 ILCS 205/7005from Ch. 17, par. 7307-5
25 205 ILCS 205/8002from Ch. 17, par. 7308-2
 
 
SB3726- 135 -LRB103 38817 RTM 68954 b