SB 1797 — DIGITAL ASSETS & CONS PROT ACT

The Department may establish fees by rule, including SB1797 Enrolled - 18 - LRB104 09833 BAB 19901 b in the following categories:

and SB1797 Engrossed - 17 - LRB104 09833 BAB 19901 b (4) such other categories as may be required to administer this Act.

Each registrant's pro rata SB1797 Enrolled - 19 - LRB104 09833 BAB 19901 b share of the transaction-based assessment shall be the percentage that the total volume of digital asset transactions conducted on behalf of residents by the registrant bears to the total volume of digital asset transactions by all registrants in Illinois.

Each SB1797 Engrossed - 18 - LRB104 09833 BAB 19901 b registrant's pro rata share of the custody-based assessment shall be the percentage that the total United States dollar value of digital assets held in custody or controlled by the registrant for residents bears to the total United States dollar value held in custody or controlled by all registrants in Illinois for residents.

(a) When engaging in digital asset business activity with SB1797 Enrolled - 20 - LRB104 09833 BAB 19901 b a resident, a covered person shall provide to a resident the customer disclosures required by subsection (b) and any additional disclosures the Department by rule determines to be necessary and appropriate for the protection of residents.

The Department may determine by rule the time and form required SB1797 Engrossed - 19 - LRB104 09833 BAB 19901 b for disclosures.

(i) Up to the full United States dollar equivalent of digital assets placed under the custody or control of, or purchased from, the SB1797 Enrolled - 21 - LRB104 09833 BAB 19901 b covered person as of the date of the placement or purchase, including the maximum amount provided by insurance under the Federal Deposit Insurance Corporation or National Credit Union Administration or otherwise available from the SB1797 Engrossed - 20 - LRB104 09833 BAB 19901 b Securities Investor Protection Corporation.

SB1797 Enrolled - 22 - LRB104 09833 BAB 19901 b (3) The irrevocability of a transfer or exchange and any exception to irrevocability.

(A) The covered person's liability for an unauthorized, mistaken, or accidental transfer or SB1797 Engrossed - 21 - LRB104 09833 BAB 19901 b exchange.

SB1797 Enrolled - 23 - LRB104 09833 BAB 19901 b (7) The resident's right to receive a receipt, trade ticket, or other evidence of the transfer or exchange.

(8) The resident's right to at least 14 days' prior notice of a change in the covered person's fee schedule, other terms and conditions that have a material impact on SB1797 Engrossed - 22 - LRB104 09833 BAB 19901 b digital asset business activity with the resident, or the policies applicable to the resident's account.

(c) Except as otherwise provided in subsection (d), at the SB1797 Enrolled - 24 - LRB104 09833 BAB 19901 b conclusion of a digital asset transaction with, or on behalf of, a resident, a covered person shall provide the resident a confirmation in a record which contains all of the following:

(1) The name and contact information of the covered person, including the toll-free telephone number required SB1797 Engrossed - 23 - LRB104 09833 BAB 19901 b under Section 5-20.

(2) segregate such digital assets from the other SB1797 Enrolled - 25 - LRB104 09833 BAB 19901 b assets of the covered person;

SB1797 Engrossed - 24 - LRB104 09833 BAB 19901 b (b) If a covered person violates subsection (a), then the property interests of the persons in the digital asset are pro rata property interests in the type of digital asset to which the persons are entitled without regard to the time the persons became entitled to the digital asset or the covered person obtained control of the digital asset.

101 et seq.) for bankruptcy or reorganization, the filing of a petition by or against the covered person for receivership, the commencement of any other judicial or administrative proceeding for its SB1797 Enrolled - 26 - LRB104 09833 BAB 19901 b dissolution or reorganization, or an action by a creditor against the covered person who is not a beneficiary of this statutory trust.

No digital asset impressed with a trust pursuant to this subsection shall be subject to attachment, levy of execution, or sequestration by order of any court, SB1797 Engrossed - 25 - LRB104 09833 BAB 19901 b except for a beneficiary of this statutory trust.

and (7) any rules as may be as may be necessary and SB1797 Enrolled - 27 - LRB104 09833 BAB 19901 b appropriate for the protection of residents or necessary to effectuate the purposes of this Section.

(a)(1) Except as provided for under paragraph (2) of this SB1797 Engrossed - 26 - LRB104 09833 BAB 19901 b subsection, a covered exchange, before listing or offering a digital asset that the covered exchange can exchange on behalf of a resident, shall certify on a form provided by the Department that the covered exchange has done the following:

(E) Established policies and procedures to cease SB1797 Enrolled - 28 - LRB104 09833 BAB 19901 b listing or offering the digital asset, including notification to affected consumers and counterparties.

SB1797 Engrossed - 27 - LRB104 09833 BAB 19901 b (2) Certification by a covered exchange shall not be required for any digital asset approved for listing on or before the effective date of this Act by the New York Department of Financial Services pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations, if the covered exchange provides notification to the Department on a form provided by the Department.

Compliance with this paragraph shall be determined by factors, including, but SB1797 Enrolled - 29 - LRB104 09833 BAB 19901 b not limited to, all of the following:

SB1797 Engrossed - 28 - LRB104 09833 BAB 19901 b (iv) Accessibility of appropriate pricing.

(a) A covered person shall prominently display on its SB1797 Enrolled - 30 - LRB104 09833 BAB 19901 b internet website a toll-free telephone number through which a resident can contact the covered person for requests for assistance and receive live customer assistance, subject to any rules adopted by the Department.

(b) A covered person shall implement reasonable policies SB1797 Engrossed - 29 - LRB104 09833 BAB 19901 b and procedures for accepting, processing, investigating, and responding to requests for assistance in a timely and effective manner.

Unless exempt from registration under this Act, no person engaged in or offering to engage in any act or service for which a SB1797 Enrolled - 31 - LRB104 09833 BAB 19901 b registration under this Act is required may bring or maintain any action in any court to collect compensation for the performance of the registrable services without alleging and proving that he or she was the holder of a valid registration under this Act at all times during the performance of those SB1797 Engrossed - 30 - LRB104 09833 BAB 19901 b services.

(a) An applicant, before submitting an application, shall SB1797 Enrolled - 32 - LRB104 09833 BAB 19901 b create and a registrant, during registration, shall maintain, implement, update, and enforce, written compliance policies and procedures for all of the following:

SB1797 Engrossed - 31 - LRB104 09833 BAB 19901 b (3) A disaster recovery program.

(10) Any other compliance program, policy, or SB1797 Enrolled - 33 - LRB104 09833 BAB 19901 b procedure the Department establishes by rule as necessary for the protection of residents or for the safety and soundness of the registrant's business or to effectuate the purposes of this Act.

(b) A policy required by subsection (a) shall be SB1797 Engrossed - 32 - LRB104 09833 BAB 19901 b maintained in a record and designed to be adequate for a registrant's contemplated digital asset business activity with or on behalf of residents, considering the circumstances of all participants and the safe operation of the activity.

(d) A registrant's anti-money laundering and countering the financing of terrorism program shall include, at a SB1797 Enrolled - 34 - LRB104 09833 BAB 19901 b minimum, all of the following:

(2) Procedures, in accordance with federal law or SB1797 Engrossed - 33 - LRB104 09833 BAB 19901 b guidance published by federal agencies responsible for enforcing federal law, pertaining to money laundering and financing of terrorist activity.

SB1797 Enrolled - 35 - LRB104 09833 BAB 19901 b (B) Implementing and maintaining a written policy or policies, approved at least annually by an executive officer or the registrant's board of directors, or an appropriate committee thereof, or equivalent governing body, setting forth the registrant's policies and SB1797 Engrossed - 34 - LRB104 09833 BAB 19901 b procedures for the protection of its information systems and nonpublic information stored on those information systems.

SB1797 Enrolled - 36 - LRB104 09833 BAB 19901 b (E) risk assessment;

SB1797 Engrossed - 35 - LRB104 09833 BAB 19901 b (J) training and monitoring;

A person shall not SB1797 Enrolled - 37 - LRB104 09833 BAB 19901 b engage in digital asset business activity, or hold itself out as being able to engage in digital asset business activity, with or on behalf of a resident unless the person is registered in this State by the Department under this Article, or the person is exempt from registration pursuant to Section 1-10.

SB1797 Engrossed - 36 - LRB104 09833 BAB 19901 b Section 15-10.

(B) The legal name, any former or fictitious name, and the residential and business United States Postal Service address of any executive officer and responsible individual of the applicant and any person SB1797 Enrolled - 38 - LRB104 09833 BAB 19901 b that has control of the applicant.

(C) A description of the current and former business of the applicant and any affiliate of the applicant for the 5 years before the application is submitted, or, if the business has operated for less SB1797 Engrossed - 37 - LRB104 09833 BAB 19901 b than 5 years, for the time the business has operated, including its products and services, associated internet website addresses and social media pages, principal place of business, projected user base, and specific marketing targets.

SB1797 Enrolled - 39 - LRB104 09833 BAB 19901 b (ii) Any executive officer of the applicant.

SB1797 Engrossed - 38 - LRB104 09833 BAB 19901 b (v) Any affiliate of the applicant.

SB1797 Enrolled - 40 - LRB104 09833 BAB 19901 b (iv) A person that has control over the applicant.

(H) The name and United States Postal Service address of any bank or credit union in which the SB1797 Engrossed - 39 - LRB104 09833 BAB 19901 b applicant and any affiliates plan to deposit funds obtained by digital asset business activity.

(M) A copy of the certificate, or a detailed summary acceptable to the Department, of coverage for any liability, casualty, business interruption, or cybersecurity insurance policy maintained by the applicant for itself, an executive officer, a SB1797 Enrolled - 41 - LRB104 09833 BAB 19901 b responsible individual, an affiliate, or the applicant's users.

(N) If applicable, the date on which and the state in which the applicant is formed and a copy of a current certificate of good standing issued by that SB1797 Engrossed - 40 - LRB104 09833 BAB 19901 b state.

(R) If the applicant is required to register with SB1797 Enrolled - 42 - LRB104 09833 BAB 19901 b the Financial Crimes Enforcement Network of the United States Department of the Treasury as a money service business, evidence of the registration.

SB1797 Engrossed - 41 - LRB104 09833 BAB 19901 b (T) If available, for any executive officer and responsible individual of the applicant, for the 10 years before the application is submitted, employment history and history of any investigation of the individual or legal proceeding to which the individual was a party.

SB1797 Enrolled - 43 - LRB104 09833 BAB 19901 b (C) The competence, experience, character, and general fitness of each executive officer and director, each responsible individual, and any person that has control of the applicant.

(2) On receipt of a completed application, the Department SB1797 Engrossed - 42 - LRB104 09833 BAB 19901 b may investigate the business premises of an applicant or an affiliate of the applicant or require the submission of any other documents or information the Department deems relevant to the application.

If the Department does not receive notice from the applicant that the applicant accepts conditions specified SB1797 Enrolled - 44 - LRB104 09833 BAB 19901 b by the Department within 31 days following the Department's notice of the conditions, the application shall be deemed withdrawn.

(2) The Secretary may impose conditions on a registration if the Secretary determines that those conditions are SB1797 Engrossed - 43 - LRB104 09833 BAB 19901 b necessary or appropriate.

(g)(1) The Department may issue a conditional registration to an applicant who holds or maintains a registration to conduct virtual currency business activity in the State of New York pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations, or a charter as a New York State limited purpose trust company with approval to conduct virtual SB1797 Enrolled - 45 - LRB104 09833 BAB 19901 b currency business under the New York Banking Law, if the registration or approval was issued no later than the effective date of this Act and the applicant pays all appropriate fees and complies with the requirements of this Act.

SB1797 Engrossed - 44 - LRB104 09833 BAB 19901 b (2) A conditional registration issued pursuant to this subsection shall expire at the earliest of the following:

The application shall contain all of the SB1797 Enrolled - 46 - LRB104 09833 BAB 19901 b following:

(1) Either a copy of the registrant's most recent reviewed annual financial statement, if the gross revenue generated by the registrant's digital asset business activity in this State was not more than $2,000,000 for SB1797 Engrossed - 45 - LRB104 09833 BAB 19901 b the fiscal year ending before the anniversary date of issuance of its registration under this Act, or a copy of the registrant's most recent audited annual financial statement, if the registrant's digital asset business activity in this State amounted to more than $2,000,000, for the fiscal year ending before the anniversary date.

SB1797 Enrolled - 47 - LRB104 09833 BAB 19901 b (B) Any material litigation related to the registrant's digital asset business activity and involving the registrant or an executive officer, responsible individual, or affiliate of the registrant.

SB1797 Engrossed - 46 - LRB104 09833 BAB 19901 b (C) Any federal, state, or foreign investigation involving the registrant or an executive officer, responsible individual, or affiliate of the registrant.

(B) The total number of residents for whom the SB1797 Enrolled - 48 - LRB104 09833 BAB 19901 b registrant had custody or control of United States dollar equivalent of digital assets on that date.

(8) Evidence that the registrant is in compliance with SB1797 Engrossed - 47 - LRB104 09833 BAB 19901 b Section 20-5.

A registrant ceasing an activity or SB1797 Enrolled - 49 - LRB104 09833 BAB 19901 b activities regulated by this Act and desiring to no longer be registered shall so inform the Department in writing and, at the same time, convey any registration issued and all other symbols or indicia of registration.

The registrant shall include a plan for the withdrawal from regulated business, SB1797 Engrossed - 48 - LRB104 09833 BAB 19901 b including a timetable for the disposition of the business, and comply with the surrender guidelines or requirements of the Department.

(2) Security deposited under this Section shall be for the benefit of a claim against the registrant on account SB1797 Enrolled - 50 - LRB104 09833 BAB 19901 b of the registrant's digital asset business activity with or on behalf of a resident.

(3) Security deposited under this Section shall cover claims for the period the Department specifies by rule and for an additional period the Department specifies after SB1797 Engrossed - 49 - LRB104 09833 BAB 19901 b the registrant ceases to engage in digital asset business activity with or on behalf of a resident.

SB1797 Enrolled - 51 - LRB104 09833 BAB 19901 b (1) The composition of the registrant's total assets, including the position, size, quality, liquidity, risk exposure, and price volatility of each type of asset.

(2) The composition of the registrant's total liabilities, including the size and repayment timing of SB1797 Engrossed - 50 - LRB104 09833 BAB 19901 b each type of liability.

A registrant shall submit evidence satisfactory to the SB1797 Enrolled - 52 - LRB104 09833 BAB 19901 b Department that it has additional capital or liquidity required pursuant to this subsection not later than 15 days after the registrant receives notice in a record of the required increase.

SB1797 Engrossed - 51 - LRB104 09833 BAB 19901 b Section 20-10.

(B) The directors, officers, and employees of a covered person, or agent of a covered person, being examined by the Department shall exhibit to the Department, on request, any or all of the covered person's accounts, books, correspondence, memoranda, papers, and other records and shall otherwise facilitate the examination so far as it may be in their SB1797 Enrolled - 53 - LRB104 09833 BAB 19901 b power to do so.

SB1797 Engrossed - 52 - LRB104 09833 BAB 19901 b (2) The Department may examine a covered person, its affiliate, or service provider pursuant to this paragraph without prior notice to the covered person, affiliate, or service provider.

SB1797 Enrolled - 54 - LRB104 09833 BAB 19901 b (i) the parties to the transaction that are customers or account holders of the registrant;

SB1797 Engrossed - 53 - LRB104 09833 BAB 19901 b (2) The aggregate number of transactions and aggregate value of transactions by the registrant with, or on behalf of, the resident and for the registrant's account in this State expressed in United States dollar equivalent of digital assets for the previous 12 calendar months.

(b) A registrant shall maintain records required by SB1797 Enrolled - 55 - LRB104 09833 BAB 19901 b subsection (a) in a form that enables the Department to determine whether the registrant is in compliance with this Act, any court order, and the laws of this State.

(c) If a registrant maintains records outside this State that pertain to transactions with or on behalf of a resident, SB1797 Engrossed - 54 - LRB104 09833 BAB 19901 b the registrant shall make the records available to the Department not later than 3 days after request, or, on a determination of good cause by the Department, in its sole discretion, at a later time.

(1) A material change in information in the SB1797 Enrolled - 56 - LRB104 09833 BAB 19901 b application for a registration under this Act or the most recent renewal report of the registrant under this Act.

SB1797 Engrossed - 55 - LRB104 09833 BAB 19901 b (3) A change of an affiliate, executive officer, responsible individual, or person in control of the registrant.

(2) A person has control over a registrant if the person's voting power in the registrant constitutes or SB1797 Enrolled - 57 - LRB104 09833 BAB 19901 b will constitute at least 25% of the total voting power of the registrant.

(3) There is a rebuttable presumption of control if the person's voting power in another person constitutes or will constitute at least 10% of the total voting power of SB1797 Engrossed - 56 - LRB104 09833 BAB 19901 b the other person and the other person's voting power in the registrant constitutes at least 10% of the total voting power of the registrant.

SB1797 Enrolled - 58 - LRB104 09833 BAB 19901 b (3) It is reasonable to believe that, if the person acquires control of the registrant, the proposed person to be in control and the registrant will comply with all applicable provisions of this Act and any rules or order issued under this Act.

SB1797 Engrossed - 57 - LRB104 09833 BAB 19901 b (4) Any plans by the proposed person to be in control to change the business, corporate structure, or management of the registrant are not detrimental to the safety and soundness of the registrant.

If the application is deemed denied, the registrant shall abandon the proposed change in control or cease digital asset business activity with or on behalf of SB1797 Enrolled - 59 - LRB104 09833 BAB 19901 b residents.

SB1797 Engrossed - 58 - LRB104 09833 BAB 19901 b (h) If a change in control of a registrant requires approval of another regulatory agency, and the action of the other agency conflicts with that of the Department, the Department shall confer with the other agency.

SB1797 Enrolled - 60 - LRB104 09833 BAB 19901 b (b) If a proposed merger or consolidation would change the control of a registrant, the registrant shall comply with Section 20-30 and this Section.

(c) The Department, in accordance with Section 15-10, shall approve, conditionally approve, or deny an application SB1797 Engrossed - 59 - LRB104 09833 BAB 19901 b for approval of a merger or consolidation of a registrant.

(f) If a merger or consolidation of a registrant and SB1797 Enrolled - 61 - LRB104 09833 BAB 19901 b another person requires approval of another regulatory agency, and the action of the other agency conflicts with that of the Department, the Department shall confer with the other agency.

If the proposed merger or consolidation cannot be completed because the conflict cannot be resolved, the registrant shall SB1797 Engrossed - 60 - LRB104 09833 BAB 19901 b abandon the merger or consolidation or cease digital asset business activity with or on behalf of residents.

The Secretary shall be authorized at all times to maintain staff and facilities adequate to receive, record, and investigate complaints and inquiries made by any person concerning this Act and any covered persons, affiliates, and service providers SB1797 Enrolled - 62 - LRB104 09833 BAB 19901 b under this Act.

SB1797 Engrossed - 61 - LRB104 09833 BAB 19901 b Section 20-45.

and (C) any other documents, information, or evidence the Secretary deems relevant to the inquiry or SB1797 Enrolled - 63 - LRB104 09833 BAB 19901 b investigation, regardless of the location, possession, control, or custody of the documents, information, or evidence.

(2) For the purposes of investigating violations or complaints arising under this Act or for the purposes of SB1797 Engrossed - 62 - LRB104 09833 BAB 19901 b examination, the Secretary may review, investigate, or examine any covered person, affiliate, service provider, individual, or person subject to this Act as often as necessary in order to carry out the purposes of this Act.

The Secretary shall have access to those books and records and interview the officers, principals, employees, independent contractors, agents, and customers of the covered person, affiliate, service provider, individual, or person subject SB1797 Enrolled - 64 - LRB104 09833 BAB 19901 b to this Act concerning their business.

(4) Each covered person, affiliate, service provider, individual, or person subject to this Act shall make or compile reports or prepare other information as directed by the Secretary in order to carry out the purposes of this SB1797 Engrossed - 63 - LRB104 09833 BAB 19901 b Section, including, but not limited to:

Unless the Secretary has reasonable grounds to believe the documents or records of the covered person or person under examination or investigation have been or are at risk of being altered or destroyed for purposes of concealing a SB1797 Enrolled - 65 - LRB104 09833 BAB 19901 b violation of this Act, the covered person or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.

(6) In order to carry out the purposes of this SB1797 Engrossed - 64 - LRB104 09833 BAB 19901 b Section, the Secretary may:

or (E) accept audit reports made by an independent SB1797 Enrolled - 66 - LRB104 09833 BAB 19901 b certified public accountant for the covered person, affiliate, service provider, individual, or person subject to this Act in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in SB1797 Engrossed - 65 - LRB104 09833 BAB 19901 b the report of the examination, report of investigation, or other writing of the Secretary.

SB1797 Enrolled - 67 - LRB104 09833 BAB 19901 b (3) Requesting the court to appoint a receiver for the assets of a person doing digital asset business activity with or on behalf of a resident.

(4) Requesting the court to issue temporary, preliminary, or permanent injunctive relief against a SB1797 Engrossed - 66 - LRB104 09833 BAB 19901 b person doing digital asset business activity with or on behalf of a resident.

SB1797 Enrolled - 68 - LRB104 09833 BAB 19901 b Section 20-55.

SB1797 Engrossed - 67 - LRB104 09833 BAB 19901 b (1) The covered person or person violates this Act, a rule adopted or order issued under this Act, or a State or federal law or regulation that applies to digital asset business activity of the violator with or on behalf of a resident.

SB1797 Enrolled - 69 - LRB104 09833 BAB 19901 b (4) An agency of the United States or another state takes an action against the covered person or person that would constitute an enforcement action if the Department had taken the action.

(5) The covered person or person is convicted of a SB1797 Engrossed - 68 - LRB104 09833 BAB 19901 b crime related to its digital asset business activity with or on behalf of a resident or involving fraud or felonious activity that, as determined by the Department, makes the covered person or person unsuitable to engage in digital asset business activity.

(D) The covered person or person applies for, or permits the appointment of, a receiver, trustee, or other agent of a court for itself or for a substantial SB1797 Enrolled - 70 - LRB104 09833 BAB 19901 b part of its assets.

(b) If the Secretary finds, as the result of examination, investigation, or review of reports submitted by a registrant, SB1797 Engrossed - 69 - LRB104 09833 BAB 19901 b that the business and affairs of a registrant are not being conducted in accordance with this Act, the Secretary may notify the registrant of the correction necessary.

(B) A person subject to an enforcement action SB1797 Enrolled - 71 - LRB104 09833 BAB 19901 b pursuant to this subsection shall have the right to an expedited post-action hearing by the Department unless the person has waived the hearing.

(2)(A) The Department may take an enforcement action, other than the imposition of a civil penalty under Section 20-70, after notice and without a prior hearing if the circumstances require action before a hearing can be held.

(2)(A) The Department may take an enforcement action, other than the imposition of a civil penalty under Section SB1797 Engrossed - 70 - LRB104 09833 BAB 19901 b 20-70, after notice and without a prior hearing if the circumstances require action before a hearing can be held.

(B) A person subject to an enforcement action pursuant to this subsection shall have the right to an expedited post-action hearing by the Department unless the person has waived the hearing.

and (3) provision for apportioning costs among parties to SB1797 Enrolled - 72 - LRB104 09833 BAB 19901 b the appeal.

(b) All final administrative decisions of the Department under this Act, all amendments and modifications of final administrative decisions, and any rules adopted by the Department pursuant to this Act shall be subject to judicial SB1797 Engrossed - 71 - LRB104 09833 BAB 19901 b review pursuant to the provisions of the Administrative Review Law.

(d) A civil penalty under this Section is cumulative to any civil penalties enforceable by the Department under any SB1797 Enrolled - 73 - LRB104 09833 BAB 19901 b other law.

(a) The Secretary shall have the power to issue and to serve subpoenas and subpoenas duces tecum to compel the SB1797 Engrossed - 72 - LRB104 09833 BAB 19901 b attendance of witnesses and the production of all books, accounts, records, and other documents and materials relevant to an examination or investigation.

The court may grant other relief, including, but not limited to, the restraint, by injunction or appointment of a receiver, of any transfer, pledge, assignment, or other disposition of the person's assets or any concealment, alteration, SB1797 Enrolled - 74 - LRB104 09833 BAB 19901 b destruction, or other disposition of books, accounts, records, or other documents and materials as the court deems appropriate, until the person has fully complied with the subpoena or subpoena duces tecum and the Secretary has completed an investigation or examination.

SB1797 Engrossed - 73 - LRB104 09833 BAB 19901 b (c) If it appears to the Secretary that the compliance with a subpoena or subpoena duces tecum issued or caused to be issued by the Secretary pursuant to this Section is essential to an investigation or examination, the Secretary, in addition to the other remedies provided for in this Act, may, through the Attorney General or the State's Attorney of the county in which the subpoenaed person resides or has its principal place of business, apply for relief to the circuit court of the county.

(d) In addition, the Secretary may, through the Attorney General or the State's Attorney of the applicable county, seek a writ of attachment or an equivalent order from the circuit court having jurisdiction over the person who has refused to obey a subpoena, who has refused to give testimony, or who has refused to produce the matters described in the subpoena duces SB1797 Enrolled - 75 - LRB104 09833 BAB 19901 b tecum.

SB1797 Engrossed - 74 - LRB104 09833 BAB 19901 b (1) If a person violates any provision of this Act, a rule or final order, or condition imposed in writing by the Department, the Department through the Attorney General or the State's Attorney of the county in which any such violation occurs may bring an action in the circuit court to enjoin the acts or practices or to enforce compliance with this Act or any rule or order adopted pursuant to this Act.

No action at law or in equity may SB1797 Enrolled - 76 - LRB104 09833 BAB 19901 b be maintained by any party against the Secretary, a receiver, monitor, conservator, or other designated fiduciary or officer of the court, by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the SB1797 Engrossed - 75 - LRB104 09833 BAB 19901 b circuit court.

(a) Confidential supervisory information shall, unless made a matter of public record, not be subject to disclosure under the Freedom of Information Act, and shall only be SB1797 Enrolled - 77 - LRB104 09833 BAB 19901 b subject to disclosure pursuant to subpoena or court order as provided in subsection (e).

(b) All records of communications or summaries of communications between employees, agents, or representatives of the Department and employees, agents, or representatives of SB1797 Engrossed - 76 - LRB104 09833 BAB 19901 b other governmental agencies, a provider of any multistate licensing system, or associations or organizations representing federal, state, or local law enforcement or regulatory agencies or providers of any multistate licensing system, pursuant to any regulatory or supervision activity under this Act (1) shall not be subject to disclosure under the Freedom of Information Act, and (2) to the extent the records contain confidential supervisory information, shall only be subject to disclosure pursuant to subpoena or court order as provided in subsection (e).

(d) The sharing of any confidential supervisory information under this Act with governmental agencies, providers of any multistate licensing system, or associations SB1797 Enrolled - 78 - LRB104 09833 BAB 19901 b or organizations consisting of employees, agents, or representatives of such federal, state, or local law enforcement or regulatory agencies, shall not result in the loss of privilege arising under federal or state law, or the loss of confidentiality protections provided by federal law or SB1797 Engrossed - 77 - LRB104 09833 BAB 19901 b state law, and are only subject to disclosure pursuant to subpoena or court order as provided in subsection (e).

Any person upon whom a demand SB1797 Enrolled - 79 - LRB104 09833 BAB 19901 b for production of confidential supervisory information is made, whether by subpoena, order, or other judicial or administrative process, must withhold production of the confidential supervisory information and must notify the Secretary of the demand, at which time the Secretary is SB1797 Engrossed - 78 - LRB104 09833 BAB 19901 b authorized to intervene for the purpose of enforcing the limitations of this Section or seeking the withdrawal or termination of the attempt to compel production of the confidential supervisory information.

The Secretary may authorize a party who obtained the records for use in one case to provide them to another party in another case, subject to SB1797 Enrolled - 80 - LRB104 09833 BAB 19901 b any conditions that the Secretary may impose on either or both parties.

The requester shall promptly notify other parties to a case of the release of confidential supervisory information obtained and, upon entry of a protective order, shall provide copies of confidential supervisory information to the other SB1797 Engrossed - 79 - LRB104 09833 BAB 19901 b parties.

SB1797 Enrolled - 81 - LRB104 09833 BAB 19901 b Section 30-10.

(a) In addition to such powers and rulemaking authority as may be prescribed elsewhere in this Act or other financial laws administered by the Department, the Department is hereby authorized and empowered to adopt rules consistent with the SB1797 Engrossed - 80 - LRB104 09833 BAB 19901 b purposes of this Act, including, but not limited to:

(5) rules in connection with the activities of covered persons, affiliates, and service providers as may be necessary and appropriate for the safety and soundness of such covered persons and affiliates and the stability of the financial system in this State.State;

(b)and The(6) Secretaryrules isin herebyconnection authorizedwith andthe empoweredadoption toof makereciprocity specificagreements rulings,between demands,the Department and findingsthe thatappropriate helicensing oragency sheof deemsanother necessarystate forto theregister propera conductcovered ofperson theon registrantsan andexpedited affiliatesbasis. thereof.

(b) The Secretary is hereby authorized and empowered to SB1797 Enrolled - 82 - LRB104 09833 BAB 19901 b make specific rulings, demands, and findings that he or she deems necessary for the proper conduct of the registrants and affiliates thereof.

(a) It shall be unlawful to engage in any device, subterfuge, or pretense to willfully evade or attempt to evade SB1797 Engrossed - 81 - LRB104 09833 BAB 19901 b the requirements of this Act or any rule or order issued by the Department hereunder.

SB1797 Enrolled - 83 - LRB104 09833 BAB 19901 b Section 35-15.

SB1797 Engrossed - 82 - LRB104 09833 BAB 19901 b (c) A covered exchange shall not be considered in violation of Section 5-15 until January 1, 2027.

(a) All information determined to be confidential SB1797 Enrolled - 84 - LRB104 09833 BAB 19901 b under Section 4002 of the Technology Advancement and Development Act.

(c) Applications, related documents, and medical records received by the Experimental Organ Transplantation Procedures Board and any and all documents or other records prepared by the Experimental Organ Transplantation SB1797 Engrossed - 83 - LRB104 09833 BAB 19901 b Procedures Board or its staff relating to applications it has received.

(h) Information the disclosure of which is exempted SB1797 Enrolled - 85 - LRB104 09833 BAB 19901 b under the State Officials and Employees Ethics Act, and records of any lawfully created State or local inspector general's office that would be exempt if created or obtained by an Executive Inspector General's office under that Act.

SB1797 Engrossed - 84 - LRB104 09833 BAB 19901 b (j) Information and data concerning the distribution of surcharge moneys collected and remitted by carriers under the Emergency Telephone System Act.

(n) Defense budgets and petitions for certification of compensation and expenses for court appointed trial SB1797 Enrolled - 86 - LRB104 09833 BAB 19901 b counsel as provided under Sections 10 and 15 of the Capital Crimes Litigation Act (repealed).

(p) Security portions of system safety program plans, SB1797 Engrossed - 85 - LRB104 09833 BAB 19901 b investigation reports, surveys, schedules, lists, data, or information compiled, collected, or prepared by or for the Department of Transportation under Sections 2705-300 and 2705-616 of the Department of Transportation Law of the Civil Administrative Code of Illinois, the Regional Transportation Authority under Section 2.11 of the Regional Transportation Authority Act, or the St.

(u) Records and information provided to an independent SB1797 Enrolled - 87 - LRB104 09833 BAB 19901 b team of experts under the Developmental Disability and Mental Health Safety Act (also known as Brian's Law).

and databases under the Firearm Concealed Carry Act, records of the Concealed SB1797 Engrossed - 86 - LRB104 09833 BAB 19901 b Carry Licensing Review Board under the Firearm Concealed Carry Act, and law enforcement agency objections under the Firearm Concealed Carry Act.

(y) Confidential information under the Adult Protective Services Act and its predecessor enabling statute, the Elder Abuse and Neglect Act, including information about the identity and administrative finding against any caregiver of a verified and substantiated SB1797 Enrolled - 88 - LRB104 09833 BAB 19901 b decision of abuse, neglect, or financial exploitation of an eligible adult maintained in the Registry established under Section 7.5 of the Adult Protective Services Act.

SB1797 Engrossed - 87 - LRB104 09833 BAB 19901 b (bb) Information which is or was prohibited from disclosure by the Juvenile Court Act of 1987.

SB1797 Enrolled - 89 - LRB104 09833 BAB 19901 b (ii) Information which is exempted from disclosure under Section 2505-800 of the Department of Revenue Law of the Civil Administrative Code of Illinois.

(kk) Information prohibited from disclosure under the SB1797 Engrossed - 88 - LRB104 09833 BAB 19901 b Seizure and Forfeiture Reporting Act.

(qq) Information and records held by the Department of SB1797 Enrolled - 90 - LRB104 09833 BAB 19901 b Public Health and its authorized representatives collected under the Reproductive Health Act.

(tt) Recordings made under the Children's Advocacy Center Act, except to the extent authorized under that SB1797 Engrossed - 89 - LRB104 09833 BAB 19901 b Act.

SB1797 Enrolled - 91 - LRB104 09833 BAB 19901 b (bbb) Information that is prohibited from disclosure by the Illinois Police Training Act and the Illinois State Police Act.

(ddd) Information prohibited from being disclosed under Section 35 of the Address Confidentiality for Victims of Domestic Violence, Sexual Assault, Human SB1797 Engrossed - 90 - LRB104 09833 BAB 19901 b Trafficking, or Stalking Act.

(iii) Data exempt from disclosure under Section 50 of SB1797 Enrolled - 92 - LRB104 09833 BAB 19901 b the School Safety Drill Act.

(mmm) Information prohibited from being disclosed SB1797 Engrossed - 91 - LRB104 09833 BAB 19901 b under subsection (e) of Section 1-129 of the Illinois Power Agency Act.

(ttt) Audio recordings made under Section 30 of the SB1797 Enrolled - 93 - LRB104 09833 BAB 19901 b Illinois State Police Act, except to the extent authorized under that Section.

103-372, SB1797 Engrossed - 92 - LRB104 09833 BAB 19901 b eff.

In this Act, unless the SB1797 Enrolled - 94 - LRB104 09833 BAB 19901 b context otherwise requires, the following words and phrases shall have the following meanings:

The main SB1797 Engrossed - 93 - LRB104 09833 BAB 19901 b banking premises or any branch of a bank may be an "affiliate facility" with respect to one or more other commonly owned banks.

A place of business at which deposits are received, checks paid, or loans made shall not be deemed to be a branch, branch bank, or branch office if the place of business is adjacent to and connected with the main banking SB1797 Enrolled - 95 - LRB104 09833 BAB 19901 b premises, or if it is separated from the main banking premises by not more than an alley;

provided always that (i) if the place of business is separated by an alley from the main banking premises there is a connection between the two by public or private way or by subterranean or overhead passage, and (ii) if the place of business is in a building not wholly occupied by the bank, the place of business shall not be within any office or room in which any other business or service of any kind or nature other than the business of the bank is SB1797 Engrossed - 94 - LRB104 09833 BAB 19901 b conducted or carried on.

"Bylaws" means the bylaws of a bank that are adopted by the bank's board of directors or shareholders for the regulation SB1797 Enrolled - 96 - LRB104 09833 BAB 19901 b and management of the bank's affairs.

"Cash flow reserve account" means the account within the SB1797 Engrossed - 95 - LRB104 09833 BAB 19901 b books and records of the Commissioner of Banks and Real Estate used to record funds designated to maintain a reasonable Bank and Trust Company Fund operating balance to meet agency obligations on a timely basis.

"commonly owned bank" refers to one of a group of commonly owned banks but only with respect to one or more of the other SB1797 Enrolled - 97 - LRB104 09833 BAB 19901 b banks in the same group.

SB1797 Engrossed - 96 - LRB104 09833 BAB 19901 b "Consolidating bank" means a party to a consolidation.

In the case of a manager-managed limited liability company, however, "director" means a manager of the bank and, SB1797 Enrolled - 98 - LRB104 09833 BAB 19901 b in the case of a member-managed limited liability company, "director" means a member of the bank.

SB1797 Engrossed - 97 - LRB104 09833 BAB 19901 b "Eligible depository institution" means an insured savings association that is in default, an insured savings association that is in danger of default, a State or national bank that is in default or a State or national bank that is in danger of default, as those terms are defined in this Section, or a new bank as that term is defined in Section 11(m) of the Federal Deposit Insurance Act or a bridge bank as that term is defined in Section 11(n) of the Federal Deposit Insurance Act or a new federal savings association authorized under Section 11(d)(2)(f) of the Federal Deposit Insurance Act.

"Financial institution" means a bank, savings bank, savings and loan association, credit union, or any licensee under the Consumer Installment Loan Act or the Sales Finance SB1797 Enrolled - 99 - LRB104 09833 BAB 19901 b Agency Act and, for purposes of Section 48.3, any proprietary network, funds transfer corporation, or other entity providing electronic funds transfer services, or any corporate fiduciary, its subsidiaries, affiliates, parent company, or contractual service provider that is examined by the Commissioner.

For purposes of Section 5c and subsection (b) of Section 13 of this Act, "financial institution" includes any proprietary network, funds transfer corporation, or other entity providing electronic funds transfer services, and any SB1797 Engrossed - 98 - LRB104 09833 BAB 19901 b corporate fiduciary.

"In danger of default" means a State or national bank, a federally chartered insured savings association, or an Illinois state chartered insured savings association with respect to which the Commissioner or the appropriate federal banking agency has advised the Federal Deposit Insurance SB1797 Enrolled - 100 - LRB104 09833 BAB 19901 b Corporation that:

and (B) there is no reasonable prospect that the State SB1797 Engrossed - 99 - LRB104 09833 BAB 19901 b or national bank or insured savings association will be able to meet those demands or pay those obligations without federal assistance;

"In default" means, with respect to a State or national bank or an insured savings association, any adjudication or other official determination by any court of competent jurisdiction, the Commissioner, the appropriate federal SB1797 Enrolled - 101 - LRB104 09833 BAB 19901 b banking agency, or other public authority pursuant to which a conservator, receiver, or other legal custodian is appointed for a State or national bank or an insured savings association.

"Insured savings association" means any federal savings association chartered under Section 5 of the federal Home Owners' Loan Act and any State savings association chartered under the Illinois Savings and Loan Act of 1985 or a predecessor Illinois statute, the deposits of which are SB1797 Engrossed - 100 - LRB104 09833 BAB 19901 b insured by the Federal Deposit Insurance Corporation.

except that (1) with respect to certificates of deposit, voting trust certificates, collateral-trust certificates, and certificates of interest or shares in an unincorporated investment trust not having a board of directors (or persons performing similar functions), "issuer" means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust, agreement, or SB1797 Enrolled - 102 - LRB104 09833 BAB 19901 b instrument under which the securities are issued;

and (3) with respect to equipment trust certificates or like securities, "issuer" means the person to SB1797 Engrossed - 101 - LRB104 09833 BAB 19901 b whom the equipment or property is or is to be leased or conditionally sold.

SB1797 Enrolled - 103 - LRB104 09833 BAB 19901 b "Merging trust company" means a trust company party to a merger with a State bank.

SB1797 Engrossed - 102 - LRB104 09833 BAB 19901 b "National bank" means a national banking association located in this State and after May 31, 1997, means a national banking association without regard to its location.

"Public agency" means the State of Illinois, the various counties, townships, cities, towns, villages, school districts, educational service regions, special road districts, public water supply districts, fire protection SB1797 Enrolled - 104 - LRB104 09833 BAB 19901 b districts, drainage districts, levee districts, sewer districts, housing authorities, the Illinois Bank Examiners' Education Foundation, the Chicago Park District, and all other political corporations or subdivisions of the State of Illinois, whether now or hereafter created, whether herein specifically mentioned or not, and shall also include any other state or any political corporation or subdivision of another state.

"Public funds" or "public money" means current operating SB1797 Engrossed - 103 - LRB104 09833 BAB 19901 b funds, special funds, interest and sinking funds, and funds of any kind or character belonging to, in the custody of, or subject to the control or regulation of the United States or a public agency.

"Qualified financial contract" means any security SB1797 Enrolled - 105 - LRB104 09833 BAB 19901 b contract, commodity contract, forward contract, including spot and forward foreign exchange contracts, repurchase agreement, swap agreement, and any similar agreement, any option to enter into any such agreement, including any combination of the foregoing, and any master agreement for such agreements.

The contract, option, agreement, or combination of contracts, options, or agreements shall be reflected upon the books, accounts, or SB1797 Engrossed - 104 - LRB104 09833 BAB 19901 b records of the bank, or a party to the contract shall provide documentary evidence of such agreement.

"Stand-by letter of credit" means a letter of credit under which drafts are payable upon the condition the customer has SB1797 Enrolled - 106 - LRB104 09833 BAB 19901 b defaulted in performance of a duty, liability, or obligation.

For purposes of paragraphs (8) and (12) of Section 5 of this Act, "control" means the exercise of operational or managerial SB1797 Engrossed - 105 - LRB104 09833 BAB 19901 b control of a corporation by the bank, either alone or together with other affiliates of the bank.

"Unimpaired capital and unimpaired surplus", for the SB1797 Enrolled - 107 - LRB104 09833 BAB 19901 b purposes of paragraph (21) of Section 5 and Sections 32, 33, 34, 35.1, 35.2, and 47 of this Act means the sum of the state bank's Tier 1 Capital and Tier 2 Capital plus such other shareholder equity as may be included by regulation of the Commissioner.

(i) when a material event occurs after the date of the SB1797 Engrossed - 106 - LRB104 09833 BAB 19901 b last quarterly call report filed with the Commissioner that reduces or increases the bank's unimpaired capital and unimpaired surplus by 10% or more, then the unimpaired capital and unimpaired surplus shall be calculated from the date of the material event for a transaction conducted after the date of the material event;

In the case of a state bank newly chartered under Section 13 or a state bank resulting from a merger, consolidation, or conversion under Sections 21 through 26 for which no preceding quarterly call report has been filed with the Commissioner, unimpaired capital and unimpaired surplus shall be calculated for the first calendar quarter on the basis of the effective SB1797 Enrolled - 108 - LRB104 09833 BAB 19901 b date of the charter, merger, consolidation, or conversion.

Upon approval by the Commissioner a trust company having power so to do under the law under which it is organized may convert into a state bank or may merge into SB1797 Engrossed - 107 - LRB104 09833 BAB 19901 b a state bank as prescribed by this Act;

(ii) the amount of capital, surplus SB1797 Enrolled - 109 - LRB104 09833 BAB 19901 b and reserve for operating expenses;

(c) Provisions governing the manner of converting the shares of the merging bank and of the merging trust SB1797 Engrossed - 108 - LRB104 09833 BAB 19901 b company into shares of the resulting bank;

(2) After approval by the board of directors of the merging bank and of the merging trust company, the merger agreement shall be submitted to the Commissioner for approval together with the certified copies of the authorizing resolution of each board of directors showing approval by a SB1797 Enrolled - 110 - LRB104 09833 BAB 19901 b majority of each board.

(b) That the same matters exist in respect of the SB1797 Engrossed - 109 - LRB104 09833 BAB 19901 b resulting bank which would have been required under Section 10 of this Act for the organization of a new bank;

(4) To be effective, if approved by the Commissioner, a merger of a bank and a trust company where there is to be a resulting bank must be approved by the affirmative vote of the holders of at least two-thirds of the outstanding shares of stock of the merging bank entitled to vote at a meeting called to consider such action, unless holders of preferred stock are entitled to vote as a class in respect thereof, in which event the proposed merger shall be adopted upon receiving the affirmative vote of the holders of at least two-thirds of the SB1797 Enrolled - 111 - LRB104 09833 BAB 19901 b outstanding shares of each class of shares entitled to vote as a class in respect thereof and of the total outstanding shares entitled to vote at such meeting and must be approved by the stockholders of the merging trust company as provided by the Act under which it is organized.

Written or printed SB1797 Engrossed - 110 - LRB104 09833 BAB 19901 b notice of the meeting of the stockholders of the merging bank shall be given to each stockholder of record entitled to vote at such meeting at least thirty days before such meeting and in the manner provided in this Act for the giving of notice of meetings of stockholders.

(5) Unless a later date is specified in the merger agreement, the merger shall become effective upon the filing with the Commissioner of the executed merger agreement, together with copies of the resolutions of the stockholders of the merging bank and the merging trust company approving it, certified by the president or a vice-president or, the cashier SB1797 Enrolled - 112 - LRB104 09833 BAB 19901 b and also by the secretary or other officer charged with keeping the records.

Such certificate shall be conclusive evidence of the merger and of the correctness of all proceedings therefor SB1797 Engrossed - 111 - LRB104 09833 BAB 19901 b in all courts and places including the office of the Secretary of State, and said certificate shall be recorded.

(ii) a list of its stockholders as of the date of the stockholders' approval of the plan of SB1797 Enrolled - 113 - LRB104 09833 BAB 19901 b conversion;

(c) A statement that the plan of conversion is subject to approval by the Commissioner and that, whether approved or disapproved, the converting trust company will pay the SB1797 Engrossed - 112 - LRB104 09833 BAB 19901 b Commissioner's expenses of examination;

SB1797 Enrolled - 114 - LRB104 09833 BAB 19901 b If the commissioner disapproves the plan of conversion, he shall state his objections in writing and give an opportunity to the converting trust company to obviate such objections.

The Commissioner shall issue a certificate of conversion which shall specify the name of the converting trust company, SB1797 Engrossed - 113 - LRB104 09833 BAB 19901 b the name of the resulting bank and the charter provided for by said plan of conversion.

SB1797 Enrolled - 115 - LRB104 09833 BAB 19901 b (Source:

(a) any bank, savings and loan association, savings bank, SB1797 Engrossed - 114 - LRB104 09833 BAB 19901 b or other corporation, limited liability company, or other entity now or hereafter organized under the laws of any state or territory of the United States of America, including the District of Columbia, other than the State of Illinois;

(a) Any corporation which has been or shall be incorporated under the general corporation laws of this State SB1797 Enrolled - 116 - LRB104 09833 BAB 19901 b and any limited liability company established under the Limited Liability Company Act for the purpose of accepting and executing trusts, and any state bank, state savings and loan association, state savings bank, or other special corporation now or hereafter authorized by law to accept or execute trusts, may be appointed to act as a fiduciary in any capacity a natural person or corporation may act, and shall include, but not be limited to, acting as assignee or trustee by deed, and executor, guardian or trustee by will, custodian under the SB1797 Engrossed - 115 - LRB104 09833 BAB 19901 b Illinois Uniform Transfers to Minors Act and such appointment shall be of like force as in case of appointment of a natural person and shall be designated a corporate fiduciary.

The General Assembly finds that corporate fiduciaries perform a vital service in the custody, safekeeping, and management of physical assets, traditional SB1797 Enrolled - 117 - LRB104 09833 BAB 19901 b electronic assets, and emerging digital assets for customers;

and that such special purpose trust companies should obtain their authority, conduct their operations, and be supervised as corporate fiduciaries as SB1797 Engrossed - 116 - LRB104 09833 BAB 19901 b provided in this Act.

(a) It shall be lawful for any person to engage in the activity of a special purpose trust company after the SB1797 Enrolled - 118 - LRB104 09833 BAB 19901 b effective date of this amendatory Act of the 104th General Assembly upon filing an application for and procuring from the Secretary a certificate of authority stating that the person has complied with the requirements of this Act and is qualified to engage in the activity of a special purpose trust company.

(b) No natural person or natural persons, firm, partnership, or corporation not having been authorized under this Act shall transact in the activity of a special purpose SB1797 Engrossed - 117 - LRB104 09833 BAB 19901 b trust company.

(a) The Department shall adopt rules for the SB1797 Enrolled - 119 - LRB104 09833 BAB 19901 b administration of this Article, including, but not limited to:

SB1797 Engrossed - 118 - LRB104 09833 BAB 19901 b (b) Articles III, V, VI, VII, VIII, and IX of this Act shall apply to a special purpose trust company under this Article as if the special purpose trust company were a trust company authorized under Article II of this Act, subject to any rules adopted by the Department.

After July 13, 1953, no foreign corporation, including banks, savings banks, and savings and loan associations, now or hereafter organized under the laws of any other state or territory, and no national banking association having its principal place of business in any other state or territory or federal savings and loan association or federal savings bank having its principal place of business in any other state or territory, may procure a certificate of authority under Article II of this Act and any certificate of SB1797 Enrolled - 120 - LRB104 09833 BAB 19901 b authority heretofore issued hereunder to any such foreign corporation or to any such national banking association shall become null and void on July 13, 1953, except that any such foreign corporation or any such national banking association actually acting as trustee, executor, administrator, administrator to collect, guardian, or in any other like fiduciary capacity in this State on July 13, 1953, may continue to act as such fiduciary in that particular trust or estate until such time as it has completed its duties SB1797 Engrossed - 119 - LRB104 09833 BAB 19901 b thereunder.

"Principal place of business" of any bank, federal savings and SB1797 Enrolled - 121 - LRB104 09833 BAB 19901 b loan association or savings bank, for purposes of this Article IV, means the principal office as designated on the charter by its principal regulator.

Any foreign corporation may act in this State as trustee, executor, administrator, administrator to collect, guardian, or in any SB1797 Engrossed - 120 - LRB104 09833 BAB 19901 b other like fiduciary capacity, whether the appointment is by will, deed, court order or otherwise, without complying with any laws of this State relating to the qualification of corporations organized under the laws of this State to conduct a trust business or laws relating to the qualification of foreign corporations, provided only (1) such foreign corporation is authorized by the laws of the state of its organization or domicile to act as a fiduciary in that state, and (2) a corporation organized under the laws of this State, a national banking association having its principal place of business in this State, and a federal savings and loan association or federal savings bank having its principal place of business in this State and authorized to act as a fiduciary in this State, may, in such other state, act in a similar fiduciary capacity or capacities, as the case may be, upon conditions and qualifications which the Commissioner finds are not unduly restrictive when compared to those imposed by the SB1797 Enrolled - 122 - LRB104 09833 BAB 19901 b laws of Illinois.

however, any foreign SB1797 Engrossed - 121 - LRB104 09833 BAB 19901 b corporation actually acting in any such fiduciary capacity in this State on July 13, 1953, although not eligible to so act pursuant to the provisions of this Article IV, may continue to act as fiduciary in that particular trust or estate until such time as it has completed its duties thereunder.

(a) Prior to the time any foreign corporation acts in this State as testamentary trustee, trustee appointed by any court, trustee under any written agreement, declaration or instrument of trust, executor, administrator, administrator to collect, guardian or in any other like fiduciary capacity, such foreign corporation shall apply to the Commissioner of Banks and Real Estate for a certificate of authority with reference to the SB1797 Enrolled - 123 - LRB104 09833 BAB 19901 b fiduciary capacity or capacities in which such foreign corporation proposes to act in this State, and the Commissioner of Banks and Real Estate shall issue a certificate of authority to such corporation concerning only the fiduciary capacity or such of the fiduciary capacities to which the application pertains and with respect to which he has been furnished satisfactory evidence that such foreign corporation meets the requirements of Section 4-2 of this Act.

The certificate of authority shall set forth the fiduciary SB1797 Engrossed - 122 - LRB104 09833 BAB 19901 b capacity or capacities, as the case may be, for which the certificate is issued, and shall recite and certify that such foreign corporation is eligible to act in this State in such fiduciary capacity or capacities, as the case may be, pursuant to the provisions of this Act.

(c) Any foreign corporation holding a certificate of reciprocity which recites and certifies that such foreign corporation is eligible to act in this State in any such fiduciary capacity pursuant to the provisions of Article IV of this Act or any predecessor Act upon the same subject, issued SB1797 Enrolled - 124 - LRB104 09833 BAB 19901 b prior to the effective date of this amendatory Act of 1987 may act in this State under such certificate of reciprocity in any such fiduciary capacity without applying for a new certificate of authority.

(d) Any foreign corporation acting in Illinois under a certificate of authority or a certificate of reciprocity shall SB1797 Engrossed - 123 - LRB104 09833 BAB 19901 b report changes in its name or address to the Commissioner and shall notify the Commissioner when it is no longer serving as a corporate fiduciary in Illinois.

At these offices, the foreign corporation may market and solicit fiduciary services and provide back office and administrative support to the SB1797 Enrolled - 125 - LRB104 09833 BAB 19901 b foreign corporation's fiduciary activities, but it may not engage in fiduciary activities.

(b) A foreign corporation invested with trust powers or authority to act as a fiduciary pursuant to the laws of its home state but not conducting fiduciary activities must apply for and procure a license under the Foreign Bank Representative Office Act before establishing an office in this State for the purpose of marketing, soliciting, or transacting any service or product, unless such office is SB1797 Engrossed - 124 - LRB104 09833 BAB 19901 b otherwise established as permitted by and in accordance with this Act, the Illinois Banking Act, the Savings Bank Act, the Foreign Banking Office Act, or any Act specified by rules adopted under this Act.

(a) To promulgate, in accordance with the Illinois Administrative Procedure Act, reasonable rules for the purpose of administering the provisions of this Act, for the purpose of protecting consumers of this State as may be necessary and appropriate, and for the purpose of incorporating by reference rules promulgated by the Federal Deposit Insurance SB1797 Enrolled - 126 - LRB104 09833 BAB 19901 b Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, or their successors that pertain to corporate fiduciaries, including, but not limited to, standards for the operation and conduct of the affairs of corporate fiduciaries;

SB1797 Engrossed - 125 - LRB104 09833 BAB 19901 b (c) To appoint hearing officers to conduct hearings held pursuant to any of the powers granted to the Commissioner under this Section for the purpose of administering this Act and any rule promulgated in accordance with this Act;

(g) To impose civil penalties of up to $100,000 against SB1797 Enrolled - 127 - LRB104 09833 BAB 19901 b any person or corporate fiduciary for each violation of any provision of this Act, any rule promulgated in accordance with this Act, any order of the Commissioner or any other action which, in the Commissioner's discretion, is a detriment or impediment to accepting or executing trusts;

and (h) To address any inquiries to any corporate fiduciary, or the officers thereof, in relation to its doings and conditions, or any other matter connected with its affairs, and it shall be the duty of any corporate fiduciary or person SB1797 Engrossed - 126 - LRB104 09833 BAB 19901 b so addressed, to promptly reply in writing to such inquiries.

Where this Act SB1797 Enrolled - 128 - LRB104 09833 BAB 19901 b makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.