HB 6747 — FIN REG-SAVINGS BANK

*LRB09318473SAS44187b* HB6747 93RDEngrossed GENERALLRB093 ASSEMBLY18473 StateSAS of44187 Illinoisb andAN 2004ACT Introducedconcerning 02/09/04,financial byregulation. Eddie Washington SYNOPSIS AS INTRODUCED:

ILCS 205/9015 from Ch.

17, par.

7309-15 ILCS 205/11003 from Ch.

17, par.

7311-3 Amends the Savings Bank Act.

Provides that a violation of the Investments Article of the Act is deemed to be an unsafe and unsound practice.

In provisions pertaining to the Commissioner’s ability to remove or prohibit current or former officers, directors, employees, or agents of a savings bank operating under this Act who are the subject of final orders, adds the Board of Governors of the Federal Reserve, a Federal Reserve Bank, the U.S.

Office of Thrift Supervision, the National Credit Union Administration, or other federal financial institution regulators to the list of regulated entities that issue final orders.

LRB093 18473 SAS 44187 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB6747 LRB093 18473 SAS 44187 b AN ACT concerning financial regulation.

The Savings Bank Act is amended by changing SectionsSection 9015 and 11003 as follows:

(205 ILCS 205/9015)205/11003) (from Ch.

7309-15) Sec.

9015.

Unsafe and unsound practices;

orders of prohibition and removal.

(a) The violation of any of the following provisions of this Act:

Article 5, Article 6, subsection (b) of Section 4009, Section 7006, Section 9005, and Section 9014 is deemed to be an unsafe and unsound practice and creates an unsafe and unsound condition in the savings bank.

The savings bank or the institution affiliated party responsible for the violation may be subject to the assessment of civil money penalties and other enforcement powers of the Commissioner, as specified in this Article, in Article 11, and by regulation of the Commissioner.

(b) Continued violation of any of those provisions after the Commissioner issues formal notice to correct shall subject the directors of the savings bank at fault to immediate removal from the board and to a permanent order of prohibition from direct or indirect participation in the affairs of any financial institution subject to this Act, the Illinois Savings and Loan Act of 1985, or the Residential Mortgage License Act of 1987.

(c) The Commissioner shall promulgate rules and regulations to implement this Section.

(Source:

P.A.

90-301, eff.

8-1-97.) (205 ILCS 205/11003) (from Ch.

17, par.

(a) In addition to other provisions of this Act concerning HB6747 - 2 - LRB093 18473 SAS 44187 b officers and directors, the Commissioner may remove or suspend from any savings bank operating under this Act any officer, director, employee, or agent of a savings bank, and the Commissioner may prohibit participation in the affairs of any savings bank by any current, former, or prospective officer, director, employee, or agent of a savings bank, if he finds that:

Office of Thrift Supervision, the National Credit Union Administration, a state financial institutions regulator, the Securities and Exchange Commission, other federal or state financial institution HB6747 Engrossed - 2 - LRB093 18473 SAS 44187 b regulators, or by a state or federal court of law.

(2) The interests of savings bank’s depositors or other insured depository institution’s depositors have been or HB6747 - 3 - LRB093 18473 SAS 44187 b could be prejudiced.