SB 2996 — FINAN REG-BANKING REGULATION

The Commissioner may, in the Commissioner's discretion, withhold the issuing of the charter when the Commissioner has reason to believe that the bank is organized for any purpose other than SB2996 Engrossed - 8 - LRB096 16388 MJR 31653 b that contemplated by this Act.

After commencing a general banking business, a bank may change its name by filing written notice with the Commissioner at least 30 days prior to SB2996 Enrolled - 10 - LRB096 16388 MJR 31653 b the effective date of such change.

(b) (1) The Commissioner may also issue a charter to a bank that is owned exclusively by other depository institutions or depository institution holding companies and is organized to engage exclusively in providing services to or SB2996 Engrossed - 9 - LRB096 16388 MJR 31653 b for other financial institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing services at the request of other financial institutions or their holding companies (also referred to as a "bankers' bank").

(2) A bank chartered pursuant to paragraph (1) shall, SB2996 Enrolled - 11 - LRB096 16388 MJR 31653 b except as otherwise specifically determined or limited by the Commissioner in an order or pursuant to a rule, be vested with the same rights and privileges and subject to the same duties, restrictions, penalties, and liabilities now or hereafter imposed under this Act.

(d) (i) A bank that has a banking charter issued by the Commissioner under this Act may, pursuant to a written purchase and assumption agreement, transfer substantially all of its assets to another State bank or national bank in consideration, in whole or in part, for the transferee SB2996 Engrossed - 10 - LRB096 16388 MJR 31653 b banks' assumption of any part or all of its liabilities.

provided, however, that a State bank that transfers substantially all SB2996 Enrolled - 12 - LRB096 16388 MJR 31653 b of its assets pursuant to this subsection (d) and following the transfer does not accept deposits and make loans, shall not have any rights, powers, interests, franchises, or privileges under subsection (15) of Section 5 of this Act until the bank has resumed accepting deposits and making loans.

(iii) The authority provided by subdivision (i) of this subsection (d) shall terminate on May 31, 1997, and no bank that has transferred substantially all of its assets pursuant to this subsection (d) shall continue in existence SB2996 Engrossed - 11 - LRB096 16388 MJR 31653 b after May 31, 1997.

(a)The Forliabilities purposesoutstanding at one time to a state bank of thisa Section,person for money borrowed, including the Secretaryliabilities mayof prescribea partnership or joint venture in the definitionliabilities of "liabilitiesthe outstanding"several bymembers rule.thereof, shall not SB2996 Enrolled - 13 - LRB096 16388 MJR 31653 b exceed 25% of the amount of the unimpaired capital and unimpaired surplus of the bank.

(b) The liabilities outstanding at one time to a state bank of a person for money borrowed, including the liabilities of a partnership or joint venture in the liabilities of the several members thereof, shall not exceed 25% of the amount of the unimpaired capital and unimpaired surplus of the bank.

(2) The purchase or discount of commercial or business SB2996 Engrossed - 12 - LRB096 16388 MJR 31653 b paper actually owned by the person negotiating the same.

(3) The purchase of or loaning money in exchange for evidences of indebtedness which shall be secured by mortgage or trust deed upon productive real estate the value of which, as ascertained by the oath of 2 qualified appraisers, neither of whom shall be an officer, director, or employee of the bank or of any subsidiary or affiliate of the bank, is double the amount of the principal debt secured at the time of the original purchase of evidence of indebtedness or loan of money and which is still double the SB2996 Enrolled - 14 - LRB096 16388 MJR 31653 b amount of the principal debt secured at the time of any renewal of the indebtedness or loan, and which mortgage or trust deed is shown, either by a guaranty policy of a title guaranty company approved by the Commissioner or by a registrar's certificate of title in any county having adopted the provisions of the Registered Titles (Torrens) Act, or by the opinion of an attorney-at-law, to be a first lien upon the real estate therein described, and real estate shall not be deemed to be encumbered within the meaning of this subsection (3) by reason of the existence of instruments reserving rights-of-way, sewer rights and rights in wells, building restrictions or other restrictive covenants, nor by reason of the fact it is subject to lease under which rents or profits are reserved by the owners.

SB2996 Engrossed - 13 - LRB096 16388 MJR 31653 b (5) The liability to a state bank of a person who is an accommodation party to, or guarantor of payment for, any evidence of indebtedness of another person who obtains a loan from or discounts paper with or sells paper to the state bank;

provided however that the liability of an accommodation party to paper excepted under subsection 2 SB2996 Enrolled - 15 - LRB096 16388 MJR 31653 b of this Section shall not be included in the computation of this limitation.

and in the event of and to the SB2996 Engrossed - 14 - LRB096 16388 MJR 31653 b extent of an unremedied breach, the amount remaining unpaid for principal and interest on the paper in respect of which the unremedied breach exists shall thereafter for the purpose of determining whether subsequent transactions giving rise to additional liability of the person to the state bank for borrowed money or otherwise are within the limitations of Sections 32 through 34 of this Act, be included in computing the amount of liabilities of the person for borrowed money or otherwise.

The liability of a person to a state bank on account of SB2996 Enrolled - 16 - LRB096 16388 MJR 31653 b acceptances made or issued by the state bank on behalf of the person shall be included in the computation of the total liabilities of the person for money borrowed except to the extent the acceptances grow out of transactions of the character described in subsection (6) of Section 34 of this Act and are otherwise within the limitations of that subsection;

The Secretary may adopt rules to address the funding by banks of any loan commitment, when such funding would involve additional extensions of credit to be made after the unimpaired capital and unimpaired surplus of the bank have decreased and the Secretary determines that such decrease in unimpaired capital and unimpaired surplus would cause the additional SB2996 Engrossed - 15 - LRB096 16388 MJR 31653 b extensions of credit to result in an unsafe and unsound condition.

The Commissioner, deputy commissioners, and employees of the Office of Banks and Real Estate shall be subject to the restrictions provided in Section 2.5 of the Division of Banking Office of Banks and Real Estate Act including, without limitation, the restrictions on (i) SB2996 Enrolled - 17 - LRB096 16388 MJR 31653 b owning shares of stock or holding any other equity interest in an entity regulated under this Act or in any corporation or company that owns or controls an entity regulated under this Act;

The Secretary shall have the powers and authority, and is charged with the duties and responsibilities designated in this Act, and a State bank shall not be subject to any other visitorial power other than as authorized by this Act, except those vested in the courts, or upon prior consultation with the Secretary, a foreign bank regulator with an appropriate supervisory interest in the SB2996 Engrossed - 16 - LRB096 16388 MJR 31653 b parent or affiliate of a state bank.

(2) (a) The Commissioner, as often as the Commissioner shall deem necessary or proper, and no less frequently than 18 months following the preceding examination, shall appoint a suitable person or persons to make an examination of the affairs of every State bank, except that for every eligible SB2996 Enrolled - 18 - LRB096 16388 MJR 31653 b State bank, as defined by regulation, the Commissioner in lieu of the examination may accept on an alternating basis the examination made by the eligible State bank's appropriate federal banking agency pursuant to Section 111 of the Federal Deposit Insurance Corporation Improvement Act of 1991, provided the appropriate federal banking agency has made such an examination.

In making the examination the examiners shall include an examination of the affairs of all the affiliates of the bank, as defined in subsection (b) of Section 35.2 of this Act, or SB2996 Engrossed - 17 - LRB096 16388 MJR 31653 b subsidiaries of the bank as shall be necessary to disclose fully the conditions of the subsidiaries or affiliates, the relations between the bank and the subsidiaries or affiliates and the effect of those relations upon the affairs of the bank, and in connection therewith shall have power to examine any of the officers, directors, agents, or employees of the subsidiaries or affiliates on oath.

After May 31, 1997, the Commissioner may enter into cooperative agreements with state regulatory authorities of other states to provide for examination of State bank branches in those states, and the SB2996 Enrolled - 19 - LRB096 16388 MJR 31653 b Commissioner may accept reports of examinations of State bank branches from those state regulatory authorities.

(2.5) Whenever any State bank, any subsidiary or affiliate SB2996 Engrossed - 18 - LRB096 16388 MJR 31653 b of a State bank, or after May 31, 1997, any branch of an out-of-state bank causes to be performed, by contract or otherwise, any bank services for itself, whether on or off its premises:

and (b) the bank or, after May 31, 1997, branch of the out-of-state bank shall notify the Commissioner of the SB2996 Enrolled - 20 - LRB096 16388 MJR 31653 b existence of a service relationship.

(3) The expense of administering this Act, including the expense of the examinations of State banks as provided in this SB2996 Engrossed - 19 - LRB096 16388 MJR 31653 b Act, shall to the extent of the amounts resulting from the fees provided for in paragraphs (a), (a-2), and (b) of this subsection (3) be assessed against and borne by the State banks:

(a) Each bank shall pay to the Secretary a Call Report Fee which shall be paid in quarterly installments equal to one-fourth of the sum of the annual fixed fee of $800, plus a variable fee based on the assets shown on the quarterly statement of condition delivered to the Secretary in accordance with Section 47 for the preceding quarter SB2996 Enrolled - 21 - LRB096 16388 MJR 31653 b according to the following schedule:

In case more than one examination of any bank is deemed by the Secretary to be necessary in any examination frequency cycle specified in subsection 2(a) of this Section, and is SB2996 Engrossed - 20 - LRB096 16388 MJR 31653 b performed at his direction, the Secretary may assess a reasonable additional fee to recover the cost of the additional examination;

In lieu of the method and amounts set forth in this paragraph (a) for the calculation of the Call Report Fee, the Secretary may specify by rule that the Call Report Fees provided by this Section may be assessed SB2996 Enrolled - 22 - LRB096 16388 MJR 31653 b semiannually or some other period and may provide in the rule the formula to be used for calculating and assessing the periodic Call Report Fees to be paid by State banks.

(a-2) On and after January 1, 1990, the reasonable and necessary expenses of the Commissioner during examination of the performance of electronic data processing services SB2996 Engrossed - 21 - LRB096 16388 MJR 31653 b under subsection (2.5) shall be borne by the banks for which the services are provided.

(a-3) After May 31, 1997, the reasonable and necessary expenses of the Commissioner during examination of the performance of electronic data processing services under SB2996 Enrolled - 23 - LRB096 16388 MJR 31653 b subsection (2.5) at or on behalf of branches of out-of-state banks shall be borne by the out-of-state banks, unless those expenses are borne by the state regulatory authorities that chartered the out-of-state banks, as determined by cooperative agreements between the Commissioner and the state regulatory authorities that chartered the out-of-state banks.

The Commissioner shall receive for each fiscal year, commencing with the fiscal year ending June 30, 1987, a contingent fee equal to the lesser of the aggregate of the fees paid by all State banks under paragraph (a) of subsection (3) for that year, or the amount, if any, whereby the aggregate of the administration expenses, as defined in paragraph (c), for that fiscal year SB2996 Engrossed - 22 - LRB096 16388 MJR 31653 b exceeds the sum of the aggregate of the fees payable by all State banks for that year under paragraph (a) of subsection (3), plus any amounts transferred into the Bank and Trust Company Fund from the State Pensions Fund for that year, plus all other amounts collected by the Commissioner for that year under any other provision of this Act, plus the aggregate of all fees collected for that year by the Commissioner under the Corporate Fiduciary Act, excluding the receivership fees provided for in Section 5-10 of the Corporate Fiduciary Act, and the Foreign Banking Office SB2996 Enrolled - 24 - LRB096 16388 MJR 31653 b Act.

The aggregate amount of the contingent fee, and the portion thereof to be assessed upon each State bank and foreign banking corporation, respectively, shall be determined by the Commissioner and shall be paid by each, respectively, within 120 days of the close of the period for which the contingent fee is computed and is payable, and the Commissioner shall give 20 days advance notice of the amount of the contingent fee payable by the State bank and of the date fixed by the SB2996 Engrossed - 23 - LRB096 16388 MJR 31653 b Commissioner for payment of the fee.

(c) The "administration expenses" for any fiscal year shall mean the ordinary and contingent expenses for that year incident to making the examinations provided for by, and for otherwise administering, this Act, the Corporate Fiduciary Act, excluding the expenses paid from the Corporate Fiduciary Receivership account in the Bank and Trust Company Fund, the Foreign Banking Office Act, the Electronic Fund Transfer Act, and the Illinois Bank Examiners' Education Foundation Act, including all SB2996 Enrolled - 25 - LRB096 16388 MJR 31653 b salaries and other compensation paid for personal services rendered for the State by officers or employees of the State, including the Commissioner and the Deputy Commissioners, communication equipment and services, office furnishings all expenditures for telephone and telegraph charges, postage and postal charges, office stationery, supplies and services, and office furniture and equipment, including typewriters and copying and duplicating machines and filing equipment, surety bond premiums, and travel expenses of those officers and employees, employees, expenditures or charges for the acquisition, enlargement or improvement of, or for the use of, any office space, building, or structure, or expenditures for the maintenance thereof or for furnishing heat, light, or power with respect thereto, all to the extent that those expenditures are directly incidental to SB2996 Engrossed - 24 - LRB096 16388 MJR 31653 b such examinations or administration.

SB2996 Enrolled - 26 - LRB096 16388 MJR 31653 b (d) The aggregate of all fees collected by the Secretary under this Act, the Corporate Fiduciary Act, or the Foreign Banking Office Act on and after July 1, 1979, shall be paid promptly after receipt of the same, accompanied by a detailed statement thereof, into the State treasury and shall be set apart in a special fund to be known as the "Bank and Trust Company Fund", except as provided in paragraph (c) of subsection (11) of this Section.

(i) to offset the ordinary administrative expenses of the Secretary as defined in this Section or (ii) as a credit against fees under paragraph (d-1) of this SB2996 Engrossed - 25 - LRB096 16388 MJR 31653 b subsection (3).

Moneys in the Bank and Trust Company Fund may be transferred to the Professions Indirect Cost Fund, as authorized under SB2996 Enrolled - 27 - LRB096 16388 MJR 31653 b Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.

Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the Governor may, during any fiscal year through January 10, 2011, from time to time direct the State Treasurer and Comptroller to transfer a specified sum not exceeding 10% of the revenues to be deposited into the Bank SB2996 Engrossed - 26 - LRB096 16388 MJR 31653 b and Trust Company Fund during that fiscal year from that Fund to the General Revenue Fund in order to help defray the State's operating costs for the fiscal year.

Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the total sum transferred during any fiscal year through January 10, 2011, from the Bank and Trust Company Fund to the General Revenue Fund pursuant to this provision shall not exceed during any fiscal year 10% of the revenues to be deposited into the Bank and Trust Company Fund during that SB2996 Enrolled - 28 - LRB096 16388 MJR 31653 b fiscal year.

The SB2996 Engrossed - 27 - LRB096 16388 MJR 31653 b amount credited to each State bank and foreign banking corporation shall be in the same proportion as the Call Report Fees paid by each for the year bear to the total Call Report Fees collected for the year.

If, after a transfer to the Cash Flow Reserve Account is made or if no remainder is available for transfer, the balance of the Cash Flow Reserve Account is less than one-fourth of the total initial appropriations for the subsequent year and the amount transferred is less than 5% of the total Call Report Fees for the year, additional amounts needed to make SB2996 Enrolled - 29 - LRB096 16388 MJR 31653 b the transfer equal to 5% of the total Call Report Fees for the year shall be apportioned amongst, assessed upon, and paid by the State banks and foreign banking corporations in the same proportion that the Call Report Fees of each, respectively, for the year bear to the total Call Report Fees collected for the year.

(f) In addition to fees authorized elsewhere in this SB2996 Engrossed - 28 - LRB096 16388 MJR 31653 b Act, the Commissioner may, in connection with a review, approval, or provision of a service, levy a reasonable charge to recover the cost of the review, approval, or service.

SB2996 Enrolled - 30 - LRB096 16388 MJR 31653 b (5) The nature and condition of the assets in or investment of any bonus, pension, or profit sharing plan for officers or employees of every State bank or, after May 31, 1997, branch of an out-of-state bank shall be deemed to be included in the affairs of that State bank or branch of an out-of-state bank subject to examination by the Commissioner under the provisions of subsection (2) of this Section, and if the Commissioner shall find from an examination that the condition of or operation of the investments or assets of the plan is unlawful, fraudulent, or unsafe, or that any trustee has abused his trust, the Commissioner shall, if the situation so found by the Commissioner shall not be corrected to his satisfaction within 60 days after the Commissioner has given notice to the board of directors of the State bank or out-of-state bank of his findings, report the facts to the Attorney General who shall thereupon institute proceedings against the State bank or SB2996 Engrossed - 29 - LRB096 16388 MJR 31653 b out-of-state bank, the board of directors thereof, or the trustees under such plan as the nature of the case may require.

SB2996 Enrolled - 31 - LRB096 16388 MJR 31653 b (b) To issue orders against any person, if the Commissioner has reasonable cause to believe that an unsafe or unsound banking practice has occurred, is occurring, or is about to occur, if any person has violated, is violating, or is about to violate any law, rule, or written agreement with the Commissioner, or for the purpose of administering the provisions of this Act and any rule promulgated in accordance with this Act.

(c) To appoint hearing officers to execute 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 and otherwise to authorize, in writing, an officer or employee of the Office SB2996 Engrossed - 30 - LRB096 16388 MJR 31653 b of Banks and Real Estate to exercise his powers under this Act.

(d) To subpoena witnesses, to compel their attendance, to administer an oath, to examine any person under oath, and to require the production of any relevant books, papers, accounts, and documents in the course of and pursuant to any investigation being conducted, or any action being taken, by the Commissioner in respect of any matter relating to the duties imposed upon, or the powers vested in, the Commissioner under the provisions of this SB2996 Enrolled - 32 - LRB096 16388 MJR 31653 b Act or any rule promulgated in accordance with this Act.

(7) Whenever, in the opinion of the Commissioner, any director, officer, employee, or agent of a State bank or any subsidiary or bank holding company of the bank or, after May 31, 1997, of any branch of an out-of-state bank or any subsidiary or bank holding company of the bank shall have violated any law, rule, or order relating to that bank or any subsidiary or bank holding company of the bank, shall have obstructed or impeded any examination or investigation by the Commissioner, shall have engaged in an unsafe or unsound practice in conducting the business of that bank or any subsidiary or bank holding company of the bank, or shall have violated any law or engaged or participated in any unsafe or unsound practice in connection with any financial institution or other business entity such that the character and fitness of SB2996 Engrossed - 31 - LRB096 16388 MJR 31653 b the director, officer, employee, or agent does not assure reasonable promise of safe and sound operation of the State bank, the Commissioner may issue an order of removal.

If, in the opinion of the Commissioner, any former director, officer, employee, or agent of a State bank or any subsidiary or bank holding company of the bank, prior to the termination of his or her service with that bank or any subsidiary or bank holding company of the bank, violated any law, rule, or order relating to that State bank or any subsidiary or bank holding company of the bank, obstructed or impeded any examination or SB2996 Enrolled - 33 - LRB096 16388 MJR 31653 b investigation by the Commissioner, engaged in an unsafe or unsound practice in conducting the business of that bank or any subsidiary or bank holding company of the bank, or violated any law or engaged or participated in any unsafe or unsound practice in connection with any financial institution or other business entity such that the character and fitness of the director, officer, employee, or agent would not have assured reasonable promise of safe and sound operation of the State bank, the Commissioner may issue an order prohibiting that person from further service with a bank or any subsidiary or bank holding company of the bank as a director, officer, employee, or agent.

The person affected by the action may request a hearing before the State Banking Board within 10 SB2996 Engrossed - 32 - LRB096 16388 MJR 31653 b days after receipt of the order.

Any person affected by a decision of the Board under this subsection (7) of Section 48 of this Act may have the decision reviewed only under and in accordance with the Administrative Review Law and the rules SB2996 Enrolled - 34 - LRB096 16388 MJR 31653 b adopted pursuant thereto.

Any person who has been the subject of an order of removal or an order of prohibition issued by the Commissioner under this subsection or Section 5-6 of the Corporate Fiduciary Act may not thereafter serve as director, officer, employee, or agent of any State bank or of any branch of any out-of-state bank, or of any corporate fiduciary, as SB2996 Engrossed - 33 - LRB096 16388 MJR 31653 b defined in Section 1-5.05 of the Corporate Fiduciary Act, or of any other entity that is subject to licensure or regulation by the Commissioner or the Office of Banks and Real Estate unless the Commissioner has granted prior approval in writing.

(8) The Commissioner may impose civil penalties of up to $100,000 $10,000 against any person for each violation of any provision of this Act, any rule promulgated in accordance with thisSB2996 Act,Enrolled excluding- memorandums35 of- understandingLRB096 and16388 writtenMJR agreements31653 b this Act, any order of the Commissioner, or any other action which in the Commissioner's discretion is an unsafe or unsound banking practice.

SB2996 Engrossed - 34 - LRB096 16388 MJR 31653 b (a) (Blank).

(c) The aggregate of all special educational fees collected by the Commissioner and property received by the Commissioner on behalf of the Illinois Bank Examiners' Education Foundation under this subsection (11) on or after SB2996 Enrolled - 36 - LRB096 16388 MJR 31653 b June 30, 1986, shall be either (i) promptly paid after receipt of the same, accompanied by a detailed statement thereof, into the State Treasury and shall be set apart in a special fund to be known as "The Illinois Bank Examiners' Education Fund" to be invested by either the Treasurer of the State of Illinois in the Public Treasurers' Investment Pool or in any other investment he is authorized to make or by the Illinois State Board of Investment as the board of trustees of the Illinois Bank Examiners' Education Foundation may direct or (ii) deposited into an account maintained in a commercial bank or corporate fiduciary in the name of the Illinois Bank Examiners' Education Foundation pursuant to the order and direction of the Board of Trustees of the Illinois Bank Examiners' Education Foundation.

SB2996 Engrossed - 35 - LRB096 16388 MJR 31653 b (12) (Blank).

4-6-09.) SB2996 Enrolled - 37 - LRB096 16388 MJR 31653 b (205 ILCS 5/51) (from Ch.

SB2996 Engrossed - 36 - LRB096 16388 MJR 31653 b the Commissioner may give notice to the board of directors of or his or her finding or findings.

(b) If the Commissioner has given notice to the board of SB2996 Enrolled - 38 - LRB096 16388 MJR 31653 b directors of his findings, as provided in subsection (a), and the time period prescribed in that notice has expired, the Commissioner may extend the time period prescribed in that notice for such period as the Commissioner deems appropriate.

If, in addition to a finding as provided in Section 51, the Commissioner shall be of the opinion and shall find that an emergency exists which may result in the inability of the bank to continue in its operations, meet the demands of its depositors, or pay its obligations in the normal course of business serious losses to the depositors, he may, in his discretion, without having given the notice provided for in SB2996 Engrossed - 37 - LRB096 16388 MJR 31653 b Section 51, and whether or not proceedings under Section 51 have been instituted or are then pending, forthwith take possession and control of the bank and its assets for the purpose of examination, reorganization or liquidation through receivership.

The Illinois Bank Holding Company Act of 1957 SB2996 Enrolled - 39 - LRB096 16388 MJR 31653 b is amended by changing Sections 2 and 3.074 as follows:

"Bank" does not include any organization operating under Sections 25 or 25 (a) of the Federal Reserve Act, or any organization which does not do business within the United States except as an incident SB2996 Engrossed - 38 - LRB096 16388 MJR 31653 b to its activities outside the United States or any foreign bank.

(1) unmanned automatic teller machines, point of sale terminals or other similar unmanned electronic banking SB2996 Enrolled - 40 - LRB096 16388 MJR 31653 b facilities at which deposits may be accepted;

(g) "Company" means any corporation, business trust, SB2996 Engrossed - 39 - LRB096 16388 MJR 31653 b voting trust, association, partnership, joint venture, similar organization or any other trust unless by its terms it must terminate within 25 years or not later than 21 years and 10 months after the death of individuals living on the effective date of the trust, but shall not include (1) an individual or (2) any corporation the majority of the shares of which are owned by the United States or by any state or any corporation or community chest fund, organized and operated exclusively for religious, charitable, scientific, literary or educational purposes, no part of the net earnings of which inure to the benefit of any private shareholder or individual and no SB2996 Enrolled - 41 - LRB096 16388 MJR 31653 b substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation.

In determining whether SB2996 Engrossed - 40 - LRB096 16388 MJR 31653 b any company controls or has control over a bank or company:

and (iii) shares transferred, directly or indirectly, by any bank holding company (or by any company which, but for such transfer, would be a bank holding company) to any transferee that is indebted to the transferor SB2996 Enrolled - 42 - LRB096 16388 MJR 31653 b or that has one or more officers, directors, trustees or beneficiaries in common with or subject to control by the transferor, shall be deemed to be indirectly owned or controlled by the transferor unless the Board of Governors of the Federal Reserve System has determined, under the federal Bank Holding Company Act, that the transferor is not in fact capable of controlling the transferee.

(C) by virtue of its holding any shares as SB2996 Engrossed - 41 - LRB096 16388 MJR 31653 b collateral taken in the ordinary course of securing a debt or other obligation;

SB2996 Enrolled - 43 - LRB096 16388 MJR 31653 b (i) "Federal Bank Holding Company Act" means the federal Bank Holding Company Act of 1956, as now or hereafter amended.

(1) that is organized under the laws of this State or SB2996 Engrossed - 42 - LRB096 16388 MJR 31653 b of the United States;

An out of state bank holding company that acquires control of one or more Illinois banks or Illinois bank holding SB2996 Enrolled - 44 - LRB096 16388 MJR 31653 b companies pursuant to Sections 3.061 or 3.071 shall not be deemed an Illinois bank holding company.

SB2996 Engrossed - 43 - LRB096 16388 MJR 31653 b (2) whose principal place of business is a state other than Illinois the laws of which expressly authorize the acquisition by an Illinois bank holding company of a bank or bank holding company in that state under qualifications and conditions which are not unduly restrictive, as determined by the Commissioner, when compared to those imposed by the laws of Illinois.

(q) "Principal place of business" means, with respect to a bank holding company, the state in which the total deposits held by all of the banking offices of all of the bank subsidiaries of such bank holding company are the largest, as SB2996 Enrolled - 45 - LRB096 16388 MJR 31653 b shown in the most recent reports of condition or similar reports filed by the bank holding company's bank subsidiaries with state or federal regulatory authorities.

SB2996 Engrossed - 44 - LRB096 16388 MJR 31653 b (1) to promulgate reasonable procedural rules for the purposes of administering the provisions of this Act.

(3) to appoint hearing officers to execute any of the powers granted to the Commissioner under this Section for the purpose of administering this Act or any rule SB2996 Enrolled - 46 - LRB096 16388 MJR 31653 b promulgated in accordance with this Act;

(b) Whenever, in the opinion of the Commissioner, any director, officer, employee, or agent of any bank holding company or subsidiary or affiliate of that company shall have SB2996 Engrossed - 45 - LRB096 16388 MJR 31653 b violated any law, rule, or order relating to that bank holding company or subsidiary or affiliate of that company, shall have obstructed or impeded any examination or investigation by the Commissioner, shall have engaged in an unsafe or unsound practice in conducting the business of that bank holding company or subsidiary or affiliate of that company, or shall have violated any law or engaged or participated in any unsafe or unsound practice in connection with any financial institution or other business entity such that the character and fitness of the director, officer, employee, or agent does not assure reasonable promise of safe and sound operation of SB2996 Enrolled - 47 - LRB096 16388 MJR 31653 b the bank holding company, the Commissioner may issue an order of removal.

If, in the opinion of the Commissioner, any former director, officer, employee, or agent of a bank holding company or subsidiary or affiliate of that company, prior to the termination of his or her service with that holding company or subsidiary or affiliate of that company, violated any law, rule, or order relating to that bank holding company or subsidiary or affiliate of that company, obstructed or impeded any examination or investigation by the Commissioner, engaged in an unsafe or unsound practice in conducting the business of that bank holding company or subsidiary or affiliate of that company, or violated any law or engaged or participated in any unsafe or unsound practice in connection with any financial institution or other business entity such that the character and fitness of the director, officer, employee, or agent would SB2996 Engrossed - 46 - LRB096 16388 MJR 31653 b not have assured reasonable promise of safe and sound operation of the bank holding company, the Commissioner may issue an order prohibiting that person from further service with a bank holding company or subsidiary or affiliate of that company as a director, officer, employee, or agent.

The hearing shall be SB2996 Enrolled - 48 - LRB096 16388 MJR 31653 b held by the State Banking Board within 30 days after the request has been received by the State Banking Board.

SB2996 Engrossed - 47 - LRB096 16388 MJR 31653 b The Commissioner may institute a civil action against the director, officer, employee, or agent of the bank holding company, against whom any order provided for by this subsection has been issued, to enforce compliance with or to enjoin any violation of the terms of the order.

Any person who has been the subject of an order of removal or an order of prohibition issued by the Commissioner under this subsection, subdivision (7) of Section 48 of the Illinois Banking Act, or Section 5-6 of the Corporate Fiduciary Act may not thereafter serve as director, officer, employee, or agent of any holding company, State bank, or branch of any SB2996 Enrolled - 49 - LRB096 16388 MJR 31653 b out-of-state bank, of any corporate fiduciary, as defined in Section 1-5.05 of the Corporate Fiduciary Act, or of any other entity that is subject to licensure or regulation by the Commissioner or the Office of Banks and Real Estate unless the Commissioner has granted prior approval in writing.

The Illinois Savings and Loan Act of 1985 is amended by changing Sections 1-10.04, 3-7, 7-1, 7-3, 7-4, 7-5, 7-20, 7-22, 10-1, and 10-111-1 and by adding Sections 1-10.065, 10-15, SB2996 Engrossed - 48 - LRB096 16388 MJR 31653 b 10-20, 10-25, 10-30, 10-35, 10-40, 10-45, 10-50, 10-55, 10-60, 10-65, 10-70, 10-75, 10-80, 10-85, 10-90, 10-95, and 10-100 as follows:

7-3-96.) SB2996 Enrolled - 50 - LRB096 16388 MJR 31653 b (205 ILCS 105/1-10.065 new) Sec.

(a) Every person appointed or elected to any position requiring the receipt, payment, management or use of money belonging to an association, or whose duties permit him to have access to or custody of any of its money or securities or whose duties permit him regularly to make entries in the books or other records of the association, before assuming his duties shall become bonded in some trust or company authorized to SB2996 Engrossed - 49 - LRB096 16388 MJR 31653 b issue bonds in this state, or in a fidelity insurance company licensed to do business in this State.

A true copy of every SB2996 Enrolled - 51 - LRB096 16388 MJR 31653 b bond, including all riders and endorsements executed subsequent to the effective date of the bond, shall be filed at all times with the Commissioner.

85-1271.) SB2996 Engrossed - 50 - LRB096 16388 MJR 31653 b (205 ILCS 105/7-1) (from Ch.

Personnel, records, files, actions and duties, SB2996 Enrolled - 52 - LRB096 16388 MJR 31653 b etc.

SB2996 Engrossed - 51 - LRB096 16388 MJR 31653 b (1) To exercise the rights, powers and duties set forth in this Act or in any other related Act;

SB2996 Enrolled - 53 - LRB096 16388 MJR 31653 b (5) To cause a suit to be filed in his name to enforce any law of this State that applies to an association, subsidiary of an association, or holding company operating under this Act and shall include the enforcement of any obligation of the officers, directors or employees of any association;

and (7) To establish reasonable and rationally based fee structures for each association and holding company operating under this Act and for their service corporations and subsidiaries, which fees shall include but not be limited to annual fees, application fees, regular and special examination fees, and such other fees as the Secretary establishes and demonstrates to be directly SB2996 Engrossed - 52 - LRB096 16388 MJR 31653 b resultant from his responsibilities under this Act and as are directly attributable to individual entities operating under this Act.

The Commissioner, deputy commissioners, and employees of the Office of Banks and Real SB2996 Enrolled - 54 - LRB096 16388 MJR 31653 b Estate shall be subject to the restrictions provided in Section 2.5 of the Division of Banking Office of Banks and Real Estate Act including, without limitation, the restrictions on (i) owning shares of stock or holding any other equity interest in an entity regulated under this Act or in any corporation or company that owns or controls an entity regulated under this Act;

(a) The Commissioner, at least once every 18 months, but more often if he deems it necessary or expedient, with or SB2996 Engrossed - 53 - LRB096 16388 MJR 31653 b without previous notice, shall cause an examination to be made of the affairs of every association, including any holding company and subsidiary thereof.

Notwithstanding SB2996 Enrolled - 55 - LRB096 16388 MJR 31653 b any other provision of this Act, every eligible association, as defined by regulation, or, if not so defined, to an equivalent extent as would be permitted in the case of a State bank, the Secretary, in lieu of the examination, may accept on an alternating basis the examination made by the appropriate federal banking regulator, or its successor, pursuant to the federal Home Owners' Loan Act, provided the appropriate federal banking regulator, or its successor, has made an examination.

and for the purpose of examination, the examiner in charge thereof shall have power to administer oaths and to examine under oath any officers, employees, agents SB2996 Engrossed - 54 - LRB096 16388 MJR 31653 b or directors of such association or holding company and such other witnesses as he deems necessary relative to the business of the association or holding company.

If the affairs of the association or holding company are not being conducted in accordance with this Act, the Commissioner shall SB2996 Enrolled - 56 - LRB096 16388 MJR 31653 b require the directors, officers or employees to take any necessary corrective action.

If the formal order of the Commissioner in whole or in part contains a finding that the business of the association or holding company is being conducted in a fraudulent, illegal or unsafe manner, or that the violation thereof or the continuance by the association or holding company of the practice to be corrected could cause insolvency or substantial dissipation of assets or SB2996 Engrossed - 55 - LRB096 16388 MJR 31653 b earnings or the impairment of its capital, such order or part thereof shall be complied with promptly on and after the effective date thereof until modified or withdrawn by the Commissioner, the Board, or modified or terminated by a circuit court.

If no hearing has been requested within the time specified by this Act, the Commissioner may, at any time within 90 days after the effective date of the order, institute suit in the Circuit Court of Sangamon County or the circuit court of the SB2996 Enrolled - 57 - LRB096 16388 MJR 31653 b county in which the association or holding company is located to compel the directors, officers or employees to make the required corrective action.

The Board shall be composed of 7 persons SB2996 Engrossed - 56 - LRB096 16388 MJR 31653 b appointed by the Governor.

The members of the Board serving immediately before the effective date of this amendatory Act of 1996 shall SB2996 Enrolled - 58 - LRB096 16388 MJR 31653 b continue to serve for the balance of their respective terms.

The SB2996 Engrossed - 57 - LRB096 16388 MJR 31653 b Board shall have the following powers:

and SB2996 Enrolled - 59 - LRB096 16388 MJR 31653 b (c) To advise the Governor on legislation proposed to amend this Act, the Savings Bank Act, or any related Act.

If the Commissioner, after taking custody of an association, the Secretary determines that the appointment of a receiver is appropriate, then the Secretary shall follow the provisions regarding receivership outlined under this Article under the Section of this Act concerning Commissioner's Authority to Take Custody, finds that any one or more of the reasons for taking custody continues to exist through the period of his custody, then he shall appoint any qualified person, firm or corporation as SB2996 Engrossed - 58 - LRB096 16388 MJR 31653 b receiver or coreceiver of such association or trust for the purpose of liquidation.

Except by SB2996 Enrolled - 60 - LRB096 16388 MJR 31653 b the authority of the Secretary, represented by the Attorney General, or the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act, no complaint shall be filed or proceedings commenced in any court for the dissolution of, the winding up of the affairs of, or the appointment of a receiver for any association on the grounds that:

(205 ILCS 105/10-20 new) SB2996 Engrossed - 59 - LRB096 16388 MJR 31653 b Sec.

then the Secretary may give notice to the board of directors of SB2996 Enrolled - 61 - LRB096 16388 MJR 31653 b his or her finding or findings.

SB2996 Engrossed - 60 - LRB096 16388 MJR 31653 b (205 ILCS 105/10-25 new) Sec.

If, in addition to a finding as provided in Section 10-20 of this Act, the Secretary is of the opinion and finds that an emergency exists that may result in serious losses to the depositors or the inability of the association to continue in operations, meet the demands of its depositors, or pay its obligations in the normal course of business, he or she may, in his or her discretion, without having given the notice provided for in Section 10-20 of this Act, and whether or not proceedings under SB2996 Enrolled - 62 - LRB096 16388 MJR 31653 b Section 10-20 of this Act have been instituted or are then pending, take possession and control of the association and its assets for the purpose of examination, reorganization, or liquidation through receivership.

Promptly after taking possession and control of an association, if the Federal Deposit Insurance Corporation is not appointed as receiver, the Secretary shall file a copy of the notice SB2996 Engrossed - 61 - LRB096 16388 MJR 31653 b posted upon the premises in the circuit court in the county in which the association is located, and thereupon the clerk of such court shall note the filing of the notice upon the records of the court, and shall enter such cause as a court action upon the dockets of such court under the name and style of "In the matter of the possession and control of the Secretary of (insert the name of such association)", and thereupon the court wherein such cause is docketed shall be vested with jurisdiction to hear and determine all issues and matters pertaining to or connected with the Secretary's possession and control of such association as provided in this Act, and such SB2996 Enrolled - 63 - LRB096 16388 MJR 31653 b further issues and matters pertaining to or connected with the Secretary's possession and control as may be submitted to such court for its adjudication by the Secretary.

provided, however, with respect to a qualified financial contract between any party and an association or a branch or agency of which the Secretary has taken possession and control, which party has a perfected security interest in collateral or other valid SB2996 Engrossed - 62 - LRB096 16388 MJR 31653 b lien or security interest in collateral enforceable against third parties pursuant to a security arrangement related to that qualified financial contract, the party may retain all of the collateral and upon repudiation or termination of that qualified financial contract in accordance with its terms apply the collateral in satisfaction of any claims secured by the collateral;

SB2996 Enrolled - 64 - LRB096 16388 MJR 31653 b (4) the power to employ and to pay any necessary assistants;

(8) the power, upon the order of the court, to make and to carry out agreements with other associations or with the United States or any agency thereof that shall insure the association's deposits, in whole or in part, for the payment or assumption of the association's liabilities, in SB2996 Engrossed - 63 - LRB096 16388 MJR 31653 b whole or in part, and to transfer assets and to make guaranties, in whole or in part, and to transfer assets and to make guaranties in connection therewith;

SB2996 Enrolled - 65 - LRB096 16388 MJR 31653 b (12) the power to appoint a receiver and to order liquidation of the association as provided in this Act;

Unless the time shall be extended by order of the court, and unless the Secretary shall have otherwise settled the affairs of an association pursuant to the provisions of this Act, at the SB2996 Engrossed - 64 - LRB096 16388 MJR 31653 b termination of 30 days after the time of taking possession and control of an association for the purpose of examination, reorganization, or liquidation through receivership, the Secretary shall either terminate his or her possession and control by restoring the association to its board of directors or appoint a receiver and order the liquidation of the association as provided in this Act.

If the Federal Deposit Insurance Corporation is appointed by the Secretary as SB2996 Enrolled - 66 - LRB096 16388 MJR 31653 b receiver of an association, or the Federal Deposit Insurance Corporation takes possession of the association, then the receivership proceedings and the powers and duties of the Federal Deposit Insurance Corporation shall be governed by the Federal Deposit Insurance Act and regulations promulgated under that Act rather than the provisions of this Act.

Except when the Federal Deposit Insurance Corporation has taken possession of the association or is acting as receiver, if the Secretary has taken possession and control of an association and its assets, then there shall be a postponement until 6 months after the commencement of the possession of the date upon which any period of limitation fixed by a statute or SB2996 Engrossed - 65 - LRB096 16388 MJR 31653 b agreement would otherwise expire on a claim or right of action of the association, or upon which an appeal must be taken or a pleading or other document must be filed by the association in any pending action or proceeding.

The provisions of this Section shall continue to apply and shall govern notwithstanding the appointment of and the SB2996 Enrolled - 67 - LRB096 16388 MJR 31653 b possession by a receiver pursuant to Section 10-55 of this Act.

Such reorganization plan shall become effective only (1) when the requirements of Section 10-45 are satisfied, and (2) when, after reasonable notice of such reorganization, as the case may require (A) depositors and other creditors of such association representing at least 75% in amount of its total deposits and other liabilities as shown by the books of the association, (B) stockholders owning at least two-thirds of its outstanding capital stock as shown by SB2996 Engrossed - 66 - LRB096 16388 MJR 31653 b the books of the association, or (C) both depositors and other creditors representing at least 75% in amount of the total deposits and other liabilities and stockholders owning at least two-thirds of its outstanding capital stock as shown by the books of the association, shall have consented in writing to the plan of reorganization;

When such reorganization becomes effective, all SB2996 Enrolled - 68 - LRB096 16388 MJR 31653 b books, records, and assets of the association shall be disposed of in accordance with the provisions of the plan, and the affairs of the association shall be conducted by its board of directors in the manner provided by the plan and under the conditions, restrictions, and limitations prescribed by the Secretary.

A department, agency, or political subdivision of this State holding a claim that will not be paid in full is authorized to participate in a plan of reorganization as any other creditor SB2996 Engrossed - 67 - LRB096 16388 MJR 31653 b and shall be subject to and bound by its provisions as any other creditor.

(2) the face amount of the interest accorded to any class of depositors, creditors, and stockholders under the SB2996 Enrolled - 69 - LRB096 16388 MJR 31653 b plan does not exceed the value of the assets upon liquidation less the full amount of the claims of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay in under the plan;

Whenever, in the SB2996 Engrossed - 68 - LRB096 16388 MJR 31653 b course of reorganization, supervening conditions render the plan of reorganization unfair or its execution impractical, the Secretary may modify the plan, provided the modification is with the written consent of the depositors and other creditors representing at least 75% in amount of the total deposits and other liabilities that are impaired or lessened by the modification, or may, provided the Federal Deposit Insurance has not been appointed, appoint a receiver for liquidation as provided in this Act.

(205 ILCS 105/10-55 new) SB2996 Enrolled - 70 - LRB096 16388 MJR 31653 b Sec.

(b) Unless the Federal Deposit Insurance Corporation is SB2996 Engrossed - 69 - LRB096 16388 MJR 31653 b acting as receiver for the association, the Secretary, upon taking possession and control of an association and its assets, may and, if he or she has not previously done so, shall, immediately upon filing a complaint for dissolution, make an examination of the affairs of the trust department of the association or appoint a corporate fiduciary or other suitable person to make the examination as the Secretary's agent.

The examination shall be conducted in accordance with and pursuant to the authority granted under Section 5-2 of the Corporate Fiduciary Act and the corporate fiduciary or other suitable person conducting the examination shall have and may exercise SB2996 Enrolled - 71 - LRB096 16388 MJR 31653 b on behalf of the Secretary all of the powers and authority granted to the Secretary.

As soon as reasonably can be done, the Secretary, if he or she deems it advisable, shall seek the advice and instruction SB2996 Engrossed - 70 - LRB096 16388 MJR 31653 b of the court concerning the removal of the corporate fiduciary as to all of its fiduciary accounts and the appointment of a successor fiduciary, which may be the examining corporate fiduciary, to take over and administer all of the fiduciary accounts being administered by the trust department of the association.

The corporate fiduciary or other suitable person appointed to make the examination shall make a proper accounting, in the manner and scope as determined by the Secretary to be practical and advisable under the circumstances, on behalf of the trust department of the association and no guardian ad litem need be appointed to SB2996 Enrolled - 72 - LRB096 16388 MJR 31653 b review the accounting.

All persons who may SB2996 Engrossed - 71 - LRB096 16388 MJR 31653 b have claims against the association and the receiver to whom the persons have presented their claims may present them to the clerk of the court, and the allowance or disallowance of the claims by the court in connection with the proceedings shall be deemed an adjudication in a court of competent jurisdiction.

Other than the Federal Deposit Insurance Corporation, which shall derive its powers and perform its duties pursuant to the Federal Deposit Insurance Act and regulations promulgated thereunder, the SB2996 Enrolled - 73 - LRB096 16388 MJR 31653 b receiver for an association, under the direction of the Secretary, shall have the power and authority and is charged with the duties and responsibilities as follows:

(4) He or she shall have authority to sue and defend in his or her own name with respect to the affairs, assets, SB2996 Engrossed - 72 - LRB096 16388 MJR 31653 b claims, debts, and choses in action of the association.

SB2996 Enrolled - 74 - LRB096 16388 MJR 31653 b (7) Whenever he or she finds it necessary in his or her opinion to use and employ money of the association in order to protect fully and benefit the association, by the purchase or redemption of any property, real or personal, in which the association may have any rights by reason of any bond, mortgage, assignment, or other claim thereto, he or she may certify the facts together with his or her opinions as to the value of the property involved, and the value of the equity the association may have in the property to the Secretary, together with a request for the right and authority to use and employ so much of the money of the association as may be necessary to purchase the property, or to redeem the same from a sale if there was a sale, and if such request is granted, the receiver may use so much of the money of the association as the Secretary SB2996 Engrossed - 73 - LRB096 16388 MJR 31653 b may have authorized to purchase the property at such sale.

The moneys may be deposited without interest, SB2996 Enrolled - 75 - LRB096 16388 MJR 31653 b unless otherwise agreed.

(205 ILCS 105/10-70 new) SB2996 Engrossed - 74 - LRB096 16388 MJR 31653 b Sec.

(3) He or she may petition the court for the authority SB2996 Enrolled - 76 - LRB096 16388 MJR 31653 b to borrow money, and to pledge the assets of the association as security therefor, whereupon the practice and procedure shall be as follows:

(C) If the court grants such authority, then the receiver may borrow money and issue evidences of indebtedness therefor and may secure the payment of such loan by the mortgage, pledge, transfer in trust, SB2996 Engrossed - 75 - LRB096 16388 MJR 31653 b or hypothecation of any or all property and assets of such association, whether real, personal, or mixed, superior to any charge thereon for the expenses of liquidation.

(E) Loans may be obtained for the purpose of facilitating liquidation, protecting or preserving the assets, expediting the making of distributions to depositors and other creditors, providing for the SB2996 Enrolled - 77 - LRB096 16388 MJR 31653 b expenses of administration and liquidation, and in aiding in the reopening or reorganization of such association or its merger or consolidation with another association, or in the sale of its assets.

SB2996 Engrossed - 76 - LRB096 16388 MJR 31653 b (4) He or she may make and carry out agreements with other associations or with the United States or any agency thereof that has insured the association's deposits, in whole or in part, for the payment or assumption of the association's liabilities, in whole or in part, and he or she may transfer assets and make guaranties in connection therewith.

(5) After the expiration of 12 weeks after the first publication of the Secretary's notice as provided in Section 10-60, he or she shall file with the court a correct list of all creditors of the association, as shown SB2996 Enrolled - 78 - LRB096 16388 MJR 31653 b by its books, who have not presented their claims and the amount of their respective claims after allowing all just credits, deductions and set-offs as shown by the books of the association.

The provisions of this Section do not apply to the Federal Deposit Insurance Corporation as receiver, which shall derive its powers and perform its duties pursuant to the Federal SB2996 Engrossed - 77 - LRB096 16388 MJR 31653 b Deposit Insurance Act.

At any time after a receiver, other than the Federal Deposit Insurance Corporation, is appointed by the Secretary, whenever two-thirds of the creditors of an association petition the Secretary for the appointment of any person nominated by them as receiver, who is a reputable person and a resident of the county in which such association is located, it shall be the duty of the Secretary to make such appointment and all rights SB2996 Enrolled - 79 - LRB096 16388 MJR 31653 b and duties of his or her predecessor shall at once devolve upon such appointee.

The right of an agency of the United States insuring deposits to be subrogated SB2996 Engrossed - 78 - LRB096 16388 MJR 31653 b to the rights of depositors upon payment of their claim shall not be less extensive than the law of the United States requires as a condition of the authority to issue insurance or make the payment.

All expenses of any preliminary or other examination into the condition of any such association or SB2996 Enrolled - 80 - LRB096 16388 MJR 31653 b receivership and all expenses incident to and in connection with the possession and control of the association and its assets for the purpose of examination, reorganization, or liquidation through receivership shall be paid out of the assets of that association.

From time to time during a receivership other than a receivership conducted by the Federal Deposit Insurance Corporation, the Secretary shall make and pay from moneys of the association a ratable dividend on all claims as may be proved to his or her satisfaction or SB2996 Engrossed - 79 - LRB096 16388 MJR 31653 b adjudicated by the court.

As the proceeds of the assets of the association are collected in the course of liquidation, the Secretary shall make and pay further dividends SB2996 Enrolled - 81 - LRB096 16388 MJR 31653 b on all claims previously proven or adjudicated.

All records of receiverships heretofore SB2996 Engrossed - 80 - LRB096 16388 MJR 31653 b and hereafter received by the Secretary or by a receiver appointed by the Secretary shall be held by the Secretary or such receiver for the period of 2 years after the close of the receivership and, at the termination of the 2-year period, may then be destroyed.

Whenever the Secretary shall have taken possession and control of an association and its assets for the purpose of examination, reorganization, or liquidation through receivership, or whenever the Secretary SB2996 Enrolled - 82 - LRB096 16388 MJR 31653 b shall have appointed a receiver for an association, other than the Federal Deposit Insurance Corporation, and filed a complaint for the dissolution or for the winding up of the affairs of an association, and the association denies the grounds for such actions, it may, at any time within 10 days, apply to the Circuit Court of Sangamon County, Illinois, to enjoin further proceedings in the premises;

and such court shall cite the Secretary to show cause why further proceedings should not be enjoined, and if the court shall find that such grounds do not exist, the court shall make an order enjoining the Secretary and any receiver acting under his or her direction from all further proceedings on account of such alleged grounds, provided that neither the 10 days allowed by this Section for judicial review nor the pendency of any proceedings for judicial review shall operate to defer, delay, SB2996 Engrossed - 81 - LRB096 16388 MJR 31653 b impede, or prevent the payment or acquisition by the Federal Deposit Insurance Corporation of the deposit liabilities of the association that are insured by the Federal Deposit Insurance Corporation, and during said period allowed for judicial review and during the pendency of any proceedings for judicial review under this Section, the Secretary or, as the case may be, the receiver shall make available to the Federal Deposit Insurance Corporation the facilities in or of the association and books, records, and other relevant data of the association as may be necessary or appropriate to enable the Federal Deposit Insurance Corporation to pay out or to acquire the insured SB2996 Enrolled - 83 - LRB096 16388 MJR 31653 b deposit liabilities of the association, and said Federal Deposit Insurance Corporation and its directors, officers, agents, and employees, and the Secretary and his agents and employees, including the receiver, if any, shall be free from any liability to the association and its stockholders and creditors for or on account of any matter or thing in this proviso referred to or provided for.

Section(205 30.ILCS 105/11-1) (from Ch.

The Savings Bank Act is amended by changing Sections 1003, 1007.30, 4009, 9001, 9002, 9003, and 9004, by changing the heading to Article 10, and by adding Sections 1007.57, 10011, 10015, 10020, 10025, 10030, 10035, 10040, 10045, 10050, 10055, 10060, 10065, 10070, 10075, 10080, 10085, 10090, 10095, and 10100 as follows:

SB2996 Engrossed - 82 - LRB096 16388 MJR 31653 b (205 ILCS 205/1003) (from Ch.

3311-1) Sec.

11-1.

Offenses and penalties.

Any person who violates the provisions of Sections 3-9, 3-10, 5-11 or 5-12 (b) of this Act is guilty of a Business Offense.

The Commissioner, in addition to any other powers granted in this Act, shall have the power and authority to impose civil penalties of up to $100,000 against any person 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 that in the Commissioner's discretion is an unsafe or unsound banking practice.

(Source:

P.A.

86-137.) Section 30.

The Savings Bank Act is amended by changing Sections 1003, 1007.30, 4009, 9001, 9002, 9003, 9004, and 11006 by changing the heading to Article 10, and by adding Sections 1007.57, 10011, 10015, 10020, 10025, 10030, 10035, 10040, 10045, 10050, 10055, 10060, 10065, 10070, 10075, 10080, 10085, SB2996 Enrolled - 84 - LRB096 16388 MJR 31653 b 10090, 10095, and 10100 as follows:

(205 ILCS 205/1003) (from Ch.

17, par.

(a) Every person appointed or elected to any position requiring the receipt, payment, management, or use of money SB2996 Enrolled - 85 - LRB096 16388 MJR 31653 b belonging to a savings bank or whose duties permit or require access to or custody of any of the savings bank's money or SB2996 Engrossed - 83 - LRB096 16388 MJR 31653 b securities or whose duties permit the regular making of entries in the books or other records of the savings bank shall become bonded in some trust or company authorized to issue bonds in this State or in a fidelity insurance company licensed to do business in this State before assuming any duties.

(b) Nothing contained in this Section shall preclude the Commissioner from proceeding against a savings bank as provided in this Act should he believe that it is being conducted in an SB2996 Enrolled - 86 - LRB096 16388 MJR 31653 b unsafe manner in that the form or amount of bonds so fixed and approved by the board of directors is inadequate to give SB2996 Engrossed - 84 - LRB096 16388 MJR 31653 b reasonable protection to the savings bank.

SB2996 Enrolled - 87 - LRB096 16388 MJR 31653 b (2) To establish regulations as may be reasonable or necessary to accomplish the purposes of this Act.

SB2996 Engrossed - 85 - LRB096 16388 MJR 31653 b (3) To make an annual report regarding the work of his office under this Act as he may consider desirable to the Governor, or as the Governor may request.

The aggregate of all fees collected by the Secretary on and after the effective date of this Act shall be paid promptly after receipt of the same, accompanied by a detailed statement thereof, into the Savings and Residential Finance Regulatory Fund subject to the provisions SB2996 Enrolled - 88 - LRB096 16388 MJR 31653 b of Section 7-19.1 of the Illinois Savings and Loan Act of 1985 including without limitation the provision for credits against SB2996 Engrossed - 86 - LRB096 16388 MJR 31653 b regulatory fees.

7-3-96.) SB2996 Enrolled - 89 - LRB096 16388 MJR 31653 b (205 ILCS 205/9004) (from Ch.

7309-4) SB2996 Engrossed - 87 - LRB096 16388 MJR 31653 b Sec.

In the event that the condition is grounds for taking custody of the savings bank under Section 10001 of this Act, the examination shall be initiated SB2996 Enrolled - 90 - LRB096 16388 MJR 31653 b immediately.

Notwithstanding any other provision of this Act, every savings bank, as defined by rule, or, if not defined, to SB2996 Engrossed - 88 - LRB096 16388 MJR 31653 b the same extent as would be permitted in the case of a State bank, the Secretary, in lieu of the examination, may accept on an alternating basis the examination made by the eligible savings bank's appropriate federal banking agency pursuant to Section 111 of the Federal Deposit Insurance Corporation Improvement Act of 1991, provided the appropriate federal banking agency has made an examination.

(d) If a savings bank, its holding company, or any of its corporate subsidiaries has not been audited at least once in the 12 months prior to the Commissioner's examination, the Commissioner shall cause an audit of the savings bank's books SB2996 Enrolled - 91 - LRB096 16388 MJR 31653 b and records to be made by an independent licensed public accountant selected by the Commissioner from a list composed of SB2996 Engrossed - 89 - LRB096 16388 MJR 31653 b certified public accountants who have experience in savings bank audits.

Except by the authority of the Secretary, represented by the Attorney General, or the Federal Deposit Insurance Corporation pursuant SB2996 Enrolled - 92 - LRB096 16388 MJR 31653 b to the Federal Deposit Insurance Act, no complaint shall be filed or proceedings commenced in any court for the dissolution SB2996 Engrossed - 90 - LRB096 16388 MJR 31653 b of, the winding up of the affairs of, or the appointment of a receiver for any savings bank on the grounds that:

If the situation so found by SB2996 Enrolled - 93 - LRB096 16388 MJR 31653 b the Secretary shall not be corrected to his or her satisfaction within a period of at least 60 but no more than 180 days after SB2996 Engrossed - 91 - LRB096 16388 MJR 31653 b receipt of the notice, which period shall be determined by the Secretary and set forth in the notice, then the Secretary, at the termination of that period, may take possession and control of the savings bank and its assets as provided for in this Act for the purpose of examination, reorganization, or liquidation through receivership.

If, in addition to a finding as provided in Section 10020 of this Act, the Secretary is of the opinion and finds that an emergency exists that may result in serious losses to the depositors or the inability of the savings bank to continue in operations, meet the demands of its depositors, or pay its obligations in the normal course of business, he or she may, in his or her discretion, without having given the notice provided for in Section 10020, and whether or not proceedings under Section 10020 have been instituted or are then pending, take possession and control of the savings bank and its assets for the purpose SB2996 Enrolled - 94 - LRB096 16388 MJR 31653 b of examination, reorganization, or liquidation through receivership.

SB2996 Engrossed - 92 - LRB096 16388 MJR 31653 b (205 ILCS 205/10030 new) Sec.

Promptly after taking possession and control of a savings bank, if the Federal Deposit Insurance Corporation is not appointed as receiver, the Secretary shall file a copy of the notice posted upon the premises in the circuit court in the county in which the savings bank is located, and thereupon the clerk of such court shall note the filing of the notice upon the records of the court, and shall enter such cause as a court action upon the dockets of such court under the name and style of "In the matter of the possession and control of the Secretary of (insert the name of such savings bank)", and thereupon the court wherein the cause is docketed shall be vested with jurisdiction to hear and determine all issues and matters pertaining to or connected with the Secretary's possession and control of the savings bank as provided in this Act, and such further issues and matters pertaining to or connected with the Secretary's possession and control as may be submitted to the SB2996 Enrolled - 95 - LRB096 16388 MJR 31653 b court for its adjudication by the Secretary.

When the Secretary has taken possession and control of a savings bank and its SB2996 Engrossed - 93 - LRB096 16388 MJR 31653 b assets, then he or she shall be vested with the full powers of management and control, including without limitation the following:

(5) the power to execute any instrument in the name of SB2996 Enrolled - 96 - LRB096 16388 MJR 31653 b the savings bank;

(6) the power to commence, defend, and conduct in its SB2996 Engrossed - 94 - LRB096 16388 MJR 31653 b name any action or proceeding in which it may be a party;

and SB2996 Enrolled - 97 - LRB096 16388 MJR 31653 b (13) the power, upon the order of the court and without the appointment of a receiver, to determine that the SB2996 Engrossed - 95 - LRB096 16388 MJR 31653 b savings bank has been closed for the purpose of liquidation without adequate provision being made for payment of its depositors, and thereupon the savings bank shall be deemed to have been closed on account of inability to meet the demands of its depositors.

If the Federal Deposit Insurance Corporation is appointed by the Secretary as receiver of a savings bank, or the Federal Deposit Insurance Corporation takes possession of the savings bank, the receivership SB2996 Enrolled - 98 - LRB096 16388 MJR 31653 b proceedings and the powers and duties of the Federal Deposit Insurance Corporation shall be governed by the Federal Deposit SB2996 Engrossed - 96 - LRB096 16388 MJR 31653 b Insurance Act and regulations promulgated under that Act rather than the provisions of this Act.

SB2996 Enrolled - 99 - LRB096 16388 MJR 31653 b (205 ILCS 205/10040 new) Sec.

The Secretary, while in SB2996 Engrossed - 97 - LRB096 16388 MJR 31653 b possession and control of a savings bank and its assets, after according thea hearing to interested parties as he or she may determine and upon the order of the court, may propose a reorganization plan.

When such reorganization becomes effective, all books, records, and assets of the savings bank shall be disposed of in accordance with the provisions of the plan and SB2996 Enrolled - 100 - LRB096 16388 MJR 31653 b the affairs of the savings bank shall be conducted by its board of directors in the manner provided by the plan and under the SB2996 Engrossed - 98 - LRB096 16388 MJR 31653 b conditions, restrictions, and limitations prescribed by the Secretary.

(2) the face amount of the interest accorded to any class of depositors, creditors and stockholders under the plan does not exceed the value of the assets upon liquidation less the full amount of the claims of all prior SB2996 Enrolled - 101 - LRB096 16388 MJR 31653 b classes, subject, however, to any fair adjustment for new capital that any class will pay in under the plan;

SB2996 Engrossed - 99 - LRB096 16388 MJR 31653 b (3) the plan assures the removal of any director, officer, or employee responsible for any unsound or unlawful action or the existence of an unsound condition;

(a) If the Secretary determines, which determination may be SB2996 Enrolled - 102 - LRB096 16388 MJR 31653 b made at the time of or any time subsequent to his or her taking possession and control of a savings bank and its assets, that SB2996 Engrossed - 100 - LRB096 16388 MJR 31653 b no practical possibility exists to reorganize the savings bank after reasonable efforts have been made and that it should be liquidated through receivership, then the Secretary shall appoint a receiver and require of the receiver the bond and security as the Secretary deems proper, and the Secretary, represented by the Attorney General, shall, if the Federal Deposit Insurance Corporation is not acting as receiver, file a complaint for the dissolution or winding up of the affairs of the savings bank in the circuit court of the county where such savings bank is located.

SB2996 Enrolled - 103 - LRB096 16388 MJR 31653 b The report of examination shall, to the extent reasonably possible, identify those governing instruments with specific SB2996 Engrossed - 101 - LRB096 16388 MJR 31653 b instructions concerning the appointment of a successor fiduciary.

(205 ILCS 205/10060 new) SB2996 EngrossedEnrolled - 102104 - LRB096 16388 MJR 31653 b (205 ILCS 205/10060 new) Sec.

Other than the Federal Deposit Insurance Corporation, which shall derive its powers and perform its duties pursuant to the Federal Deposit Insurance Act and regulations promulgated thereunder, the receiver for a savings bank, under the direction of the SB2996 Enrolled - 105 - LRB096 16388 MJR 31653 b Secretary, shall have the power and authority and is charged with the duties and responsibilities as follows:

SB2996 Engrossed - 103 - LRB096 16388 MJR 31653 b (1) He or she shall take possession of and, for the purpose of the receivership, the title to the books, records, and assets of every description of the savings bank.

(7) Whenever he or she finds it necessary in his or her SB2996 Enrolled - 106 - LRB096 16388 MJR 31653 b opinion to use and employ money of the savings bank, in order to protect fully and benefit the savings bank, by the SB2996 Engrossed - 104 - LRB096 16388 MJR 31653 b purchase or redemption of any property, real or personal, in which the savings bank may have any rights by reason of any bond, mortgage, assignment, or other claim thereto, he or she may certify the facts together with his or her opinions as to the value of the property involved, and the value of the equity the savings bank may have in the property to the Secretary, together with a request for the right and authority to use and employ so much of the money of the savings bank as may be necessary to purchase the property, or to redeem the same from a sale if there was a sale, and if the request is granted, the receiver may use so much of the money of the savings bank as the Secretary may have authorized to purchase the property at such sale.

However, if any SB2996 Enrolled - 107 - LRB096 16388 MJR 31653 b interest was paid by such depository, it shall accrue to the benefit of the particular trust to which the deposit SB2996 Engrossed - 105 - LRB096 16388 MJR 31653 b belongs.

SB2996 Enrolled - 108 - LRB096 16388 MJR 31653 b (3) He or she may petition the court for the authority to borrow money, and to pledge the assets of the savings SB2996 Engrossed - 106 - LRB096 16388 MJR 31653 b bank as security therefor, whereupon the practice and procedure shall be as follows:

(E) The loan may be obtained for the purpose of facilitating liquidation, protecting or preserving the assets, expediting the making of distributions to SB2996 Enrolled - 109 - LRB096 16388 MJR 31653 b depositors and other creditors, providing for the expenses of administration and liquidation, and aiding SB2996 Engrossed - 107 - LRB096 16388 MJR 31653 b in the reopening or reorganization of such savings bank or its merger or consolidation with another savings bank, or in the sale of its assets.

(5) After the expiration of 12 weeks after the first publication of the Secretary's notice as provided in Section 10060, he or she shall file with the court a SB2996 Enrolled - 110 - LRB096 16388 MJR 31653 b correct list of all creditors of the savings bank, as shown by its books, who have not presented their claims and the SB2996 Engrossed - 108 - LRB096 16388 MJR 31653 b amount of their respective claims after allowing all just credits, deductions and set-offs as shown by the books of the savings bank.

At any time after a receiver, other than the Federal Deposit Insurance Corporation, is appointed by the Secretary, whenever two-thirds of the creditors of a savings bank petition the Secretary for the appointment of any person nominated by them as receiver, who is a reputable person and a resident of the county in which such savings bank is located, it shall be the SB2996 Enrolled - 111 - LRB096 16388 MJR 31653 b duty of the Secretary to make such appointment and all rights and duties of his or her predecessor shall at once devolve upon SB2996 Engrossed - 109 - LRB096 16388 MJR 31653 b such appointee.

All expenses of a receivership, including reasonable receiver's and attorney's fees approved by the Secretary shall be paid out of the assets SB2996 Enrolled - 112 - LRB096 16388 MJR 31653 b of the savings bank.

All expenses of any preliminary or other examination into the condition of any thesuch savings bank or SB2996 Engrossed - 110 - LRB096 16388 MJR 31653 b receivership and all expenses incident to and in connection with the possession and control of the bank and its assets for the purpose of examination, reorganization, or liquidation through receivership shall be paid out of the assets of the savings bank.

As the proceeds of the SB2996 Enrolled - 113 - LRB096 16388 MJR 31653 b assets of the savings bank are collected in the course of liquidation, the Secretary shall make and pay further dividends SB2996 Engrossed - 111 - LRB096 16388 MJR 31653 b on all claims previously proven or adjudicated.

Whenever the Secretary shall SB2996 Enrolled - 114 - LRB096 16388 MJR 31653 b have taken possession and control of a savings bank and its assets for the purpose of examination, reorganization, or SB2996 Engrossed - 112 - LRB096 16388 MJR 31653 b liquidation through receivership, or whenever the Secretary shall have appointed a receiver for a savings bank, other than the Federal Deposit Insurance Corporation, and filed a complaint for the dissolution or for the winding up of the affairs of a savings bank, and the savings bank denies the grounds for such actions, it may, at any time within 10 days, apply to the Circuit Court of Sangamon County, Illinois, to enjoin further proceedings in the premises;

and such court shall cite the Secretary to show cause why further proceedings should not be enjoined, and if the court shall find that the grounds do not exist, the court shall make an order enjoining the Secretary and any receiver acting under his or her direction from all further proceedings on account of such alleged grounds, provided that neither the 10 days allowed by this Section 10100 for judicial review nor the pendency of any proceedings for judicial review shall operate to defer, delay, impede, or prevent the payment or acquisition by the Federal Deposit Insurance Corporation of the deposit liabilities of the savings bank that are insured by the Federal Deposit Insurance Corporation, and during the period allowed for judicial review and during the pendency of any proceedings for judicial review under this Section 10100, the Secretary or, as the case may be, the receiver shall make available to the Federal Deposit Insurance Corporation such facilities in or of the savings bank SB2996 Enrolled - 115 - LRB096 16388 MJR 31653 b and the books, records, and other relevant data of the savings bank as may be necessary or appropriate to enable the Federal SB2996 Engrossed - 113 - LRB096 16388 MJR 31653 b Deposit Insurance Corporation to pay out or to acquire the insured deposit liabilities of the savings bank, and said Federal Deposit Insurance Corporation and its directors, officers, agents, and employees, and the Secretary and his agents and employees, including the receiver, if any, shall be free from any liability to the savings bank and its stockholders and creditors for or on account of any matter or thing in this proviso referred to or provided for.

Section(205 35.ILCS 205/11006) (from Ch.

The17, Pawnbrokerpar. Regulation Act is amended by changing Sections 0.05 and 1 and by adding Section 5.5 as follows:

7311-6) Sec.

11006.

Civil penalties.

The Commissioner, in addition to any other powers granted in this Act, shall have the power and authority to:

(1) Impose civil penalties of up to $100,000 $10,000 against any person 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 that in the Commissioner's discretion, is an unsafe or unsound banking practice.

(2) Impose civil penalties of up to $100 against any person for the first failure to comply with reporting requirements set forth in the report of examination of the bank and up to $200 for the second and subsequent failures to comply with those reporting requirements.

SB2996 Enrolled - 116 - LRB096 16388 MJR 31653 b (Source:

P.A.

86-1213.) Section 35.

The Pawnbroker Regulation Act is amended by changing Sections 0.05 and 1 and by adding Sections 5.5 and 12 as follows:

(a) This Act shall be administered by the Commissioner of Banks and Real Estate,Estate , except that beginning on the effective date of this amendatory Act of the 96th General Assembly, all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation, who shall have all of the following powers and duties in administering this Act:

(2) To issue orders for the purpose of administering SB2996 Engrossed - 114 - LRB096 16388 MJR 31653 b the provisions of this Act and any rule promulgated in accordance with this Act.

(3)(2.5) To appointorder hearingrestitution officers and to hireconsumers employeessuffering ordamages toresulting contractfrom withviolations appropriate persons to execute any of thethis powersAct, grantedrules topromulgated thein Commissioneraccordance underwith this SectionAct, foror theother purposelaws ofor administeringregulations thisrelated Actto andthe anyoperation ruleof promulgateda inpawnshop. accordance with this Act.

(3) To appoint hearing officers and to hire employees SB2996 Enrolled - 117 - LRB096 16388 MJR 31653 b or to contract with appropriate persons to execute 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.

(6.5) To initiate, through the Attorney General, injunction proceedings whenever it appears to the Commissioner that any person, whether licensed under this Act or not, is engaged or about to engage in an act or SB2996 Engrossed - 115 - LRB096 16388 MJR 31653 b practice that constitutes or will constitute a violation of this Act or any rule prescribed under the authority of this Act.

The Commissioner may, in his or her discretion, SB2996 Enrolled - 118 - LRB096 16388 MJR 31653 b through the Attorney General, apply for an injunction, and upon a proper showing, any circuit court may enter a permanent or preliminary injunction or a temporary restraining order without bond to enforce this Act in addition to the penalties and other remedies provided for in this Act.

(9) In response to a complaint, to address any inquiries to any pawnshop in relation to its affairs, and SB2996 Engrossed - 116 - LRB096 16388 MJR 31653 b it shall be the duty of the pawnshop to promptly reply in writing to such inquiries.

The Commissioner may also require reports or information from any pawnshop at any SB2996 Enrolled - 119 - LRB096 16388 MJR 31653 b time the Commissioner may deem desirable.

(10.2) To remove or prohibit the employment of any officer, director, employee, or employeeagent of the pawnshop who engages in or who has engaged in unsafe,unlawful unsound,activities orthat unlawfulrelate activities.to the operation of a pawnshop.

(10.7) To prohibit the hiring of employees who have been convicted of a financial crime or any crime involving breach of trust who do not meet exceptions as establishestablished by rule of the Secretary.

(11) Following license revocation, to take possession SB2996 Engrossed - 117 - LRB096 16388 MJR 31653 b and control of a pawnshop for the purpose of examination, reorganization, or liquidation through receivership and to SB2996 Enrolled - 120 - LRB096 16388 MJR 31653 b appoint a receiver, which may be the Commissioner, a pawnshop, or another suitable person.

It shall be unlawful to operate a SB2996 Engrossed - 118 - LRB096 16388 MJR 31653 b pawnshop without a license issued by the Commissioner.

(d) In addition to license fees, the Commissioner may, by SB2996 Enrolled - 121 - LRB096 16388 MJR 31653 b rule, establish fees in connection with a review, approval, or provision of a service, and levy a reasonable charge to recover the cost of the review, approval, or service (such as a change in control, change in location, or renewal of a license).

Moneys in the Pawnbroker Regulation Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil SB2996 Engrossed - 119 - LRB096 16388 MJR 31653 b Administrative Code of Illinois.

(f) The Commissioner may, by rule, require all pawnshops to SB2996 Enrolled - 122 - LRB096 16388 MJR 31653 b provide for the expenses that would arise from the administration of the receivership of a pawnshop under this Act through the assessment of fees, the requirement to pledge surety bonds, or such other methods as determined by the Commissioner.

(b) The Secretary may require employees of pawnshops who SB2996 Engrossed - 120 - LRB096 16388 MJR 31653 b have the authority to act in a managerial capacity to obtain a license from the Department.

For the purposes of this Section, SB2996 Enrolled - 123 - LRB096 16388 MJR 31653 b "managerial capacity" shall mean the ability to direct the operations or activities of the pawnshop.

insuranceinsurance. or bond.

In the event that any articles or property pledged are lost or rendered inoperableinoperable, the pawnbroker shall replace the articles or property with identical articles or property, except that if the pawnbroker cannot reasonably obtain identical articles or property, the pawnbroker shall replace the articles or property with like articles or property.

No pawnbroker shall conduct business in this State, unless the pawnbroker:pawnbroker maintains insurance coverage covering all hazards equal to at least 2 times the aggregate value of the outstanding loans for items held in pawn.

(1)Such maintains insurance coverageshall equalbe toobtained atfrom leastan 2insurance timescompany theauthorized aggregateto valuedo ofbusiness the outstanding loans for items held in pawn.Illinois.

SuchThe insurancepawnbroker shall befile obtaineda fromcopy of proof of insurance SB2996 EngrossedEnrolled - 121124 - LRB096 16388 MJR 31653 b ancoverage insurancewith companythe authorizedSecretary. to do business in Illinois, or;

(2)A obtainspawnbroker aor suretyan bondinsurance issuedcompany byshall annot cancel the insurance companycoverage authorizedexcept upon notice to dothe businessSecretary inby thiscertified State.mail, return receipt requested.

The bondcancellation shallis benot ineffective favorprior ofto the30 Secretarydays ofafter Financialthe andSecretary Professionalreceives Regulation.the notice.

Such(205 bondILCS shall510/12 atnew) allSec. times meet or exceed 2 times the aggregate amount of all loans made by the licensee.

The12. pawnbroker shall file a copy of proof of insurance coverage or bond with the Secretary.

TheHold bondorder. shall be for the exclusive benefit of any person injured by a pawnbroker's actions or to compensate persons whose property in pledge is lost or rendered inoperable.

Whenever(a) For the sumpurposes of thethis suretySection, bond"hold isorder" reducedmeans bya onewritten orlegal moreinstrument recoveriesissued orto payments,a thepawnbroker licenseeby shall furnish a newlaw orenforcement additionalofficer bondcommissioned underby thisthe Section,law soenforcement thatagency of the totalmunicipality or aggregatecounty penalthat sumlicenses ofand regulates the bondpawnbroker, orordering bondsthe equalspawnbroker theto sumretain requiredphysical bypossession thisof Section,pledged orgoods shallin furnishthe anpossession endorsementof executedthe pawnbroker or property purchased by and in the suretypossession reinstatingof the bondpawnbroker and not to thereturn, requiredsell, penalor sumotherwise dispose of thesuch bond.property as such property is believed to be misappropriated goods.

The(b) liabilityUpon forwritten anynotice actfrom ora omissionlaw enforcement officer indicating that occursproperty duringin the termpossession of a pawnbroker and subject to a hold order is needed for the suretypurpose bondof shallfurthering bea maintainedcriminal investigation and inprosecution, effectthe forpawnbroker atshall leastrelease 6the monthsproperty aftersubject to the datehold onorder whichto the suretycustody bondof isthe terminatedlaw orenforcement canceled.officer for such purpose and the officer shall provide a written acknowledgment that the property has been released to the officer.

AThe pawnbrokerrelease shallof notthe cancelproperty to SB2996 Enrolled - 125 - LRB096 16388 MJR 31653 b the insurancecustody coverageof orthe suretylaw bondenforcement exceptofficer uponshall noticenot tobe considered a waiver or release of the Secretarypawnbroker's byproperty certifiedrights mail,or returninterest receiptin requested.the property.

TheUpon SB2996completion Engrossedof -the 122criminal -investigation, LRB096the 16388property MJRshall 31653be breturned cancellationto isthe notpawnbroker effectivewho priorconsented to 30its daysrelease; after the Secretary receives the notice.

(205except ILCSthat, 510/10.5if new)the Sec.law enforcement officer has not completed the criminal investigation within 120 days after its release, the officer shall immediately return the property to the pawnbroker or obtain and furnish to the pawnbroker a warrant for the continued custody of the property.

10.5.The pawnbroker shall not release or dispose of the property except pursuant to a court order or the expiration of the holding period of the hold order, including all extensions.

EmployeeIn license.cases where criminal charges have been filed and the property may be needed as evidence, the prosecuting attorney shall notify the pawnbroker in writing.

The notice shall contain the case number, the style of the case, and a description of the property.

The pawnbroker shall hold such property until receiving notice of the disposition of the case from the prosecuting attorney.

The prosecuting attorney shall notify the pawnbroker and claimant in writing within 15 days after the disposition of the case.

SB2996 Enrolled - 126 - LRB096 16388 MJR 31653 b (205 ILCS 610/1) (from Ch.

SB2996 Engrossed - 123 - LRB096 16388 MJR 31653 b (3) "Officers" means the person or persons designated by the board of directors, to act for the bank in carrying out the provisions of this Act or, in the absence of any such designation or of the officer or officers so designated, the president or any other officer currently in charge of the bank or of the office or offices in question.

(5) "Emergency" means any condition or occurrence which may SB2996 Enrolled - 127 - LRB096 16388 MJR 31653 b interfere physically with the conduct of normal business operations at one or more or all of the offices of a bank, or which poses an imminent or existing threat to the safety or security of persons or property, or both at one or more or all of the offices of a bank.

(a) Whenever the Commissioner is notified by any officer of a bank or by any other means becomes aware that an emergency SB2996 Engrossed - 124 - LRB096 16388 MJR 31653 b exists, or is impending, he may, by proclamation, authorize all banks in the State of Illinois to close or alter the hours at any or all of their offices, or if only a bank or banks, or offices thereof, in a particular area or areas of the State of Illinois are affected by the emergency or impending emergency, the Commissioner may authorize only the affected bank, banks, or offices thereof, to close.

The office or offices so closed may remain closed until the Commissioner declares, by further proclamation, that the emergency or impending emergency has SB2996 Enrolled - 128 - LRB096 16388 MJR 31653 b ended.

(b) Whenever the Secretary Commissioner becomes aware that an emergency exists, or is impending, he or she may, by proclamation, waive any requirements to the notices, applications, or reports required to be filed and authorize any SB2996 Engrossed - 125 - LRB096 16388 MJR 31653 b bank organized under the laws of this State, of another state, or of the United States, to open and operate offices in this State, notwithstanding any other laws of this State to the contrary.

SB2996 Enrolled - 129 - LRB096 16388 MJR 31653 b (Source:

"Account" means a demand deposit, savings deposit, share, SB2996 Engrossed - 126 - LRB096 16388 MJR 31653 b member, or other customer asset account held by a financial institution.

"Commissioner" means the Secretary of Financial and Professional Regulation Commissioner of Banks and Real Estate or a person authorized by the Secretary Commissioner, the SB2996 Enrolled - 130 - LRB096 16388 MJR 31653 b Division of Banking Office of Banks and Real Estate Act, or this Act to act in the Secretary's Commissioner's stead.

"Financial institution" means a bank established under the laws of this or any other state or established under the laws of the United States, a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, a credit union established under the laws of this or any other state or established under the laws of the United States, or a licensee under the Consumer Installment Loan Act or the Sales Finance SB2996 Engrossed - 127 - LRB096 16388 MJR 31653 b Agency Act.

SB2996 Enrolled - 131 - LRB096 16388 MJR 31653 b "Seller of goods and services" means a business entity other than a financial institution.

This term SB2996 Engrossed - 128 - LRB096 16388 MJR 31653 b does not include (1) a telephone, (2) an electronic device located in a personal residence, (3) a personal computer or other electronic device used primarily for personal, family, or household purposes, (4) an electronic device owned or operated by a seller of goods and services unless the device is connected either directly or indirectly to a financial institution and is operated in a manner that provides access to an account by means of a personal and confidential code or other security mechanism (other than signature), (5) an SB2996 Enrolled - 132 - LRB096 16388 MJR 31653 b electronic device that is not accessible to persons other than employees of a financial institution or affiliate of a financial institution, or (6) an electronic device that is established by a financial institution on a proprietary basis that is identified as such and that cannot be accessed by customers of other financial institutions.

"Commissioner" means the Secretary of Financial and Professional Regulation Commissioner of Banks SB2996 Engrossed - 129 - LRB096 16388 MJR 31653 b and Real Estate or a person authorized by the Secretary Commissioner, the Division of Banking Office of Banks and Real Estate Act, or this Act to act in the Secretary's Commissioner's stead.

"Division" means the Division of Banking within the Department of Financial and Professional SB2996 Enrolled - 133 - LRB096 16388 MJR 31653 b Regulation.

SB2996 Engrossed - 130 - LRB096 16388 MJR 31653 b (b) To issue orders for the purpose of administering the provisions of this Act and any rule promulgated in accordance with this Act;

(d) To subpoena witnesses, to compel their attendance, to administer an oath, to examine any person under oath and to SB2996 Enrolled - 134 - LRB096 16388 MJR 31653 b require the production of any relevant books, papers, accounts and documents in the course of and pursuant to any investigation being conducted, or any action being taken, by the Commissioner in respect of any matter relating to the duties imposed upon, or the powers vested in, the Commissioner under the provisions of this Act, or any rule or regulation promulgated in accordance with this Act;

and (h) To address any inquiries to any corporate fiduciary, or SB2996 Engrossed - 131 - LRB096 16388 MJR 31653 b 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 so addressed, to promptly reply in writing to such inquiries.

1555-10) SB2996 Enrolled - 135 - LRB096 16388 MJR 31653 b Sec.

The aggregate of such assessments shall be paid into the Non-insured Institutions Receivership Corporate Fiduciary Receivership account in the SB2996 Engrossed - 132 - LRB096 16388 MJR 31653 b Bank and Trust Company Fund.

If a receivership of a corporate fiduciary under this Act requires expenditures from this account, assessments may be reinstituted until the balance in the Non-insured Institutions Receivership Corporate Fiduciary Receivership account arising SB2996 Enrolled - 136 - LRB096 16388 MJR 31653 b from assessments is restored to $4,000,000.

The Commissioner and his SB2996 Engrossed - 133 - LRB096 16388 MJR 31653 b appointees may examine the entire books, records, documents, and operations of each licensee and its subsidiary, affiliate, or agent, and may examine any of the licensee's or its subsidiary's, affiliate's, or agent's officers, directors, employees and agents under oath.

This SB2996 Enrolled - 137 - LRB096 16388 MJR 31653 b Section does not apply to an attorney's privileged work product or communications.

(e) Upon completion of the examination, the Commissioner SB2996 Engrossed - 134 - LRB096 16388 MJR 31653 b shall issue a report to the licensee.

The Commissioner may immediately appeal to the court of SB2996 Enrolled - 138 - LRB096 16388 MJR 31653 b jurisdiction the disclosure of such confidential supervisory information and seek a stay of the subpoena pending the outcome of the appeal.

Any person upon whom a demand 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 Commissioner of the demand, at which time the Commissioner is authorized to intervene for the purpose of SB2996 Engrossed - 135 - LRB096 16388 MJR 31653 b enforcing the limitations of this Section or seeking the withdrawal or termination of the attempt to compel production of the confidential supervisory information.

The Commissioner may SB2996 Enrolled - 139 - LRB096 16388 MJR 31653 b condition a decision to disclose confidential supervisory information on entry of a protective order by the court or administrative tribunal presiding in the particular case or on a written agreement of confidentiality.

SB2996 Engrossed - 136 - LRB096 16388 MJR 31653 b (f) The Commissioner, deputy commissioners, and employees of the Office of Banks and Real Estate shall be subject to the restrictions provided in Section 2.5 of the Division of Banking Office of Banks and Real Estate Act including, without limitation, the restrictions on (i) owning shares of stock or holding any other equity interest in an entity regulated under this Act or in any corporation or company that owns or controls an entity regulated under this Act;

(ii) being an officer, director, employee, or agent of an entity regulated under this SB2996 Enrolled - 140 - LRB096 16388 MJR 31653 b Act;

"Commissioner" means the Secretary of Financial SB2996 Engrossed - 137 - LRB096 16388 MJR 31653 b and Professional Regulation Commissioner of Banks and Real Estate or a person authorized by the Secretary Commissioner, the Division of Banking Office of Banks and Real Estate Act, or this Act to act in the Secretary's Commissioner's stead.

"Division" means the Division of Banking within the Department of Financial and Professional SB2996 Enrolled - 141 - LRB096 16388 MJR 31653 b Regulation.

(b) In addition to the fees authorized in subsection (a) of SB2996 Engrossed - 138 - LRB096 16388 MJR 31653 b this Section, the Secretary shall assess reasonable receivership fees and establish a Non-insured Institutions Receivership account in the Bank and Trust Company Fund to provide for the expenses that arise from the administration of the receivership of a foreign banking corporation under this Act.

The assessments for this account shall be levied until the sum of $4,000,000 has been deposited into the SB2996 Enrolled - 142 - LRB096 16388 MJR 31653 b account from assessments authorized herein, whereupon the Non-insured Institutions Receivership account assessment shall be abated.

SB2996 Engrossed - 139 - LRB096 16388 MJR 31653 b (a) "Commissioner" means the Secretary of Financial and Professional Regulation Commissioner of Banks and Real Estate or a person authorized by the Secretary Commissioner, the Division of Banking Office of Banks and Real Estate Act, or this Act to act in the Secretary's Commissioner's stead.

(2) a national bank having its principal SB2996 Enrolled - 143 - LRB096 16388 MJR 31653 b place of business in any state or territory of the United States, including the District of Columbia, other than the State of Illinois;

7401-10.25) SB2996 Engrossed - 140 - LRB096 16388 MJR 31653 b Sec.

7-3-96.) (205 ILCS 680/10.33 new) SB2996 Enrolled - 144 - LRB096 16388 MJR 31653 b Sec.

Wherever, in the Real Estate License Act SB2996 Engrossed - 141 - LRB096 16388 MJR 31653 b of 1983, the Land Sales Registration Act of 1989, or the Illinois Real Estate Time-Share Act, there is a reference to the Department of Professional Regulation or to an officer, employee, or agent of the Illinois Department of Professional Regulation, that reference, beginning July 1, 1995, means the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance or an officer, employee, or agent of the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance.

SB2996 Enrolled - 145 - LRB096 16388 MJR 31653 b (b) All books, records, property (real and personal), pending business, and funds pertaining to the rights, powers, and duties transferred from the Department of Professional Regulation under this Act and in the custody of the Department of Professional Regulation on July 1, 1995 shall be delivered and transferred to the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance.

Notwithstanding the preceding sentence, no rights of State employees under the Personnel Code, the Illinois Pension Code or any pension, retirement, or annuity plan, or any collective bargaining SB2996 Engrossed - 142 - LRB096 16388 MJR 31653 b agreement or other contract or agreement are affected by the transfer of rights, powers, and duties under this Act.

7-3-96.) (225 ILCS 456/10) SB2996 Enrolled - 146 - LRB096 16388 MJR 31653 b Sec.

(b) Beginning July 1, 1995, every person, corporation, or other entity shall be subject to the same obligations and duties and any penalties, civil or criminal, arising from those obligations and duties, and shall have the same rights arising from the exercise of rights, powers, and duties by the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance as if those rights, powers, and duties have SB2996 Engrossed - 143 - LRB096 16388 MJR 31653 b been exercised by the Department of Professional Regulation or an officer, employee, or agent of the Department of Professional Regulation.

(c) Beginning July 1, 1995, every officer and employee of the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance shall, for any offense, be subject to the same penalty or penalties, civil or criminal, as are prescribed by existing law for the same offense by any officer or employee of the Department of Professional SB2996 Enrolled - 147 - LRB096 16388 MJR 31653 b Regulation whose powers or duties were transferred under this Act.

(e) This Act does not affect any act done, ratified, or cancelled, or any right occurring or established, or any action or proceeding had or commenced in an administrative, civil, or criminal cause before July 1, 1995, by the Department of Professional Regulation under the Real Estate License Act of 1983, the Land Sales Registration Act of 1989, or the Illinois Real Estate Time-Share Act, and those actions or proceedings SB2996 Engrossed - 144 - LRB096 16388 MJR 31653 b may be prosecuted and continued by the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance.

(f) This Act does affect any license, certificate, permit, or other form of licensure or authorization issued by the Department of Professional Regulation in the exercise of a right, power, or duty that has been transferred to the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance under this Act and all such licenses, SB2996 Enrolled - 148 - LRB096 16388 MJR 31653 b certificates, permits, or other form of licensure or authorization shall continue to be valid under the terms and conditions of the Acts under which they were issued or granted and shall become those of the Office of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance.

7-3-96.) SB2996 Engrossed - 145 - LRB096 16388 MJR 31653 b (225 ILCS 456/15) Sec.

Appropriations to the Department of Professional Regulation from the Real Estate License Administration Fund and the Real Estate Appraisal Administration Fund for State fiscal year 1996 for the purpose of administering and enforcing the Real Estate License Act of 1983, the Land Sales Registration Act of 1989, and the Illinois Real Estate Time-Share Act shall be transferred to the Office SB2996 Enrolled - 149 - LRB096 16388 MJR 31653 b of the Commissioner of Savings, Real Estate Professions, and Mortgage Finance to be used to conduct those same activities for that fiscal year.

SB2996 Engrossed - 146 - LRB096 16388 MJR 31653 b (205 ILCS 205/9005 rep.) (205 ILCS 205/9007 rep.) (205 ILCS 205/10001 rep.) (205 ILCS 205/10002 rep.) (205 ILCS 205/10003 rep.) (205 ILCS 205/10004 rep.) (205 ILCS 205/10005 rep.) (205 ILCS 205/10006 rep.) SB2996 Enrolled - 150 - LRB096 16388 MJR 31653 b (205 ILCS 205/10007 rep.) (205 ILCS 205/10008 rep.) Section 95.