HB 4933 — STATE BANKING BOARD-VARIOUS

16¢ per $1,000 of the first $5,000,000 of total assets, 15¢ per $1,000 of the next $20,000,000 of total assets, 13¢ per $1,000 of the HB4933 Engrossed - 22 - LRB096 16850 MJR 32161 b next $75,000,000 of total assets, 9¢ per $1,000 of the next $400,000,000 of total assets, 7¢ per $1,000 of the next $500,000,000 of total assets, and 5¢ per $1,000 of all assets in excess of $1,000,000,000, of the State bank.

HB4933 Engrossed - 23 - LRB096 16850 MJR 32161 b (a-1) If in the opinion of the Commissioner an emergency exists or appears likely, the Commissioner may assign an examiner or examiners to monitor the affairs of a State bank with whatever frequency he deems appropriate, including but not limited to a daily basis.

(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 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 HB4933 Engrossed - 24 - LRB096 16850 MJR 32161 b 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 aggregate amount of the contingent fee thus arrived at for any fiscal year shall be apportioned amongst, assessed upon, and paid by the State banks and HB4933 Engrossed - 25 - LRB096 16850 MJR 32161 b foreign banking corporations, respectively, in the same proportion that the fee of each under paragraph (a) of subsection (3), respectively, for that year bears to the aggregate for that year of the fees collected under paragraph (a) of subsection (3).

(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 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 HB4933 Engrossed - 26 - LRB096 16850 MJR 32161 b Commissioners, 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 such examinations or administration.

(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, HB4933 Engrossed - 27 - LRB096 16850 MJR 32161 b 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.

Notwithstanding provisions in the State Finance Act, HB4933 Engrossed - 28 - LRB096 16850 MJR 32161 b as now or hereafter amended, or any other law to the contrary, the sum of $18,788,847 shall be transferred from the Bank and Trust Company Fund to the Financial Institutions Settlement of 2008 Fund on the effective date of this amendatory Act of the 95th General Assembly, or as soon thereafter as practical.

HB4933 Engrossed - 29 - LRB096 16850 MJR 32161 b (d-1) Adequate funds shall be available in the Bank and Trust Company Fund to permit the timely payment of administration expenses.

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 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, HB4933 Engrossed - 30 - LRB096 16850 MJR 32161 b respectively, for the year bear to the total Call Report Fees collected for the year.

(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 HB4933 Engrossed - 31 - LRB096 16850 MJR 32161 b 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 out-of-state bank, the board of directors thereof, or the trustees under such plan as the nature of the case may require.

(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 HB4933 Engrossed - 32 - LRB096 16850 MJR 32161 b 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.

(7) Whenever, in the opinion of the Secretary Commissioner, any director, officer, employee, or agent of a State bank or HB4933 Engrossed - 33 - LRB096 16850 MJR 32161 b 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 Secretary 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 the director, officer, employee, or agent does not assure reasonable promise of safe and sound operation of the State bank, the Secretary Commissioner may issue an order of removal.

If, in the opinion of the Secretary 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 investigation by the Secretary 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 HB4933 Engrossed - 34 - LRB096 16850 MJR 32161 b 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 Secretary 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.

A copy of the order shall also be served upon the bank of which he is a director, officer, employee, or agent, whereupon he shall cease to be a director, HB4933 Engrossed - 35 - LRB096 16850 MJR 32161 b officer, employee, or agent of that bank.

(8) The Commissioner may impose civil penalties of up to $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 which in the Commissioner's discretion is an unsafe or unsound banking HB4933 Engrossed - 36 - LRB096 16850 MJR 32161 b practice.

(c) The aggregate of all special educational fees collected by the Secretary Commissioner and property received by the Secretary Commissioner on behalf of the Illinois Bank Examiners' Education Foundation under this subsection (11) on or after June 30, 1986, shall be either (i) promptly paid after receipt of the same, accompanied by HB4933 Engrossed - 37 - LRB096 16850 MJR 32161 b 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 State Banking Board of Illinois 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.

2 HB4933 Engrossed - 38 - LRB096 16850 MJR 32161 b members shall be from State banks having total assets of more than $75,000,000, but not more than $150,000,000 at the time of their appointment;

Of the 10 Class B members, 2 shall be from State banks having total assets of not more than $20,000,000 at the time of their appointment, 2 shall be from State banks having total assets of more than $20,000,000 but not more than $50,000,000 at the time of their appointment, 2 HB4933 Engrossed - 39 - LRB096 16850 MJR 32161 b shall be from State banks having total assets of more than $50,000,000, but not more than $125,000,000 at the time of their appointment, one shall be from a State bank having total assets of more than $125,000,000 but not more than $250,000,000 at the time of appointment, one shall be from a State bank having total assets of more than $250,000,000 but not more than $1,000,000,000 at the time of appointment, one shall be from a State bank having total assets of more than $1,000,000,000 at the time of appointment and one shall be from a foreign banking corporation certificated pursuant to the Foreign Banking Office Act.

Board of Banks HB4933 Engrossed - 40 - LRB096 16850 MJR 32161 b and Trust Companies who are in office on the effective date of this Amendatory Act of 1985 shall expire on December 31, 1985.

Thereafter, the term of office of each Class C member HB4933 Engrossed - 41 - LRB096 16850 MJR 32161 b shall be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose term is being filled.

(i) The scope and nature of showings to be furnished and evidence to be presented in connection with the granting of charters of new banks, and in connection with the approval by the Commissioner of mergers, conversions, consolidations and changes of location, and the forms upon HB4933 Engrossed - 42 - LRB096 16850 MJR 32161 b which any of such showings may be made.

and HB4933 Engrossed - 43 - LRB096 16850 MJR 32161 b (iii) The extent and nature of all action taken by the Commissioner under or pursuant to Section 52 of this Act;

(f) (Blank).To require the Secretary Commissioner to furnish the Board space for meetings to be held by the Board as well as to require the Secretary Commissioner to provide such clerical and technical assistance as the Board may require.

To require the Commissioner to furnish the Board space for meetings to be held by the Board as well as to require the Commissioner to provide such clerical and technical assistance as the Board may require.

(ii) A majority of the quorum shall constitute effective action except that a vote of a majority of the whole Board shall be necessary for the approval of rules HB4933 Engrossed - 44 - LRB096 16850 MJR 32161 b and regulations proposed for adoption by the Commissioner under Section 80(a), (i), (ii) and (iii) of this Act and shall be necessary for recommendations made to the Director of Banking Commissioner and to the Governor with regard to proposed amendments to this Act or to the administrative practices hereunder.

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 HB4933 Engrossed - 45 - LRB096 16850 MJR 32161 b any hearing being conducted under subsection (7) of Section 48 of this Act.

Neither the Secretary, Director of Banking, Commissioner, any deputy commissioner, any member of the Board of Banks and Trust Companies, any member of the State Banking Board of Illinois, nor any examiner, assistant examiner or other employee of the HB4933 Engrossed - 46 - LRB096 16850 MJR 32161 b Division of Banking Commissioner's office shall be subject to any civil liability or penalty, whether for damages or otherwise, on account of or for any action taken or omitted to be taken in their respective official capacities, except when such acts or omissions to act are corrupt or malicious or unless such action is taken or omitted to be taken not in good faith and without reasonable grounds.

"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 to its activities outside the United States or any foreign HB4933 Engrossed - 47 - LRB096 16850 MJR 32161 b bank.

(f) "Community" means the contiguous area served by the banking offices of a bank, but need not be limited or expanded to conform to the geographic boundaries of units of local HB4933 Engrossed - 48 - LRB096 16850 MJR 32161 b government.

(h) A company "controls or has control over" a bank or company if (1) it directly or indirectly owns or controls or has the power to vote, 25% or more of the voting shares of any class of voting securities of such bank or company or (2) it controls in any manner the election of a majority of the directors or trustees of such bank or company or (3) a trustee holds for the benefit of its shareholders, members or employees, 25% or more of the voting shares of such bank or company or (4) it directly or indirectly exercises a controlling influence over the management or policies of such bank or company that is a bank holding company and the Board of HB4933 Engrossed - 49 - LRB096 16850 MJR 32161 b Governors of the Federal Reserve System has so determined under the federal Bank Holding Company Act.

(B) by virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities which are held only for HB4933 Engrossed - 50 - LRB096 16850 MJR 32161 b such period of time as will permit the sale thereof upon a reasonable basis;

(k) "Home state" means the home state of a foreign bank as determined pursuant to the federal International Banking Act of HB4933 - 51 - LRB096 16850 MJR 32161 b 1978.

HB4933 Engrossed - 51 - LRB096 16850 MJR 32161 b (l) "Illinois bank" means a bank:

HB4933 - 52 - LRB096 16850 MJR 32161 b (p) "Out of state bank holding company" means a bank HB4933 Engrossed - 52 - LRB096 16850 MJR 32161 b holding company:

(s) "Subsidiary", with respect to a specified bank holding company, means any bank or company controlled by such bank HB4933 - 53 - LRB096 16850 MJR 32161 b holding company.

HB4933 Engrossed - 53 - LRB096 16850 MJR 32161 b (Source:

and (4) 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 or hearing being conducted or any action being taken by the Secretary Commissioner in respect to any matter relating to the duties imposed upon or the powers vested in the Secretary Commissioner under the provisions HB4933 Engrossed - 54 - LRB096 16850 MJR 32161 b vested in the Secretary Commissioner under the provisions of this Act or any rule promulgated in accordance with this Act.

If, in the opinion of the Secretary 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 Secretary Commissioner, engaged in an unsafe or unsound HB4933 Engrossed - 55 - LRB096 16850 MJR 32161 b Secretary 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 not have assured reasonable promise of safe and sound operation of the bank holding company, the Secretary 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.

Any person affected by a decision of the State Banking HB4933 - 56 - LRB096 16850 MJR 32161 b Board under this subsection may have the decision reviewed only HB4933 Engrossed - 56 - LRB096 16850 MJR 32161 b under and in accordance with the Administrative Review Law and the rules adopted pursuant thereto.

(c) All final administrative decisions of the Secretary Commissioner under this Act shall be subject to judicial review HB4933 - 57 - LRB096 16850 MJR 32161 b pursuant to provisions of the Administrative Review Law.

For HB4933 Engrossed - 57 - LRB096 16850 MJR 32161 b matters involving administrative review, venue shall be in either Sangamon County or Cook County.

(205 ILCS 620/1-5.09a new) HB4933 Engrossed - 58 - LRB096 16850 MJR 32161 b (205 ILCS 620/1-5.09a new) Sec.

If in the opinion of the Secretary Commissioner, any former director, officer, employee, or agent of a corporate fiduciary or subsidiary or corporate parent of HB4933 - 59 - LRB096 16850 MJR 32161 b the corporate fiduciary, prior to the termination of his or her HB4933 Engrossed - 59 - LRB096 16850 MJR 32161 b service with the corporate fiduciary or subsidiary or corporate parent of the corporate fiduciary, violated any law, rule, or order relating to the corporate fiduciary or subsidiary or corporate parent of the corporate fiduciary or engaged in an unsafe or unsound practice in conducting the business of the corporate fiduciary or subsidiary or corporate parent of the corporate fiduciary 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 corporate fiduciary or subsidiary or corporate parent of the corporate fiduciary, the Secretary Commissioner may issue an order prohibiting that person from further service with a corporate fiduciary or subsidiary or corporate parent of the corporate fiduciary as a director, officer, employee, or agent.

The HB4933 - 60 - LRB096 16850 MJR 32161 b hearing shall be held by the Board according to the same HB4933 Engrossed - 60 - LRB096 16850 MJR 32161 b procedures used pursuant to Section 48 of the Illinois Banking Act, and the hearing shall be held within 30 days after the request has been received by the Board.

1555-8) HB4933 - 61 - LRB096 16850 MJR 32161 b Sec.

All final administrative decisions of the HB4933 Engrossed - 61 - LRB096 16850 MJR 32161 b Secretary Commissioner, or of the State Banking Board of Illinois where this Act provides a hearing before such Board to review a decision of the Commissioner, shall be subject to review pursuant to the provisions of the Administrative Review Law, as now or hereafter amended, and the rules adopted pursuant thereto.

86-754.) HB4933 Engrossed - 62 - LRB096 16850 MJR 32161 b INDEX Statutes amended in order of appearance 20 ILCS 3210/1 from Ch.

1555-8 HB4933 - 63 - LRB096 16850 MJR 32161 b INDEX Statutes amended in order of appearance See Index HB4933 - 64 - LRB096 16850 MJR 32161 b INDEX Statutes amended in order of appearance See Index