Bill Text: IL HB5428 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Illinois Banking Act. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in commodities derivatives, with the management and controls necessary to ensure that such activities are carried out according to safe and sound banking practices. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that at the conclusion of each fiscal year, the Department of Financial and Professional Regulation shall separately identify the direct administrative and operational expenses and allocable indirect costs of the Division of Banking of the Department incidental to conducting the examinations required or authorized by the Illinois Community Reinvestment Act and implementing rules adopted by the Department. Makes other changes. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Provides that without prior written consent of the Secretary of Financial and Professional Regulation, no savings bank may knowingly employ or otherwise permit an individual to serve as an officer, director, employee, or agent of the savings bank if the individual has been convicted of a felony or of any criminal offense relating to dishonesty or breach of trust. Amends the Illinois Credit Union Act. In provisions concerning the financial records of credit union members, adds language providing that the furnishing of financial records of a deceased customer to a public administrator of any county or other governmental jurisdiction for the purpose of facilitating burial of the customer are not prohibited by the provisions. Makes similar changes in similar provisions in the Illinois Banking Act and the Savings Bank Act. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2024-05-02 - Referred to Assignments [HB5428 Detail]

Download: Illinois-2023-HB5428-Engrossed.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Banking Act is amended by changing
Sections 2, 5, 13, 15, 16, 16.5, 32.1, 48, 48.1, and 48.2 as
follows:
(205 ILCS 5/2) (from Ch. 17, par. 302)
Sec. 2. General definitions. In this Act, unless the
context otherwise requires, the following words and phrases
shall have the following meanings:
"Accommodation party" shall have the meaning ascribed to
that term in Section 3-419 of the Uniform Commercial Code.
"Action" in the sense of a judicial proceeding includes
recoupments, counterclaims, set-off, and any other proceeding
in which rights are determined.
"Affiliate facility" of a bank means a main banking
premises or branch of another commonly owned bank. The main
banking premises or any branch of a bank may be an "affiliate
facility" with respect to one or more other commonly owned
banks.
"Appropriate federal banking agency" means the Federal
Deposit Insurance Corporation, the Federal Reserve Bank of
Chicago, or the Federal Reserve Bank of St. Louis, as

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determined by federal law.
"Bank" means any person doing a banking business whether
subject to the laws of this or any other jurisdiction.
A "banking house", "branch", "branch bank" or "branch
office" shall mean any place of business of a bank at which
deposits are received, checks paid, or loans made, but shall
not include any place at which only records thereof are made,
posted, or kept. A place of business at which deposits are
received, checks paid, or loans made shall not be deemed to be
a branch, branch bank, or branch office if the place of
business is adjacent to and connected with the main banking
premises, or if it is separated from the main banking premises
by not more than an alley; provided always that (i) if the
place of business is separated by an alley from the main
banking premises there is a connection between the 2 two by
public or private way or by subterranean or overhead passage,
and (ii) if the place of business is in a building not wholly
occupied by the bank, the place of business shall not be within
any office or room in which any other business or service of
any kind or nature other than the business of the bank is
conducted or carried on. A place of business at which deposits
are received, checks paid, or loans made shall not be deemed to
be a branch, branch bank, or branch office (i) of any bank if
the place is a terminal established and maintained in
accordance with paragraph (17) of Section 5 of this Act, or
(ii) of a commonly owned bank by virtue of transactions

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conducted at that place on behalf of the other commonly owned
bank under paragraph (23) of Section 5 of this Act if the place
is an affiliate facility with respect to the other bank.
"Branch of an out-of-state bank" means a branch
established or maintained in Illinois by an out-of-state bank
as a result of a merger between an Illinois bank and the
out-of-state bank that occurs on or after May 31, 1997, or any
branch established by the out-of-state bank following the
merger.
"Bylaws" means the bylaws of a bank that are adopted by the
bank's board of directors or shareholders for the regulation
and management of the bank's affairs. If the bank operates as a
limited liability company, however, "bylaws" means the
operating agreement of the bank.
"Call report fee" means the fee to be paid to the
Commissioner by each State bank pursuant to paragraph (a) of
subsection (3) of Section 48 of this Act.
"Capital" includes the aggregate of outstanding capital
stock and preferred stock.
"Cash flow reserve account" means the account within the
books and records of the Commissioner of Banks and Real Estate
used to record funds designated to maintain a reasonable Bank
and Trust Company Fund operating balance to meet agency
obligations on a timely basis.
"Charter" includes the original charter and all amendments
thereto and articles of merger or consolidation.

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"Commissioner" means the Commissioner of Banks and Real
Estate, except that beginning on April 6, 2009 (the effective
date of Public Act 95-1047), 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.
"Commonly owned banks" means 2 or more banks that each
qualify as a bank subsidiary of the same bank holding company
pursuant to Section 18 of the Federal Deposit Insurance Act;
"commonly owned bank" refers to one of a group of commonly
owned banks but only with respect to one or more of the other
banks in the same group.
"Community" means a city, village, or incorporated town
and also includes the 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 government.
"Company" means a corporation, limited liability company,
partnership, business trust, association, or similar
organization and, unless specifically excluded, includes a
"State bank" and a "bank".
"Consolidating bank" means a party to a consolidation.
"Consolidation" takes place when 2 or more banks, or a
trust company and a bank, are extinguished and by the same
process a new bank is created, taking over the assets and
assuming the liabilities of the banks or trust company passing
out of existence.

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"Continuing bank" means a merging bank, the charter of
which becomes the charter of the resulting bank.
"Converting bank" means a State bank converting to become
a national bank, or a national bank converting to become a
State bank.
"Converting trust company" means a trust company
converting to become a State bank.
"Court" means a court of competent jurisdiction.
"Director" means a member of the board of directors of a
bank. In the case of a manager-managed limited liability
company, however, "director" means a manager of the bank and,
in the case of a member-managed limited liability company,
"director" means a member of the bank. The term "director"
does not include an advisory director, honorary director,
director emeritus, or similar person, unless the person is
otherwise performing functions similar to those of a member of
the board of directors.
"Director of Banking" means the Director of the Division
of Banking of the Department of Financial and Professional
Regulation.
"Eligible depository institution" means an insured savings
association that is in default, an insured savings association
that is in danger of default, a State or national bank that is
in default or a State or national bank that is in danger of
default, as those terms are defined in this Section, or a new
bank as that term is defined in Section 11(m) of the Federal

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Deposit Insurance Act or a bridge bank as that term is defined
in Section 11(n) of the Federal Deposit Insurance Act or a new
federal savings association authorized under Section
11(d)(2)(f) of the Federal Deposit Insurance Act.
"Fiduciary" means trustee, agent, executor, administrator,
committee, guardian for a minor or for a person under legal
disability, receiver, trustee in bankruptcy, assignee for
creditors, or any holder of similar position of trust.
"Financial institution" means a bank, savings bank,
savings and loan association, credit union, or any licensee
under the Consumer Installment Loan Act or the Sales Finance
Agency Act and, for purposes of Section 48.3, any proprietary
network, funds transfer corporation, or other entity providing
electronic funds transfer services, or any corporate
fiduciary, its subsidiaries, affiliates, parent company, or
contractual service provider that is examined by the
Commissioner. For purposes of Section 5c and subsection (b) of
Section 13 of this Act, "financial institution" includes any
proprietary network, funds transfer corporation, or other
entity providing electronic funds transfer services, and any
corporate fiduciary.
"Foundation" means the Illinois Bank Examiners' Education
Foundation.
"General obligation" means a bond, note, debenture,
security, or other instrument evidencing an obligation of the
government entity that is the issuer that is supported by the

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full available resources of the issuer, the principal and
interest of which is payable in whole or in part by taxation.
"Guarantee" means an undertaking or promise to answer for
payment of another's debt or performance of another's duty,
liability, or obligation whether "payment guaranteed" or
"collection guaranteed".
"In danger of default" means a State or national bank, a
federally chartered insured savings association or an Illinois
state chartered insured savings association with respect to
which the Commissioner or the appropriate federal banking
agency has advised the Federal Deposit Insurance Corporation
that:
(1) in the opinion of the Commissioner or the
appropriate federal banking agency,
(A) the State or national bank or insured savings
association is not likely to be able to meet the
demands of the State or national bank's or savings
association's obligations in the normal course of
business; and
(B) there is no reasonable prospect that the State
or national bank or insured savings association will
be able to meet those demands or pay those obligations
without federal assistance; or
(2) in the opinion of the Commissioner or the
appropriate federal banking agency,
(A) the State or national bank or insured savings

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association has incurred or is likely to incur losses
that will deplete all or substantially all of its
capital; and
(B) there is no reasonable prospect that the
capital of the State or national bank or insured
savings association will be replenished without
federal assistance.
"In default" means, with respect to a State or national
bank or an insured savings association, any adjudication or
other official determination by any court of competent
jurisdiction, the Commissioner, the appropriate federal
banking agency, or other public authority pursuant to which a
conservator, receiver, or other legal custodian is appointed
for a State or national bank or an insured savings
association.
"Insured savings association" means any federal savings
association chartered under Section 5 of the federal Home
Owners' Loan Act and any State savings association chartered
under the Illinois Savings and Loan Act of 1985 or a
predecessor Illinois statute, the deposits of which are
insured by the Federal Deposit Insurance Corporation. The term
also includes a savings bank organized or operating under the
Savings Bank Act.
"Insured savings association in recovery" means an insured
savings association that is not an eligible depository
institution and that does not meet the minimum capital

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requirements applicable with respect to the insured savings
association.
"Issuer" means for purposes of Section 33 every person who
shall have issued or proposed to issue any security; except
that (1) with respect to certificates of deposit, voting trust
certificates, collateral-trust certificates, and certificates
of interest or shares in an unincorporated investment trust
not having a board of directors (or persons performing similar
functions), "issuer" means the person or persons performing
the acts and assuming the duties of depositor or manager
pursuant to the provisions of the trust, agreement, or
instrument under which the securities are issued; (2) with
respect to trusts other than those specified in clause (1)
above, where the trustee is a corporation authorized to accept
and execute trusts, "issuer" means the entrusters, depositors,
or creators of the trust and any manager or committee charged
with the general direction of the affairs of the trust
pursuant to the provisions of the agreement or instrument
creating the trust; and (3) with respect to equipment trust
certificates or like securities, "issuer" means the person to
whom the equipment or property is or is to be leased or
conditionally sold.
"Letter of credit" and "customer" shall have the same
meaning as that term is given meanings ascribed to those terms
in Section 5-102 of the Uniform Commercial Code.
"Main banking premises" means the location that is

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designated in a bank's charter as its main office.
"Maker or obligor" means for purposes of Section 33 the
issuer of a security, the promisor in a debenture or other debt
security, or the mortgagor or grantor of a trust deed or
similar conveyance of a security interest in real or personal
property.
"Merged bank" means a merging bank that is not the
continuing, resulting, or surviving bank in a consolidation or
merger.
"Merger" includes consolidation.
"Merging bank" means a party to a bank merger.
"Merging trust company" means a trust company party to a
merger with a State bank.
"Mid-tier bank holding company" means a corporation that
(a) owns 100% of the issued and outstanding shares of each
class of stock of a State bank, (b) has no other subsidiaries,
and (c) 100% of the issued and outstanding shares of the
corporation are owned by a parent bank holding company.
"Municipality" means any municipality, political
subdivision, school district, taxing district, or agency.
"National bank" means a national banking association
located in this State and after May 31, 1997, means a national
banking association without regard to its location.
"Out-of-state bank" means a bank chartered under the laws
of a state other than Illinois, a territory of the United
States, or the District of Columbia.

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"Parent bank holding company" means a corporation that is
a bank holding company as that term is defined in the Illinois
Bank Holding Company Act of 1957 and owns 100% of the issued
and outstanding shares of a mid-tier bank holding company.
"Person" means an individual, corporation, limited
liability company, partnership, joint venture, trust, estate,
or unincorporated association.
"Public agency" means the State of Illinois, the various
counties, townships, cities, towns, villages, school
districts, educational service regions, special road
districts, public water supply districts, fire protection
districts, drainage districts, levee districts, sewer
districts, housing authorities, the Illinois Bank Examiners'
Education Foundation, the Chicago Park District, and all other
political corporations or subdivisions of the State of
Illinois, whether now or hereafter created, whether herein
specifically mentioned or not, and shall also include any
other state or any political corporation or subdivision of
another state.
"Public funds" or "public money" means current operating
funds, special funds, interest and sinking funds, and funds of
any kind or character belonging to, in the custody of, or
subject to the control or regulation of the United States or a
public agency. "Public funds" or "public money" shall include
funds held by any of the officers, agents, or employees of the
United States or of a public agency in the course of their

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official duties and, with respect to public money of the
United States, shall include Postal Savings funds.
"Published" means, unless the context requires otherwise,
the publishing of the notice or instrument referred to in some
newspaper of general circulation in the community in which the
bank is located at least once each week for 3 successive weeks.
Publishing shall be accomplished by, and at the expense of,
the bank required to publish. Where publishing is required,
the bank shall submit to the Commissioner that evidence of the
publication as the Commissioner shall deem appropriate.
"Qualified financial contract" means any security
contract, commodity contract, forward contract, including spot
and forward foreign exchange contracts, repurchase agreement,
swap agreement, and any similar agreement, any option to enter
into any such agreement, including any combination of the
foregoing, and any master agreement for such agreements. A
master agreement, together with all supplements thereto, shall
be treated as one qualified financial contract. The contract,
option, agreement, or combination of contracts, options, or
agreements shall be reflected upon the books, accounts, or
records of the bank, or a party to the contract shall provide
documentary evidence of such agreement.
"Recorded" means the filing or recording of the notice or
instrument referred to in the office of the Recorder of the
county wherein the bank is located.
"Resulting bank" means the bank resulting from a merger or

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conversion.
"Secretary" means the Secretary of Financial and
Professional Regulation, or a person authorized by the
Secretary or by this Act to act in the Secretary's stead.
"Securities" means stocks, bonds, debentures, notes, or
other similar obligations.
"Stand-by letter of credit" means a letter of credit under
which drafts are payable upon the condition the customer has
defaulted in performance of a duty, liability, or obligation.
"State bank" means any banking corporation that has a
banking charter issued by the Commissioner under this Act.
"State Banking Board" means the State Banking Board of
Illinois.
"Subsidiary" with respect to a specified company means a
company that is controlled by the specified company. For
purposes of paragraphs (8) and (12) of Section 5 of this Act,
"control" means the exercise of operational or managerial
control of a corporation by the bank, either alone or together
with other affiliates of the bank.
"Surplus" means the aggregate of (i) amounts paid in
excess of the par value of capital stock and preferred stock;
(ii) amounts contributed other than for capital stock and
preferred stock and allocated to the surplus account; and
(iii) amounts transferred from undivided profits.
"Tier 1 Capital" and "Tier 2 Capital" have the meanings
assigned to those terms in regulations promulgated for the

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appropriate federal banking agency of a state bank, as those
regulations are now or hereafter amended.
"Trust company" means a limited liability company or
corporation incorporated in this State for the purpose of
accepting and executing trusts.
"Undivided profits" means undistributed earnings less
discretionary transfers to surplus.
"Unimpaired capital and unimpaired surplus", for the
purposes of paragraph (21) of Section 5 and Sections 32, 33,
34, 35.1, 35.2, and 47 of this Act means the sum of the state
bank's Tier 1 Capital and Tier 2 Capital plus such other
shareholder equity as may be included by regulation of the
Commissioner. Unimpaired capital and unimpaired surplus shall
be calculated on the basis of the date of the last quarterly
call report filed with the Commissioner preceding the date of
the transaction for which the calculation is made, provided
that: (i) when a material event occurs after the date of the
last quarterly call report filed with the Commissioner that
reduces or increases the bank's unimpaired capital and
unimpaired surplus by 10% or more, then the unimpaired capital
and unimpaired surplus shall be calculated from the date of
the material event for a transaction conducted after the date
of the material event; and (ii) if the Commissioner determines
for safety and soundness reasons that a state bank should
calculate unimpaired capital and unimpaired surplus more
frequently than provided by this paragraph, the Commissioner

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may by written notice direct the bank to calculate unimpaired
capital and unimpaired surplus at a more frequent interval. In
the case of a state bank newly chartered under Section 13 or a
state bank resulting from a merger, consolidation, or
conversion under Sections 21 through 26 for which no preceding
quarterly call report has been filed with the Commissioner,
unimpaired capital and unimpaired surplus shall be calculated
for the first calendar quarter on the basis of the effective
date of the charter, merger, consolidation, or conversion.
(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
96-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)
(205 ILCS 5/5) (from Ch. 17, par. 311)
Sec. 5. General corporate powers. A bank organized under
this Act or subject hereto shall be a body corporate and
politic and shall, without specific mention thereof in the
charter, have all the powers conferred by this Act and the
following additional general corporate powers:
(1) To sue and be sued, complain, and defend in its
corporate name.
(2) To have a corporate seal, which may be altered at
pleasure, and to use the same by causing it or a facsimile
thereof to be impressed or affixed or in any manner
reproduced, provided that the affixing of a corporate seal
to an instrument shall not give the instrument additional
force or effect, or change the construction thereof, and

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the use of a corporate seal is not mandatory.
(3) To make, alter, amend, and repeal bylaws, not
inconsistent with its charter or with law, for the
administration of the affairs of the bank. If this Act
does not provide specific guidance in matters of corporate
governance, the provisions of the Business Corporation Act
of 1983 may be used if so provided in the bylaws, and if
the bank is a limited liability company, the provisions of
the Limited Liability Company Act shall be used.
(4) To elect or appoint and remove officers and agents
of the bank and define their duties and fix their
compensation.
(5) To adopt and operate reasonable bonus plans,
profit-sharing plans, stock-bonus plans, stock-option
plans, pension plans, and similar incentive plans for its
directors, officers and employees.
(5.1) To manage, operate, and administer a fund for
the investment of funds by a public agency or agencies,
including any unit of local government or school district,
or any person. The fund for a public agency shall invest in
the same type of investments and be subject to the same
limitations provided for the investment of public funds.
The fund for public agencies shall maintain a separate
ledger showing the amount of investment for each public
agency in the fund. "Public funds" and "public agency" as
used in this Section shall have the meanings ascribed to

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them in Section 1 of the Public Funds Investment Act.
(6) To make reasonable donations for the public
welfare or for charitable, scientific, religious or
educational purposes.
(7) To borrow or incur an obligation; and to pledge
its assets:
(a) to secure its borrowings, its lease of
personal or real property or its other nondeposit
obligations;
(b) to enable it to act as agent for the sale of
obligations of the United States;
(c) to secure deposits of public money of the
United States, whenever required by the laws of the
United States, including, without being limited to,
revenues and funds the deposit of which is subject to
the control or regulation of the United States or any
of its officers, agents, or employees and Postal
Savings funds;
(d) to secure deposits of public money of any
state or of any political corporation or subdivision
thereof, including, without being limited to, revenues
and funds the deposit of which is subject to the
control or regulation of any state or of any political
corporation or subdivisions thereof or of any of their
officers, agents, or employees;
(e) to secure deposits of money whenever required

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by the National Bankruptcy Act;
(f) (blank); and
(g) to secure trust funds commingled with the
bank's funds, whether deposited by the bank or an
affiliate of the bank, pursuant to Section 2-8 of the
Corporate Fiduciary Act; and .
(h) to secure deposits.
(8) To own, possess, and carry as assets all or part of
the real estate necessary in or with which to do its
banking business, either directly or indirectly through
the ownership of all or part of the capital stock, shares
or interests in any corporation, association, trust
engaged in holding any part or parts or all of the bank
premises, engaged in such business and in conducting a
safe deposit business in the premises or part of them, or
engaged in any activity that the bank is permitted to
conduct in a subsidiary pursuant to paragraph (12) of this
Section 5.
(9) To own, possess, and carry as assets other real
estate to which it may obtain title in the collection of
its debts or that was formerly used as a part of the bank
premises, but title to any real estate except as herein
permitted may only shall not be retained by the bank,
either directly or by or through a subsidiary, as
permitted by subsection (12) of this Section for a total
period of more than 10 years after acquiring title or for a

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total period equal to the maximum period, including the
maximum extensions, permitted to a national bank under
federal law after acquiring title, whichever is greater,
either directly or indirectly.
(10) To do any act, including the acquisition of
stock, necessary to obtain insurance of its deposits, or
part thereof, and any act necessary to obtain a guaranty,
in whole or in part, of any of its loans or investments by
the United States or any agency thereof, and any act
necessary to sell or otherwise dispose of any of its loans
or investments to the United States or any agency thereof,
and to acquire and hold membership in the Federal Reserve
System.
(11) Notwithstanding any other provisions of this Act
or any other law, to do any act and to own, possess, and
carry as assets property of the character, including
stock, that is at the time authorized or permitted to
national banks by an Act of Congress, but subject always
to the same limitations and restrictions as are applicable
to national banks by the pertinent federal law and subject
to applicable provisions of the Financial Institutions
Insurance Sales Law.
(12) To own, possess, and carry as assets stock of one
or more corporations that is, or are, engaged in one or
more of the following businesses:
(a) holding title to and administering assets

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acquired as a result of the collection or liquidating
of loans, investments, or discounts; or
(b) holding title to and administering personal
property acquired by the bank, directly or indirectly
through a subsidiary, for the purpose of leasing to
others, provided the lease or leases and the
investment of the bank, directly or through a
subsidiary, in that personal property otherwise comply
with Section 35.1 of this Act; or
(c) carrying on or administering any of the
activities excepting the receipt of deposits or the
payment of checks or other orders for the payment of
money in which a bank may engage in carrying on its
general banking business; provided, however, that
nothing contained in this paragraph (c) shall be
deemed to permit a bank organized under this Act or
subject hereto to do, either directly or indirectly
through any subsidiary, any act, including the making
of any loan or investment, or to own, possess, or carry
as assets any property that if done by or owned,
possessed, or carried by the State bank would be in
violation of or prohibited by any provision of this
Act.
The provisions of this subsection (12) shall not apply
to and shall not be deemed to limit the powers of a State
bank with respect to the ownership, possession, and

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carrying of stock that a State bank is permitted to own,
possess, or carry under this Act.
Any bank intending to establish a subsidiary under
this subsection (12) shall give written notice to the
Commissioner 60 days prior to the subsidiary's commencing
of business or, as the case may be, prior to acquiring
stock in a corporation that has already commenced
business. After receiving the notice, the Commissioner may
waive or reduce the balance of the 60-day notice period.
The Commissioner may specify the form of the notice, may
designate the types of subsidiaries not subject to this
notice requirement, and may promulgate rules and
regulations to administer this subsection (12).
(13) To accept for payment at a future date not
exceeding one year from the date of acceptance, drafts
drawn upon it by its customers; and to issue, advise, or
confirm letters of credit authorizing the holders thereof
to draw drafts upon it or its correspondents.
(14) To own and lease personal property acquired by
the bank at the request of a prospective lessee and upon
the agreement of that person to lease the personal
property provided that the lease, the agreement with
respect thereto, and the amount of the investment of the
bank in the property comply with Section 35.1 of this Act.
(15)(a) To establish and maintain, in addition to the
main banking premises, branches offering any banking

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services permitted at the main banking premises of a State
bank.
(b) To establish and maintain, after May 31, 1997,
branches in another state that may conduct any activity in
that state that is authorized or permitted for any bank
that has a banking charter issued by that state, subject
to the same limitations and restrictions that are
applicable to banks chartered by that state.
(16) (Blank).
(17) To establish and maintain terminals, as
authorized by the Electronic Fund Transfer Act.
(18) To establish and maintain temporary service
booths at any International Fair held in this State which
is approved by the United States Department of Commerce,
for the duration of the international fair for the sole
purpose of providing a convenient place for foreign trade
customers at the fair to exchange their home countries'
currency into United States currency or the converse. This
power shall not be construed as establishing a new place
or change of location for the bank providing the service
booth.
(19) To indemnify its officers, directors, employees,
and agents, as authorized for corporations under Section
8.75 of the Business Corporation Act of 1983.
(20) To own, possess, and carry as assets stock of, or
be or become a member of, any corporation, mutual company,

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association, trust, or other entity formed exclusively for
the purpose of providing directors' and officers'
liability and bankers' blanket bond insurance or
reinsurance to and for the benefit of the stockholders,
members, or beneficiaries, or their assets or businesses,
or their officers, directors, employees, or agents, and
not to or for the benefit of any other person or entity or
the public generally.
(21) To make debt or equity investments in
corporations or projects, whether for profit or not for
profit, designed to promote the development of the
community and its welfare, provided that the aggregate
investment in all of these corporations and in all of
these projects does not exceed 10% of the unimpaired
capital and unimpaired surplus of the bank and provided
that this limitation shall not apply to creditworthy loans
by the bank to those corporations or projects. Upon
written application to the Commissioner, a bank may make
an investment that would, when aggregated with all other
such investments, exceed 10% of the unimpaired capital and
unimpaired surplus of the bank. The Commissioner may
approve the investment if he is of the opinion and finds
that the proposed investment will not have a material
adverse effect on the safety and soundness of the bank.
(22) To own, possess, and carry as assets the stock of
a corporation engaged in the ownership or operation of a

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travel agency or to operate a travel agency as a part of
its business.
(23) With respect to affiliate facilities:
(a) to conduct at affiliate facilities for and on
behalf of another commonly owned bank, if so
authorized by the other bank, all transactions that
the other bank is authorized or permitted to perform;
and
(b) to authorize a commonly owned bank to conduct
for and on behalf of it any of the transactions it is
authorized or permitted to perform at one or more
affiliate facilities.
Any bank intending to conduct or to authorize a
commonly owned bank to conduct at an affiliate facility
any of the transactions specified in this paragraph (23)
shall give written notice to the Commissioner at least 30
days before any such transaction is conducted at the
affiliate facility.
(24) To act as the agent for any fire, life, or other
insurance company authorized by the State of Illinois, by
soliciting and selling insurance and collecting premiums
on policies issued by such company; and to receive for
services so rendered such fees or commissions as may be
agreed upon between the bank and the insurance company for
which it may act as agent; provided, however, that no such
bank shall in any case assume or guarantee the payment of

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any premium on insurance policies issued through its
agency by its principal; and provided further, that the
bank shall not guarantee the truth of any statement made
by an assured in filing his application for insurance.
(25) Notwithstanding any other provisions of this Act
or any other law, to offer any product or service that is
at the time authorized or permitted to any insured savings
association or out-of-state bank by applicable law,
provided that powers conferred only by this subsection
(25):
(a) shall always be subject to the same
limitations and restrictions that are applicable to
the insured savings association or out-of-state bank
for the product or service by such applicable law;
(b) shall be subject to applicable provisions of
the Financial Institutions Insurance Sales Law;
(c) shall not include the right to own or conduct a
real estate brokerage business for which a license
would be required under the laws of this State; and
(d) shall not be construed to include the
establishment or maintenance of a branch, nor shall
they be construed to limit the establishment or
maintenance of a branch pursuant to subsection (11).
Not less than 30 days before engaging in any activity
under the authority of this subsection, a bank shall
provide written notice to the Commissioner of its intent

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to engage in the activity. The notice shall indicate the
specific federal or state law, rule, regulation, or
interpretation the bank intends to use as authority to
engage in the activity.
(26) To provide data processing services to others on
a for-profit basis. The total revenue attributable to the
bank's data processing activities must be derived
predominantly from processing banking, financial, or
economic data, and other types of data if the derivative
or resultant product is banking, financial, or economic
data.
(27) To invest in commodities derivatives, with the
management and controls necessary to ensure that such
activities are carried out according to safe and sound
banking practices.
Nothing in this Section shall be construed to require the
filing of a notice or application for approval with the United
States Office of the Comptroller of the Currency or a bank
supervisor of another state as a condition to the right of a
State bank to exercise any of the powers conferred by this
Section in this State.
(Source: P.A. 99-362, eff. 8-13-15; 100-863, eff. 8-14-18.)
(205 ILCS 5/13) (from Ch. 17, par. 320)
Sec. 13. Issuance of charter.
(a) When the directors have organized as provided in

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Section 12 of this Act, and the capital stock and the preferred
stock, if any, together with a surplus of not less than 50% of
the capital, has been all fully paid in and a record of the
same filed with the Commissioner, the Commissioner or some
competent person of the Commissioner's appointment shall make
a thorough examination into the affairs of the proposed bank,
and if satisfied (i) that all the requirements of this Act have
been complied with, (ii) that no intervening circumstance has
occurred to change the Commissioner's findings made pursuant
to Section 10 of this Act, and (iii) that the prior involvement
by any stockholder who will own a sufficient amount of stock to
have control, as defined in Section 18 of this Act, of the
proposed bank with any other financial institution, whether as
stockholder, director, officer, or customer, was conducted in
a safe and sound manner, upon payment into the Commissioner's
office of the reasonable expenses of the examination, as
determined by the Commissioner, the Commissioner shall issue a
charter authorizing the bank to commence business as
authorized in this Act. All charters issued by the
Commissioner or any predecessor agency which chartered State
banks, including any charter outstanding as of September 1,
1989, shall be perpetual. For the 2 years after the
Commissioner has issued a charter to a bank, the bank shall
request and obtain from the Commissioner prior written
approval before it may change senior management personnel or
directors.

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The original charter, duly certified by the Commissioner,
or a certified copy shall be evidence in all courts and places
of the existence and authority of the bank to do business. Upon
the issuance of the charter by the Commissioner, the bank
shall be deemed fully organized and may proceed to do
business. 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 that contemplated by this Act. The
Commissioner shall revoke the charter and order liquidation in
the event that the bank does not commence a general banking
business within one year from the date of the issuance of the
charter, unless a request has been submitted, in writing, to
the Commissioner for an extension and the request has been
approved. 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 the effective date of
such change. A bank chartered under this Act may change its
main banking premises by filing written notice application
with the Commissioner, on forms prescribed by the
Commissioner, provided (i) the change shall not be a removal
to a new location without complying with the capital
requirements of Section 7 and of subsection (1) of Section 10
of this Act; and (ii) the Commissioner approves the relocation
or change; and (iii) the bank complies with any applicable
federal law or regulation. The application shall be deemed to

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be approved if the Commissioner has not acted on the
application within 30 days after receipt of the application,
unless within the 30-day time frame the Commissioner informs
the bank that an extension of time is necessary prior to the
Commissioner's action on the application.
(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 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"). The bank may also provide
products and services to its officers, directors, and
employees.
(2) A bank chartered pursuant to paragraph (1) shall,
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.
(c) A bank chartered under this Act shall, at all times
while it accepts or retains deposits, maintain with the
Federal Deposit Insurance Corporation, or such other
instrumentality of or corporation chartered by the United

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States, deposit insurance as authorized under federal law.
(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 banks'
assumption of any part or all of its liabilities. Such a
transfer shall in no way be deemed to impair the charter of the
transferor bank or cause the transferor bank to forfeit any of
its rights, powers, interests, franchises, or privileges as a
State bank, nor shall any voluntary reduction in the
transferor bank's activities resulting from the transfer have
any such effect; provided, however, that a State bank that
transfers substantially all 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.
(ii) The fact that a State bank does not resume accepting
deposits and making loans for a period of 24 months commencing
on September 11, 1989 or on a date of the transfer of
substantially all of a State bank's assets, whichever is
later, or such longer period as the Commissioner may allow in
writing, may be the basis for a finding by the Commissioner
under Section 51 of this Act that the bank is unable to

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continue operations.
(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 after May
31, 1997.
(Source: P.A. 95-924, eff. 8-26-08; 96-1365, eff. 7-28-10.)
(205 ILCS 5/15) (from Ch. 17, par. 322)
Sec. 15. Stock and stockholders. Unless otherwise provided
for in this Act, provisions of general application to capital
stock, preferred stock, and stockholders of a State bank shall
be as follows:
(1) There shall be an annual meeting of the stockholders
for the election of directors each year on the first business
day in January, unless some other date shall be fixed by the
by-laws. A special meeting of the stockholders may be called
at any time by the board of directors, and otherwise as may be
provided in the bylaws.
(2) Written or printed notice stating the place, day, and
hour of the meeting, and in case of a special meeting, the
purpose or purposes for which the meeting is called, shall be
delivered not less than 10 nor more than 40 days before the
date of the meeting either personally, electronically, or by
mail, by or at the direction of the president, or the
secretary, or the officer or persons calling the meeting, to

HB5428 Engrossed - 32 - LRB103 38790 RTM 68927 b
each stockholder of record entitled to vote at the meeting. If
mailed, the notice shall be deemed to be delivered when
deposited in the United States mail with postage thereon
prepaid addressed to the stockholder at his address as it
appears on the records of the bank.
(3) Except as provided below in this paragraph (3), each
outstanding share shall be entitled to one vote on each matter
submitted to a vote at a meeting of stockholders. Shares of its
own stock belonging to a bank shall not be voted, directly or
indirectly, at any meeting and shall not be counted in
determining the total number of outstanding shares at any
given time, but shares of its own stock held by it in a
fiduciary capacity may be voted and shall be counted in
determining the total number of outstanding shares at any
given time. A stockholder may vote either in person or by proxy
executed in writing by the stockholder or by his duly
authorized attorney-in-fact. No proxy shall be valid after 11
months from the date of its execution, unless otherwise
provided in the proxy. Except as provided below in this
paragraph (3), in all elections for directors every
stockholder (or subscriber to the stock prior to the issuance
of a charter) shall have the right to vote, in person or by
proxy, for the number of shares of stock owned by him, for as
many persons as there are directors to be elected, or to
cumulate the shares and give one candidate as many votes as the
number of directors multiplied by the number of his or her

HB5428 Engrossed - 33 - LRB103 38790 RTM 68927 b
shares of stock shall equal, or to distribute them on the same
principle among as many candidates as he or she shall think
fit. The bank charter of any bank organized on or after January
1, 1984 may limit or eliminate cumulative voting rights in all
or specified circumstances, or may eliminate voting rights
entirely, as to any class or classes or series of stock of the
bank; provided that one class of shares or series thereof
shall always have voting rights in respect of all matters in
the bank. A bank organized prior to January 1, 1984 may amend
its charter to eliminate cumulative voting rights under all or
specified circumstances, or to eliminate voting rights
entirely, as to any class or classes or series of stock of the
bank; provided that one class of shares or series thereof
shall always have voting rights in respect of all matters in
the bank, and provided further that the proposal to eliminate
the voting rights receives the approval of the holders of 70%
of the outstanding shares of stock entitled to vote as
provided in paragraph (b) (7) of Section 17. A majority of the
outstanding shares represented in person or by proxy shall
constitute a quorum at a meeting of stockholders. In the
absence of a quorum a meeting may be adjourned from time to
time without notice to the stockholders.
(4) Whenever additional stock of a class is offered for
sale, stockholders of record of the same class on the date of
the offer shall have the right to subscribe to the proportion
of the shares as the stock of the class held by them bears to

HB5428 Engrossed - 34 - LRB103 38790 RTM 68927 b
the total of the outstanding stock of the class, and the price
thereof may be in excess of par value. This right shall be
transferable but shall terminate if not exercised within 60
days of the offer, unless the Commissioner shall authorize a
shorter time. If the right is not exercised, the stock shall
not be re-offered for sale to others at a lower price without
the stockholders of the same class again being accorded a
preemptive right to subscribe at the lower price.
Notwithstanding any of the provisions of this paragraph (4) or
any other provision of law, stockholders shall not have any
preemptive or other right to subscribe for or to purchase or
acquire shares of capital stock issued or to be issued under a
stock-option plan or upon conversion of preferred stock or
convertible debentures or other convertible indebtedness that
has been approved by stockholders in the manner required by
the provisions of subsection (5) of Section 14 hereof or to
treasury stock acquired pursuant to subsection (6) of Section
14.
(5) For the purpose of determining stockholders entitled
to notice of or to vote at any meeting of stockholders, or
stockholders entitled to receive payment of any dividend, or
in order to make a determination of stockholders for any other
proper purpose, the board of directors of a bank may provide
that the stock transfer books shall be closed for a stated
period not to exceed, in any case, 40 days. In lieu of closing
the stock transfer books, the board of directors may fix in

HB5428 Engrossed - 35 - LRB103 38790 RTM 68927 b
advance a date as the record date for any determination of
stockholders, the date in any case to be not more than 40 days,
and in case of a meeting of stockholders, not less than 10 days
prior to the date on which the particular action, requiring
the determination of stockholders, is to be taken. If the
stock transfer books are not closed and no record date is fixed
for the determination of stockholders entitled to notice of or
to vote at a meeting of stockholders, or stockholders entitled
to receive payment of a dividend, the date on which notice of a
meeting is delivered mailed or the date on which the
resolution of the board of directors declaring the dividend is
adopted, as the case may be, shall be the record date for the
determination of stockholders.
(6) Stock standing in the name of another corporation,
domestic or foreign, may be voted by the officer, agent, or
proxy as the by-laws of the corporation may prescribe, or, in
the absence of such provision, as the board of directors of the
corporation may determine. Stock standing in the name of a
deceased person may be voted by his or her administrator or
executor, either in person or by proxy. Stock standing in the
name of a guardian or trustee may be voted by that fiduciary
either in person or by proxy. Shares standing in the name of a
receiver may be voted by the receiver, and shares held by or
under control of a receiver may be voted by the receiver
without the transfer thereof into his or her name if authority
so to do be contained in an appropriate order of the court by

HB5428 Engrossed - 36 - LRB103 38790 RTM 68927 b
which the receiver was appointed. A stockholder whose shares
of stock are pledged shall be entitled to vote those shares
until the shares have been transferred into the name of the
pledgee, and thereafter the pledgee shall be entitled to vote
the shares so transferred.
(7) Shares of stock shall be transferable in accordance
with the general laws of this State governing the transfer of
corporate shares.
(8) The president and any other officer designated by the
board of directors of every State bank shall cause to be kept
at all times a full and correct list of the names and
residences of all the shareholders in the State bank and the
number of shares held by each in the office where its business
is transacted. The list shall be subject to the inspection of
all the shareholders of the State bank and the officers
authorized to assess taxes under State authority during
business hours of each day in which business may be legally
transacted or shall be kept on a reasonably accessible
electronic network, at the State bank's election. A copy of
the list, verified by the oath of the president or cashier,
shall be transmitted to the Commissioner of Banks and Real
Estate within 10 days of any demand therefor made by the
Commissioner.
(9) Any number of shareholders of a bank may create a
voting trust for the purpose of conferring upon a trustee or
trustees the right to vote or otherwise represent their shares

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for a period of not to exceed 10 years by entering into a
written voting trust agreement specifying the terms and
conditions of the voting trust and by transferring their
shares to the trustee or trustees for the purposes of the
agreement. The trust agreement shall not become effective
until a counterpart of the agreement is deposited with the
bank at its main banking premises. The counterpart of the
voting trust agreement so deposited with the bank shall be
subject to the same right of examination by a shareholder of
the bank, in person or by agent or attorney, as is the record
of shareholders of the bank and shall be subject to
examination by any holder of a beneficial interest in the
voting trust, either in person or by agent or attorney, at any
reasonable time for any proper purpose.
(10) Voting agreements. Shareholders may provide for the
voting of their shares by signing an agreement for that
purpose. A voting agreement created under this paragraph is
not subject to the provisions of paragraph (9).
A voting agreement created under this paragraph is
specifically enforceable in accordance with the principles of
equity.
(11) Unless expressly prohibited by the charter or bylaws
and subject to applicable requirements of this Act, the board
of directors may provide by resolution that stockholders may
attend, participate in, act in, and vote at any annual meeting
or special meeting through the use of a conference telephone

HB5428 Engrossed - 38 - LRB103 38790 RTM 68927 b
or interactive technology, including, but not limited to,
electronic transmission, Internet usage, or remote
communication, by means of which all persons participating in
the meeting can communicate with each other. Participation
through the use of a conference telephone or interactive
technology shall constitute attendance, presence, and
representation in person at the annual meeting or special
meeting of the person or persons so participating and count
toward the quorum required to conduct business at the meeting.
The following conditions shall apply to any virtual meeting of
the stockholders:
(a) the bank must internally possess or retain the
technological capacity to facilitate virtual meeting
attendance, participation, communication, and voting; and
(b) the stockholders must receive notice of the use of
a virtual meeting format and appropriate instructions for
joining, participating, and voting during the virtual
meeting at least 7 days before the virtual meeting.
(Source: P.A. 95-924, eff. 8-26-08.)
(205 ILCS 5/16) (from Ch. 17, par. 323)
Sec. 16. Directors. The business and affairs of a State
bank shall be managed by its board of directors that shall
exercise its powers as follows:
(1) Directors shall be elected as provided in this Act.
Any omission to elect a director or directors shall not impair

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any of the rights and privileges of the bank or of any person
in any way interested. The existing directors shall hold
office until their successors are elected and qualify.
(2) (a) Notwithstanding the provisions of any charter
heretofore or hereafter issued, the number of directors,
not fewer than 5 nor more than 25, may be fixed from time
to time by the stockholders at any meeting of the
stockholders called for the purpose of electing directors
or changing the number thereof by the affirmative vote of
at least two-thirds of the outstanding stock entitled to
vote at the meeting, and the number so fixed shall be the
board regardless of vacancies until the number of
directors is thereafter changed by similar action.
(b) Notwithstanding the minimum number of directors
specified in paragraph (a) of this subsection, a State
bank that has been in existence for 10 years or more and
has less than $20,000,000 in assets, as of the December 31
immediately preceding the annual meeting of shareholders
at which directors are elected, may, subject to the
approval of the Commissioner, have a minimum of 3
directors; provided that if a State bank has fewer than 5
directors, at least one director shall not be an officer
or employee of the bank. The Commissioner shall annually
review the appropriateness of the grant of authority to
have a reduced minimum number of directors pursuant to
this paragraph (b).

HB5428 Engrossed - 40 - LRB103 38790 RTM 68927 b
(3) Except as otherwise provided in this paragraph (3),
directors shall hold office until the next annual meeting of
the stockholders succeeding their election or until their
successors are elected and qualify. If the board of directors
consists of 6 or more members, in lieu of electing the
membership of the whole board of directors annually, the
charter or by-laws of a State bank may provide that the
directors shall be divided into either 2 or 3 classes, each
class to be as nearly equal in number as is possible. The term
of office of directors of the first class shall expire at the
first annual meeting of the stockholders after their election,
that of the second class shall expire at the second annual
meeting after their election, and that of the third class, if
any, shall expire at the third annual meeting after their
election. At each annual meeting after classification, the
number of directors equal to the number of the class whose
terms expire at the time of the meeting shall be elected to
hold office until the second succeeding annual meeting, if
there be 2 classes, or until the third succeeding annual
meeting, if there be 3 classes. Vacancies may be filled by
stockholders at a special meeting called for the purpose.
If authorized by the bank's by-laws or an amendment
thereto, the directors of a State bank may properly fill a
vacancy or vacancies arising between shareholders' meetings,
but at no time may the number of directors selected to fill a
vacancy in this manner during any interim period between

HB5428 Engrossed - 41 - LRB103 38790 RTM 68927 b
shareholders' meetings exceed 33 1/3% of the total membership
of the board of directors.
(4) The board of directors shall hold regular meetings at
least once each month, provided that, upon prior written
approval by the Commissioner, the board of directors may hold
regular meetings less frequently than once each month but at
least once each calendar quarter. A special meeting of the
board of directors may be held as provided by the by-laws. A
special meeting of the board of directors may also be held upon
call by the Commissioner or a bank examiner appointed under
the provisions of this Act upon not less than 12 hours notice
of the meeting by personal service of the notice, by
electronic delivery of the notice, or by mailing the notice to
each of the directors at his residence as shown by the books of
the bank. A majority of the board of directors shall
constitute a quorum for the transaction of business unless a
greater number is required by the charter or the by-laws. The
act of the majority of the directors present at a meeting at
which a quorum is present shall be the act of the board of
directors unless the act of a greater number is required by the
charter or by the by-laws.
(5) A member of the board of directors shall be elected
president. The board of directors may appoint other officers,
as the by-laws may provide, and fix their salaries to carry on
the business of the bank. The board of directors may make and
amend by-laws (not inconsistent with this Act) for the

HB5428 Engrossed - 42 - LRB103 38790 RTM 68927 b
government of the bank and may, by the affirmative vote of a
majority of the board of directors, establish reasonable
compensation of all directors for services to the corporation
as directors, officers, or otherwise. An officer, whether
elected or appointed by the board of directors or appointed
pursuant to the by-laws, may be removed by the board of
directors at any time.
(6) The board of directors shall cause suitable books and
records of all the bank's transactions to be kept.
(7) (a) In discharging the duties of their respective
positions, the board of directors, committees of the
board, and individual directors may, in considering the
best long-term long term and short-term short term
interests of the bank, consider the effects of any action
(including, without limitation, action that may involve or
relate to a merger or potential merger or to a change or
potential change in control of the bank) upon employees,
depositors, suppliers, and customers of the corporation or
its subsidiaries, communities in which the main banking
premises, branches, offices, or other establishments of
the bank or its subsidiaries are located, and all
pertinent factors.
(b) In discharging the duties of their respective
positions, the board of directors, committees of the
board, and individual directors shall be entitled to rely
on advice, information, opinions, reports or statements,

HB5428 Engrossed - 43 - LRB103 38790 RTM 68927 b
including financial statements and financial data,
prepared or presented by: (i) one or more officers or
employees of the bank whom the director believes to be
reliable and competent in the matter presented; (ii) one
or more counsels, accountants, or other consultants as to
matters that the director believes to be within that
person's professional or expert competence; or (iii) a
committee of the board upon which the director does not
serve, as to matters within that committee's designated
authority; provided that the director's reliance under
this paragraph (b) is placed in good faith, after
reasonable inquiry if the need for such inquiry is
apparent under the circumstances and without knowledge
that would cause such reliance to be unreasonable.
(Source: P.A. 91-452, eff. 1-1-00; 92-476, eff. 8-23-01.)
(205 ILCS 5/16.5)
Sec. 16.5. Employment of persons with convictions. Except
with the prior written consent of the Commissioner, no State
bank shall knowingly employ or otherwise permit an individual
to serve as an officer, director, employee, or agent of the
State bank if the individual has been convicted of a felony or
of any criminal offense relating to dishonesty or breach of
trust. Notwithstanding the provisions of this Section, a State
bank in compliance with the provisions of 12 U.S.C. 1829 and
administrative rules issued under 12 U.S.C. 1829 by the State

HB5428 Engrossed - 44 - LRB103 38790 RTM 68927 b
bank's primary federal financial institution regulator shall
be deemed in compliance with this Section.
(Source: P.A. 90-301, eff. 8-1-97.)
(205 ILCS 5/32.1) (from Ch. 17, par. 340)
Sec. 32.1. Loans to single individuals Single Females.
(a) For purposes of this Section, "single" means not
currently married.
(b) No State bank shall require that single individuals
who have reached the age of majority females to whom loans are
made have cosigners on promissory notes negotiated to secure
such loans unless such bank shall, under the same or similar
circumstances, also require that single males who have reached
the age of majority have cosigners on promissory notes
negotiated to secure loans.
(Source: P.A. 79-556.)
(205 ILCS 5/48)
Sec. 48. Secretary's powers; duties. 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
parent or affiliate of a State bank. In the performance of the

HB5428 Engrossed - 45 - LRB103 38790 RTM 68927 b
Secretary's duties:
(1) The Commissioner shall call for statements from
all State banks as provided in Section 47 at least one time
during each calendar quarter.
(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 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. A person so appointed shall not be a
stockholder or officer or employee of any bank which that
person may be directed to examine, and shall have powers
to make a thorough examination into all the affairs of the
bank and in so doing to examine any of the officers or
agents or employees thereof on oath and shall make a full
and detailed report of the condition of the bank to the
Commissioner. 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

HB5428 Engrossed - 46 - LRB103 38790 RTM 68927 b
Section 35.2 of this Act, or 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 Commissioner may accept reports of examinations of
State bank branches from those state regulatory
authorities. These cooperative agreements may set forth
the manner in which the other state regulatory authorities
may be compensated for examinations prepared for and
submitted to the Commissioner.
(b) After May 31, 1997, the Commissioner is authorized
to examine, as often as the Commissioner shall deem
necessary or proper, branches of out-of-state banks. The
Commissioner may establish and may assess fees to be paid
to the Commissioner for examinations under this subsection
(b). The fees shall be borne by the out-of-state bank,
unless the fees are borne by the state regulatory
authority that chartered the out-of-state bank, as
determined by a cooperative agreement between the

HB5428 Engrossed - 47 - LRB103 38790 RTM 68927 b
Commissioner and the state regulatory authority that
chartered the out-of-state bank.
(2.1) Pursuant to paragraph (a) of subsection (6) of
this Section, the Secretary shall adopt rules that ensure
consistency and due process in the examination process.
The Secretary may also establish guidelines that (i)
define the scope of the examination process and (ii)
clarify examination items to be resolved. The rules,
formal guidance, interpretive letters, or opinions
furnished to State banks by the Secretary may be relied
upon by the State banks.
(2.5) Whenever any State bank, any subsidiary or
affiliate 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:
(a) that performance shall be subject to
examination by the Commissioner to the same extent as
if services were being performed by the bank or, after
May 31, 1997, branch of the out-of-state bank itself
on its own premises; and
(b) the bank or, after May 31, 1997, branch of the
out-of-state bank shall notify the Commissioner of the
existence of a service relationship. The notification
shall be submitted with the first statement of
condition (as required by Section 47 of this Act) due

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after the making of the service contract or the
performance of the service, whichever occurs first.
The Commissioner shall be notified of each subsequent
contract in the same manner.
For purposes of this subsection (2.5), the term "bank
services" means services such as sorting and posting of
checks and deposits, computation and posting of interest
and other credits and charges, preparation and mailing of
checks, statements, notices, and similar items, or any
other clerical, bookkeeping, accounting, statistical, or
similar functions performed for a State bank, including,
but not limited to, electronic data processing related to
those bank services.
(3) The expense of administering this Act, including
the expense of the examinations of State banks as provided
in this 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 according to

HB5428 Engrossed - 49 - LRB103 38790 RTM 68927 b
the following schedule: 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
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. The Call Report Fee shall be
calculated by the Secretary and billed to the banks
for remittance at the time of the quarterly statements
of condition provided for in Section 47. The Secretary
may require payment of the fees provided in this
Section by an electronic transfer of funds or an
automatic debit of an account of each of the State
banks. 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 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 semiannually or some other period and may
provide in the rule the formula to be used for

HB5428 Engrossed - 50 - LRB103 38790 RTM 68927 b
calculating and assessing the periodic Call Report
Fees to be paid by State banks.
(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. The reasonable and necessary expenses of
the Commissioner during the period of the monitoring
shall be borne by the subject bank. The Commissioner
shall furnish the State bank a statement of time and
expenses if requested to do so within 30 days of the
conclusion of the monitoring period.
(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 under subsection (2.5) shall be
borne by the banks for which the services are
provided. An amount, based upon a fee structure
prescribed by the Commissioner, shall be paid by the
banks or, after May 31, 1997, branches of out-of-state
banks receiving the electronic data processing
services along with the Call Report Fee assessed under
paragraph (a) of this subsection (3).
(a-3) After May 31, 1997, the reasonable and
necessary expenses of the Commissioner during

HB5428 Engrossed - 51 - LRB103 38790 RTM 68927 b
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 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.
(b) "Fiscal year" for purposes of this Section 48
is defined as a period beginning July 1 of any year and
ending June 30 of the next year. 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 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

HB5428 Engrossed - 52 - LRB103 38790 RTM 68927 b
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 subsection (b) of Section 17 of the
Foreign Banking Office Act. The aggregate amount of
the contingent fee thus arrived at for any fiscal year
shall be apportioned among, assessed upon, and paid by
the State banks and 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). 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 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

HB5428 Engrossed - 53 - LRB103 38790 RTM 68927 b
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, excluding the
expenses paid from the Foreign Banking Office
Non-insured Institutions Receivership account in the
Bank and Trust Company Fund, 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
Commissioners, communication equipment and services,
office furnishings, 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. The
Commissioner shall not be required by paragraph (c) or
(d-1) of this subsection (3) to maintain in any fiscal
year's budget appropriated reserves for accrued

HB5428 Engrossed - 54 - LRB103 38790 RTM 68927 b
vacation and accrued sick leave that is required to be
paid to employees of the Commissioner upon termination
of their service with the Commissioner in an amount
that is more than is reasonably anticipated to be
necessary for any anticipated turnover in employees,
whether due to normal attrition or due to layoffs,
terminations, or resignations.
(c-1) At the conclusion of each fiscal year,
beginning in fiscal year 2025, the Department shall
separately identify the direct administrative and
operational expenses and allocable indirect costs of
the Division of Banking of the Department incidental
to conducting the examinations required or authorized
by the Illinois Community Reinvestment Act and
implementing rules adopted by the Department. Pursuant
to Section 2105-300 of the Department of Professional
Regulation Law of the Civil Administrative Code of
Illinois, the Department shall make copies of the
analyses available to the banking industry in a timely
manner. The administrative and operational expenses of
the Division of Banking of the Department in
conducting examinations required or authorized by the
Illinois Community Reinvestment Act shall have the
same meaning and scope as the administration expenses
of the Division of Banking of the Department, as
defined in paragraph (c) of subsection (3).

HB5428 Engrossed - 55 - LRB103 38790 RTM 68927 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, and from State banks and savings banks pursuant
to the Illinois Community Reinvestment Act 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. All earnings received from investments of
funds in the Bank and Trust Company Fund shall be
deposited into the Bank and Trust Company Fund and may
be used for the same purposes as fees deposited into
that Fund. The amount from time to time deposited into
the Bank and Trust Company Fund shall be used: (i) to
offset the ordinary administrative expenses of the
Secretary as defined in this Section or (ii) except
earnings received from investments of funds in the
Corporate Fiduciary Receivership account and the
Foreign Banking Office Non-insured Institutions
Receivership account, as a credit against fees under
paragraph (d-1) of this subsection (3). Nothing in
Public Act 81-131 shall prevent continuing the
practice of paying expenses involving salaries,
retirement, social security, and State-paid insurance

HB5428 Engrossed - 56 - LRB103 38790 RTM 68927 b
premiums of State officers by appropriations from the
General Revenue Fund. However, the General Revenue
Fund shall be reimbursed for those payments made on
and after July 1, 1979, by an annual transfer of funds
from the Bank and Trust Company Fund. Moneys in the
Bank and Trust Company 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 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 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

HB5428 Engrossed - 57 - LRB103 38790 RTM 68927 b
to be deposited into the Bank and Trust Company Fund
during that fiscal year. The State Treasurer and
Comptroller shall transfer the amounts designated
under this Section as soon as may be practicable after
receiving the direction to transfer from the Governor.
(d-1) Adequate funds shall be available in the
Bank and Trust Company Fund to permit the timely
payment of administration expenses. In each fiscal
year the total administration expenses shall be
deducted from the total fees collected by the
Commissioner and the remainder transferred into the
Cash Flow Reserve Account, unless the balance of the
Cash Flow Reserve Account prior to the transfer equals
or exceeds one-fourth of the total initial
appropriations from the Bank and Trust Company Fund
for the subsequent year, in which case the remainder
shall be credited to State banks and foreign banking
corporations and applied against their fees for the
subsequent year. The 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

HB5428 Engrossed - 58 - LRB103 38790 RTM 68927 b
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 among, 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.
The additional amounts assessed shall be transferred
into the Cash Flow Reserve Account. For purposes of
this paragraph (d-1), the calculation of the fees
collected by the Commissioner shall exclude all fees
collected pursuant to the Student Loan Servicing
Rights Act, the Foreign Banking Office Act, and the
Foreign Bank Representative Office Act and the
receivership fees provided for in Section 5-10 of the
Corporate Fiduciary Act.
(e) The Commissioner may upon request certify to
any public record in his keeping and shall have
authority to levy a reasonable charge for issuing
certifications of any public record in his keeping.
(f) In addition to fees authorized elsewhere in
this 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,

HB5428 Engrossed - 59 - LRB103 38790 RTM 68927 b
approval, or service.
(4) Nothing contained in this Act shall be construed
to limit the obligation relative to examinations and
reports of any State bank, deposits in which are to any
extent insured by the United States or any agency thereof,
nor to limit in any way the powers of the Commissioner with
reference to examinations and reports of that bank.
(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 out-of-state bank, the board of
directors thereof, or the trustees under such plan as the

HB5428 Engrossed - 60 - LRB103 38790 RTM 68927 b
nature of the case may require.
(6) The Commissioner shall have the power:
(a) To promulgate reasonable rules for the purpose
of administering the provisions of this Act.
(a-5) To impose conditions on any approval issued
by the Commissioner if he determines that the
conditions are necessary or appropriate. These
conditions shall be imposed in writing and shall
continue in effect for the period prescribed by the
Commissioner.
(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.
(b-1) To enter into agreements with a bank
establishing a program to correct the condition of the
bank or its practices.
(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

HB5428 Engrossed - 61 - LRB103 38790 RTM 68927 b
otherwise to authorize, in writing, an officer or
employee of the Office 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 Act or any
rule promulgated in accordance with this Act.
(e) To conduct hearings.
(7) Whenever, in the opinion of the Secretary, 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 Secretary, 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

HB5428 Engrossed - 62 - LRB103 38790 RTM 68927 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 does not assure
reasonable promise of safe and sound operation of the
State bank, the Secretary may issue an order of removal.
If, in the opinion of the Secretary, 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, 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 Secretary 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. An order issued

HB5428 Engrossed - 63 - LRB103 38790 RTM 68927 b
pursuant to this subsection shall be served upon the
director, officer, employee, or agent. A copy of the order
shall be sent to each director of the bank affected by
registered mail. 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, officer, employee, or agent of that bank. The
Secretary may institute a civil action against the
director, officer, or agent of the State bank or, after
May 31, 1997, of the branch of the out-of-state bank
against whom any order provided for by this subsection (7)
of this Section 48 has been issued, and against the State
bank or, after May 31, 1997, out-of-state bank, 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
Secretary 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 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 Division of
Banking unless the Secretary has granted prior approval in
writing.
For purposes of this paragraph (7), "bank holding

HB5428 Engrossed - 64 - LRB103 38790 RTM 68927 b
company" has the meaning prescribed in Section 2 of the
Illinois Bank Holding Company Act of 1957.
(7.5) Notwithstanding the provisions of this Section,
the Secretary shall not:
(1) issue an order against a State bank or any
subsidiary organized under this Act for unsafe or
unsound banking practices solely because the entity
provides or has provided financial services to a
cannabis-related legitimate business;
(2) prohibit, penalize, or otherwise discourage a
State bank or any subsidiary from providing financial
services to a cannabis-related legitimate business
solely because the entity provides or has provided
financial services to a cannabis-related legitimate
business;
(3) recommend, incentivize, or encourage a State
bank or any subsidiary not to offer financial services
to an account holder or to downgrade or cancel the
financial services offered to an account holder solely
because:
(A) the account holder is a manufacturer or
producer, or is the owner, operator, or employee
of a cannabis-related legitimate business;
(B) the account holder later becomes an owner
or operator of a cannabis-related legitimate
business; or

HB5428 Engrossed - 65 - LRB103 38790 RTM 68927 b
(C) the State bank or any subsidiary was not
aware that the account holder is the owner or
operator of a cannabis-related legitimate
business; and
(4) take any adverse or corrective supervisory
action on a loan made to an owner or operator of:
(A) a cannabis-related legitimate business
solely because the owner or operator owns or
operates a cannabis-related legitimate business;
or
(B) real estate or equipment that is leased to
a cannabis-related legitimate business solely
because the owner or operator of the real estate
or equipment leased the equipment or real estate
to a cannabis-related legitimate business.
(8) The Commissioner may 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 which in the Commissioner's discretion is an unsafe
or unsound banking practice.
(9) The Commissioner may 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

HB5428 Engrossed - 66 - LRB103 38790 RTM 68927 b
requirements.
(10) All final administrative decisions of the
Commissioner hereunder shall be subject to judicial review
pursuant to the provisions of the Administrative Review
Law. For matters involving administrative review, venue
shall be in either Sangamon County or Cook County.
(11) The endowment fund for the Illinois Bank
Examiners' Education Foundation shall be administered as
follows:
(a) (Blank).
(b) The Foundation is empowered to receive
voluntary contributions, gifts, grants, bequests, and
donations on behalf of the Illinois Bank Examiners'
Education Foundation from national banks and other
persons for the purpose of funding the endowment of
the Illinois Bank Examiners' Education Foundation.
(c) The aggregate of all special educational fees
collected by the Secretary and property received by
the Secretary 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 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

HB5428 Engrossed - 67 - LRB103 38790 RTM 68927 b
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 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.
(12) (Blank).
(13) The Secretary may borrow funds from the General
Revenue Fund on behalf of the Bank and Trust Company Fund
if the Director of Banking certifies to the Governor that
there is an economic emergency affecting banking that
requires a borrowing to provide additional funds to the
Bank and Trust Company Fund. The borrowed funds shall be
paid back within 3 years and shall not exceed the total
funding appropriated to the Agency in the previous year.
(14) In addition to the fees authorized in this Act,
the Secretary may assess reasonable receivership fees
against any State bank that does not maintain insurance
with the Federal Deposit Insurance Corporation. All fees
collected under this subsection (14) shall be paid into
the Non-insured Institutions Receivership account in the
Bank and Trust Company Fund, as established by the
Secretary. The fees assessed under this subsection (14)

HB5428 Engrossed - 68 - LRB103 38790 RTM 68927 b
shall provide for the expenses that arise from the
administration of the receivership of any such institution
required to pay into the Non-insured Institutions
Receivership account, whether pursuant to this Act, the
Corporate Fiduciary Act, the Foreign Banking Office Act,
or any other Act that requires payments into the
Non-insured Institutions Receivership account. The
Secretary may establish by rule a reasonable manner of
assessing fees under this subsection (14).
(Source: P.A. 102-558, eff. 8-20-21; 103-154, eff. 6-30-23.)
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
Sec. 48.1. Customer financial records; confidentiality.
(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of:
(1) a document granting signature authority over a
deposit or account;
(2) a statement, ledger card or other record on any
deposit or account, which shows each transaction in or
with respect to that account;
(3) a check, draft or money order drawn on a bank or
issued and payable by a bank; or
(4) any other item containing information pertaining
to any relationship established in the ordinary course of
a bank's business between a bank and its customer,
including financial statements or other financial

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information provided by the customer.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a bank having custody of the records,
or the examination of the records by a certified public
accountant engaged by the bank to perform an independent
audit.
(2) The examination of any financial records by, or
the furnishing of financial records by a bank to, any
officer, employee or agent of (i) the Commissioner of
Banks and Real Estate, (ii) after May 31, 1997, a state
regulatory authority authorized to examine a branch of a
State bank located in another state, (iii) the Comptroller
of the Currency, (iv) the Federal Reserve Board, or (v)
the Federal Deposit Insurance Corporation for use solely
in the exercise of his duties as an officer, employee, or
agent.
(3) The publication of data furnished from financial
records relating to customers where the data cannot be
identified to any particular customer or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.

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(6) The exchange in the regular course of business of
(i) credit information between a bank and other banks or
financial institutions or commercial enterprises, directly
or through a consumer reporting agency or (ii) financial
records or information derived from financial records
between a bank and other banks or financial institutions
or commercial enterprises for the purpose of conducting
due diligence pursuant to a purchase or sale involving the
bank or assets or liabilities of the bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the bank reasonably
believes it has been the victim of a crime.
(8) The furnishing of information under the Revised
Uniform Unclaimed Property Act.
(9) The furnishing of information under the Illinois
Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information under the federal
Currency and Foreign Transactions Reporting Act Title 31,
United States Code, Section 1051 et seq.
(11) The furnishing of information under any other
statute that by its terms or by regulations promulgated
thereunder requires the disclosure of financial records
other than by subpoena, summons, warrant, or court order.
(12) The furnishing of information about the existence
of an account of a person to a judgment creditor of that

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person who has made a written request for that
information.
(13) The exchange in the regular course of business of
information between commonly owned banks in connection
with a transaction authorized under paragraph (23) of
Section 5 and conducted at an affiliate facility.
(14) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any bank governed by this Act
shall enter into an agreement for data exchanges with a
State agency provided the State agency pays to the bank a
reasonable fee not to exceed its actual cost incurred. A
bank providing information in accordance with this item
shall not be liable to any account holder or other person
for any disclosure of information to a State agency, for
encumbering or surrendering any assets held by the bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence
or willful misconduct. A bank shall have no obligation to
hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(15) The exchange in the regular course of business of
information between a bank and any commonly owned

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affiliate of the bank, subject to the provisions of the
Financial Institutions Insurance Sales Law.
(16) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the
investigatory entity or the guardian, or (ii) if there is
suspicion by the bank that a customer who is an elderly
person or person with a disability has been or may become
the victim of financial exploitation. For the purposes of
this item (16), the term: (i) "elderly person" means a
person who is 60 or more years of age, (ii) "disabled
person with a disability" means a person who has or
reasonably appears to the bank to have a physical or
mental disability that impairs his or her ability to seek
or obtain protection from or prevent financial
exploitation, and (iii) "financial exploitation" means
tortious or illegal use of the assets or resources of an
elderly or disabled person or person with a disability,
and includes, without limitation, misappropriation of the
elderly or disabled person's assets or resources of the
elderly person or person with a disability by undue
influence, breach of fiduciary relationship, intimidation,
fraud, deception, extortion, or the use of assets or
resources in any manner contrary to law. A bank or person

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furnishing information pursuant to this item (16) shall be
entitled to the same rights and protections as a person
furnishing information under the Adult Protective Services
Act and the Illinois Domestic Violence Act of 1986.
(17) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the customer, or
in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the customer;
(B) maintaining or servicing a customer's account
with the bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a customer.
Nothing in this item (17), however, authorizes the
sale of the financial records or information of a customer
without the consent of the customer.
(18) The disclosure of financial records or
information as necessary to protect against actual or
potential fraud, unauthorized transactions, claims, or
other liability.
(19)(A) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such

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information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(B)(1) For purposes of this paragraph (19) of
subsection (b) of Section 48.1, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (19) of subsection
(b) of Section 48.1, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(20)(A) The furnishing of financial records of a
customer to the Department to aid the Department's initial
determination or subsequent re-determination of the
customer's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the bank receives the written consent and authorization of
the customer, which shall:
(1) have the customer's signature notarized;

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(2) be signed by at least one witness who
certifies that he or she believes the customer to be of
sound mind and memory;
(3) be tendered to the bank at the earliest
practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the
customer's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,

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retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not
limited to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and
all other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term
care benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be
revoked by me in writing at any time before my financial
records, as described above, are disclosed, and that this
Consent and Authorization is valid until the Financial
Institution receives my written revocation. This Consent and
Authorization shall constitute valid authorization for the
Department identified above to inspect all such financial
records set forth above, and to request and receive copies of
such financial records from the Financial Institution (subject
to such records search and reproduction reimbursement policies

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as the Financial Institution may have in place). An executed
copy of this Consent and Authorization shall be sufficient and
as good as the original and permission is hereby granted to
honor a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity
shall receive my financial records pursuant to this Consent
and Authorization. By signing this form, I agree to indemnify
and hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)

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The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)

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The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(B) In no event shall the bank distribute the
customer's financial records to the long-term care
facility from which the customer seeks initial or
continuing residency or long-term care services.
(C) A bank providing financial records of a customer
in good faith relying on a consent and authorization
executed and tendered in accordance with this paragraph
(20) shall not be liable to the customer or any other
person in relation to the bank's disclosure of the
customer's financial records to the Department. The
customer signing the consent and authorization shall
indemnify and hold the bank harmless that relies in good
faith upon the consent and authorization and incurs a loss

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because of such reliance. The bank recovering under this
indemnification provision shall also be entitled to
reasonable attorney's fees and the expenses of recovery.
(D) A bank shall be reimbursed by the customer for all
costs reasonably necessary and directly incurred in
searching for, reproducing, and disclosing a customer's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this paragraph (20). The requested financial records shall
be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of
all costs is received by the bank. The bank may honor a
photostatic or electronic copy of a properly executed
consent and authorization.
(E) Nothing in this paragraph (20) shall impair,
abridge, or abrogate the right of a customer to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly
appointed agent to request and obtain the customer's
financial records and disclose those financial records
to the Department.
(F) For purposes of this paragraph (20), "Department"

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means the Department of Human Services and the Department
of Healthcare and Family Services or any successor
administrative agency of either agency.
(21) The furnishing of financial records of a deceased
customer to a public administrator of any county or other
governmental jurisdiction for the purpose of facilitating
burial of the customer.
(c) Except as otherwise provided by this Act, a bank may
not disclose to any person, except to the customer or his duly
authorized agent, any financial records or financial
information obtained from financial records relating to that
customer of that bank unless:
(1) the customer has authorized disclosure to the
person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order which meets the requirements of
subsection (d) of this Section; or
(3) the bank is attempting to collect an obligation
owed to the bank and the bank complies with the provisions
of Section 2I of the Consumer Fraud and Deceptive Business
Practices Act.
(d) A bank shall disclose financial records under
paragraph (2) of subsection (c) of this Section under a lawful
subpoena, summons, warrant, citation to discover assets, or
court order only after the bank sends a copy of the subpoena,

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summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the bank, if
living, and, otherwise the person's personal representative,
if known, at the person's last known address by first class
mail, postage prepaid, through a third-party commercial
carrier or courier with delivery charge fully prepaid, by hand
delivery, or by electronic delivery at an email address on
file with the bank (if the person establishing the
relationship with the bank has consented to receive electronic
delivery and, if the person establishing the relationship with
the bank is a consumer, the person has consented under the
consumer consent provisions set forth in Section 7001 of Title
15 of the United States Code), unless the bank is specifically
prohibited from notifying the person by order of court or by
applicable State or federal law. A bank shall not mail a copy
of a subpoena to any person pursuant to this subsection if the
subpoena was issued by a grand jury under the Statewide Grand
Jury Act.
(e) Any officer or employee of a bank who knowingly and
willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(f) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be

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fined not more than $1,000.
(g) A bank shall be reimbursed for costs that are
reasonably necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data required or requested to be produced
pursuant to a lawful subpoena, summons, warrant, citation to
discover assets, or court order. The Commissioner shall
determine the rates and conditions under which payment may be
made.
(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
(205 ILCS 5/48.2) (from Ch. 17, par. 360.1)
Sec. 48.2. Prohibition against certain activities.
(a) Any bank, subsidiary, affiliate, officer or employee
of such bank subject to this Act shall not:
(1) grant any loan on the prior condition, agreement
or understanding that the borrower contract with any
specific person or organization for the following:
(A) insurance services of an agent or broker;
(B) legal services rendered to the borrower;
(C) services of a real estate agent or broker; or
(D) real estate or property management services;
(2) require that insurance services, legal services,
real estate services or property management services be
placed with any subsidiary, affiliate, officer or employee
of any bank.

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(b) Any bank or subsidiary, affiliate, employee, officer,
banking house, branch bank, branch office, additional office
or agency of such bank that is transacting an insurance
business in this State shall comply with Article XLIV of the
Illinois Insurance Code.
(c) Any officer or employee of a bank or its affiliates or
subsidiaries who violates this Section is guilty of a business
offense, and upon conviction shall be fined not more than
$1,000. This Section does not create a private cause of action
for civil damages.
(d) In any contract or loan which is secured by a mortgage,
deed of trust, or conveyance in the nature of a mortgage, on
residential real estate, the interest which is computed,
calculated, charged, or collected pursuant to such contract or
loan, or pursuant to any regulation or rule promulgated
pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on
which the total indebtedness, with the exception of late
payment penalties, is paid in full. For purposes of this
subsection (d) of this Section 48.2, a prepayment shall mean
the payment of the total indebtedness, with the exception of
late payment penalties if incurred or charged, on any date
before the date specified in the contract or loan agreement on
which the total indebtedness shall be paid in full, or before
the date on which all payments, if timely made, shall have been
made. In the event of a prepayment of the indebtedness which is

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made on a date after the date on which interest on the
indebtedness was last computed, calculated, charged, or
collected but before the next date on which interest on the
indebtedness was to be calculated, computed, charged, or
collected, the lender may calculate, charge and collect
interest on the indebtedness for the period which elapsed
between the date on which the prepayment is made and the date
on which interest on the indebtedness was last computed,
calculated, charged or collected at a rate equal to 1/360 of
the annual rate for each day which so elapsed, which rate shall
be applied to the indebtedness outstanding as of the date of
prepayment. The lender shall refund to the borrower any
interest charged or collected which exceeds that which the
lender may charge or collect pursuant to the preceding
sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after
January 1, 1986.
(e) Any bank, affiliate or subsidiary of such bank which
shall engage in making residential mortgage financing
transactions, shall with respect to each such transaction,
provide the following:
(1) if a contractual obligation is intended to a
borrower, a mortgage commitment which shall set forth the
material terms, conditions and contingencies of such
commitment;
(2) if the servicing of a residential mortgage shall

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be transferred from the original mortgagee, within 45 days
of such transfer, written notice sent by certified mail,
return receipt requested, to the mortgagor at the address
of the property, unless the mortgagor shall have directed
correspondence from the mortgagee shall be sent to another
address, which notice shall set forth: the name and
address of the transferee; the name, address and telephone
number to which inquiries by the residential mortgagor
should be addressed; and the name and address to which the
next 3 monthly installments are to be submitted to the
transferee and the amount of each of such monthly
installment; and
(3) if the servicing of a residential mortgage shall
be transferred again or if the information in paragraph
(2) above shall change, the notice with the corrected
information shall be provided within 45 days of such
subsequent transfer or change in information by the
transferee of the servicing of the mortgage at that time.
(Source: P.A. 90-41, eff. 10-1-97.)
Section 10. The Savings Bank Act is amended by changing
Sections 1008, 4002, 4003, 4013, 6002, 7005, 8002, and 11008
as follows:
(205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
Sec. 1008. General corporate powers.

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(a) A savings bank operating under this Act shall be a body
corporate and politic and shall have all of the powers
conferred by this Act including, but not limited to, the
following powers:
(1) To sue and be sued, complain, and defend in its
corporate name and to have a common seal, which it may
alter or renew at pleasure.
(2) To obtain and maintain insurance by a deposit
insurance corporation as defined in this Act.
(3) To act as a fiscal agent for the United States, the
State of Illinois or any department, branch, arm, or
agency of the State or any unit of local government or
school district in the State, when duly designated for
that purpose, and as agent to perform reasonable functions
as may be required of it.
(4) To become a member of or deal with any corporation
or agency of the United States or the State of Illinois, to
the extent that the agency assists in furthering or
facilitating its purposes or powers and to that end to
purchase stock or securities thereof or deposit money
therewith, and to comply with any other conditions of
membership or credit.
(5) To make donations in reasonable amounts for the
public welfare or for charitable, scientific, religious,
or educational purposes.
(6) To adopt and operate reasonable insurance, bonus,

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profit sharing, and retirement plans for officers and
employees and for directors including, but not limited to,
advisory, honorary, and emeritus directors, who are not
officers or employees.
(7) To reject any application for membership; to
retire deposit accounts by enforced retirement as provided
in this Act and the bylaws; and to limit the issuance of,
or payments on, deposit accounts, subject, however, to
contractual obligations.
(8) To purchase stock or membership interests in
service corporations and to invest in any form of
indebtedness of any service corporation as defined in this
Act, subject to regulations of the Secretary.
(9) To purchase stock of a corporation whose principal
purpose is to operate a safe deposit company or escrow
service company.
(10) To exercise all the powers necessary to qualify
as a trustee or custodian under federal or State law,
provided that the authority to accept and execute trusts
is subject to the provisions of the Corporate Fiduciary
Act and to the supervision of those activities by the
Secretary.
(11) (Blank).
(12) To establish, maintain, and operate terminals as
authorized by the Electronic Fund Transfer Act.
(13) To borrow or incur an obligation; and to pledge

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its assets:
(A) to enable it to act as agent for the sale of
obligations of the United States;
(B) to secure deposits;
(C) to secure deposits of money whenever required
by the National Bankruptcy Act;
(D) (blank); and
(E) to secure trust funds commingled with the
savings bank's funds, whether deposited by the savings
bank or an affiliate of the savings bank, as required
under Section 2-8 of the Corporate Fiduciary Act.
(14) To accept for payment at a future date not to
exceed one year from the date of acceptance, drafts drawn
upon it by its customers; and to issue, advise, or confirm
letters of credit authorizing holders thereof to draw
drafts upon it or its correspondents.
(15) Subject to the regulations of the Secretary, to
own and lease personal property acquired by the savings
bank at the request of a prospective lessee and, upon the
agreement of that person, to lease the personal property.
(16) To establish temporary service booths at any
International Fair in this State that is approved by the
United States Department of Commerce for the duration of
the international fair for the purpose of providing a
convenient place for foreign trade customers to exchange
their home countries' currency into United States currency

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or the converse. To provide temporary periodic service to
persons residing in a bona fide nursing home, senior
citizens' retirement home, or long-term care facility.
These powers shall not be construed as establishing a new
place or change of location for the savings bank providing
the service booth.
(17) To indemnify its officers, directors, employees,
and agents, as authorized for corporations under Section
8.75 of the Business Corporation Act of 1983.
(18) To provide data processing services to others on
a for-profit basis.
(19) To utilize any electronic technology to provide
customers with home banking services.
(20) Subject to the regulations of the Secretary, to
enter into an agreement to act as a surety.
(21) Subject to the regulations of the Secretary, to
issue credit cards, extend credit therewith, and otherwise
engage in or participate in credit card operations.
(22) To purchase for its own account shares of stock
of a bankers' bank, described in Section 13(b)(1) of the
Illinois Banking Act, on the same terms and conditions as
a bank may purchase such shares. In no event shall the
total amount of such stock held by a savings bank in such
bankers' bank exceed 10% of its capital and surplus
(including undivided profits) and in no event shall a
savings bank acquire more than 15% 5% of any class of

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voting securities of such bankers' bank.
(23) With respect to affiliate facilities:
(A) to conduct at affiliate facilities any of the
following transactions for and on behalf of any
affiliated depository institution, if so authorized by
the affiliate or affiliates: receiving deposits;
renewing deposits; cashing and issuing checks, drafts,
money orders, travelers checks, or similar
instruments; changing money; receiving payments on
existing indebtedness; and conducting ministerial
functions with respect to loan applications, servicing
loans, and providing loan account information; and, on
behalf of another commonly owned bank, if so
authorized by the other bank, all transactions that
the other bank is authorized or permitted to perform;
and
(B) to authorize an affiliated depository
institution to conduct for and on behalf of it, any of
the transactions listed in this subsection at one or
more affiliate facilities.
A savings bank intending to conduct or to authorize an
affiliated depository institution to conduct at an
affiliate facility any of the transactions specified in
this subsection shall give written notice to the Secretary
at least 30 days before any such transaction is conducted
at an affiliate facility. All conduct under this

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subsection shall be on terms consistent with safe and
sound banking practices and applicable law.
(24) Subject to Article XLIV of the Illinois Insurance
Code, to act as the agent for any fire, life, or other
insurance company authorized by the State of Illinois, by
soliciting and selling insurance and collecting premiums
on policies issued by such company; and may receive for
services so rendered such fees or commissions as may be
agreed upon between the said savings bank and the
insurance company for which it may act as agent; provided,
however, that no such savings bank shall in any case
assume or guarantee the payment of any premium on
insurance policies issued through its agency by its
principal; and provided further, that the savings bank
shall not guarantee the truth of any statement made by an
assured in filing his application for insurance.
(25) To become a member of the Federal Home Loan Bank
and to have the powers granted to a savings association
organized under the Illinois Savings and Loan Act of 1985
or the laws of the United States, subject to regulations
of the Secretary.
(26) To offer any product or service that is at the
time authorized or permitted to a bank by applicable law,
but subject always to the same limitations and
restrictions that are applicable to the bank for the
product or service by such applicable law and subject to

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the applicable provisions of the Financial Institutions
Insurance Sales Law and rules of the Secretary.
(b) If this Act or the regulations adopted under this Act
fail to provide specific guidance in matters of corporate
governance, the provisions of the Business Corporation Act of
1983 may be used, or if the savings bank is a limited liability
company, the provisions of the Limited Liability Company Act
shall be used.
(c) A savings bank may be organized as a limited liability
company, may convert to a limited liability company, or may
merge with and into a limited liability company, under the
applicable laws of this State and of the United States,
including any rules promulgated thereunder. A savings bank
organized as a limited liability company shall be subject to
the provisions of the Limited Liability Company Act in
addition to this Act, provided that if a provision of the
Limited Liability Company Act conflicts with a provision of
this Act or with any rule of the Secretary, the provision of
this Act or the rule of the Secretary shall apply.
Any filing required to be made under the Limited Liability
Company Act shall be made exclusively with the Secretary, and
the Secretary shall possess the exclusive authority to
regulate the savings bank as provided in this Act.
Any organization as, conversion to, and merger with or
into a limited liability company shall be subject to the prior
approval of the Secretary.

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A savings bank that is a limited liability company shall
be subject to all of the provisions of this Act in the same
manner as a savings bank that is organized in stock form.
The Secretary may promulgate rules to ensure that a
savings bank that is a limited liability company (i) is
operating in a safe and sound manner and (ii) is subject to the
Secretary's authority in the same manner as a savings bank
that is organized in stock form.
(Source: P.A. 102-558, eff. 8-20-21.)
(205 ILCS 205/4002) (from Ch. 17, par. 7304-2)
Sec. 4002. Annual and special meetings. Dates of annual
meetings of members or stockholders shall be specified in the
bylaws. Failure to hold an annual meeting shall not cause a
forfeiture or dissolution of the savings bank. Special
meetings may be called by the board of directors, the holders
of not less than 25% of the outstanding capital stock shares,
or by any other person as the bylaws may designate. The
Commissioner may also call a special meeting with not less
than 12 hours written or oral notice. Every annual or special
meeting shall be held at the business office of the savings
bank or, if the space is inadequate, in another place within
the same county as shall be specifically designated in the
notice of the meeting, or virtually. Unless expressly
prohibited by the articles of incorporation or bylaws and
subject to applicable requirements of this Act, the board of

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directors may provide by resolution that members or
stockholders may attend, participate in, act in, and vote at
any annual meeting or special meeting through the use of a
conference telephone or interactive technology, including, but
not limited to, electronic transmission, Internet usage, or
remote communication, by means of which all persons
participating in the meeting can communicate with each other.
Participation through the use of a conference telephone or
interactive technology shall constitute attendance, presence,
and representation in person at the annual meeting or special
meeting of the person or persons so participating and count
toward the quorum required to conduct business at the meeting.
The following conditions shall apply to any virtual meeting of
members or stockholders:
(a) the savings bank must internally possess or retain the
technological capacity to facilitate virtual meeting
attendance, participation, communication, and voting; and
(b) members or stockholders must receive notice of the use
of a virtual meeting format and appropriate instructions for
joining, participating, and voting during the virtual meeting
at least 7 days before the virtual meeting.
(Source: P.A. 86-1213.)
(205 ILCS 205/4003) (from Ch. 17, par. 7304-3)
Sec. 4003. Notice of meetings.
(a) Notice of an annual meeting shall be published once

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not fewer than 10 days nor more than 40 days before the date of
the meeting. The notice shall also be displayed at the place of
business of the savings bank in a manner to be prescribed by
the Commissioner. The notice must state the time, place, and
purpose of the meeting.
(b) For any special meeting or for any annual meeting that
is to consider any proposition that requires an affirmative
vote of two-thirds of the members or stockholders or any
proposition to amend the articles of incorporation of the
savings bank, the notice must be delivered personally,
electronically, or by mail to the holders of stock, capital
accounts, and membership entitled to notice of or to vote at
the meeting, by mail, postmarked between 10 and 40 days before
the date of the meeting, and must also be posted at the savings
bank's offices as if for an annual meeting, beginning on the
date notice is given. All notices must state the time, place,
and purpose of the meeting. If mailed, the notice shall be
deemed to be delivered on the date on which it has been
postmarked.
(Source: P.A. 89-74, eff. 6-30-95.)
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
Sec. 4013. Access to books and records; communication with
members and shareholders.
(a) Every member or shareholder shall have the right to
inspect books and records of the savings bank that pertain to

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his accounts. Otherwise, the right of inspection and
examination of the books and records shall be limited as
provided in this Act, and no other person shall have access to
the books and records nor shall be entitled to a list of the
members or shareholders.
(b) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (1) a
document granting signature authority over a deposit or
account; (2) a statement, ledger card, or other record on any
deposit or account that shows each transaction in or with
respect to that account; (3) a check, draft, or money order
drawn on a savings bank or issued and payable by a savings
bank; or (4) any other item containing information pertaining
to any relationship established in the ordinary course of a
savings bank's business between a savings bank and its
customer, including financial statements or other financial
information provided by the member or shareholder.
(c) This Section does not prohibit:
(1) The preparation, examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of a savings bank having custody of
records or examination of records by a certified public
accountant engaged by the savings bank to perform an
independent audit.
(2) The examination of any financial records by, or
the furnishing of financial records by a savings bank to,

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any officer, employee, or agent of the Commissioner of
Banks and Real Estate or the federal depository
institution regulator for use solely in the exercise of
his duties as an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to members or holders of capital where
the data cannot be identified to any particular member,
shareholder, or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a savings bank and other
savings banks or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a savings bank and other
savings banks or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a purchase or sale involving the savings bank
or assets or liabilities of the savings bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the savings bank
reasonably believes it has been the victim of a crime.

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(8) The furnishing of information pursuant to the
Revised Uniform Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal Currency and Foreign Transactions Reporting Act,
(Title 31, United States Code, Section 1051 et seq.).
(11) The furnishing of information pursuant to any
other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons,
warrant, or court order.
(12) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any savings bank governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
savings bank a reasonable fee not to exceed its actual
cost incurred. A savings bank providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the savings bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant

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to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence
or willful misconduct. A savings bank shall have no
obligation to hold, encumber, or surrender assets until it
has been served with a subpoena, summons, warrant, court
or administrative order, lien, or levy.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the
investigatory entity or the guardian, or (ii) if there is
suspicion by the savings bank that a customer who is an
elderly person or person with a disability has been or may
become the victim of financial exploitation. For the
purposes of this item (13), the term: (i) "elderly person"
means a person who is 60 or more years of age, (ii) "person
with a disability" means a person who has or reasonably
appears to the savings bank to have a physical or mental
disability that impairs his or her ability to seek or
obtain protection from or prevent financial exploitation,
and (iii) "financial exploitation" means tortious or
illegal use of the assets or resources of an elderly
person or person with a disability, and includes, without
limitation, misappropriation of the assets or resources of
the elderly person or person with a disability by undue

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influence, breach of fiduciary relationship, intimidation,
fraud, deception, extortion, or the use of assets or
resources in any manner contrary to law. A savings bank or
person furnishing information pursuant to this item (13)
shall be entitled to the same rights and protections as a
person furnishing information under the Adult Protective
Services Act and the Illinois Domestic Violence Act of
1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member or
holder of capital, or in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member or
holder of capital;
(B) maintaining or servicing an account of a
member or holder of capital with the savings bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or holder
of capital.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
or holder of capital without the consent of the member or
holder of capital.
(15) The exchange in the regular course of business of

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information between a savings bank and any commonly owned
affiliate of the savings bank, subject to the provisions
of the Financial Institutions Insurance Sales Law.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (17) of subsection
(c) of Section 4013, a "private label party" means, with
respect to a private label credit program, any of the

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following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(18)(a) The furnishing of financial records of a
customer to the Department to aid the Department's initial
determination or subsequent re-determination of the
customer's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the savings bank receives the written consent and
authorization of the customer, which shall:
(1) have the customer's signature notarized;
(2) be signed by at least one witness who
certifies that he or she believes the customer to be of
sound mind and memory;
(3) be tendered to the savings bank at the
earliest practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the
customer's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)

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.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not
limited to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and
all other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term
care benefits, pursuant to applicable law.

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

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....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)

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......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the savings bank distribute the
customer's financial records to the long-term care

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facility from which the customer seeks initial or
continuing residency or long-term care services.
(c) A savings bank providing financial records of a
customer in good faith relying on a consent and
authorization executed and tendered in accordance with
this paragraph (18) shall not be liable to the customer or
any other person in relation to the savings bank's
disclosure of the customer's financial records to the
Department. The customer signing the consent and
authorization shall indemnify and hold the savings bank
harmless that relies in good faith upon the consent and
authorization and incurs a loss because of such reliance.
The savings bank recovering under this indemnification
provision shall also be entitled to reasonable attorney's
fees and the expenses of recovery.
(d) A savings bank shall be reimbursed by the customer
for all costs reasonably necessary and directly incurred
in searching for, reproducing, and disclosing a customer's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this paragraph (18). The requested financial records shall
be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of

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all costs is received by the savings bank. The savings
bank may honor a photostatic or electronic copy of a
properly executed consent and authorization.
(e) Nothing in this paragraph (18) shall impair,
abridge, or abrogate the right of a customer to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly
appointed agent to request and obtain the customer's
financial records and disclose those financial records
to the Department.
(f) For purposes of this paragraph (18), "Department"
means the Department of Human Services and the Department
of Healthcare and Family Services or any successor
administrative agency of either agency.
(19) The furnishing of financial records of a deceased
customer to a public administrator of any county or other
governmental jurisdiction for the purpose of facilitating
burial of the customer.
(d) A savings bank may not disclose to any person, except
to the member or holder of capital or his duly authorized
agent, any financial records relating to that member or
shareholder of the savings bank unless:
(1) the member or shareholder has authorized
disclosure to the person; or
(2) the financial records are disclosed in response to

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a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subsection (e) of this Section.
(e) A savings bank shall disclose financial records under
subsection (d) of this Section pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the savings bank sends a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the savings
bank, if living, and otherwise, the person's personal
representative, if known, at the person's last known address
by first class mail, postage prepaid, through a third-party
commercial carrier or courier with delivery charge fully
prepaid, by hand delivery, or by electronic delivery at an
email address on file with the savings bank (if the person
establishing the relationship with the savings bank has
consented to receive electronic delivery and, if the person
establishing the relationship with the savings bank is a
consumer, the person has consented under the consumer consent
provisions set forth in Section 7001 of Title 15 of the United
States Code), unless the savings bank is specifically
prohibited from notifying the person by order of court or by
applicable State or federal law. A savings bank shall not mail
a copy of a subpoena to any customer pursuant to this
subsection if the subpoena was issued by a grand jury.
(f) Any officer or employee of a savings bank who

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knowingly and willfully furnishes financial records in
violation of this Section is guilty of a business offense and,
upon conviction, shall be fined not more than $1,000.
(g) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a savings bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(h) If any member or shareholder desires to communicate
with the other members or shareholders of the savings bank
with reference to any question pending or to be presented at an
annual or special meeting, the savings bank shall give that
person, upon request, a statement of the approximate number of
members or shareholders entitled to vote at the meeting and an
estimate of the cost of preparing and delivering mailing the
communication. The requesting member shall submit the
communication to the Commissioner who, upon finding it to be
appropriate and truthful, shall direct that it be prepared and
delivered mailed to the members upon the requesting member's
or shareholder's payment or adequate provision for payment of
the expenses of preparation and delivery mailing.
(i) A savings bank shall be reimbursed for costs that are
necessary and that have been directly incurred in searching
for, reproducing, or transporting books, papers, records, or
other data of a customer required to be reproduced pursuant to
a lawful subpoena, warrant, citation to discover assets, or

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court order.
(j) Notwithstanding the provisions of this Section, a
savings bank may sell or otherwise make use of lists of
customers' names and addresses of persons who have obtained a
financial product or service from the savings bank. All other
information regarding a customer's account is subject to the
disclosure provisions of this Section. At the request of any
person who has obtained a financial product or service from
the savings bank customer, that person's customer's name and
address shall be deleted from any list that is to be sold or
used in any other manner beyond identification of the person's
customer's accounts.
(Source: P.A. 102-873, eff. 5-13-22.)
(205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
Sec. 6002. Investment in loans.
(a) Subject to the regulations of the Commissioner, a
savings bank may loan funds as follows:
(1) On the security of deposit accounts, but no such
loan shall exceed the withdrawal value of the pledged
account.
(2) On the security of real estate:
(A) of a value, determined in accordance with this
Act, sufficient to provide good and ample security for
the loan;
(B) with a fee simple title or a leasehold title;

HB5428 Engrossed - 113 - LRB103 38790 RTM 68927 b
(C) with the title established by evidence of
title as is consistent with sound lending practices in
the locality;
(D) with the security interest in the real estate
evidenced by an appropriate written instrument and the
loan evidenced by a note, bond, or similar written
instrument; a loan on the security of the whole of the
beneficial interest in a land trust satisfies the
requirements of this paragraph if the title to the
land is held by a corporate trustee and if the real
estate held in the land trust meets the other
requirements of this subsection;
(E) with a mortgage loan not to exceed 40 years.
(3) For the purpose of repair, improvement,
rehabilitation, furnishing, or equipment of real estate.
(4) For the purpose of financing or refinancing an
existing ownership interest in certificates of stock,
certificates of beneficial interest, other evidence of an
ownership interest in, or a proprietary lease from a
corporation, trust, or partnership formed for the purpose
of the cooperative ownership of real estate, secured by
the assignment or transfer of certificates or other
evidence of ownership of the borrower.
(5) Through the purchase of loans that, at the time of
purchase, the savings bank could make in accordance with
this Section and the bylaws.

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(6) Through the purchase of installment contracts for
the sale of real estate and title thereto that is subject
to the contracts, but in each instance only if the savings
bank, at the time of purchase, could make a mortgage loan
of the same amount and for the same length of time on the
security of the real estate.
(7) Through loans guaranteed or insured, wholly or in
part, by the United States or any of its
instrumentalities.
(8) Subject to regulations adopted by the
Commissioner, through secured or unsecured loans for
business, corporate, commercial, or agricultural purposes;
provided that the total of all loans granted under this
paragraph shall not exceed 15% of the savings bank's total
assets unless a greater amount is authorized in writing by
the Commissioner.
(9) For the purpose of manufactured home financing
subject, however, to the regulation of the Commissioner.
As used in this Section, "manufactured home" means a
manufactured home as defined in subdivision (53) of
Section 9-102 of the Uniform Commercial Code.
(10) Through loans secured by the cash surrender value
of any life insurance policy or any collateral that would
be a legal investment under the terms of this Act if made
by the savings bank.
(11) Any provision of this Act or any other law,

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except for paragraph (18) of Section 6003, to the contrary
notwithstanding, but subject to the Financial Institutions
Insurance Sales Law and subject to the Commissioner's
regulations, any savings bank may make any loan or
investment or engage in any activity that it could make or
engage in if it were organized under State law as a savings
and loan association or under federal law as a federal
savings and loan association or federal savings bank.
(12) A savings bank may issue letters of credit or
other similar arrangements only as provided for by
regulation of the Commissioner with regard to aggregate
amounts permitted, take out commitments for stand-by
letters of credit, underlying documentation and
underwriting, legal limitations on loans of the savings
bank, control and subsidiary records, and other procedures
deemed necessary by the Commissioner.
(13) For the purpose of automobile financing, subject
to the regulation of the Commissioner.
(14) For the purpose of financing primary, secondary,
undergraduate, or postgraduate education.
(15) Through revolving lines of credit on the security
of a first or junior lien on the borrower's personal
residence, based primarily on the borrower's equity, the
proceeds of which may be used for any purpose; those loans
being commonly referred to as home equity loans.
(16) As secured or unsecured credit to cover the

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payment of checks, drafts, or other funds transfer orders
in excess of the available balance of an account on which
they are drawn, subject to the regulations of the
Commissioner.
(17) Through the purchase of fixed rate annuity
contracts, if:
(A) the savings bank's purchase of fixed rate
annuities from any one issuer does not exceed 25% of
the amount of the savings bank's unimpaired capital
and unimpaired surplus;
(B) consistent with safe and sound operation of
the savings bank and applicable federal regulatory
guidance, and prior to any purchase of fixed rate
annuities, the saving bank establishes reasonable
internal concentration limits for its combined
holdings from all issuers, and the savings bank's
purchase of annuities remains within those limits;
(C) consistent with safe and sound operation of
the savings bank and applicable federal regulatory
guidance, and prior to purchasing each fixed rate
annuity, the savings bank conducts an independent
analysis to determine that the annuity will meet the
savings bank's internal underwriting standards. At a
minimum, the savings bank must:
(i) perform a full financial statement
analysis on the issuer (obligor);

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(ii) assess the issuer's industry position,
pricing power, and management strength;
(iii) assess and evaluate the issuer's source
of repayment and collateral value, if any;
(iv) gain appropriate credit approvals of the
savings bank's management and board of directors,
or a committee thereof;
(v) assign a risk rating; and
(vi) ensure their lending policy addresses the
type of exposure the savings bank plans to
acquire;
(D) after purchase of the annuity, the savings
bank reviews the credit exposure on an ongoing basis
and updates the risk rating as appropriate;
(E) the terms of the annuity contract include
charges or penalties for early withdrawal (surrender),
the savings bank conducts independent analysis of the
reasonableness of and associated risks of the charges
or penalties;
(F) except for payment of charges or penalties
that the savings bank determines reasonable under
subparagraph (C), the savings bank is permitted to
surrender (terminate) the annuity at any time before
maturity and receive immediate access to the full
value of the annuity, including principal and accrued
interest; and

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(G) the savings bank does not exercise any option
it may have to convert its fixed rate annuity to a
variable return status or any other status other than
a fixed rate annuity as described in this Section.
(b) For purposes of this Section, "real estate" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code which is real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 98-749, eff. 7-16-14.)
(205 ILCS 205/7005) (from Ch. 17, par. 7307-5)
Sec. 7005. Holders of deposit accounts.
(a) Deposit accounts of a savings bank may be held as
follows:
(1) by any individual in his own right, regardless of
age or marital status, or by 2 or more individuals;
(2) by a fiduciary when authorized by law;
(3) by a government or governmental instrumentality
when authorized by law; and
(4) by any corporation or other person when not
prohibited by law.
(b) A savings bank may accept deposits made by a minor and
may open an account in the name of such minor and the rules and
regulations of such savings bank with respect to each such
deposit and account shall be as binding upon such minor as if

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such minor were of full age and legal capacity. The receipt,
acquittance, or order of payment of such minor on such account
or deposit or any part thereof shall be as binding upon such
minor as if such minor were of full age and legal capacity.
(Source: P.A. 86-1213.)
(205 ILCS 205/8002) (from Ch. 17, par. 7308-2)
Sec. 8002. Procedure to amend articles.
(a) The procedure to effect an amendment of articles of
incorporation shall be as follows:
(1) The board of directors shall adopt a resolution
setting forth the proposed amendment and direct that it be
submitted to a vote at an annual or special meeting of the
members or stockholders.
(2) The proposed amendment shall be set forth in the
notice of meeting delivered mailed as prescribed in
Section 4003 of this Act.
(3) The proposed amendment shall be adopted upon
receiving the affirmative vote of a majority of the votes
entitled to be cast, unless the articles of incorporation
set forth a requirement that amendments of the articles of
incorporation shall be adopted by an affirmative vote of
two-thirds of the total number of votes entitled to be
cast.
(b) A report of proceedings, including the notice given,
the time of delivery mailing, the amendment adopted, the vote

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thereon, and the total number of votes entitled to be cast,
verified by the president, vice president, or managing officer
and attested to by the secretary of the savings bank, shall be
filed with the Secretary within 5 business days after the
vote.
(c) Each adopted amendment shall be subject to the same
inquiry as the corresponding provision in the original
articles. If the Secretary approves an amendment he shall
issue to the savings bank a certificate setting forth the
amendment and his approval thereof. The Secretary shall
approve an amendment, or state any objections to an amendment,
within 30 days after the receipt of the amendment adopted by
the board. If no objections are specified by the Secretary
within that time frame, the amendment will be deemed to be
approved by the Secretary. The amendment shall become
effective upon issuance of the certificate.
(d) An amendment of the articles of incorporation approved
by the board of directors, the Secretary, and members as part
of merger, sale of substantially all assets, change in
control, holding company reorganization, or mutual to stock
form conversion need not be approved under this Section.
(e) No amendment of articles of incorporation shall affect
any existing cause of action either in favor of or against the
savings bank or any pending action in which the savings bank
shall be a party or the existing rights of persons other than
members of the savings bank.

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(Source: P.A. 97-492, eff. 1-1-12.)
(205 ILCS 205/11008) (from Ch. 17, par. 7311-8)
Sec. 11008. Unauthorized participation by convicted
individual.
(a) Except with the prior written consent of the
Commissioner, no person who has been convicted of any criminal
offense involving dishonesty or a breach of trust may own or
control directly or indirectly more than 0.001% of the capital
stock of, receive benefit directly or indirectly from, or
participate directly or indirectly in any manner in the
affairs of a savings bank.
(b) A savings bank may not permit participation by a
person described in subsection (a).
(c) Except with the prior written consent of the
Secretary, no savings bank shall knowingly employ or otherwise
permit an individual to serve as an officer, director,
employee, or agent of the savings bank if the individual has
been convicted of a felony or of any criminal offense relating
to dishonesty or breach of trust. Notwithstanding the
provisions of this Section, a savings bank in compliance with
the provisions of 12 U.S.C. 1829 and administrative rules
issued under 12 U.S.C. 1829 by the savings bank's primary
federal financial institution regulator shall be deemed in
compliance with this Section. Whoever knowingly violates
subsection (a) or (b) is guilty of a Class 3 felony and may be

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fined not more than $10,000 for each day of violation.
(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)
(205 ILCS 205/1007.100 rep.)
(205 ILCS 205/11011 rep.)
Section 15. The Savings Bank Act is amended by repealing
Sections 1007.100 and 11011.
Section 20. The Illinois Credit Union Act is amended by
changing Section 10 as follows:
(205 ILCS 305/10) (from Ch. 17, par. 4411)
Sec. 10. Credit union records; member financial records.
(1) A credit union shall establish and maintain books,
records, accounting systems and procedures which accurately
reflect its operations and which enable the Department to
readily ascertain the true financial condition of the credit
union and whether it is complying with this Act.
(2) A photostatic or photographic reproduction of any
credit union records shall be admissible as evidence of
transactions with the credit union.
(3)(a) For the purpose of this Section, the term
"financial records" means any original, any copy, or any
summary of (1) a document granting signature authority over an
account, (2) a statement, ledger card or other record on any
account which shows each transaction in or with respect to

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that account, (3) a check, draft or money order drawn on a
financial institution or other entity or issued and payable by
or through a financial institution or other entity, or (4) any
other item containing information pertaining to any
relationship established in the ordinary course of business
between a credit union and its member, including financial
statements or other financial information provided by the
member.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a credit union having custody of such
records, or the examination of such records by a certified
public accountant engaged by the credit union to perform
an independent audit.
(2) The examination of any financial records by or the
furnishing of financial records by a credit union to any
officer, employee or agent of the Department, the National
Credit Union Administration, Federal Reserve board or any
insurer of share accounts for use solely in the exercise
of his duties as an officer, employee or agent.
(3) The publication of data furnished from financial
records relating to members where the data cannot be
identified to any particular member or customer of
account.
(4) The making of reports or returns required under

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Chapter 61 of the Internal Revenue Code of 1954.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a credit union and other
credit unions or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a credit union and other
credit unions or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a merger or a purchase or sale of assets or
liabilities of the credit union.
(7) The furnishing of information to the appropriate
law enforcement authorities where the credit union
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal Currency and Foreign Transactions Reporting Act,
Title 31, United States Code, Section 1051 et sequentia.
(11) The furnishing of information pursuant to any

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other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons, warrant
or court order.
(12) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any credit union governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
credit union a reasonable fee not to exceed its actual
cost incurred. A credit union providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the credit union in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence
or willful misconduct. A credit union shall have no
obligation to hold, encumber, or surrender assets until it
has been served with a subpoena, summons, warrant, court
or administrative order, lien, or levy.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the

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Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the
investigatory entity or the guardian, or (ii) if there is
suspicion by the credit union that a member who is an
elderly person or person with a disability has been or may
become the victim of financial exploitation. For the
purposes of this item (13), the term: (i) "elderly person"
means a person who is 60 or more years of age, (ii) "person
with a disability" means a person who has or reasonably
appears to the credit union to have a physical or mental
disability that impairs his or her ability to seek or
obtain protection from or prevent financial exploitation,
and (iii) "financial exploitation" means tortious or
illegal use of the assets or resources of an elderly
person or person with a disability, and includes, without
limitation, misappropriation of the elderly or disabled
person's assets or resources of the elderly person or
person with a disability by undue influence, breach of
fiduciary relationship, intimidation, fraud, deception,
extortion, or the use of assets or resources in any manner
contrary to law. A credit union or person furnishing
information pursuant to this item (13) shall be entitled
to the same rights and protections as a person furnishing
information under the Adult Protective Services Act and
the Illinois Domestic Violence Act of 1986.
(14) The disclosure of financial records or

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information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member, or in
connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member;
(B) maintaining or servicing a member's account
with the credit union; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
without the consent of the member.
(15) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(16)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this item (16), "private label

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credit program" means a credit program involving a
financial institution and a private label party that is
used by a customer of the financial institution and the
private label party primarily for payment for goods or
services sold, manufactured, or distributed by a private
label party.
(2) For purposes of this item (16), "private label
party" means, with respect to a private label credit
program, any of the following: a retailer, a merchant, a
manufacturer, a trade group, or any such person's
affiliate, subsidiary, member, agent, or service provider.
(17)(a) The furnishing of financial records of a
member to the Department to aid the Department's initial
determination or subsequent re-determination of the
member's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the credit union receives the written consent and
authorization of the member, which shall:
(1) have the member's signature notarized;
(2) be signed by at least one witness who
certifies that he or she believes the member to be of
sound mind and memory;
(3) be tendered to the credit union at the
earliest practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the

HB5428 Engrossed - 129 - LRB103 38790 RTM 68927 b
member's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not
limited to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and
all other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,

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to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term
care benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be
revoked by me in writing at any time before my financial
records, as described above, are disclosed, and that this
Consent and Authorization is valid until the Financial
Institution receives my written revocation. This Consent and
Authorization shall constitute valid authorization for the
Department identified above to inspect all such financial
records set forth above, and to request and receive copies of
such financial records from the Financial Institution (subject
to such records search and reproduction reimbursement policies
as the Financial Institution may have in place). An executed
copy of this Consent and Authorization shall be sufficient and
as good as the original and permission is hereby granted to
honor a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity
shall receive my financial records pursuant to this Consent

HB5428 Engrossed - 131 - LRB103 38790 RTM 68927 b
and Authorization. By signing this form, I agree to indemnify
and hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The

HB5428 Engrossed - 132 - LRB103 38790 RTM 68927 b
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes

HB5428 Engrossed - 133 - LRB103 38790 RTM 68927 b
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the credit union distribute the
member's financial records to the long-term care facility
from which the member seeks initial or continuing
residency or long-term care services.
(c) A credit union providing financial records of a
member in good faith relying on a consent and
authorization executed and tendered in accordance with
this item (17) shall not be liable to the member or any
other person in relation to the credit union's disclosure
of the member's financial records to the Department. The
member signing the consent and authorization shall
indemnify and hold the credit union harmless that relies
in good faith upon the consent and authorization and
incurs a loss because of such reliance. The credit union
recovering under this indemnification provision shall also
be entitled to reasonable attorney's fees and the expenses
of recovery.
(d) A credit union shall be reimbursed by the member
for all costs reasonably necessary and directly incurred
in searching for, reproducing, and disclosing a member's

HB5428 Engrossed - 134 - LRB103 38790 RTM 68927 b
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this item (17). The requested financial records shall be
delivered to the Department within 10 days after receiving
a properly executed consent and authorization or at the
earliest practicable time thereafter if the requested
records cannot be delivered within 10 days, but delivery
may be delayed until the final reimbursement of all costs
is received by the credit union. The credit union may
honor a photostatic or electronic copy of a properly
executed consent and authorization.
(e) Nothing in this item (17) shall impair, abridge,
or abrogate the right of a member to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly
appointed agent to request and obtain the member's
financial records and disclose those financial records
to the Department.
(f) For purposes of this item (17), "Department" means
the Department of Human Services and the Department of
Healthcare and Family Services or any successor
administrative agency of either agency.
(18) The furnishing of the financial records of a
member to an appropriate law enforcement authority,
without prior notice to or consent of the member, upon

HB5428 Engrossed - 135 - LRB103 38790 RTM 68927 b
written request of the law enforcement authority, when
reasonable suspicion of an imminent threat to the personal
security and safety of the member exists that necessitates
an expedited release of the member's financial records, as
determined by the law enforcement authority. The law
enforcement authority shall include a brief explanation of
the imminent threat to the member in its written request
to the credit union. The written request shall reflect
that it has been authorized by a supervisory or managerial
official of the law enforcement authority. The decision to
furnish the financial records of a member to a law
enforcement authority shall be made by a supervisory or
managerial official of the credit union. A credit union
providing information in accordance with this item (18)
shall not be liable to the member or any other person for
the disclosure of the information to the law enforcement
authority.
(19) The furnishing of financial records of a deceased
member to a public administrator of any county or other
governmental jurisdiction for the purpose of facilitating
burial of the customer.
(c) Except as otherwise provided by this Act, a credit
union may not disclose to any person, except to the member or
his duly authorized agent, any financial records relating to
that member of the credit union unless:
(1) the member has authorized disclosure to the

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person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subparagraph (3)(d) of this Section; or
(3) the credit union is attempting to collect an
obligation owed to the credit union and the credit union
complies with the provisions of Section 2I of the Consumer
Fraud and Deceptive Business Practices Act.
(d) A credit union shall disclose financial records under
item (3)(c)(2) of this Section pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the credit union sends a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the credit
union, if living, and otherwise the person's personal
representative, if known, at the person's last known address
by first class mail, postage prepaid, through a third-party
commercial carrier or courier with delivery charge fully
prepaid, by hand delivery, or by electronic delivery at an
email address on file with the credit union (if the person
establishing the relationship with the credit union has
consented to receive electronic delivery and, if the person
establishing the relationship with the credit union is a
consumer, the person has consented under the consumer consent
provisions set forth in Section 7001 of Title 15 of the United

HB5428 Engrossed - 137 - LRB103 38790 RTM 68927 b
States Code), unless the credit union is specifically
prohibited from notifying the person by order of court or by
applicable State or federal law. In the case of a grand jury
subpoena, a credit union shall not mail a copy of a subpoena to
any person pursuant to this subsection if the subpoena was
issued by a grand jury under the Statewide Grand Jury Act or
notifying the person would constitute a violation of the
federal Right to Financial Privacy Act of 1978.
(e)(1) Any officer or employee of a credit union who
knowingly and willfully furnishes financial records in
violation of this Section is guilty of a business offense and
upon conviction thereof shall be fined not more than $1,000.
(2) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a credit union to
disclose financial records in violation of this Section is
guilty of a business offense and upon conviction thereof shall
be fined not more than $1,000.
(f) A credit union shall be reimbursed for costs which are
reasonably necessary and which have been directly incurred in
searching for, reproducing or transporting books, papers,
records or other data of a member required or requested to be
produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Secretary and
the Director may determine, by rule, the rates and conditions
under which payment shall be made. Delivery of requested
documents may be delayed until final reimbursement of all

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costs is received.
(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)