Bill Text: IL HB5685 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Repeals the Illinois Savings and Loan Act of 1985. Amends the Savings Bank Act. Deletes the definition of "impairment" and related provisions and defines "out-of-state savings bank". Adds provisions regarding the deposit of moneys into the Savings Bank Regulatory Fund. Adds an Article concerning the effect of the repeal of the Illinois Savings and Loan Act of 1985 and an Article that establishes the Board of Savings Banks and creates provisions concerning appointment to the Board, the organization of the Board, meetings of the Board, and the powers of the Board. Amends the Corporate Fiduciary Act. Provides that the Secretary of Financial and Professional Regulation or any person appointed as a receiver shall have all the powers, rights, and privileges as the Federal Deposit Insurance Corporation. Amends the State Finance Act. Changes the name of the Savings and Residential Finance Regulatory Fund to the Residential Finance Regulatory Fund and changes the name of the Savings Bank Institutions Regulatory Fund to the Savings Bank Regulatory Fund. Amends the Illinois Banking Act. Provides that the Secretary of Financial and Professional Regulation or any person appointed as a receiver shall have all the powers, rights, and privileges as the Federal Deposit Insurance Corporation. Amends the Residential Mortgage License Act of 1987. Deletes provisions concerning the Commissioner of Banks and Real Estate. Makes other changes.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1081 [HB5685 Detail]

Download: Illinois-2013-HB5685-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB5685 Introduced , by Rep. Maria Antonia Berrios SYNOPSIS AS INTRODUCED:
See Index
Repeals the Illinois Savings and Loan Act of 1985. Amends the Savings Bank Act. Deletes the definition of "impairment" and related provisions and defines "out-of-state savings bank". Adds provisions regarding the deposit of moneys into the Savings Bank Regulatory Fund. Adds an Article concerning the effect of the repeal of the Illinois Savings and Loan Act of 1985 and an Article that establishes the Board of Savings Banks and creates provisions concerning appointment to the Board, the organization of the Board, meetings of the Board, and the powers of the Board. Amends the Corporate Fiduciary Act. Provides that the Secretary of Financial and Professional Regulation or any person appointed as a receiver shall have all the powers, rights, and privileges as the Federal Deposit Insurance Corporation. Amends the State Finance Act. Changes the name of the Savings and Residential Finance Regulatory Fund to the Residential Finance Regulatory Fund and changes the name of the Savings Bank Institutions Regulatory Fund to the Savings Bank Regulatory Fund. Amends the Illinois Banking Act. Provides that the Secretary of Financial and Professional Regulation or any person appointed as a receiver shall have all the powers, rights, and privileges as the Federal Deposit Insurance Corporation. Amends the Residential Mortgage License Act of 1987. Deletes provisions concerning the Commissioner of Banks and Real Estate. Makes other changes.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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 State Finance Act is amended by changing
Sections 5.214, 5.805, and 8.12 as follows:
(30 ILCS 105/5.214) (from Ch. 127, par. 141.214)
Sec. 5.214. The Savings and Residential Finance Regulatory
Fund.
(Source: P.A. 85-1209; 86-1213.)
(30 ILCS 105/5.805)
Sec. 5.805. The Savings Bank Institutions Regulatory Fund.
(Source: P.A. 97-492, eff. 1-1-12; 97-813, eff. 7-13-12.)
(30 ILCS 105/8.12) (from Ch. 127, par. 144.12)
Sec. 8.12. State Pensions Fund.
(a) The moneys in the State Pensions Fund shall be used
exclusively for the administration of the Uniform Disposition
of Unclaimed Property Act and for the expenses incurred by the
Auditor General for administering the provisions of Section
2-8.1 of the Illinois State Auditing Act and for the funding of
the unfunded liabilities of the designated retirement systems.
Beginning in State fiscal year 2015, payments to the designated

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retirement systems under this Section shall be in addition to,
and not in lieu of, any State contributions required under the
Illinois Pension Code.
"Designated retirement systems" means:
(1) the State Employees' Retirement System of
Illinois;
(2) the Teachers' Retirement System of the State of
Illinois;
(3) the State Universities Retirement System;
(4) the Judges Retirement System of Illinois; and
(5) the General Assembly Retirement System.
(b) Each year the General Assembly may make appropriations
from the State Pensions Fund for the administration of the
Uniform Disposition of Unclaimed Property Act.
Each month, the Commissioner of the Office of Banks and
Real Estate shall certify to the State Treasurer the actual
expenditures that the Office of Banks and Real Estate incurred
conducting unclaimed property examinations under the Uniform
Disposition of Unclaimed Property Act during the immediately
preceding month. Within a reasonable time following the
acceptance of such certification by the State Treasurer, the
State Treasurer shall pay from its appropriation from the State
Pensions Fund to the Bank and Trust Company Fund, the Savings
Bank Regulatory Fund, and the Savings and Residential Finance
Regulatory Fund an amount equal to the expenditures incurred by
each Fund for that month.

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Each month, the Director of Financial Institutions shall
certify to the State Treasurer the actual expenditures that the
Department of Financial Institutions incurred conducting
unclaimed property examinations under the Uniform Disposition
of Unclaimed Property Act during the immediately preceding
month. Within a reasonable time following the acceptance of
such certification by the State Treasurer, the State Treasurer
shall pay from its appropriation from the State Pensions Fund
to the Financial Institution Fund and the Credit Union Fund an
amount equal to the expenditures incurred by each Fund for that
month.
(c) As soon as possible after the effective date of this
amendatory Act of the 93rd General Assembly, the General
Assembly shall appropriate from the State Pensions Fund (1) to
the State Universities Retirement System the amount certified
under Section 15-165 during the prior year, (2) to the Judges
Retirement System of Illinois the amount certified under
Section 18-140 during the prior year, and (3) to the General
Assembly Retirement System the amount certified under Section
2-134 during the prior year as part of the required State
contributions to each of those designated retirement systems;
except that amounts appropriated under this subsection (c) in
State fiscal year 2005 shall not reduce the amount in the State
Pensions Fund below $5,000,000. If the amount in the State
Pensions Fund does not exceed the sum of the amounts certified
in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,

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the amount paid to each designated retirement system under this
subsection shall be reduced in proportion to the amount
certified by each of those designated retirement systems.
(c-5) For fiscal years 2006 through 2014, the General
Assembly shall appropriate from the State Pensions Fund to the
State Universities Retirement System the amount estimated to be
available during the fiscal year in the State Pensions Fund;
provided, however, that the amounts appropriated under this
subsection (c-5) shall not reduce the amount in the State
Pensions Fund below $5,000,000.
(c-6) For fiscal year 2015 and each fiscal year thereafter,
as soon as may be practical after any money is deposited into
the State Pensions Fund from the Unclaimed Property Trust Fund,
the State Treasurer shall apportion the deposited amount among
the designated retirement systems as defined in subsection (a)
to reduce their actuarial reserve deficiencies. The State
Comptroller and State Treasurer shall pay the apportioned
amounts to the designated retirement systems to fund the
unfunded liabilities of the designated retirement systems. The
amount apportioned to each designated retirement system shall
constitute a portion of the amount estimated to be available
for appropriation from the State Pensions Fund that is the same
as that retirement system's portion of the total actual reserve
deficiency of the systems, as determined annually by the
Governor's Office of Management and Budget at the request of
the State Treasurer. The amounts apportioned under this

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subsection shall not reduce the amount in the State Pensions
Fund below $5,000,000.
(d) The Governor's Office of Management and Budget shall
determine the individual and total reserve deficiencies of the
designated retirement systems. For this purpose, the
Governor's Office of Management and Budget shall utilize the
latest available audit and actuarial reports of each of the
retirement systems and the relevant reports and statistics of
the Public Employee Pension Fund Division of the Department of
Insurance.
(d-1) As soon as practicable after the effective date of
this amendatory Act of the 93rd General Assembly, the
Comptroller shall direct and the Treasurer shall transfer from
the State Pensions Fund to the General Revenue Fund, as funds
become available, a sum equal to the amounts that would have
been paid from the State Pensions Fund to the Teachers'
Retirement System of the State of Illinois, the State
Universities Retirement System, the Judges Retirement System
of Illinois, the General Assembly Retirement System, and the
State Employees' Retirement System of Illinois after the
effective date of this amendatory Act during the remainder of
fiscal year 2004 to the designated retirement systems from the
appropriations provided for in this Section if the transfers
provided in Section 6z-61 had not occurred. The transfers
described in this subsection (d-1) are to partially repay the
General Revenue Fund for the costs associated with the bonds

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used to fund the moneys transferred to the designated
retirement systems under Section 6z-61.
(e) The changes to this Section made by this amendatory Act
of 1994 shall first apply to distributions from the Fund for
State fiscal year 1996.
(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
eff. 6-19-13; 98-463, eff. 8-16-13.)
Section 10. The Illinois Banking Act is amended by changing
Section 48 as follows:
(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
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

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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 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

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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
Commissioner and the state regulatory authority that chartered
the out-of-state bank.
(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

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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 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

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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 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; provided, however, that an
examination conducted at the request of the State Treasurer
pursuant to the Uniform Disposition of Unclaimed Property
Act shall not be deemed to be an additional examination
under this Section. In lieu of the method and amounts set

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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 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).

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(a-3) After May 31, 1997, the reasonable and necessary
expenses of the Commissioner during examination of the
performance of electronic data processing services under
subsection (2.5) at or on behalf of branches of
out-of-state banks shall be borne by the out-of-state
banks, unless those expenses are borne by the state
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 for that year by the

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Commissioner under the Corporate Fiduciary Act, excluding
the receivership fees provided for in Section 5-10 of the
Corporate Fiduciary Act, and the Foreign Banking Office
Act. The aggregate amount of the contingent fee thus
arrived at for any fiscal year shall be apportioned
amongst, assessed upon, and paid by the State banks and
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 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

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Trust Company Fund, the Foreign Banking Office Act, the
Electronic Fund Transfer Act, and the Illinois Bank
Examiners' Education Foundation Act, including all
salaries and other compensation paid for personal services
rendered for the State by officers or employees of the
State, including the Commissioner and the Deputy
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 paragraphs (c) or (d-1) of this subsection (3) to
maintain in any fiscal year's budget appropriated reserves
for accrued 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.
(d) The aggregate of all fees collected by the

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Secretary under this Act, the Corporate Fiduciary Act, or
the Foreign Banking Office Act on and after July 1, 1979,
shall be paid promptly after receipt of the same,
accompanied by a detailed statement thereof, into the State
treasury and shall be set apart in a special fund to be
known as the "Bank and Trust Company Fund", except as
provided in paragraph (c) of subsection (11) of this
Section. All earnings received from investments of funds in
the Bank and Trust Company Fund shall be deposited in the
Bank and Trust Company Fund and may be used for the same
purposes as fees deposited in 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) as a credit against fees under paragraph (d-1) of this
subsection (3). Nothing in this amendatory Act of 1979
shall prevent continuing the practice of paying expenses
involving salaries, retirement, social security, and
State-paid insurance 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

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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 sum of $18,788,847 shall be transferred from
the Bank and Trust Company Fund to the Financial
Institutions Settlement of 2008 Fund on the effective date
of this amendatory Act of the 95th General Assembly, or as
soon thereafter as practical.
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 to be
deposited into the Bank and Trust Company Fund during that
fiscal year. The State Treasurer and Comptroller shall

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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 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

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the year shall be apportioned amongst, assessed upon, and
paid by the State banks and foreign banking corporations in
the same proportion that the Call Report Fees of each,
respectively, for the year bear to the total Call Report
Fees collected for the year. 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 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, 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

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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 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

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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 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.

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(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 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

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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 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

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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 company"
has the meaning prescribed in Section 2 of the Illinois Bank
Holding Company Act of 1957.
(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 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.

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(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 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'

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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) The Secretary or any person appointed as receiver
shall have all of the powers, rights, and privileges as the
Federal Deposit Insurance Corporation when appointed as
receiver, which shall originate at the time of the appointment
and continue through the term of the receivership.
(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
97-333, eff. 8-12-11.)
(205 ILCS 105/Act rep.)
Section 15. The Illinois Savings and Loan Act of 1985 is
repealed.
Section 20. The Savings Bank Act is amended by changing
Sections 1007.130, 9002, 9002.5, and 9017 and by adding
Sections 1007.150 and 9002.1 and Articles 12.1 and 12.2 as
follows:

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(205 ILCS 205/1007.130)
Sec. 1007.130. Out-of-state savings bank. "Out-of-state
savings bank" means a savings bank or an association chartered
under the laws of a state other than Illinois, a territory of
the United States, or the District of Columbia.
(Source: P.A. 93-965, eff. 8-20-04.)
(205 ILCS 205/1007.150 new)
Sec. 1007.150. Applicability of other Acts. Whenever the
term "savings and loan", "building and loan", "mutual building
loan and homestead", or "building loan and homestead" or other
similar name is used with reference to an association organized
for the purposes of associations incorporated under the
Illinois Savings and Loan Act of 1985 or a similar Act, such
reference shall be applicable to a savings bank operating under
this Act. Whenever in any Act the term "members",
"shareholders", or "investors" is used in connection with such
associations, however named, the same shall refer to members
and holders of capital of savings banks operating under this
Act.
(205 ILCS 205/9002) (from Ch. 17, par. 7309-2)
Sec. 9002. Powers of Secretary. The Secretary shall have
the following powers and duties:
(1) To exercise the rights, powers, and duties set

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forth in this Act or in any related Act.
(2) To establish regulations as may be reasonable or
necessary to accomplish the purposes of this Act.
(3) To make an annual report regarding the work of his
office under this Act as he may consider desirable to the
Governor, or as the Governor may request.
(4) To cause a suit to be filed in his name to enforce
any law of this State that applies to savings banks, their
service corporations, subsidiaries, affiliates, or holding
companies operating under this Act, including the
enforcement of any obligation of the officers, directors,
agents, or employees of any savings bank.
(5) To prescribe a uniform manner in which the books
and records of every savings bank are to be maintained.
(6) To establish a reasonable fee structure for savings
banks and holding companies operating under this Act and
for their service corporations and subsidiaries. The fees
shall include, but not be limited to, annual fees,
application fees, regular and special examination fees,
and other fees as the Secretary establishes and
demonstrates to be directly resultant from the Secretary's
responsibilities under this Act and as are directly
attributable to individual entities operating under this
Act. The aggregate of all moneys collected by the Secretary
on and after the effective date of this Act shall be paid
promptly after receipt of the same, accompanied by a

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detailed statement thereof, into the Savings Bank
Regulatory Fund established under Section 9002.1 of this
Act. Savings and Residential Finance Regulatory Fund
subject to the provisions of Section 7-19.1 of the Illinois
Savings and Loan Act of 1985 including without limitation
the provision for credits against regulatory fees. The
amounts deposited into the Fund shall be used for the
ordinary and contingent expenses of the Office of Banks and
Real Estate. Notwithstanding any other provision of this
paragraph (6), the aggregate of all moneys collected by the
Secretary under this Act shall be paid promptly after
receipt of same, accompanied by a detailed statement
thereof, into the Savings Institutions Regulatory Fund
upon the creation of that fund under Section 7-19.2 of the
Illinois Savings and Loan Act of 1985, subject to the
provisions of Section 7-19.2 of the Illinois Savings and
Loan Act of 1985, including without limitation the
provision for credits against regulatory fees. The amounts
deposited into the Savings Institutions Regulatory Fund
under this paragraph (6) shall be used for the ordinary and
contingent expenses of administering and enforcing this
Act. Nothing in this Act shall prevent continuing the
practice of paying expenses involving salaries,
retirement, social security, and State-paid insurance of
State officers by appropriation from the General Revenue
Fund. The Secretary may require payment of the fees under

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this Act by an electronic transfer of funds or an automatic
debit of an account of each of the savings banks.
The Secretary or any person appointed as receiver shall
have all of the powers, rights, and privileges as the Federal
Deposit Insurance Corporation when appointed as receiver,
which shall originate at the time of the appointment and
continue through the term of the receivership.
(Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)
(205 ILCS 205/9002.1 new)
Sec. 9002.1. Savings Bank Regulatory Fund.
(a) The aggregate of all moneys collected by the Secretary
under this 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 the Savings Bank
Regulatory Fund. All earnings received from investments of
funds in the Savings Bank Regulatory Fund shall be deposited
into the Savings Bank Regulatory Fund and may be used for the
same purposes as fees deposited into the Savings Bank
Regulatory Fund. The amount from time to time deposited into
the Fund shall be used (i) to offset the ordinary
administration expenses as defined in subsection (c) of this
Section or (ii) as a credit against fees under subsection (b)
of this Section. Nothing in this Section shall prevent
continuing the practice of paying expenses involving salaries,
retirement, Social Security, and State paid insurance premiums

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of State officers by appropriation from the General Revenue
Fund. However, the General Revenue Fund shall be reimbursed for
those payments made by an annual transfer of funds from the
Savings Bank Regulatory Fund. Money in the Savings Bank
Regulatory 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.
(b) Adequate funds shall be available in the Savings Bank
Regulatory 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
Secretary 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 Savings Bank
Regulatory Fund for the subsequent year, in which case the
remainder shall be credited to savings banks and applied
against their fees for the subsequent year. The amount credited
to each savings bank shall be in the same proportion as the
regulatory fees paid by each for the year bear to the total
regulatory fees collected for the year. If, after a transfer to
the Cash Flow Reserve Account is made or if no remainder is
available for transfer, the balance of the Cash Flow Reserve
Account is less than one-fourth of the total initial
appropriations for the subsequent year and the amount

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transferred is less than 5% of the total regulatory fees for
the year, additional amounts needed to make the transfer equal
to 5% of the total regulatory fees for the year shall be
apportioned amongst, assessed upon, and paid by savings banks
in the same proportion that the regulatory fees of each,
respectively, for the year bear to the total regulatory fees
collected for the year. The additional amounts assessed shall
be transferred into the Cash Flow Reserve Account.
(c) For purposes of this Section, the following terms shall
have the following meanings:
"Administration expenses", for any fiscal year, means the
ordinary and contingent expenses for that year incident to
making the examinations provided for by, and for otherwise
administering, this Act, including all salaries and other
compensation paid for personal services rendered for the State
by officers or employees of the State, including the Secretary
and the Director of the Division, 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 Secretary shall not
be required by this subsection to maintain in any fiscal year's

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budget appropriated reserves for accrued vacation and accrued
sick leave that is required to be paid to employees of the
Secretary upon termination of their service with the Secretary
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.
"Regulatory fees" includes both fees collected under
Section 9002.5 and fees collected for examinations conducted by
the Secretary or his examiners or designees under authority of
this Act.
"Fiscal year" means a period beginning July 1 of any year
and ending June 30 of the next year.
(205 ILCS 205/9002.5)
Sec. 9002.5. Regulatory fees.
(a) For the fiscal year beginning July 1, 2007 and every
year thereafter, each savings bank and each service corporation
operating under this Act shall pay a fixed fee of $520, plus a
variable fee based on the total assets of the savings bank or
service corporation at the following rates:
24.97¢ per $1,000 of the first $2,000,000 of total
assets;
22.70¢ per $1,000 of the next $3,000,000 of total
assets;
20.43¢ per $1,000 of the next $5,000,000 of total

HB5685 - 33 - LRB098 17498 ZMM 52607 b
assets;
17.025¢ per $1,000 of the next $15,000,000 of total
assets;
14.755¢ per $1,000 of the next $25,000,000 of total
assets;
12.485¢ per $1,000 of the next $50,000,000 of total
assets;
10.215¢ per $1,000 of the next $400,000,000 of total
assets;
6.81¢ per $1,000 of the next $500,000,000 of total
assets; and
4.54¢ per $1,000 of all total assets in excess of
$1,000,000,000 of such savings bank or service
corporation.
(b) The Secretary shall receive and there shall be paid to
the Secretary an additional fee as an adjustment to the
supervisory fee, based upon the difference between the total
assets of each savings bank and each service corporation as
shown by its financial report filed with the Secretary for the
reporting period of the calendar year ended December 31 on
which the supervisory fee was based and the total assets of
each savings bank and each service corporation as shown by its
financial report filed with the Secretary for the reporting
period of the calendar year ended December 31 in which the
quarterly payments are made according to the following
schedule:

HB5685 - 34 - LRB098 17498 ZMM 52607 b
24.97¢ per $1,000 of the first $2,000,000 of total
assets;
22.70¢ per $1,000 of the next $3,000,000 of total
assets;
20.43¢ per $1,000 of the next $5,000,000 of total
assets;
17.025¢ per $1,000 of the next $15,000,000 of total
assets;
14.755¢ per $1,000 of the next $25,000,000 of total
assets;
12.485¢ per $1,000 of the next $50,000,000 of total
assets;
10.215¢ per $1,000 of the next $400,000,000 of total
assets;
6.81¢ per $1,000 of the next $500,000,000 of total
assets; and
4.54¢ per $1,000 of all total assets in excess of
$1,000,000,000 of such savings bank or service
corporation.
(c) The Secretary shall receive and there shall be paid to
the Secretary by each savings bank and each service corporation
a fee of $520 for each approved branch office or facility
office established under the Illinois Administrative Code. The
determination of the fees shall be made annually as of the
close of business of the prior calendar year ended December 31.
(d) The Secretary shall receive for each fiscal year,

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commencing with the fiscal year ending June 30, 2014, a
contingent fee equal to the lesser of the aggregate of the fees
paid by all savings banks under subsections (a), (b), and (c)
of this Section for that year, or the amount, if any, whereby
the aggregate of the administration expenses, as defined in
subsection (c) of Section 9002.1 of this Act, for that fiscal
year exceeds the sum of the aggregate of the fees payable by
all savings banks for that year under subsections (a), (b), and
(c) of this Section, plus any amounts transferred into the
Savings Bank Regulatory Fund from the State Pensions Fund for
that year, plus all other amounts collected by the Secretary
for that year under any other provision of this Act. The
aggregate amount of the contingent fee thus arrived at for any
fiscal year shall be apportioned amongst, assessed upon, and
paid by the savings banks, respectively, in the same proportion
that the fee of each under subsections (a), (b), and (c) of
this Section, respectively, for that year bears to the
aggregate for that year of the fees collected under subsections
(a), (b), and (c) of this Section. The aggregate amount of the
contingent fee, and the portion thereof to be assessed upon
each savings bank, respectively, shall be determined by the
Secretary 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 Secretary shall give 20 days
advance notice of the amount of the contingent fee payable by
the savings bank and of the date fixed by the Secretary for

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payment of the fee.
(Source: P.A. 95-1047, eff. 4-6-09.)
(205 ILCS 205/Art. 12.1 heading new)
ARTICLE 12.1. Effect of Repeal of Illinois
Savings and Loan Act of 1985
(205 ILCS 205/12101 new)
Sec. 12101. Effect of repeal. This Article sets forth the
effect of and means of transition necessitated by the repeal of
the Illinois Savings and Loan Act of 1985.
(205 ILCS 205/12102 new)
Sec. 12102. Effect on special funds.
(a) The Savings and Residential Finance Regulatory Fund
established under Section 7-19.1 of the Illinois Savings and
Loan Act of 1985 is hereby redesignated the Residential Finance
Regulatory Fund. The fund shall continue in existence under the
Illinois Residential Mortgage License Act of 1987 without
interruption and shall retain all moneys therein, except moneys
required to be transferred or returned from Savings and
Residential Finance Regulatory Fund, now designated the
Residential Finance Regulatory Fund, to the Savings
Institutions Regulatory Fund, now designated the Savings Bank
Regulatory Fund, pursuant to subsection (e) of Section 7-19.2
of the Illinois Savings and Loan Act of 1985, shall continue to

HB5685 - 37 - LRB098 17498 ZMM 52607 b
be required to be transferred or returned to the Savings
Institutions Regulatory Fund, now designated the Savings Bank
Regulatory Fund, as if subsection (e) of Section 7-19.2 of the
Illinois Savings and Loan Act of 1985 had not been repealed.
(b) The Savings Institutions Regulatory Fund established
under Section 7-19.2 of the Illinois Savings and Loan Act of
1985 is hereby redesignated the Savings Bank Regulatory Fund.
The fund shall continue in existence under Section 9002.1 of
this Act without interruption and shall retain all moneys
therein.
(205 ILCS 205/12103 new)
Sec. 12103. Effect on foreign associations.
(a) Any existing foreign association shall be deemed to be
an out-of-state savings bank under this Act.
(b) Notwithstanding any other provision of this Act, an
existing foreign association may retain any branch or office in
the State that properly existed in the State at the time of the
repeal of the Illinois Savings and Loan Act of 1985, and
continue to engage in the same activities in the State
therefrom as were engaged in immediately prior to the repeal of
the Illinois Savings and Loan Act, without further application
or notice to or approval of the Secretary.
(c) An existing foreign association may retain a
representative office in the State that properly existed in the
State at the time of the repeal of the Illinois Savings and

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Loan Act of 1985, provided that the foreign association obtains
a license under the Foreign Bank Representative Office Act.
(205 ILCS 205/12104 new)
Sec. 12104. Effect on the Board of Savings Institutions.
The Board of Savings Institutions is hereby redesignated as the
Board of Savings Banks. The Board shall continue to operate
without interruption and as if it had been originally
established under Article 12.2 of this Act. The current members
of the Board of Savings Institutions shall continue to serve
the balance of their terms. Thereafter, the Board of Savings
Institutions shall be composed of members as required by
Section 12202 of this Act.
(205 ILCS 205/12105 new)
Sec. 12105. Applicability of other Acts. Whenever in any
Act the term "savings and loan", "building and loan", "mutual
building loan and homestead", or "building loan and homestead"
or other similar name is used with reference to an association
organized for the purposes of associations incorporated under
the Illinois Savings and Loan Act of 1985 or a similar act,
such reference shall be applicable to a savings bank operating
under this Act. Whenever in any Act the term "members",
"shareholders", or "investors" is used in connection with such
associations, however named, the same shall refer to members
and holders of capital of savings banks operating under this

HB5685 - 39 - LRB098 17498 ZMM 52607 b
Act.
(205 ILCS 205/Art. 12.2 heading new)
ARTICLE 12.2. Board of Savings Banks
(205 ILCS 205/12201 new)
Sec. 12201. Board of Savings Banks; appointment. The Board
of Savings Bank is established pursuant to Section 12104 of
this Act. The Board of Savings Banks shall be composed of the
Director of Banking, who shall be its chairperson and have the
power to vote, and 7 persons appointed by the Governor. Two of
the 7 persons appointed by the Governor shall represent the
public interest and the remainder shall have been engaged
actively in savings bank or savings and loan management in this
State for at least 5 years immediately prior to appointment.
Each member of the Board appointed by the Governor shall be
reimbursed for ordinary and necessary expenses incurred in
attending the meetings of the Board. Members, excluding the
chairperson, shall be appointed for 4-year terms to expire on
the third Monday in January. Except as otherwise provided in
this Section, members of the Board shall serve until their
respective successors are appointed and qualified. A member who
tenders a written resignation shall serve only until the
resignation is accepted by the chairperson. A member who fails
to attend 3 consecutive Board meetings without an excused
absence shall no longer serve as a member. The Governor shall

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fill any vacancy by the appointment of a member for the
unexpired term in the same manner as in the making original
appointments.
(205 ILCS 205/12202 new)
Sec. 12202. Board of Savings Banks; organization and
meetings. The Board shall elect a vice chairperson and
secretary of the Board; shall adopt by-laws for the holding and
conducting of meetings and appointing officers and committees;
and shall keep a record of all meetings and transactions and
make such other provisions for the daily conduct of its
business as it deems necessary. A majority of the members of
the Board, excluding those members who are no longer serving as
members as provided in Section 12201 of this Act, shall
constitute a quorum. The act of the majority of the members of
the Board present at a meeting at which a quorum is present
shall be the act of the Board. Regular meetings shall be held
as provided in the by-laws, and special meetings may be called
by the chairperson or upon the request of any 3 members of the
Board or the Secretary. The Board shall maintain at the office
of the Secretary permanent records of its meetings, hearings,
and decisions. The Secretary shall provide adequate quarters
and personnel for use by the Board.
(205 ILCS 205/12203 new)
Sec. 12203. Board of Savings Banks; powers. The Board shall

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have the power to:
(a) advise the Governor and Secretary on all matters
relating to the regulation of savings banks; and
(b) advise the Governor on legislation proposed to amend
this Act or any related Act.
(205 ILCS 205/1007.70 rep.)
(205 ILCS 205/9017 rep.)
Section 25. The Savings Bank Act is amended by repealing
Sections 1007.70 and 9017.
Section 30. The Corporate Fiduciary Act is amended by
changing Section 6-5 as follows:
(205 ILCS 620/6-5) (from Ch. 17, par. 1556-5)
Sec. 6-5. When the Commissioner has taken possession and
control of a corporate fiduciary and its assets, he shall be
vested with the full powers of management and control,
including, but not limited to, the following:
(1) The power to continue or to discontinue the
business;
(2) The power to stop or to limit the payment of its
obligations;
(3) The power to collect and to use its assets and to
give valid receipts and acquittances therefor;
(4) The power to employ and to pay any necessary

HB5685 - 42 - LRB098 17498 ZMM 52607 b
assistants;
(5) The power to execute any instrument in the name of
the corporate fiduciary;
(6) The power to commence, defend and conduct in its
name any action or proceeding in which it may be a party;
(7) The power, upon the order of the court, to sell and
convey its assets in whole or in part, and to sell or
compound bad or doubtful debts upon such terms and
conditions as may be fixed in such order;
(8) The power, upon the order of the court, to make and
to carry out agreements with other corporate fiduciaries,
financial institutions or with the United States or any
agency thereof, for the payment or assumption of the
corporate fiduciaries liabilities, in whole or in part, and
to transfer assets and to make guaranties, in whole or in
part, and to transfer assets and to make guaranties in
connection therewith;
(9) The power, upon the order of the court, to borrow
money in the name of the corporate fiduciary and to pledge
its assets as security for the loan;
(10) The power to terminate his possession and control
by restoring the corporate fiduciary to its board of
directors;
(11) The power to reorganize the corporate fiduciary as
provided in this Act;
(12) The power to appoint a receiver which may be the

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Office of the Commissioner, a corporate fiduciary or
another suitable person and to order liquidation of the
corporate fiduciary as provided in this Act; and
(13) The power, upon the order of the court and without
the appointment of a receiver, to determine that the
corporate fiduciary has been closed for the purpose of
liquidation without adequate provision being made for
payment of its fiduciary obligations, and thereupon the
corporate fiduciary shall be deemed to have been closed on
account of inability to meet its obligations to its
beneficiaries.
The Secretary or any person appointed as receiver shall
have all of the powers, rights, and privileges as the Federal
Deposit Insurance Corporation when appointed as receiver,
which shall originate at the time of the appointment and
continue through the term of the receivership.
(Source: P.A. 86-754.)
Section 40. The Residential Mortgage License Act of 1987 is
amended by changing Section 4-1 and by adding Section 4-1.5 as
follows:
(205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
Sec. 4-1. Commissioner of Banks and Real Estate; functions,
powers, and duties. The functions, powers, and duties of the
Commissioner of Banks and Real Estate shall include the

HB5685 - 44 - LRB098 17498 ZMM 52607 b
following:
(a) to issue or refuse to issue any license as provided
by this Act;
(b) to revoke or suspend for cause any license issued
under this Act;
(c) to keep records of all licenses issued under this
Act;
(d) to receive, consider, investigate, and act upon
complaints made by any person in connection with any
residential mortgage licensee in this State;
(e) to consider and act upon any recommendations from
the Residential Mortgage Board;
(f) to prescribe the forms of and receive:
(1) applications for licenses; and
(2) all reports and all books and records required
to be made by any licensee under this Act, including
annual audited financial statements and annual reports
of mortgage activity;
(g) to adopt rules and regulations necessary and proper
for the administration of this Act;
(h) to subpoena documents and witnesses and compel
their attendance and production, to administer oaths, and
to require the production of any books, papers, or other
materials relevant to any inquiry authorized by this Act;
(h-1) to issue orders against any person, if the
Commissioner has reasonable cause to believe that an

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unsafe, unsound, or unlawful 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 adopted in accordance with the Act;
(h-2) to address any inquiries to any licensee, or the
officers thereof, in relation to its activities and
conditions, or any other matter connected with its affairs,
and it shall be the duty of any licensee or person so
addressed, to promptly reply in writing to such inquiries.
The Commissioner may also require reports from any licensee
at any time the Commissioner may deem desirable;
(i) to require information with regard to any license
applicant as he or she may deem desirable, with due regard
to the paramount interests of the public as to the
experience, background, honesty, truthfulness, integrity,
and competency of the license applicant as to financial
transactions involving primary or subordinate mortgage
financing, and where the license applicant is an entity
other than an individual, as to the honesty, truthfulness,
integrity, and competency of any officer or director of the
corporation, association, or other entity, or the members
of a partnership;
(j) to examine the books and records of every licensee
under this Act at intervals as specified in Section 4-2;

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(k) to enforce provisions of this Act;
(l) to levy fees, fines, and charges for services
performed in administering this Act; the aggregate of all
fees collected by the Commissioner on and after the
effective date of this Act shall be paid promptly after
receipt of the same, accompanied by a detailed statement
thereof, into the Savings and Residential Finance
Regulatory Fund under Section 4-1.5 of this Act; the
amounts deposited into that Fund shall be used for the
ordinary and contingent expenses of the Office of Banks and
Real Estate. Nothing in this Act shall prevent continuing
the practice of paying expenses involving salaries,
retirement, social security, and State-paid insurance of
State officers by appropriation from the General Revenue
Fund.
(m) to appoint examiners, supervisors, experts, and
special assistants as needed to effectively and
efficiently administer this Act;
(n) to conduct hearings for the purpose of:
(1) appeals of orders of the Commissioner;
(2) suspensions or revocations of licenses, or
fining of licensees;
(3) investigating:
(i) complaints against licensees; or
(ii) annual gross delinquency rates; and
(4) carrying out the purposes of this Act;

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(o) to exercise exclusive visitorial power over a
licensee unless otherwise authorized by this Act or as
vested in the courts, or upon prior consultation with the
Commissioner, a foreign residential mortgage regulator
with an appropriate supervisory interest in the parent or
affiliate of a licensee;
(p) to enter into cooperative agreements with state
regulatory authorities of other states to provide for
examination of corporate offices or branches of those
states and to accept reports of such examinations;
(q) to assign an examiner or examiners to monitor the
affairs of a licensee with whatever frequency the
Commissioner determines appropriate and to charge the
licensee for reasonable and necessary expenses of the
Commissioner, if in the opinion of the Commissioner an
emergency exists or appears likely to occur;
(r) to impose civil penalties of up to $50 per day
against a licensee for failing to respond to a regulatory
request or reporting requirement; and
(s) to enter into agreements in connection with the
Nationwide Mortgage Licensing System and Registry.
(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10.)
(205 ILCS 635/4-1.5 new)
Sec. 4-1.5. Residential Finance Regulatory Fund.
(a) The aggregate of all moneys collected by the Secretary

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under this 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 the Residential
Finance Regulatory Fund, formerly designated the Savings and
Residential Finance Regulatory Fund, a special fund created in
the State treasury. The amounts deposited into the Fund shall
be used for the ordinary and contingent expenses of the
Department of Financial and Professional Regulation and the
Division of Banking, or their successors, in administering and
enforcing the Residential Mortgage License Act of 1987 and
other laws, rules, and regulations as may apply to the
administration and enforcement of the foregoing laws, rules,
and regulations, as amended from time to time. Nothing in this
Act shall prevent continuing the practice of paying expenses
involving salaries, retirement, social security, and State
paid insurance of State officers by appropriation from the
General Revenue Fund.
(b) Moneys in the Residential Finance Regulatory 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.
(c) All earnings received from investments of funds in the
Residential Finance Regulatory Fund shall be deposited into
that Fund and may be used for the same purposes as fees
deposited into that Fund.

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Section 45. The Foreign Bank Representative Office Act is
amended by changing Section 2 as follows:
(205 ILCS 650/2) (from Ch. 17, par. 2852)
Sec. 2. Definitions. As used in this Act, unless the
context requires otherwise:
(a) "Commissioner" means the Secretary of Financial and
Professional Regulation or a person authorized by the
Secretary, the Division of Banking Act, or this Act to act in
the Secretary's stead.
(b) "Foreign bank" means (1) a bank, savings bank, savings
association, or trust company which is organized under the laws
of any state or territory of the United States, including the
District of Columbia, other than the State of Illinois; (2) a
national bank having its principal place of business in any
state or territory of the United States, including the District
of Columbia, other than the State of Illinois; or (3) a bank or
trust company organized and operating under the laws of a
country other than the United States of America.
(c) "Representative office" means an office in the State of
Illinois at which a foreign bank engages in representational
functions but does not conduct a commercial banking business.
(d) "Division" means the Division of Banking within the
Department of Financial and Professional Regulation.
(Source: P.A. 96-1365, eff. 7-28-10.)
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INDEX
Statutes amended in order of appearance
30 ILCS 105/5.214 from Ch. 127, par. 141.214
30 ILCS 105/5.805
30 ILCS 105/8.12 from Ch. 127, par. 144.12
205 ILCS 5/48
205 ILCS 105/Act rep.
205 ILCS 205/1007.130
205 ILCS 205/1007.150 new
205 ILCS 205/9002 from Ch. 17, par. 7309-2
205 ILCS 205/9002.1 new
205 ILCS 205/9002.5
205 ILCS 205/Art. 12.1
heading new
205 ILCS 205/12101 new
205 ILCS 205/12102 new
205 ILCS 205/12103 new
205 ILCS 205/12104 new
205 ILCS 205/12105 new
205 ILCS 205/Art. 12.2
heading new
205 ILCS 205/12201 new
205 ILCS 205/12202 new
205 ILCS 205/12203 new
205 ILCS 205/1007.70 rep.
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