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| Public Act 100-0888
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| SB3182 Enrolled | LRB100 18996 XWW 34250 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Banking Act is amended by changing |
Sections 18, 48.1, and 48.3 as follows:
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(205 ILCS 5/18) (from Ch. 17, par. 325)
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Sec. 18. Change in control.
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(a) Before any person, whether acting directly or |
indirectly or through or in concert with one or more persons, |
may cause (i) a change to may occur in the ownership of |
outstanding
stock of any State bank, whether by sale and |
purchase, gift, bequest or
inheritance, or any other means, |
including the acquisition of stock of the
State bank by any |
bank holding company, which will result in control or a
change |
in the
control of the bank or (ii) before a change to occur in |
the control of a holding company
having control of the |
outstanding stock of a State bank whether by sale and
purchase, |
gift, bequest or inheritance, or any other means, including the
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acquisition of stock of such holding company by any other bank |
holding
company, which will result
in control or a change in |
control of the bank or holding company, or (iii) before a
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transfer of substantially all the assets or liabilities of the |
State bank,
the Secretary
Commissioner shall be of the opinion |
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and find:
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(1) that the general character of proposed management
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or of the person desiring to purchase substantially all the |
assets or
to assume substantially all the liabilities of |
the State bank, after the
change in control, is such as to |
assure reasonable promise of successful,
safe and sound |
operation;
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(1.1) that depositors' interests will not be
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jeopardized by the purchase or assumption and that adequate |
provision has
been made for all liabilities as required for |
a voluntary liquidation under
Section 68 of this Act;
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(2) that the future earnings prospects
of the person |
desiring
to purchase substantially all assets or to assume |
substantially all the
liabilities of the State bank, after |
the proposed change in
control, are favorable;
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(2.5) that the future prospects of the institution will |
not jeopardize the financial stability of the bank or |
prejudice the interests of the depositors of the bank;
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(3) that any prior involvement by the persons proposing |
to obtain
control, to purchase substantially all the |
assets, or to assume substantially
all the liabilities of |
the State bank or by the proposed management personnel
with |
any other financial
institution, whether as stockholder, |
director, officer or customer, was
conducted in a safe and |
sound manner; and
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(4) that if the acquisition is being made by a bank |
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holding company,
the acquisition is authorized under the |
Illinois Bank Holding Company Act
of 1957.
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(b) Any person Persons desiring to purchase control of an |
existing State state bank, to
purchase substantially all the |
assets, or to assume substantially all the
liabilities of the |
State bank shall, prior to that purchase, submit to the |
Secretary
Commissioner:
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(1) a statement of financial worth;
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(2) satisfactory evidence that any prior involvement |
by the persons
and the proposed management personnel with |
any other financial institution,
whether as stockholder, |
director, officer or customer, was conducted in a
safe and |
sound manner; and
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(3) such other relevant information as the Secretary |
Commissioner may request to
substantiate the findings |
under subsection (a) of this Section.
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A person who has submitted information to the Secretary |
Commissioner pursuant to
this subsection (b) is under a |
continuing obligation until the Secretary Commissioner
takes |
action on the application to immediately supplement
that
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information if there are any material changes in the |
information previously
furnished
or if there are any material |
changes in any circumstances that may affect the Secretary's
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Commissioner's opinion and findings. In addition, a person |
submitting
information
under this subsection shall notify the |
Secretary Commissioner of the date when the change
in control
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is finally effected.
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The Secretary Commissioner may impose such terms and |
conditions on the approval
of the change in control application |
as he deems necessary or appropriate.
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If an applicant, whose application for a change in control |
has been approved
pursuant to subsection (a) of this Section, |
fails to effect the change in
control within
180 days after the |
date of the Secretary's Commissioner's approval, the Secretary |
Commissioner shall
revoke that approval unless a request has |
been submitted, in writing, to
the Secretary Commissioner for |
an extension and the request has been approved.
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(b-1) Any person, whether acting directly or indirectly or |
through or in concert with one or more persons, who obtains |
ownership of stock of an existing State bank or
stock of a |
holding company that controls the State bank by gift, bequest, |
or
inheritance such that ownership of the stock would |
constitute control of the
State bank or holding company may |
obtain title and ownership of the stock, but
may not exercise |
management or control of the business and affairs of the bank
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or vote his or her shares so as to exercise management or |
control unless and
until the Secretary Commissioner approves an |
application for the change of control as
provided in subsection |
(b) of this Section.
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(b-3) The provisions of this Section do not apply to an |
established holding company acquiring control of a State bank |
if the transaction is subject to approval under Section 3 of |
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the federal Bank Holding Company Act, the Federal Deposit |
Insurance Act, or the federal Home Owners' Loan Act. |
(c) Whenever a State state bank makes a loan or loans, |
secured, or to be
secured, by 25% or more of the outstanding |
stock of a State state bank, the
president or other chief |
executive officer of the lending bank shall
promptly report |
such fact to the Secretary Commissioner upon obtaining |
knowledge of
such loan or loans, except that no report need be |
made in those cases where
the borrower has been the owner of |
record of the stock for a period of one
year or more, or the |
stock is that of a newly organized bank prior to its
opening.
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(d) The reports required by subsections (b) and (c) of this
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Section 18, other than those relating to a transfer of assets |
or assumption
of liabilities, shall contain the following |
information to the extent that it
is
known by the person making |
the report: (1) the number of shares involved;
(2) the names of |
the sellers (or transferors); (3) the names of the
purchasers |
(or transferees); (4) the names of the beneficial owners if the
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shares are registered in another name: (5) the purchase price, |
if
applicable; (6) the
total number of shares owned by the |
sellers (or transferors), the
purchasers (or transferees) and |
the beneficial owners both immediately
before and after the |
transaction; and, (7) in the case of a loan, the name
of the |
borrower, the amount of the loan, the name of the bank issuing
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the stock securing the loan and the number of shares securing |
the loan. In
addition to the foregoing, such reports shall |
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contain such other
information which is requested by the |
Secretary Commissioner to inform the Secretary
Commissioner of |
the effect of the transaction upon control of the bank
whose |
stock is involved.
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(d-1) The reports required by subsection (b) of this |
Section 18 that
relate to purchase of assets and assumption of |
liabilities shall contain the
following information to the |
extent that it is known by the person making the
report: (1) |
the value, amount, and description of the assets transferred; |
(2)
the amount, type, and to whom each type of liabilities are |
owed; (3) the names
of the purchasers (or transferees); (4) the |
names of the beneficial owners if
the shares of a purchaser or |
transferee are registered in another name; (5) the
purchase |
price, if applicable; and, (6) in the case of a loan obtained |
to
effect a purchase, the name of the borrower, the amount and |
terms of the loan,
and the description of the assets securing |
the loan. In addition to the
foregoing,
these reports shall |
contain any other information that is requested by the |
Secretary
Commissioner to inform the Secretary Commissioner of |
the effect of the transaction upon
the bank from which assets |
are purchased or liabilities are transferred.
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(e) Whenever such a change as described in subsection (a) |
of this
Section 18 occurs, each State state bank shall report |
promptly to the Secretary
Commissioner any changes or |
replacement of its chief executive officer or
of any director |
occurring in the next 12 month period, including in its
report |
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a statement of the past and current business and professional
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affiliations of the new chief executive officer or directors.
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(f) (Blank).
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(g) (1) Except as otherwise expressly provided in this |
subsection (g),
the Secretary
Commissioners shall not approve |
an application for a change in control if upon
consummation of |
the change in control the persons applying for the change in
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control, including any affiliates of the persons applying, |
would control 30% or
more of the total amount of deposits which |
are located in this State at insured
depository institutions. |
For purposes of this subsection (g), the words
"insured
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depository institution" shall mean State banks, national |
banks, and insured
savings associations. For purposes of this |
subsection (g), the word "deposits"
shall have the meaning |
ascribed to that word in Section 3(1) of the Federal
Deposit |
Insurance Act. For purposes of this subsection (g), the total |
amount of
deposits which are considered to be located in this |
State at insured depository
institutions shall equal the sum of |
all deposits held at the main banking
premises and branches in |
the State of Illinois of State banks, national banks,
or |
insured savings associations. For purposes of this subsection |
(g), the word
"affiliates" shall have the meaning ascribed to |
that word in Section 35.2 of
this Act.
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(2) Notwithstanding the provisions of paragraph (1) of this |
subsection subsection (g)(1) of this Section,
the Secretary |
Commissioner may approve an application for a change in control |
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for a bank
that is in default or in danger of default. Except |
in those instances in which
an application for a change in |
control is for a bank that is in default or in
danger of |
default, the Secretary Commissioner may not approve a change in |
control which
does not meet the requirements of paragraph (1) |
of this subsection subsection (g)(1) of this Section. The |
Secretary
Commissioner may not waive the provisions of |
paragraph (1) of this subsection subsection (g)(1) of this |
Section,
whether pursuant to Section 3(d) of the federal Bank |
Holding Company Act of
1956 or Section 44(d) of the Federal |
Deposit Insurance Act, except as expressly
provided in this |
paragraph subsection (g)(2) of this subsection.
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(h) As used in this Section: |
"Control" , the term "control" means the power, |
directly
or indirectly, to direct the management or |
policies of the bank or to vote 25%
or more of the |
outstanding stock of the bank. If there is any question as |
to whether a change in control application
should be filed,
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the question shall be resolved in favor of filing the |
application with the
Secretary Commissioner.
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"Substantially As used in this Section, "substantially |
all" the assets or
liabilities of a State bank means that |
portion of the assets or
liabilities of a State bank such |
that their purchase or transfer will
materially impair the |
ability of the State bank to continue successful,
safe, and |
sound operations or to continue as a going concern or would
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cause the bank to lose its federal deposit insurance.
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"Purchase" As used in this Section, "purchase" |
includes a transfer by gift,
bequest, inheritance, or any |
other means.
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As used in this Section, a person is acting in concert if |
that person is acting in concert under federal laws or |
regulations. |
(Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
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(205 ILCS 5/48.1) (from Ch. 17, par. 360)
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Sec. 48.1. Customer financial records; confidentiality.
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(a) For the purpose of this Section, the term "financial |
records" means any
original, any copy, or any summary of:
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(1) a document granting signature
authority over a |
deposit or account;
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(2) a statement, ledger card or other
record on any |
deposit or account, which shows each transaction in or with
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respect to that account;
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(3) a check, draft or money order drawn on a bank
or |
issued and payable by a bank; or
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(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
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financial statements or other financial information |
provided by the customer.
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(b) This Section does not prohibit:
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(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
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audit.
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(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.
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(3) The publication of data furnished from financial |
records
relating to customers where the data cannot be |
identified to any
particular customer or account.
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(4) The making of reports or returns required under |
Chapter 61 of
the Internal Revenue Code of 1986.
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(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 |
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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.
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(7) The furnishing of information to the appropriate |
law enforcement
authorities where the bank reasonably |
believes it has been the victim of a
crime.
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(8) The furnishing of information under the Revised |
Uniform
Unclaimed Property Act.
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(9) The furnishing of information under the Illinois |
Income Tax Act and
the Illinois Estate and |
Generation-Skipping Transfer Tax Act.
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(10) The furnishing of information under the federal |
Currency
and Foreign Transactions Reporting Act Title 31, |
United States
Code, Section 1051 et seq.
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(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.
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(12) The furnishing of information about the existence |
of an account
of a person to a judgment creditor of that |
person who has made a written
request for that information.
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(13) The exchange in the regular course of business of |
information
between commonly owned banks in connection |
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with a transaction authorized
under paragraph (23) of
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Section 5 and conducted at an affiliate facility.
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(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
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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,
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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.
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(15) The exchange in the regular course of business of |
information
between
a bank and any commonly owned affiliate |
of the bank, subject to the provisions
of the Financial |
Institutions Insurance Sales Law.
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(16) The furnishing of information to law enforcement |
authorities, the
Illinois Department on
Aging and its |
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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" means a person |
who has or reasonably appears to the bank to have a
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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
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an elderly or disabled person, and includes, without |
limitation,
misappropriation of the elderly or
disabled |
person's assets or resources by undue influence, breach of |
fiduciary
relationship, intimidation,
fraud, deception, |
extortion, or the use of assets or resources in any manner
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contrary to law. A bank or
person 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
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Domestic Violence Act of 1986.
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(17) The disclosure of financial records or |
information as necessary to
effect, administer, or enforce |
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a transaction requested or authorized by the
customer, or |
in connection with:
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(A) servicing or processing a financial product or |
service requested or
authorized by the customer;
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(B) maintaining or servicing a customer's account |
with the bank; or
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(C) a proposed or actual securitization or |
secondary market sale
(including sales of servicing |
rights) related to a
transaction of a customer.
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Nothing in this item (17), however, authorizes the sale |
of the financial
records or information of a customer |
without the consent of the customer.
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(18) The disclosure of financial records or |
information as necessary to
protect against actual or |
potential fraud, unauthorized transactions, claims,
or |
other liability.
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(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 |
information is limited to
outstanding balance, available |
credit, payment and performance
and account history, |
product references, purchase information,
and information
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related to the identity of the customer.
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(b)(1) For purposes of this paragraph (19) of |
subsection
(b) of Section 48.1, a "private label credit |
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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.
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(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,
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agent, or service provider.
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(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:
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(1) the customer has authorized disclosure to the |
person;
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(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
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(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.
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(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 mails a copy of the subpoena, summons, |
warrant, citation to discover assets,
or court order to the |
person establishing the relationship with the bank, if
living, |
and, otherwise his personal representative, if known, at his |
last known
address by first class mail, postage prepaid, 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.
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(e) Any officer or employee of a bank who knowingly and
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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.
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(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 |
fined not more than $1,000.
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(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 of a customer required or
requested to |
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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.
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(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18.)
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(205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
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Sec. 48.3. Disclosure of reports of examinations
and |
confidential
supervisory information;
limitations. |
(a) Any report of examination, visitation, or |
investigation prepared by
the Secretary under this Act, the |
Electronic Fund Transfer
Act, the Corporate Fiduciary Act, the
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Illinois Bank Holding Company Act of 1957, and the Foreign
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Banking Office Act, any report of examination, visitation, or
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investigation prepared by the state regulatory
authority of |
another state that examines a branch of an Illinois State bank |
in
that state, any document or record prepared or obtained in
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connection with or relating to any
examination, visitation, or |
investigation, and any record prepared or
obtained by the |
Secretary to the extent that the record summarizes or
contains |
information derived from any report, document, or record |
described
in this subsection shall be deemed "confidential |
supervisory information".
Confidential
supervisory information |
shall not include any information or record
routinely prepared |
by a bank or other financial institution and maintained in
the |
ordinary course of business or any information or record that |
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is required
to be made publicly available pursuant to State or |
federal law or rule.
Confidential supervisory information
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shall be the property of the Secretary and shall only be
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disclosed under the circumstances and for the purposes set |
forth in this
Section.
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The Secretary may
disclose
confidential supervisory |
information only under the following circumstances:
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(1) The Secretary may furnish confidential supervisory |
information
to the Board of Governors of the
Federal |
Reserve System, the federal reserve bank of the federal |
reserve
district in which the State bank is located or in |
which the parent or other
affiliate of the State bank is |
located, any official or examiner
thereof duly accredited |
for the purpose, or any other state regulator, federal
|
regulator, or in the case of a foreign bank possessing a |
certificate of
authority pursuant to the Foreign Banking |
Office Act or a license pursuant to
the Foreign Bank |
Representative Office Act, the bank regulator in the |
country
where the foreign bank is chartered,
that the |
Secretary determines to have an appropriate
regulatory |
interest. Nothing contained in this Act shall be construed |
to
limit the obligation of any member State bank to comply |
with the
requirements relative to examinations and reports |
of the Federal Reserve
Act and of the Board of Governors of |
the Federal Reserve System or the
federal reserve bank of |
the federal reserve district in which the bank is
located, |
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nor to limit in any way the powers of the Secretary with
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reference to examinations and reports.
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(2) The Secretary may furnish confidential supervisory |
information
to the United States, any agency
thereof that |
has insured a bank's deposits in whole or in part, or any |
official
or examiner thereof duly accredited for the |
purpose. 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,
any agency thereof, |
nor to limit in any way the powers of the Secretary with
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reference to examination and reports of such bank.
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(2.5) The Secretary may furnish confidential |
supervisory information to a Federal Home Loan Bank in |
connection with any bank that is a member of the Federal |
Home Loan Bank or in connection with any application by the |
bank before the Federal Home Loan Bank. The confidential |
supervisory information shall remain the property of the |
Secretary and may not be further disclosed without the |
Secretary's permission. |
(3) The Secretary may furnish
confidential supervisory
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information
to the appropriate law
enforcement authorities |
when the Secretary reasonably believes a
bank, which
the |
Secretary has
caused to be examined, has been a victim of a |
crime.
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(4) The Secretary may furnish confidential supervisory |
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information
relating to a bank or other
financial |
institution, which the Secretary has caused to be
examined, |
to be sent to the
administrator of the Revised Uniform |
Unclaimed Property Act.
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(5) The Secretary may furnish
confidential supervisory
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information relating to a bank or other
financial |
institution, which
the Secretary has caused to be examined, |
relating to its
performance of obligations under the |
Illinois Income Tax Act and the
Illinois Estate and |
Generation-Skipping Transfer Tax Act to the Illinois
|
Department of Revenue.
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(6) The Secretary may furnish
confidential supervisory
|
information relating to a bank or other
financial |
institution, which
the Secretary has caused to be examined, |
under the
federal Currency and Foreign Transactions |
Reporting Act,
Title 31, United States Code, Section 1051 |
et seq.
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(6.5) The Secretary may furnish
confidential |
supervisory
information to any other agency or entity that |
the Secretary determines
to
have a legitimate regulatory |
interest.
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(7) The Secretary may furnish
confidential supervisory
|
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.
|
|
(8) At the request of the affected bank or other |
financial institution,
the Secretary may furnish
|
confidential supervisory
information relating to a bank or |
other financial
institution, which
the Secretary has |
caused to be examined, in connection with the
obtaining of |
insurance coverage or the pursuit of an insurance claim for |
or on
behalf of the bank or other financial institution; |
provided that, when
possible, the Secretary shall disclose |
only relevant information while
maintaining the |
confidentiality of financial records not relevant to such
|
insurance coverage or claim and, when appropriate, may |
delete identifying data
relating to any person or |
individual.
|
(9) The Secretary may furnish a copy of a report of any |
examination
performed by the Secretary of the condition and |
affairs of any
electronic data processing entity to the |
banks serviced by the electronic
data processing entity.
|
(10) In addition to the foregoing circumstances, the |
Secretary may,
but is not required to, furnish
confidential |
supervisory information under the same circumstances |
authorized for
the bank or financial
institution pursuant |
to subsection
(b) of this Section, except that the |
Secretary shall provide
confidential supervisory |
information under circumstances described in paragraph (3) |
of
subsection (b) of this Section only upon the request of |
the bank or other
financial institution.
|
|
(b) A bank or other financial institution or its officers, |
agents, and
employees may disclose
confidential supervisory |
information only under the
following circumstances:
|
(1) to the board of directors of the bank or other |
financial institution,
as well as the president, |
vice-president, cashier, and other officers of the
bank or |
other financial institution to whom the board of directors |
may delegate
duties with respect to compliance with |
recommendations for action, and to the board of directors |
of a bank holding company that owns at
least 80% of the |
outstanding stock of the bank or other financial |
institution;
|
(2) to attorneys for the bank or other financial |
institution and to a
certified public accountant engaged by |
the State bank or financial
institution to perform an |
independent audit provided that the attorney or
certified |
public accountant shall not permit the
confidential |
supervisory
information to be further disseminated;
|
(3) to any person who seeks to acquire a controlling |
interest in, or who
seeks to merge with, the
bank or |
financial institution, provided that all attorneys, |
certified public
accountants, officers, agents, or |
employees of that person shall agree to be
bound to respect |
the confidentiality of the
confidential supervisory
|
information and to not further disseminate the information |
therein contained;
|
|
(3.5) to a Federal Home Loan Bank of which it is a |
member; |
(4) (blank); or |
(4.5) to any attorney, accountant, consultant, or |
other professional as needed to comply with any enforcement |
action issued by the Secretary; or
|
(5) to the bank's insurance company in relation to an |
insurance
claim or
the effort by the bank to procure |
insurance coverage, provided that, when
possible, the bank |
shall disclose only information that is relevant to the
|
insurance claim or that is necessary to procure the |
insurance coverage, while
maintaining the confidentiality |
of financial information pertaining to
customers. When |
appropriate, the bank may delete identifying data relating |
to
any person.
|
The disclosure of confidential supervisory information by |
a bank or other
financial institution pursuant to this |
subsection (b) and the disclosure of
information to the |
Secretary or other regulatory agency in connection with
any |
examination, visitation, or investigation shall not constitute |
a waiver of
any legal privilege otherwise available to the bank |
or other financial
institution with respect to the information.
|
(c) (1) Notwithstanding any other provision of this Act
or |
any other law, confidential supervisory information shall be |
the property of
the Secretary and shall be privileged from |
disclosure to any person except
as provided in this Section. No |
|
person in possession of confidential
supervisory information |
may disclose that information for any reason or under
any |
circumstances not specified in this Section without the prior |
authorization
of the Secretary. Any person upon whom a demand |
for production of confidential
supervisory information is |
made, whether by subpoena, order, or other judicial
or |
administrative process, must withhold production of the |
confidential
supervisory information and must notify the |
Secretary of the demand, at
which time the Secretary is |
authorized to intervene for the purpose of
enforcing the |
limitations of this Section or seeking the withdrawal or
|
termination of the attempt to compel production of the |
confidential
supervisory information.
|
(2) Any request for discovery or disclosure of confidential |
supervisory
information, whether by subpoena, order, or other |
judicial or administrative
process, shall be made to the |
Secretary, and the Secretary shall
determine within 15 days |
whether to disclose the information pursuant to
procedures and |
standards that the Secretary shall establish by rule. If the |
Secretary
determines that such information will not be |
disclosed, the Secretary's
decision shall be subject to |
judicial review under the
provisions of the Administrative |
Review Law, and venue shall be in either
Sangamon County or |
Cook County.
|
(3) Any court order that compels disclosure of confidential |
supervisory
information may be immediately appealed by the |
|
Secretary, and the order
shall
be automatically stayed pending |
the outcome of the appeal.
|
(d) If any officer, agent, attorney, or employee of a bank |
or
financial institution knowingly and willfully furnishes
|
confidential supervisory information in violation of this |
Section, the Secretary
may impose a
civil monetary penalty up |
to $1,000 for the violation against
the officer, agent, |
attorney, or employee.
|
(Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17; revised |
10-5-17.)
|
Section 10. The Savings Bank Act is amended by changing |
Sections 8015 and 9012 as follows:
|
(205 ILCS 205/8015) (from Ch. 17, par. 7308-15)
|
Sec. 8015. Change in control.
|
(a) No person, whether acting directly or indirectly or |
through or in concert with one or more persons, may acquire |
control of a savings bank operating under this Act without |
prior approval of the Secretary. The provisions of this Section |
do not apply to an established holding company acquiring |
control of a State savings bank if the transaction is subject |
to approval under the Federal Deposit Insurance Act, the |
federal Home Owners' Loan Act, or Section 3 of the federal Bank |
Holding Company Act.
|
(b) Any person seeking to acquire control of a savings bank |
|
or subsidiary of a savings bank operating under this Act shall |
submit an application in the form required by the Secretary.
|
(c) The Secretary may examine the books and records of the |
applicant and related persons, investigate any matter relevant |
to the application, and require the applicant to submit |
additional information and documents.
|
(d) The Secretary shall not approve an acquisition of |
control unless the application and related examination and |
investigation permit the Secretary to find positively on all of |
the following matters: |
(1) The applicant has filed a complete application, has |
cooperated with all examinations and investigations of the |
Secretary, and has submitted all information and documents |
requested by the Secretary. |
(2) The applicant and proposed management have the |
necessary competence, experience, integrity, and financial |
ability. |
(3) The business plans of the applicant are consistent |
with the safe and sound operation of the savings bank and |
the purposes of this Act. |
(4) The acquisition of control would not be inequitable |
to members, borrowers or creditors of the savings bank. |
(5) The applicant and proposed management have |
complied with subsection (f) of this Section. |
(6) The future prospects of the institution will not |
jeopardize the financial stability of the savings bank or |
|
prejudice the interests of the members of the savings bank. |
(e) Shares of stock or mutual members shares acquired in |
violation of subsection (a) of this Section shall not be voted |
and shall not be counted in calculating the total number of |
shares eligible to vote. In addition to any other action |
authorized under this Act, the Secretary may require divestment |
of shares of stock acquired in violation of this Section and |
may require retirement of the withdrawal value of accounts |
providing mutual member voting shares acquired in violation of |
this Section, in which case the savings bank shall pay accrued |
interest on the retired withdrawal value and shall not assess |
any penalty for early withdrawal. |
(f) An individual, whether acting directly or indirectly or |
through or in concert with one or more persons, shall file |
written notice to the Secretary within 10 days of the |
occurrence of either of the following events: |
(1) becoming, directly or indirectly, the beneficial |
owner of more than five percent of the voting shares of a |
savings bank or savings bank holding company; or |
(2) obtaining, directly or indirectly, the power to |
cast more than five percent of the member votes of a |
savings bank or savings bank holding company. |
The requirements of this subsection (f) are separate and in |
addition to the requirements of subsection (a) of this Section. |
(g) The Secretary may promulgate rules to implement this |
provision, including definitions, form and content of |
|
application or notice, procedures, exemptions, and |
requirements for approval. |
(h) As used in this Section, a person is acting in concert |
if that person is acting in concert under federal laws or |
regulations. |
(Source: P.A. 96-585, eff. 8-18-09; 97-492, eff. 1-1-12.)
|
(205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
|
Sec. 9012. Disclosure of reports of examinations and |
confidential
supervisory information; limitations. |
(a) Any report of examination, visitation, or |
investigation prepared by
the Secretary
under this Act, any |
report of examination, visitation, or investigation
prepared |
by the state
regulatory authority of another state that |
examines a branch of an Illinois
State savings bank in
that |
state, any document or record prepared or obtained in |
connection with or
relating to any
examination, visitation, or |
investigation, and any record prepared or obtained
by the |
Secretary
to the extent that the record summarizes or contains |
information
derived from
any report, document, or record |
described in this subsection shall be deemed
confidential
|
supervisory information. "Confidential supervisory |
information" shall not
include any information or
record |
routinely prepared by a savings bank and maintained in the |
ordinary
course of business or any
information or record that |
is required to be made publicly available pursuant
to State or |
|
federal law
or rule. Confidential supervisory information |
shall be the property of the Secretary
and shall
only be |
disclosed under the circumstances and for the purposes set |
forth in
this Section.
|
The Secretary may disclose confidential supervisory |
information only under
the following
circumstances:
|
(1) The Secretary may furnish confidential supervisory |
information to
federal and state
depository institution |
regulators, or any official or examiner thereof duly
|
accredited for the
purpose. Nothing contained in this Act |
shall be construed to limit the
obligation of any savings
|
bank to comply with the requirements relative to |
examinations and reports nor
to limit in any way
the powers |
of the Secretary relative to examinations and reports.
|
(2) The Secretary may furnish confidential supervisory |
information to
the United
States or any agency thereof that |
to any extent has insured a savings bank's
deposits, or any
|
official or examiner thereof duly accredited for the |
purpose. Nothing contained
in this Act shall be
construed |
to limit the obligation relative to examinations and |
reports of any
savings bank
in which deposits are to any |
extent insured by the United States or any agency
thereof
|
nor to limit in any way
the powers of the Secretary with |
reference to examination and reports of the
savings bank.
|
(2.5) The Secretary may furnish confidential |
supervisory information to a Federal Home Loan Bank in |
|
connection with any savings bank that is a member of the |
Federal Home Loan Bank or in connection with any |
application by the savings bank before the Federal Home |
Loan Bank. The confidential supervisory information shall |
remain the property of the Secretary and may not be further |
disclosed without the Secretary's permission. |
(3) The Secretary may furnish confidential supervisory |
information to
the appropriate
law enforcement authorities |
when the Secretary reasonably believes a savings
bank, |
which the Secretary
has caused to be examined, has been a |
victim of a crime.
|
(4) The Secretary may furnish confidential supervisory |
information
related
to a
savings bank, which the Secretary |
has caused to be examined, to the
administrator of the
|
Revised Uniform Unclaimed Property Act.
|
(5) The Secretary may furnish confidential supervisory |
information
relating to a
savings bank, which the Secretary |
has caused to be examined, relating to its
performance
of |
obligations under the Illinois Income Tax Act and the |
Illinois Estate and
Generation-Skipping
Transfer Tax Act |
to the Illinois Department of Revenue.
|
(6) The Secretary may furnish confidential supervisory |
information
relating to a
savings bank, which the Secretary |
has caused to be examined, under the
federal Currency
and |
Foreign Transactions Reporting Act, 31 United States Code, |
Section
1051 et seq.
|
|
(7) The Secretary may furnish confidential supervisory |
information to
any other agency
or entity that the |
Secretary determines to have a legitimate regulatory
|
interest.
|
(8) The Secretary may furnish confidential supervisory |
information as
otherwise
permitted or required by this Act |
and may furnish confidential supervisory
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.
|
(9) At the request of the affected savings bank, the |
Secretary may
furnish confidential
supervisory information |
relating to the savings bank, which the Secretary
has |
caused to be
examined, in connection with the obtaining of |
insurance coverage or the pursuit
of an insurance
claim for |
or on behalf of the savings bank; provided that, when |
possible, the Secretary
shall
disclose only relevant |
information while maintaining the confidentiality of
|
financial records
not relevant to such insurance coverage |
or claim and, when appropriate, may
delete identifying data
|
relating to any person.
|
(10) The Secretary may furnish a copy of a report of |
any examination
performed by
the Secretary of the condition |
and affairs of any electronic data processing
entity to the
|
savings banks serviced by the electronic data processing |
|
entity.
|
(11) In addition to the foregoing circumstances, the |
Secretary may, but
is not
required to, furnish confidential |
supervisory information under the same
circumstances |
authorized
for the savings bank pursuant to subsection (b) |
of this Section, except that
the Secretary shall
provide |
confidential supervisory information under circumstances |
described in
paragraph (3) of
subsection (b) of this |
Section only upon the request of the savings bank.
|
(b) A savings bank or its officers, agents, and employees |
may disclose
confidential
supervisory information only under |
the following circumstances:
|
(1) to the board of directors of the savings bank, as |
well as the
president, vice-president,
cashier, and other |
officers of the savings bank to whom the board of directors
|
may delegate
duties with respect to compliance with |
recommendations for action, and to the
board of
directors |
of a savings bank holding company that owns at least 80% of |
the
outstanding stock of the
savings bank or other |
financial institution.
|
(2) to attorneys for the savings bank and to a |
certified public
accountant engaged by the
savings bank to |
perform an independent audit; provided that the attorney or
|
certified public
accountant shall not permit the |
confidential supervisory information to be
further |
disseminated.
|
|
(3) to any person who seeks to acquire a controlling |
interest in, or who
seeks to merge with,
the savings bank; |
provided that the person shall agree to be bound to respect
|
the confidentiality
of the confidential supervisory |
information and to not further disseminate the
information
|
other than to attorneys, certified public accountants, |
officers, agents, or
employees of that
person who likewise |
shall agree to be bound to respect the confidentiality of
|
the confidential
supervisory information and to not |
further disseminate the information.
|
(4) to the savings bank's insurance company, if the |
supervisory
information contains
information that is |
otherwise unavailable and is strictly necessary to
|
obtaining insurance coverage or
pursuing an insurance |
claim for or on behalf of the savings bank; provided
that, |
when possible, the
savings bank shall disclose only |
information that is relevant to obtaining
insurance |
coverage or
pursuing an insurance claim, while maintaining |
the confidentiality of financial
information
pertaining to |
customers; and provided further that, when appropriate, |
the
savings bank may delete
identifying data relating to
|
any person.
|
(5) to a Federal Home Loan Bank of which it is a |
member. |
(6) to any attorney, accountant, consultant, or other |
professional as needed to comply with an enforcement action |
|
issued by the Secretary. |
The disclosure of confidential supervisory information by |
a savings bank
pursuant to this
subsection (b) and the |
disclosure of information to the Secretary or other
regulatory |
agency in
connection with any examination, visitation, or |
investigation shall not
constitute a waiver of any
legal |
privilege otherwise available to the savings bank with respect |
to the
information.
|
(c) (1) Notwithstanding any other provision of this Act or |
any other law,
confidential
supervisory information shall be |
the property of the Secretary and shall be
privileged from
|
disclosure to any person except as provided in this Section. No |
person in
possession of
confidential supervisory information |
may disclose that information for any
reason or under any
|
circumstances not specified in this Section without the prior |
authorization of
the Secretary.
Any person upon whom a demand |
for production of confidential supervisory
information is |
made,
whether by subpoena, order, or other judicial or |
administrative process, must
withhold
production of the |
confidential supervisory information and must notify the |
Secretary
of the
demand, at which time the Secretary is |
authorized to intervene for the
purpose of
enforcing the |
limitations of this Section or seeking the withdrawal or
|
termination of the attempt to
compel production of the |
confidential supervisory information.
|
(2) Any request for discovery or disclosure of confidential |
|
supervisory
information, whether
by subpoena, order, or other |
judicial or administrative process, shall be made
to the |
Secretary, and the Secretary shall determine within 15 days |
whether to
disclose the
information pursuant to procedures and |
standards that the Secretary shall
establish by rule. If
the |
Secretary determines that such information will not be |
disclosed, the Secretary's
decision shall be subject to |
judicial review under the provisions of the
Administrative |
Review
Law, and venue shall be in either Sangamon County or |
Cook County.
|
(3) Any court order that compels disclosure of confidential |
supervisory
information may be
immediately appealed by the |
Secretary, and the order shall be automatically
stayed pending |
the
outcome of the appeal.
|
(d) If any officer, agent, attorney, or employee of a |
savings bank knowingly
and willfully
furnishes confidential |
supervisory information in violation of this Section,
the |
Secretary
may impose a civil monetary penalty up to $1,000 for |
the violation
against
the officer, agent, attorney, or |
employee.
|
(e) Subject to the limits of this Section, the Secretary
|
also may promulgate regulations to set procedures and
standards |
for
disclosure of
the
following items:
|
(1) All fixed orders and opinions made in cases of
|
appeals of the Secretary's actions.
|
(2) Statements of policy and interpretations adopted |
|
by
the Secretary's office, but not otherwise made public.
|
(3) Nonconfidential portions of application files,
|
including applications for new charters. The Secretary
|
shall specify by rule as to what part of the files are
|
confidential.
|
(4) Quarterly reports of income, deposits, and |
financial
condition.
|
(Source: P.A. 100-22, eff. 1-1-18; 100-64, eff. 8-11-17; |
revised 10-5-17.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|
