Bill Text: IL SB3182 | 2017-2018 | 100th General Assembly | Enrolled

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

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Bill Title: Amends the Illinois Banking Act and the Savings Bank Act. Replaces "Commissioner" with "Secretary" to update references to the Secretary of Financial and Professional Regulation. Provides that before any person or persons may cause a change of control of a State bank or a savings bank, the Secretary shall be of the opinion and find that the future prospects of the institution will not jeopardize the financial stability of the State bank or the savings bank or prejudice the interests of the depositors of the State bank or the interests of the members of the savings bank. Provides that the provisions of this Act do not apply to an established holding company acquiring control of a State bank or a savings bank if the transaction is subject to approval under specified provisions of federal law. Provides that a State bank or a savings bank may disclose confidential supervisory information to any attorney, accountant, consultant, or other professional as needed to comply with any enforcement action issued by the Secretary. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2018-08-14 - Public Act . . . . . . . . . 100-0888 [SB3182 Detail]

Download: Illinois-2017-SB3182-Enrolled.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Banking Act is amended by changing
Sections 18, 48.1, and 48.3 as follows:
(205 ILCS 5/18) (from Ch. 17, par. 325)
Sec. 18. Change in control.
(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
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
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:
(1) that the general character of proposed management
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;
(1.1) that depositors' interests will not be
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;
(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;
(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;
(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
(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.
(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:
(1) a statement of financial worth;
(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
(3) such other relevant information as the Secretary
Commissioner may request to substantiate the findings
under subsection (a) of this Section.
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
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
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.
The Secretary Commissioner may impose such terms and
conditions on the approval of the change in control application
as he deems necessary or appropriate.
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.
(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
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.
(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.
(d) The reports required by subsections (b) and (c) of this
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
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
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.
(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.
(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
affiliations of the new chief executive officer or directors.
(f) (Blank).
(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
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
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.
(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.
(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,
the question shall be resolved in favor of filing the
application with the Secretary Commissioner.
"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.
"Purchase" As used in this Section, "purchase"
includes a transfer by gift, bequest, inheritance, or any
other means.
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.)
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
Sec. 48.1. Customer financial records; confidentiality.
(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of:
(1) a document granting signature authority over a
deposit or account;
(2) a statement, ledger card or other record on any
deposit or account, which shows each transaction in or with
respect to that account;
(3) a check, draft or money order drawn on a bank or
issued and payable by a bank; or
(4) any other item containing information pertaining
to any relationship established in the ordinary course of a
bank's business between a bank and its customer, including
financial statements or other financial information
provided by the customer.
(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
audit.
(2) The examination of any financial records by, or the
furnishing of financial records by a bank to, any officer,
employee or agent of (i) the Commissioner of Banks and Real
Estate, (ii) after May 31, 1997, a state regulatory
authority authorized to examine a branch of a State bank
located in another state, (iii) the Comptroller of the
Currency, (iv) the Federal Reserve Board, or (v) the
Federal Deposit Insurance Corporation for use solely in the
exercise of his duties as an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to customers where the data cannot be
identified to any particular customer or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(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.
(7) The furnishing of information to the appropriate
law enforcement authorities where the bank reasonably
believes it has been the victim of a crime.
(8) The furnishing of information under the Revised
Uniform Unclaimed Property Act.
(9) The furnishing of information under the Illinois
Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information under the federal
Currency and Foreign Transactions Reporting Act Title 31,
United States Code, Section 1051 et seq.
(11) The furnishing of information under any other
statute that by its terms or by regulations promulgated
thereunder requires the disclosure of financial records
other than by subpoena, summons, warrant, or court order.
(12) The furnishing of information about the existence
of an account of a person to a judgment creditor of that
person who has made a written request for that information.
(13) The exchange in the regular course of business of
information between commonly owned banks in connection

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

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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
physical or mental disability that impairs his or her
ability to seek or obtain protection from or prevent
financial exploitation, and (iii) "financial exploitation"
means tortious or illegal use of the assets or resources of
an elderly or disabled person, 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
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
Domestic Violence Act of 1986.
(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:
(A) servicing or processing a financial product or
service requested or authorized by the customer;
(B) maintaining or servicing a customer's account
with the bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a customer.
Nothing in this item (17), however, authorizes the sale
of the financial records or information of a customer
without the consent of the customer.
(18) The disclosure of financial records or
information as necessary to protect against actual or
potential fraud, unauthorized transactions, claims, or
other liability.
(19)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (19) of
subsection (b) of Section 48.1, a "private label credit

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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.
(2) For purposes of this paragraph (19) of subsection
(b) of Section 48.1, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(c) Except as otherwise provided by this Act, a bank may
not disclose to any person, except to the customer or his duly
authorized agent, any financial records or financial
information obtained from financial records relating to that
customer of that bank unless:
(1) the customer has authorized disclosure to the
person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order which meets the requirements of
subsection (d) of this Section; or
(3) the bank is attempting to collect an obligation
owed to the bank and the bank complies with the provisions
of Section 2I of the Consumer Fraud and Deceptive Business
Practices Act.

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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.
(e) Any officer or employee of a bank who knowingly and
willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(f) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(g) A bank shall be reimbursed for costs that are
reasonably necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data 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.
(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18.)
(205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
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
Illinois Bank Holding Company Act of 1957, and the Foreign
Banking Office 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 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 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
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 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
reference to examinations and reports.
(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
reference to examination and reports of such bank.
(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
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.
(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.
(5) The Secretary may furnish confidential supervisory
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.
(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.
(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.
(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.

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(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.

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(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;

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(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

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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

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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

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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

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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

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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

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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

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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.

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(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

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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.

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(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

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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

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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

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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.