Public Act 093-0965
 		





SB2710 Enrolled
LRB093 19061 SAS 44796 b






    AN ACT concerning financial 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 
Section 21.2 and  by adding Section 21.4 as follows:
 



    (205 ILCS 5/21.2)



    Sec. 21.2. Interstate mergers; minimum age requirement. 

    (a) No out of state bank and no national bank whose main 
banking premises is
located in a state other than Illinois 
shall merge with or into, or shall
acquire all or substantially 
all of the assets of an Illinois bank that has
existed and 
continuously operated as a bank for 5 years or less.

    (b) For purposes of subsection (a) of this Section, an 
Illinois bank that is
the resulting bank following a merger 
involving an Illinois interim bank shall
be considered to have 
been in existence and continuously operated during the

existence and continuous operation of the Illinois merged bank. 
As used in this
subsection (b), the words "interim bank" shall 
mean a bank which shall not
accept deposits, make loans, pay 
checks, or engage in the general business of
banking or any 
part thereof, and is chartered solely for the purpose of 
merging
with or acquiring control of, or acquiring all or 
substantially all of the
assets of an existing Illinois bank.

    (c) The provisions of subsection (a) of the Section shall 
not apply to the
merger or acquisition of all or substantially 
all of the assets of an Illinois
bank:


        (1) if the merger or acquisition is part of a purchase 
    or acquisition with
respect to which the Federal Deposit 
    Insurance Corporation provides assistance
under Section 
    13(c) of the Federal Deposit Insurance Act; or


        (2) if the Illinois bank is in default or in danger of 
    default; or
        (3) if the out of state  bank or national bank has its 
    main banking premises in a state that is deemed to be 
    reciprocal with Illinois and would be eligible to establish 
    a branch pursuant to Section 21.4 of this Act.

(Source: P.A. 90-226, eff. 7-25-97.)

 
    (205 ILCS 5/21.4  new)
    Sec. 21.4. Out-of-state banks establishing branches.

    (a) No out-of-state bank and no national bank whose main 
banking premises is located in a state other than Illinois 
shall establish a branch in this State, other than a branch 
authorized pursuant to Section 21.1 of this Act, unless:
        (1) the laws of the state in which such out-of-state 
    bank or national bank has its main banking premises permit 
    such out-of-state bank or national bank to establish a 
    branch in this State;
        (2) such out-of-state bank or national bank has its 
    main banking premises in a state that permits a State bank 
    to establish a branch in that state pursuant to terms and 
    conditions that are deemed to be reciprocal with the 
    provisions of this Act; and

        (3) such out-of-state bank obtains a certificate of 
    authority from, or provides notice to, the Commissioner as 
    provided in subsection (b) of this Section.
    (b) Before such out-of-state bank may establish a branch in 
this State, the out-of-state bank must obtain a certificate of 
authority from the Commissioner.  The out-of-state bank must 
file an application for a certificate of authority on a form 
prescribed by the Commissioner.

    The application for a certificate of authority shall not be 
required if the state in which the out-of-state bank is 
chartered permits a state bank to establish a branch in that 
state without filing an application.  An out-of-state bank 
chartered in such a state may establish a branch in this State 
pursuant to this Section after providing the Commissioner with 
written notice.  The Commissioner may prescribe the form of such 
notice and may accept a copy of a notice or application 
provided by the out-of-state bank to its chartering authority 
or to its appropriate federal banking agency.

    (c) The determination of whether the laws of the state in 
which such out-of-state bank or national bank has its main 
banking premises are reciprocal with the provisions of this Act 
shall be made in writing by the Commissioner.  The Commissioner 
shall not make a finding of reciprocity unless the Commissioner 
determines that the laws of the other state permit a State bank 
to establish a branch in such other state under terms and 
conditions that are substantially similar to the provisions of 
this Section.  The Commissioner shall consider, at a minimum, 
whether the laws of such other state discriminate in any way 
against a State bank and whether the laws of such other state 
impose administrative or regulatory burdens that are 
substantially more restrictive than those imposed by this Act 
on an out-of-state bank or national bank seeking to establish a 
branch in this State.
    (d) After such out-of-state bank or national bank lawfully 
establishes a branch in this State pursuant to the provisions 
of this Section, such out-of-state bank or national bank may 
establish and maintain additional branches in this State to the 
same extent as a State bank. An out-of-state bank shall provide 
written notice to the Commissioner of its intent to establish 
an additional branch or branches in this State within 30 days 
after receiving approval from the appropriate federal banking 
agency to establish the branch or branches. The form of the 
notice shall be specified by the Commissioner.
    (e) A branch of an out-of-state bank may not conduct any 
activity that is not authorized for a State bank.

 
    Section 10. The Illinois Bank Holding Company Act of 1957 
is amended  by changing Section 3.071 as follows:
 



    (205 ILCS 10/3.071)  (from Ch. 17, par. 2510.01)



    Sec. 3.071. Out of state bank holding companies. 

    (a) An out of state bank holding company may acquire 
ownership of more
than 5% of the voting shares of or control of 
one or more Illinois banks or
Illinois bank holding companies 
pursuant to a transaction, occurrence or
event that is 
described in paragraphs (1) through (5) of subsection (a) of

Section 3.02, provided the acquisition is made in accordance 
with Sections 3.02
and 3.07 of this Act in accordance with 
subsection (i) of this Section and
provided the following 
conditions
are met:


        (1) (Blank).


        (2) An out of state bank holding company seeking to 
    acquire an
Illinois bank or Illinois bank holding company 
    pursuant to subsection (a)
of Section 3.071 shall, if 
    change in control of the bank is governed by
Section 18 of 
    the Illinois Banking Act, file with the Commissioner the 
    application required by that Section containing

    information satisfactory to the Commissioner.

    (b) (Blank). 

    (c) (Blank).

    (d) (Blank).

    (e) (Blank).

    (f) (Blank). 

    (g) (Blank).

    (h) (Blank).


    (i) (1) An out of state bank holding company which directly 
    or indirectly
controls or has control over an Illinois bank 
    that has existed and continuously
operated as a bank for 5 
    years or less, may not cause the Illinois bank to
merge 
    with or into, or to have all or substantially all of the 
    assets acquired
by a bank that is an out of state bank.


        (2) For purposes of subsection (i)(1) of this Section, 
    an Illinois bank
that is the resulting bank following a 
    merger involving an Illinois interim
bank shall be 
    considered to have been in existence and continuously 
    operated
during the existence and continuous operation of 
    the Illinois merged bank. As
used in this subsection 
    (i)(2), the words
"resulting bank" and "merged bank" shall 
    have the meanings ascribed to those
words in Section 2 of 
    the Illinois Banking Act. As used in this subsection

    (i)(2), the words "interim bank" shall mean a bank which 
    shall not accept
deposits, make loans, pay checks, or 
    engage in the general business of banking
or any part 
    thereof, and is chartered solely for the purpose of merging 
    with or
acquiring control of, or acquiring all or 
    substantially all of the assets of an
existing Illinois 
    bank.


        (3) The provisions of subsection (i)(1) of this Section 
    shall not apply to
the merger or acquisition of all or 
    substantially all of the assets of an
Illinois bank:


            (i) if the merger or acquisition is part of a 
        purchase or acquisition
with respect to which the 
        Federal Deposit Insurance Corporation provides

        assistance under Section 13(c) of the Federal Deposit 
        Insurance Act; or


            (ii) if the Illinois bank is in default or in 
        danger of default.  As
used in this subsection 
        (i)(3)(ii), the words "in default"
and "in danger of 
        default" shall have the meaning ascribed to those words 
        in
Section 2 of the Illinois Banking Act; or
.

            (iii) if the bank with which the Illinois bank is 
        being merged or that is acquiring all or substantially 
        all of the assets of the Illinois bank has its main 
        banking premises in a state that is deemed to be 
        reciprocal with Illinois and would be eligible to 
        establish a branch pursuant to Section 21.4 of the 
        Illinois Banking Act.

(Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96; 
90-226, eff.
7-25-97; 90-655, eff. 7-30-98.)

 
    Section 15. The Savings Bank Act is amended  by changing 
Section 1006 and  by adding Sections 1006.05 and 1007.130 as 
follows:
 



    (205 ILCS 205/1006)  (from Ch. 17, par. 7301-6)


    Sec. 1006. Parity. 

    (a) Subject to the regulation of the Commissioner and in 
addition to the
powers granted by this Act,  each savings bank 
operating under this Act shall
possess those powers granted by 
regulation promulgated under the Federal
Deposit Insurance Act 
for state savings banks.

    (b) A savings bank may establish branches or offices at 
which savings or
investments are regularly received or loans 
approved as follows:


        (1) to the extent branch powers and offices are granted

    to State banks under the Illinois Banking Act;


        (2) within the geographic area defined in Article 2 of 
    this Act
and subject to the provisions of Article 2 of this 
    Act;


        (3) within the same geographic areas or states as those 
    states from
which a holding company is permitted to acquire 
    an Illinois savings bank or
an Illinois savings bank 
    holding company;


        (4) to the same extent that holding companies and 
    savings and loan
associations headquartered outside the 
    State of Illinois are allowed to
operate in Illinois by 
    virtue of Articles 1A and 2B of the Illinois Savings
and 
    Loan Act of 1985;


        (5) as the result of mergers, consolidations, or bulk 
    sales of
facilities in the case of relocations; and
.

        (6) to the extent an out-of-state savings bank has its 
    main banking premises in a state that is reciprocal with 
    Illinois and would be eligible to establish a branch 
    pursuant to Section 1006.05 of this Act.

    (c) The Commissioner may adopt regulations that provide for 
the
establishment of branches as defined by the Commissioner.

    (d) Notwithstanding any other provision of this Act, a 
savings bank that
purchases or assumes all or any part of the 
assets or liabilities of a bank,
savings bank, or savings and 
loan association or merges or consolidates with a
bank, savings 
bank, or savings and loan association may retain and maintain 
the
main premises or branches of the former bank, savings bank, 
or savings and loan
association as branches of the purchasing, 
merging, or consolidating savings
bank, provided it assumes the 
deposit liabilities of the bank, savings bank, or
savings and 
loan association maintained at the main premises or branches.

    (e) A savings bank has any power reasonably incident,

convenient, or useful
to
the accomplishment of the powers 
conferred upon
the savings bank by this Act.

(Source: P.A. 89-74, eff. 6-30-95; 90-301, eff. 8-1-97; 90-665, 
eff. 7-30-98.)


 
    (205 ILCS 205/1006.05 new)

    Sec. 1006.05. Out-of-state savings banks establishing 
branches.
    (a) No out-of-state savings bank whose main banking 
premises is located in a state other than Illinois shall 
establish a branch in this State, other than a branch 
authorized pursuant to any other provision of this Act, unless:
        (1) the laws of the state in which such out-of-state 
    savings bank has its main banking premises permit the 
    out-of-state savings bank to establish a branch in this 
    State;
        (2) the out-of-state savings bank has its main banking 
    premises in a state that permits an Illinois State savings 
    bank to establish a branch in that state pursuant to terms 
    and conditions that are deemed to be reciprocal with the 
    provisions of this Act; and
        (3) the out-of-state savings bank obtains a 
    certificate of authority from, or provides notice to, the 
    Commissioner as provided in subsection (b) of this Section.
    (b) Before the out-of-state savings bank may establish a 
branch in this State, the out-of-state savings bank must obtain 
a certificate of authority from the Commissioner.  The 
out-of-state savings bank must file an application for a 
certificate of authority on a form prescribed by the 
Commissioner.
    The application for a certificate of authority shall not be 
required if the state in which the out-of-state savings bank is 
chartered permits an Illinois State savings bank to establish a 
branch in that state without filing an application.  An 
out-of-state savings bank chartered in such a state may 
establish a branch in this State pursuant to this Section after 
providing the Commissioner with written notice.  The 
Commissioner may prescribe the form of such notice and may 
accept a copy of a notice or application provided by the 
out-of-state savings bank to its chartering authority.
    (c) The determination of whether the laws of the state in 
which the out-of-state savings bank has its main banking 
premises are reciprocal with the provisions of this Act shall 
be made in writing by the Commissioner.  The Commissioner shall 
not make a finding of reciprocity unless the Commissioner 
determines that the laws of the other state permit an Illinois 
State savings bank to establish a branch in the other state 
under terms and conditions that are substantially similar to 
the provisions of this Section.  The Commissioner shall 
consider, at a minimum, whether the laws of the other state 
discriminate in any way against an Illinois State savings bank 
and whether the laws of the other state impose administrative 
or regulatory burdens that are substantially more restrictive 
than those imposed by this Act on an out-of-state savings bank 
seeking to establish a branch in this State.
    (d) After the out-of-state savings bank lawfully 
establishes a branch in this State pursuant to the provisions 
of this Section, the out-of-state savings bank may establish 
and maintain additional branches in this State to the same 
extent as an Illinois State savings bank.  An out-of-state 
savings bank shall provide written notice to the Commissioner 
of its intent to establish an additional branch or additional 
branches in this State within 30 days after receiving approval 
from its chartering authority or other appropriate regulatory 
agency to establish the branch or branches.  The form of the 
notice shall be specified by the Commissioner.
    (e) A branch of an out-of-state savings bank may not 
conduct any activity that is not authorized for an Illinois 
State savings bank.

 
    (205 ILCS 205/1007.130 new)

    Sec. 1007.130. Out-of-state savings bank. "Out-of-state 
savings bank" means a savings bank chartered under the laws of 
a state other than Illinois, a territory of the United States, 
or the District of Columbia.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.