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91_HB3286eng HB3286 Engrossed LRB9111840JSpc 1 AN ACT to amend the Illinois Banking Act by changing 2 Section 5. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Banking Act is amended by 6 changing Section 5 as follows: 7 (205 ILCS 5/5) (from Ch. 17, par. 311) 8 Sec. 5. General corporate powers. A bank organized 9 under this Act or subject hereto shall be a body corporate 10 and politic and shall, without specific mention thereof in 11 the charter, have all the powers conferred by this Act and 12 the following additional general corporate powers: 13 (1) To sue and be sued, complain, and defend in its 14 corporate name. 15 (2) To have a corporate seal, which may be altered at 16 pleasure, and to use the same by causing it or a facsimile 17 thereof to be impressed or affixed or in any manner 18 reproduced, provided that the affixing of a corporate seal to 19 an instrument shall not give the instrument additional force 20 or effect, or change the construction thereof, and the use of 21 a corporate seal is not mandatory. 22 (3) To make, alter, amend, and repeal bylaws, not 23 inconsistent with its charter or with law, for the 24 administration of the affairs of the bank. If this Act does 25 not provide specific guidance in matters of corporate 26 governance, the provisions of the Business Corporation Act of 27 1983 may be used if so provided in the bylaws. 28 (4) To elect or appoint and remove officers and agents 29 of the bank and define their duties and fix their 30 compensation. 31 (5) To adopt and operate reasonable bonus plans, HB3286 Engrossed -2- LRB9111840JSpc 1 profit-sharing plans, stock-bonus plans, stock-option plans, 2 pension plans and similar incentive plans for its directors, 3 officers and employees. 4 (5.1) To manage, operate and administer a fund for the 5 investment of funds by a public agency or agencies, including 6 any unit of local government or school district, or any 7 person. The fund for a public agency shall invest in the 8 same type of investments and be subject to the same 9 limitations provided for the investment of public funds. The 10 fund for public agencies shall maintain a separate ledger 11 showing the amount of investment for each public agency in 12 the fund. "Public funds" and "public agency" as used in this 13 Section shall have the meanings ascribed to them in Section 1 14 of the Public Funds Investment Act. 15 (6) To make reasonable donations for the public welfare 16 or for charitable, scientific, religious or educational 17 purposes. 18 (7) To borrow or incur an obligation; and to pledge its 19 assets: 20 (a) to secure its borrowings, its lease of personal 21 or real property or its other nondeposit obligations; 22 (b) to enable it to act as agent for the sale of 23 obligations of the United States; 24 (c) to secure deposits of public money of the 25 United States, whenever required by the laws of the 26 United States, including without being limited to, 27 revenues and funds the deposit of which is subject to the 28 control or regulation of the United States or any of its 29 officers, agents, or employees and Postal Savings funds; 30 (d) to secure deposits of public money of any state 31 or of any political corporation or subdivision thereof 32 including, without being limited to, revenues and funds 33 the deposit of which is subject to the control or 34 regulation of any state or of any political corporation HB3286 Engrossed -3- LRB9111840JSpc 1 or subdivisions thereof or of any of their officers, 2 agents, or employees; 3 (e) to secure deposits of money whenever required 4 by the National Bankruptcy Act; 5 (f) (blank); and 6 (g) to secure trust funds commingled with the 7 bank's funds, whether deposited by the bank or an 8 affiliate of the bank, pursuant to Section 2-8 of the 9 Corporate Fiduciary Act. 10 (8) To own, possess, and carry as assets all or part of 11 the real estate necessary in or with which to do its banking 12 business, either directly or indirectly through the ownership 13 of all or part of the capital stock, shares or interests in 14 any corporation, association, trust engaged in holding any 15 part or parts or all of the bank premises, engaged in such 16 business and in conducting a safe deposit business in the 17 premises or part of them, or engaged in any activity that the 18 bank is permitted to conduct in a subsidiary pursuant to 19 paragraph (12) of this Section 5. 20 (9) To own, possess, and carry as assets other real 21 estate to which it may obtain title in the collection of its 22 debts or that was formerly used as a part of the bank 23 premises, but title to any real estate except as herein 24 permitted shall not be retained by the bank, either directly 25 or by or through a subsidiary, as permitted by subsection 26 (12) of this Section for a total period of more than 10 years 27 after acquiring title, either directly or indirectly. 28 (10) To do any act, including the acquisition of stock, 29 necessary to obtain insurance of its deposits, or part 30 thereof, and any act necessary to obtain a guaranty, in whole 31 or in part, of any of its loans or investments by the United 32 States or any agency thereof, and any act necessary to sell 33 or otherwise dispose of any of its loans or investments to 34 the United States or any agency thereof, and to acquire and HB3286 Engrossed -4- LRB9111840JSpc 1 hold membership in the Federal Reserve System. 2 (11) Notwithstanding any other provisions of this Act or 3 any other law, to do any act and to own, possess, and carry 4 as assets property of the character, including stock, that is 5 at the time authorized or permitted to national banks by an 6 Act of Congress, but subject always to the same limitations 7 and restrictions as are applicable to national banks by the 8 pertinent federal law and subject to applicable provisions of 9 the Financial Institutions Insurance Sales Law. 10 (12) To own, possess, and carry as assets stock of one 11 or more corporations that is, or are, engaged in one or more 12 of the following businesses: 13 (a) holding title to and administering assets 14 acquired as a result of the collection or liquidating of 15 loans, investments, or discounts; or 16 (b) holding title to and administering personal 17 property acquired by the bank, directly or indirectly 18 through a subsidiary, for the purpose of leasing to 19 others, provided the lease or leases and the investment 20 of the bank, directly or through a subsidiary, in that 21 personal property otherwise comply with Section 35.1 of 22 this Act; or 23 (c) carrying on or administering any of the 24 activities excepting the receipt of deposits or the 25 payment of checks or other orders for the payment of 26 money in which a bank may engage in carrying on its 27 general banking business; provided, however, that nothing 28 contained in this paragraph (c) shall be deemed to permit 29 a bank organized under this Act or subject hereto to do, 30 either directly or indirectly through any subsidiary, any 31 act, including the making of any loan or investment, or 32 to own, possess, or carry as assets any property that if 33 done by or owned, possessed, or carried by the State bank 34 would be in violation of or prohibited by any provision HB3286 Engrossed -5- LRB9111840JSpc 1 of this Act. 2 The provisions of this subsection (12) shall not apply to 3 and shall not be deemed to limit the powers of a State bank 4 with respect to the ownership, possession, and carrying of 5 stock that a State bank is permitted to own, possess, or 6 carry under this Act. 7 Any bank intending to establish a subsidiary under this 8 subsection (12) shall give written notice to the Commissioner 9 60 days prior to the subsidiary's commencing of business or, 10 as the case may be, prior to acquiring stock in a corporation 11 that has already commenced business. After receiving the 12 notice, the Commissioner may waive or reduce the balance of 13 the 60 day notice period. The Commissioner may specify the 14 form of the notice and may promulgate rules and regulations 15 to administer this subsection (12). 16 (13) To accept for payment at a future date not 17 exceeding one year from the date of acceptance, drafts drawn 18 upon it by its customers; and to issue, advise, or confirm 19 letters of credit authorizing the holders thereof to draw 20 drafts upon it or its correspondents. 21 (14) To own and lease personal property acquired by the 22 bank at the request of a prospective lessee and upon the 23 agreement of that person to lease the personal property 24 provided that the lease, the agreement with respect thereto, 25 and the amount of the investment of the bank in the property 26 comply with Section 35.1 of this Act. 27 (15) (a) To establish and maintain, in addition to the 28 main banking premises, branches offering any banking 29 services permitted at the main banking premises of a 30 State bank. 31 (b) To establish and maintain, after May 31, 1997, 32 branches in another state that may conduct any activity 33 in that state that is authorized or permitted for any 34 bank that has a banking charter issued by that state, HB3286 Engrossed -6- LRB9111840JSpc 1 subject to the same limitations and restrictions that are 2 applicable to banks chartered by that state. 3 (16) (Blank). 4 (17) To establish and maintain terminals, as authorized 5 by the Electronic Fund Transfer Act. 6 (18) To establish and maintain temporary service booths 7 at any International Fair held in this State which is 8 approved by the United States Department of Commerce, for the 9 duration of the international fair for the sole purpose of 10 providing a convenient place for foreign trade customers at 11 the fair to exchange their home countries' currency into 12 United States currency or the converse. This power shall not 13 be construed as establishing a new place or change of 14 location for the bank providing the service booth. 15 (19) To indemnify its officers, directors, employees, 16 and agents, as authorized for corporations under Section 8.75 17 of the Business Corporation Act of 1983. 18 (20) To own, possess, and carry as assets stock of, or 19 be or become a member of, any corporation, mutual company, 20 association, trust, or other entity formed exclusively for 21 the purpose of providing directors' and officers' liability 22 and bankers' blanket bond insurance or reinsurance to and for 23 the benefit of the stockholders, members, or beneficiaries, 24 or their assets or businesses, or their officers, directors, 25 employees, or agents, and not to or for the benefit of any 26 other person or entity or the public generally. 27 (21) To make debt or equity investments in corporations 28 or projects, whether for profit or not for profit, designed 29 to promote the development of the community and its welfare, 30 provided that the aggregate investment in all of these 31 corporations and in all of these projects does not exceed 10% 32 of the unimpaired capital and unimpaired surplus of the bank 33 and provided that this limitation shall not apply to 34 creditworthy loans by the bank to those corporations or HB3286 Engrossed -7- LRB9111840JSpc 1 projects. Upon written application to the Commissioner, a 2 bank may make an investment that would, when aggregated with 3 all other such investments, exceed 10% of the unimpaired 4 capital and unimpaired surplus of the bank. The Commissioner 5 may approve the investment if he is of the opinion and finds 6 that the proposed investment will not have a material adverse 7 effect on the safety and soundness of the bank. 8 (22) To own, possess, and carry as assets the stock of a 9 corporation engaged in the ownership or operation of a travel 10 agency or to operate a travel agency as a part of its 11 business, provided that the bank either owned, possessed, and 12 carried as assets the stock of such a corporation or operated 13 a travel agency as part of its business before July 1, 1991. 14 (23) With respect to affiliate facilities: 15 (a) to conduct at affiliate facilitiesany of the16following transactionsfor and on behalf of another 17 commonly owned bank, if so authorized by the other bank, 18 all transactions that the other bank is authorized or 19 permitted to perform: receiving deposits; cashing and20issuing checks, drafts, and money orders; changing money;21and receiving payments on existing indebtedness; and 22 (b) to authorize a commonly owned bank to conduct 23 for and on behalf of it any of the transactions it is 24 authorized or permitted to performlisted in this25paragraph (23)at one or more affiliate facilities. 26 Any bank intending to conduct or to authorize a commonly 27 owned bank to conduct at an affiliate facility any of the 28 transactions specified in this paragraph (23) shall give 29 written notice to the Commissioner at least 30 days before 30 any such transaction is conducted at the affiliate facility. 31 (24) To act as the agent for any fire, life, or other 32 insurance company authorized by the State of Illinois, by 33 soliciting and selling insurance and collecting premiums on 34 policies issued by such company; and to receive for services HB3286 Engrossed -8- LRB9111840JSpc 1 so rendered such fees or commissions as may be agreed upon 2 between the bank and the insurance company for which it may 3 act as agent; provided, however, that no such bank shall in 4 any case assume or guarantee the payment of any premium on 5 insurance policies issued through its agency by its 6 principal; and provided further, that the bank shall not 7 guarantee the truth of any statement made by an assured in 8 filing his application for insurance. 9 (25) Notwithstanding any other provisions of this Act or 10 any other law, to offer any product or service that is at the 11 time authorized or permitted to any insured savings 12 association or out-of-state bank by applicable law, provided 13 that powers conferred only by this subsection (25): 14 (a) shall always be subject to the same limitations 15 and restrictions that are applicable to the insured 16 savings association or out-of-state bank for the product 17 or service by such applicable law; 18 (b) shall be subject to applicable provisions of 19 the Financial Institutions Insurance Sales Law; 20 (c) shall not include the right to own or conduct a 21 real estate brokerage business for which a license would 22 be required under the laws of this State; and 23 (d) shall not be construed to include the 24 establishment or maintenance of a branch, nor shall they 25 be construed to limit the establishment or maintenance of 26 a branch pursuant to subsection (11). 27 (Source: P.A. 90-41, eff. 10-1-97; 90-301, eff. 8-1-97; 28 90-655, eff. 7-30-98; 90-665, eff. 7-30-98; 91-330, eff. 29 7-29-99.) 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.