Article 2b - Foreign Savings And Loan Associations
(205 ILCS 105/Art. 2B heading) ARTICLE 2B. FOREIGN SAVINGS AND LOAN ASSOCIATIONS
(205 ILCS 105/2B‑1) (from Ch. 17, par. 3302B‑1)
Sec. 2B‑1. Foreign savings and loan associations, savings banks, thrifts, or similar institutions, regardless of name, doing business in this State shall conduct the business in accordance with the laws of this State governing domestic associations, and no association shall do any business in this State until it files an application for admission with the Commissioner of Banks and Real Estate for a certificate of authority to do business and receives that authority following the procedures provided herein. To procure that authority, an association shall comply with the following provisions:
(a) It shall deposit with the Commissioner $100,000 either in cash or bonds of the United States or of the State of Illinois, or of any county or municipal corporation in the State of Illinois, satisfactory to the Commissioner.
(b) It shall file with the Commissioner a certified copy of its charter, constitution, bylaws, and other rules and regulations showing its manner of conducting business, together with a statement of the type that is required annually from all associations and certified copies of all subsequent amendments to the bylaws.
(c) In the case of a merger, consolidation, or purchase of assets of an association or a branch thereof of an Illinois association or another foreign association with offices or branches in Illinois, it shall list and specify the association being acquired by merger, consolidation, or purchase, or, in case of a branch, the designation of the branch on forms prescribed by the Commissioner.
(Source: P.A. 89‑508, eff. 7‑3‑96.) |
(205 ILCS 105/2B‑2) (from Ch. 17, par. 3302B‑2)
Sec. 2B‑2. Notice of filing of application; hearing; renewal of certificate.
(a) Whenever such association has complied with the provisions of this Act and the Commissioner is satisfied that such association and any subsidiary operating in this State are doing business according to the laws of this State and are in sound financial condition, he shall authorize the association to publish in newspapers of general circulation in the State of Illinois, notice of filing of its application, provided that subsections (a) through (e) of this Section shall not apply in the case of merger, consolidation, or purchase as set forth in paragraph (c) of Section 2B‑1. Publication in the manner and on forms prescribed by the Commissioner in the county of the proposed office of the association shall be made within 15 days of authorization.
(b) Within 10 days following the date of publication of notice of application any association or person wishing to object to any application filed pursuant to Section 2B‑1 shall:
(1) file in triplicate, on forms prescribed by the |
| Commissioner, its verified objections at the Springfield Office of the Commissioner; and | |
(2) serve the applicant or its attorney of record |
| with a copy of the objections and show proof of service of said copy. | |
(c) If the Commissioner considers the verified objections to be substantial, he shall so advise the objector and the applicant within 15 calendar days after receipt of the objections and shall issue notice of intent to conduct a hearing on the application. Such notice shall provide for public examination of the application. A determination that an objection is substantial shall be based only on data showing undue injury to properly conducted existing associations or data disputing the propriety of information set forth in the application, or both.
(d) The Commissioner shall conduct a hearing upon receipt of an objection filed on time and containing the following:
(1) a summary of the reasons for the objection;
(2) the specific matters in the application to which |
| objection is raised and the reasons for each objection; | |
(3) facts supporting the objection, including |
| relevant economic or financial data; and | |
(4) adverse effects on the objector which may result |
| from approval of the application. | |
The time and place of said hearing shall be established by the Commissioner and 20 days notice shall be given to all parties of record. The hearing shall be conducted in conformance with administrative hearing procedures established pursuant to rules and regulations adopted by the Commissioner. A transcript of any such hearing shall be taken and made a part of the record in the matter.
(e) A certificate of authority shall not be issued unless the Commissioner finds that a need exists for savings and loan association services in the community or area of operations of the applicant association and the applicant association will satisfy said need or that the association can be maintained without undue injury to properly conducted existing associations.
(f) Annually thereafter, upon the filing of the annual statement herein provided for, if the Commissioner finds that the association and any subsidiary operating in this State are doing business in accordance with this Act and are otherwise in sound financial condition, he shall issue a renewal of such certificate of Authority.
(Source: P.A. 92‑483, eff. 8‑23‑01.) |
(205 ILCS 105/2B‑2.2) (from Ch. 17, par. 3302B‑2.2)
Sec. 2B‑2.2. With respect to a foreign savings and loan association, savings bank, thrift or similar institution acquiring one or more Illinois offices or branches of an Illinois association or another foreign association by merger, consolidation or purchase of assets, when the Commissioner is satisfied that such association is in good financial condition and that the name that the foreign association intends to use to do business in Illinois is not deceptively similar to the name used by any other association operating an association or a branch thereof within the State of Illinois, the Commissioner shall issue such association a certificate of authority to do business in Illinois.
(Source: P.A. 86‑210; 86‑1028.) |
(205 ILCS 105/2B‑3) (from Ch. 17, par. 3302B‑3)
Sec. 2B‑3. Such foreign association may collect and use the interest on any securities deposited pursuant to Section 2B‑1, so long as it fulfills its obligations and complies with the provisions of this Act. It may also exchange them for other securities of equal value and satisfactory to the Commissioner.
(Source: P.A. 85‑1143.) |
(205 ILCS 105/2B‑4) (from Ch. 17, par. 3302B‑4)
Sec. 2B‑4. The deposit made with the Commissioner shall be held as a security for all claims of residents of this State against the association, and shall be liable for all judgments thereon, and subjected to the payment of the same in the same manner as the property of other nonresidents. Should any association cease to do business in this State, the Commissioner may release securities in his or her discretion, retaining sufficient to satisfy all outstanding liabilities.
(Source: P.A. 85‑1143.) |
(205 ILCS 105/2B‑5) (from Ch. 17, par. 3302B‑5)
Sec. 2B‑5. Cancellation of authority; notice. Should the Commissioner find, upon examination, that any foreign association or any subsidiary operating in Illinois does not conduct its business in accordance with the law, or that the affairs of any such association or subsidiary are in an unsound condition, or if such association refuses to permit examination to be made, he may cancel the authority of such association to do business in this State, and cause a notice thereof to be sent to the home office of the association, and to be published in at least one newspaper in the City of Springfield. After the publication of such notice, it shall be unlawful for any agent of the association to receive any further stock deposits from members residing in this State, except payments on stock on which a loan has been taken.
(Source: P.A. 92‑483, eff. 8‑23‑01.) |
(205 ILCS 105/2B‑6) (from Ch. 17, par. 3302B‑6)
Sec. 2B‑6. Foreign savings and loan associations shall pay to the Commissioner the following fees that shall be paid into the Savings and Residential Finance Regulatory Fund, to wit: For filing each application for admission to do business in this State, $1,125; and for each certificate of authority and annual renewal of same, $300.
(Source: P.A. 93‑32, eff. 7‑1‑03.) |
(205 ILCS 105/2B‑7) (from Ch. 17, par. 3302B‑7)
Sec. 2B‑7. It is unlawful for any savings and loan association to do business in this State without having first complied with the provisions of this Act, or for any person to sell, dispose of or offer to sell or dispose of, any shares of stock of any such association which has not complied with the provisions of this Act, and any association violating any of the provisions of this Act, or failing to comply with any of its provisions, or any person so selling or offering to sell or dispose of stock in any such association which has not complied with the provisions of this Act, shall be guilty of a business offense and shall be fined not less than $20,000 nor more than $100,000, to be recovered by an action, to be brought by the Attorney General at the request of the Commissioner, in the name of the State, and on collection to be paid into the State treasury. Provided, savings and loan associations organized in other states, having heretofore transacted business in this State, which shall not have complied with the provisions of this Act, shall have the right to close up their business and fulfill their contracts heretofore entered into with citizens of this State, through their duly authorized agents, without being subject to the penalties prescribed by this Act; but all contracts made after the effective date of this amendatory Act of 1988 by such associations not authorized to do business in this State at the time of making such contracts shall be null and void.
(Source: P.A. 85‑1143.) |
(205 ILCS 105/2B‑8) (from Ch. 17, par. 3302B‑8)
Sec. 2B‑8. The Commissioner may promulgate rules and regulations necessary for the administration of this Article.
(Source: P.A. 85‑1143.) |
(205 ILCS 105/2B‑9) (from Ch. 17, par. 3302B‑9)
Sec. 2B‑9. This Article is a successor to "An Act to regulate foreign building and loan associations doing business in Illinois", approved June 20, 1893, as amended, and shall not be construed to limit any rights granted by the Commissioner under that Act.
The provisions of this Act shall apply to foreign savings and loan associations doing business in this State whether or not such association has received a certificate of authority pursuant to this Article.
Any certificate of authority to do business in Illinois issued under provisions of "An Act to regulate foreign building and loan associations doing business in Illinois", approved June 20, 1893, as amended, shall remain in effect as though issued under this Act and this Act shall not be construed to require reapplication for an initial certificate of Authority.
(Source: P.A. 85‑1143.) |