Illinois Administrative Code

Section 1075.500 Prudent Person Rule a) When making an authorized investment of savings bank funds, the board of directors, all officers, employees, and agents of any kind must exercise the judgment and care under circumstances then prevailing that persons of prudence, discretion…

Section 1075.5000 Purpose and Scope This Subpart applies to savings banks chartered under the Savings Bank Act [205 ILCS 205/1001]. (Source: Added at 30 Ill. Reg. 19068, effective December 1, 2006)

Section 1075.5010 Definitions "Payday Loan" or "loan" means a loan with a finance charge exceeding an annual percentage rate of 36% and with a term that does not exceed 120 days, including any transaction conducted via any medium whatsoever, including, but not limited to, paper, …

Section 1075.5020 Applicability of Subpart This Subpart shall apply only to payday loans made by a savings bank. Products and services offered by a savings bank that are not offered by lenders governed by the PLRA shall not be subject to this Subpart. (Source: Added at 30 Ill. Re…

Section 1075.5030 Issuance of Payday Loans by Savings Banks a) A savings bank making a payday loan shall satisfactorily address all safety and soundness considerations identified by the Division of Banking in its examination and supervision of the savings bank. Safety and soundne…

Section 1075.505 Investment Underwriting Practice A savings bank may grant a loan or invest in other authorized assets under the Act. a) For all types of secured and unsecured loans granted, and other investments entered into, a savings bank's board of directors shall establish a…

Section 1075.510 Discrimination and Redlining a) It shall be considered discriminatory to refuse to grant loans or to vary the terms of loans or the application procedures for loans because of: 1) the proposed borrower's race, color, religion, national origin, age, sex, physical …

Section 1075.515 Loans Secured by Real Estate a) A savings bank may originate, invest in, sell, purchase, service, participate, or otherwise deal in (including brokerage or warehousing) real estate loans or interest in those loans. b) In determining compliance with the maximum lo…

Section 1075.520 Construction Loans Construction lending policies and procedures shall provide that a) No disbursements shall be made unless in conformity with a contractor's statement or amended statement, which statement or amended statement shall comply with the mechanics' lie…

Section 1075.525 Mobile Home Financing (Repealed) (Source: Repealed at 22 Ill. Reg. 6719, effective March 30, 1998)

Section 1075.530 Overdraft Loans A savings bank may extend secured or unsecured credit to cover the payment of checks, drafts, or other funds transfer orders in excess of the available balance of an account on which they are drawn. (Source: Amended at 22 Ill. Reg. 6719, effective…

Section 1075.535 Education Loans A savings bank may invest in loans, debts, and advances of credit made for the financing of primary, secondary, undergraduate or post-graduate education. (Source: Amended at 22 Ill. Reg. 6719, effective March 30, 1998)

Section 1075.540 Vehicle/Automobile Loans A savings bank may invest in loans, debts and advances of credit made for the purpose of financing vehicle/automobile purchases. For the purposes of this Section, vehicles/automobiles shall include all motorized forms of transportation wh…

Section 1075.545 Home Equity Loans Savings banks are permitted, without limitation on the percentage of total assets, to establish revolving lines of credit on the security of a first or junior lien on the borrower's personal residence, based primarily on the borrower's equity. T…

Section 1075.550 Letter of Credit A savings bank is permitted to issue letters of credit provided that the total funds advanced plus secured and unsecured loans for business, corporate, commercial, agricultural, or overdraft purposes does not exceed 15 percent of total assets. a)…

Section 1075.555 Other Investments Pursuant to Section 6003 of the Act, a savings bank is permitted to invest in loans secured by stock or equity securities, other than stock or equity securities of a depository institution, if the stock or equity security has a readily available…

Section 1075.560 Commercial Paper a) A savings bank is permitted to invest in commercial paper to the extent that the total of loans for business, corporate, commercial, overdrafts and agriculture, plus corporate debt securities and commercial paper does not exceed 30 percent of …

Section 1075.565 Financial Futures a) Definitions as used in this Section apply unless the context otherwise requires. "Financial Futures Transaction" means the purchase or sale of a financial futures contract. "Forward Commitment" means a written commitment to make, purchase or …

Section 1075.570 Financial Options a) Definitions as used in this Section apply unless the context otherwise requires. 1) "Call" means an option which gives the holder the right to purchase a financial instrument at a price and on or before the expiration date specified in the op…

Section 1075.575 Finance Leasing Savings banks may engage in leasing activities that are the functional equivalent of lending, subject to the limitations of this Section. a) A savings bank may become the legal or beneficial owner of tangible personal property or real property to …

Section 1075.580 Suretyship A savings bank may enter into an agreement to act as a surety subject to the following provisions. a) A savings bank operating under the Act may exercise surety powers only to the extent authorized by the Federal Deposit Insurance Corporation. b) A sav…

Section 1075.585 Asset Reserves a) Scope The classification system described in this Section applies to all assets or portions of assets held by a savings bank. b) Classifications 1) Substandard – assets classified substandard are inadequately protected by the current paying capa…

Section 1075.590 Asset Composition Test As an alternative asset test prescribed pursuant to Section 1009 of the Act, the composition of the assets, including loans and investments, of a savings bank is permitted to consist of any type, and in any amount, authorized by the Act and…

Section 1075.600 Requirements a) No savings bank shall invest in or lend to a service corporation, as defined in Section 1007.105 of the Act, unless the service corporation has been approved by the Director. b) Subpart F of this Part shall not apply to investments in single purpo…

Section 1075.610 Approval by the Director a) Except as provided in subsection (b) of this Section, an application for approval of a service corporation shall be approved by the Director provided that: 1) its purpose or purposes are reasonably incident to the accomplishment of the…

Section 1075.620 Investment Limitations a) A savings bank may make investments in capital stock of service corporations that are 90% or more owned by one or more savings banks in an amount that shall not exceed 10% of the savings bank's total assets. A savings bank that has met a…

Section 1075.630 Investments by Service Corporations a) A service corporation may invest its assets in any manner not expressly prohibited by law, provided the investments are made in the exercise of reasonable judgment and care under the circumstances then prevailing that person…

Section 1075.640 Ownership of Capital Stock of Service Corporation a) A minimum of 51% of all classes of capital stock of a first-tier service corporation shall be owned by one or more savings banks, bank, or savings and loan associations. First-tier service corporation means any…

Section 1075.650 Prohibited Transactions a) Without prior approval of the Director, no service corporation shall enter into any contract (except an employment contract), grant any loan, directly or indirectly, to any officer, organization director, individual stockholder or emplo…

Section 1075.660 Disclosure to Service Corporation a) Service corporations shall require as a condition of any contract, loan, joint venture agreement or partnership agreement, that the party entering into such relationship with the service corporation disclose the names and true…

Section 1075.670 Reporting Requirements a) Within 45 days after the close of each calendar year, each service corporation shall submit to the Director a report, in such form as the Director shall prescribe, setting forth complete and true statements of condition and operations of…

Section 1075.680 Audit Requirements a) Each service corporation shall cause its books and records to be audited at least once annually by an independent licensed public accountant. Except as provided after this, the report of audit shall be separate from the report of audit of an…

Section 1075.700 General a) A branch office of a savings bank is any office other than its home office, drive-in facility, pedestrian facility, agency office, or a remote service unit. b) Any business of a savings bank may be transacted at a branch office. When a branch office pr…

Section 1075.705 Application a) A savings bank may apply for a branch office or for a change of location of its home office provided that the applicant obtains the prescribed form of application and form of notice and related instructions from the Director unless waived pursuant …

Section 1075.710 Request for Preliminary Determination a) A savings bank that intends to file an application for a branch office or for a change of location of its home office may, before the filing of the application, submit to the Director written advice of intent to file the a…

Section 1075.715 Public Notice and Inspection a) At the time of the filing of the application, the applicant shall publish notice of intent to relocate or establish a branch office. The notice shall be in form and content as prescribed by the Director. The applicant shall publish…

Section 1075.720 Protest Protests, answers to protests and other related communications shall be in writing and submitted only as provided in this Section. a) Within 10 calendar days following the date of publication of Notice of Application (or 20 calendar days after the date of…

Section 1075.725 Oral Argument a) Oral argument on the merits of an application shall be heard if: 1) the applicant, or a person who has filed a protest considered to be substantial, so requests and the request is received by the Director within 10 calendar days after the time fo…

Section 1075.730 Application for the Maintenance of Branch Office after Conversion, Consolidation, Purchase of Assets or Merger a) With written approval of the Director, a savings bank that acquires an office or offices through merger, purchase, purchase of all assets or consolid…

Section 1075.735 Redesignation of Offices A savings bank may designate an existing branch office as its main business office and designate its existing main business office as a branch office by submitting an appropriate bylaw amendment for approval. No other Sections in Subpart …

Section 1075.740 Termination of Operation and/or Closing of a Branch Office a) A savings bank may offer to sell branch offices to another savings bank or other depository institution. 1) Before any such sale, a copy of the proposed agreement shall be submitted to the Director. Wi…

Section 1075.745 Agency Offices a) A savings bank may establish or maintain agency offices which only service and originate (but do not approve) loans and contracts and/or manage or sell real estate owned by the savings bank. b) An agency office shall maintain records of all busi…

Section 1075.750 Remote Drive-In and/or Remote Pedestrian Facilities a) A savings bank may, without prior approval of the Director, establish a remote drive-in and/or remote pedestrian facility in conjunction with each savings bank business office. Each facility may be designed t…

Section 1075.800 Approval No savings bank may issue and sell its capital notes or debentures without the prior written approval of the Director, subject to any conditions the Director may impose with regard to safety and soundness and maintenance of adequate financial condition, …

Section 1075.810 Conversion to Stock Capital notes or debentures issued by a stock savings bank may be converted into shares in accordance with provisions approved by the Director and contained in the capital notes or debentures. Convertible capital notes or debentures may be iss…

Section 1075.820 Priority of Claim Capital notes and debentures shall be an unsecured indebtedness of the savings bank and shall be subordinate to the claims of account holders and all other creditors of the savings bank, regardless of whether the claims of account holders or oth…

Section 1075.900 Hearings All administrative hearings shall be conducted in accordance with 38 Ill. Adm. Code 100. (Source: Amended at 46 Ill. Reg. 18013, effective October 27, 2022)