Chapter 205 — FINANCIAL REGULATION

(205 ILCS 5/1) (from Ch. 17, par. 301) Sec. 1. Title. This Act may be cited as the Illinois Banking Act. (Source: Laws 1955, p. 83.)

(205 ILCS 5/10) (from Ch. 17, par. 317) Sec. 10. Permit to organize. (a) Upon the filing of an application for a permit to organize, the Commissioner shall investigate the truth of the statements therein and shall consider the proposed bank's capital structure, its future earning…

(205 ILCS 5/11) (from Ch. 17, par. 318) Sec. 11. Stock subscription. As soon as may be after receipt of a permit to organize, books of subscription to the capital stock and to the preferred stock, if any, may be opened, and when the capital stock and the preferred stock shall hav…

(205 ILCS 5/12) (from Ch. 17, par. 319) Sec. 12. Organization. (a) The directors so elected shall proceed to organize in conformity with this Act and as follows: (1) To qualify themselves as directors. (2) To elect one of their number as president. (3) To make and adopt by-laws n…

(205 ILCS 5/13) (from Ch. 17, par. 320) Sec. 13. Issuance of charter. (a) When the directors have organized as provided in Section 12 of this Act, and the capital stock and the preferred stock, if any, together with a surplus of not less than 50% of the capital, has been all full…

(205 ILCS 5/13.5) Sec. 13.5. Formation and merger of interim banks. (a) An interim bank may be chartered as a State bank for the exclusive purpose of accomplishing a corporate restructuring through merger with an existing State bank, national bank, trust company, or an insured sa…

(205 ILCS 5/13.6) Sec. 13.6. Banks as limited liability companies. (a) A bank may be organized as a limited liability company, may convert to a limited liability company, or may merge with and into a limited liability company under the applicable laws of this State and of the Uni…

(205 ILCS 5/14) (from Ch. 17, par. 321) Sec. 14. Stock. Unless otherwise provided for in this Act provisions of general application to stock of a state bank shall be as follows: (1) All banks shall have their capital divided into shares of a par value of not less than $1 each and…

(205 ILCS 5/14.1) (from Ch. 17, par. 321.1) Sec. 14.1. Quasi-Reorganization of Capital. (a) For the purposes of declaring dividends pursuant to Section 14(8)(b) of this Act upon a change in control, if a bank: (1) incurs a change in ownership of more than 50% of its voting stock;…

(205 ILCS 5/15) (from Ch. 17, par. 322) Sec. 15. Stock and stockholders. Unless otherwise provided for in this Act, provisions of general application to capital stock, preferred stock, and stockholders of a State bank shall be as follows: (1) There shall be an annual meeting of t…

(205 ILCS 5/16) (from Ch. 17, par. 323) Sec. 16. Directors. The business and affairs of a State bank shall be managed by its board of directors that shall exercise its powers as follows: (1) Directors shall be elected as provided in this Act. Any omission to elect a director or d…

(205 ILCS 5/16.1) (from Ch. 17, par. 323.1) Sec. 16.1. One or more of the directors may be removed, with or without cause, at a meeting of shareholders by the affirmative vote of the holders of a majority of the outstanding shares then entitled to vote at an election of directors…

(205 ILCS 5/16.5) Sec. 16.5. Employment of persons with convictions. Except with the prior written consent of the Commissioner, no State bank shall knowingly employ or otherwise permit an individual to serve as an officer, director, employee, or agent of the State bank if the ind…

(205 ILCS 5/17) (from Ch. 17, par. 324) Sec. 17. Changes in charter. (a) By compliance with the provisions of this Act a State bank may: (1) (blank); (2) increase, decrease or change its capital stock, whether issued or unissued, provided that in no case shall the capital be dimi…

(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 occur in the ownership of outstanding stock of any State bank, whether by …

(205 ILCS 5/19.1) (from Ch. 17, par. 326.1) Sec. 19.1. As used in Sections 20 through 30 both inclusive of this Act and for purposes of any Section of the Illinois Bank Holding Company Act of 1957, the existence of a bank converted from a State bank to a national bank or vice ver…

(205 ILCS 5/19.2) Sec. 19.2. For purposes of Sections 20 through 30 both inclusive of this Act, a "stockholder" shall include, without limitation, a "member" or other designation of holders of ownership or voting interest in an insured savings association. (Source: P.A. 89-567, e…

(205 ILCS 5/2) (from Ch. 17, par. 302) (Text of Section from P.A. 104-310) Sec. 2. General definitions. In this Act, unless the context otherwise requires, the following words and phrases shall have the following meanings: "Accommodation party" shall have the meaning ascribed to …

(205 ILCS 5/2.1) (from Ch. 17, par. 303) Sec. 2.1. (Repealed). (Source: Laws 1965, p. 2020. Repealed by P.A. 89-508, eff. 7-3-96.)

(205 ILCS 5/2.2) (from Ch. 17, par. 304) Sec. 2.2. (Repealed). (Source: P.A. 83-1177. Repealed by P.A. 89-508, eff. 7-3-96.)

(205 ILCS 5/2.3) (from Ch. 17, par. 305) Sec. 2.3. (Repealed). (Source: P.A. 86-1157. Repealed by P.A. 89-508, eff. 7-3-96.)

(205 ILCS 5/2.4) (from Ch. 17, par. 306) Sec. 2.4. (Repealed). (Source: Laws 1965, p. 2020. Repealed by P.A. 89-508, eff. 7-3-96.)

(205 ILCS 5/2.5) (from Ch. 17, par. 307) Sec. 2.5. (Repealed). (Source: P.A. 83-1177. Repealed by P.A. 89-508, eff. 7-3-96.)

(205 ILCS 5/2.6) (from Ch. 17, par. 308) Sec. 2.6. Transfer of powers. There is transferred to the Commissioner all the powers and authorities and all duties and responsibilities heretofore vested in the Director of Financial Institutions under this Act. This transfer shall not a…

(205 ILCS 5/20) (from Ch. 17, par. 327) Sec. 20. Resulting national bank or insured savings association. Nothing in this Act shall be construed to require the approval of any Illinois State authority as a condition to the right of a State bank, pursuant to the laws of the United …

(205 ILCS 5/21) (from Ch. 17, par. 328) Sec. 21. Resulting State bank. (a) Upon approval by the Commissioner, banks may be merged to result in a State bank, and a national bank or insured savings association may convert into a State bank as prescribed by this Act, except that the…

(205 ILCS 5/21.1) Sec. 21.1. Application for certificate of authority. (a) On or after June 1, 1997, an out-of-state bank may merge with a State bank after executing and filing not less than 60 days before the proposed effective date of the merger an application therefor with the…

(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 Il…

(205 ILCS 5/21.3) Sec. 21.3. Mergers; deposit concentration limits. (a) Except as otherwise expressly provided in this Section, no bank shall merge with or into or acquire control of, or acquire all or substantially all of the assets of, a State bank or a national bank whose main…

(205 ILCS 5/21.4) 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…

(205 ILCS 5/21.5) Sec. 21.5. Prohibition against establishment of branches on or near the premises of certain affiliates. (a) For purposes of this Section: "Affiliate" has the meaning ascribed to that term in item (1) of subsection (b) of Section 35.2 of this Act, except that for…

(205 ILCS 5/22) (from Ch. 17, par. 329) Sec. 22. Merger procedure; resulting State bank. The merger procedure required of a State bank where there is to be a resulting State bank by consolidation or merger shall be: (1) The board of directors of each merging bank or insured savin…

(205 ILCS 5/23) (from Ch. 17, par. 330) Sec. 23. Merger; approval by stockholders. To be effective, even though approved by the Commissioner, a merger that is to result in a State bank must be approved by the affirmative vote of the holders of at least two-thirds of the outstandi…

(205 ILCS 5/24) (from Ch. 17, par. 331) Sec. 24. Effective date of merger; filing. The executed merger agreement together with copies of the resolutions of the stockholders of each merging bank or insured savings association approving it, certified by the bank's or insured saving…

(205 ILCS 5/25) (from Ch. 17, par. 332) Sec. 25. Conversion of national bank or insured savings association into State bank. A national bank or insured savings association located in this State which follows the procedure prescribed by the laws of the United States or of the Stat…

(205 ILCS 5/26) (from Ch. 17, par. 333) Sec. 26. Converting national banks or insured savings association; issuance of charter to resulting State bank. After receipt by the Commissioner of the papers specified in Section 25, he shall approve or disapprove the plan of conversion. …

(205 ILCS 5/27) (from Ch. 17, par. 334) Sec. 27. Commissioner's expenses. The expenses of any examination made by the Commissioner or at his direction in connection with a proposed merger or a proposed conversion shall be paid by the merging banks or insured savings association o…

(205 ILCS 5/28) (from Ch. 17, par. 335) Sec. 28. Continuation of corporate entity. A resulting State bank, national bank or, after May 31, 1997, out-of-state bank shall be considered the same business and corporate entity as each merging bank or insured savings association or as …

(205 ILCS 5/29) (from Ch. 17, par. 336) Sec. 29. Dissenting stockholders.) If a stockholder of a state bank which is a party to a merger other than a merger which is to result in a national bank, shall file with such bank prior to or at the meeting of stockholders at which the pl…

(205 ILCS 5/3) (from Ch. 17, par. 309) Sec. 3. Formation and primary powers. It shall be lawful to form banks, as herein provided, for the purpose of discount and deposit, buying and selling exchange and doing a general banking business, excepting the issuing of bills to circulat…

(205 ILCS 5/30) (from Ch. 17, par. 337) Sec. 30. Conversion; merger with trust company or special purpose trust company. Upon approval by the Commissioner a trust company having power so to do under the law under which it is organized may convert into a state bank or may merge in…

(205 ILCS 5/30.5) Sec. 30.5. Mid-tier bank holding company merger with State bank. Upon approval by the Commissioner, a mid-tier bank holding company having power so to do under the law under which it is organized may merge into its subsidiary State bank as prescribed by this Act…

(205 ILCS 5/31) (from Ch. 17, par. 338) Sec. 31. Emergency sale of assets, change in control, or merger. (a) With the prior written approval of the Commissioner, any State bank in danger of default may, by vote of a majority of its board of directors, and without a vote of its sh…

(205 ILCS 5/31.1) (from Ch. 17, par. 338.1) Sec. 31.1. Savings association branch; bank branch. (a) A State bank that purchases an Illinois branch of an insured savings association that is not an eligible depository institution may establish and maintain that branch as a branch o…

(205 ILCS 5/32) (from Ch. 17, par. 339) Sec. 32. Basic loaning limits. The liabilities outstanding at one time to a state bank of a person for money borrowed, including the liabilities of a partnership or joint venture in the liabilities of the several members thereof, shall not …

(205 ILCS 5/32.1) (from Ch. 17, par. 340) Sec. 32.1. Loans to single individuals. (a) For purposes of this Section, "single" means not currently married. (b) No State bank shall require that single individuals who have reached the age of majority to whom loans are made have cosig…

(205 ILCS 5/33) (from Ch. 17, par. 341) Sec. 33. Marketable investment securities limit. Any State bank may purchase for its own account marketable investment securities without regard to any other liability to the bank of the issuer, maker, obligor, or guarantor of any marketabl…

(205 ILCS 5/34) (from Ch. 17, par. 342) Sec. 34. Exceptions to loans and investment limits. The limitations in Sections 32, 33, and 35.1 of this Act upon the liabilities of any one person and upon the purchase and holding of marketable investment securities shall not apply: (1) T…

(205 ILCS 5/35) (from Ch. 17, par. 343) Sec. 35. Exemptions from loan and investment limits. The limitations in Sections 32, 33, 34, and 35.1 upon the liabilities of any one person and upon the purchase or holding of marketable investment securities shall not apply to the followi…

(205 ILCS 5/35.1) (from Ch. 17, par. 344) Sec. 35.1. Lease limitations. In exercise of the power conferred by paragraph (14) of Section 5 of this Act to own and lease personal property, a state bank shall be subject to the following limitations and restrictions in addition to tho…