Chapter 205 — FINANCIAL REGULATION

(205 ILCS 205/3004) (from Ch. 17, par. 7303-4) Sec. 3004. Contents of bylaws. (a) The bylaws of the savings bank shall provide for the following matters consistent with any applicable provisions of this Act: (1) The number of directors and the minimum frequency of directors' meet…

(205 ILCS 205/3005) (from Ch. 17, par. 7303-5) Sec. 3005. Permit to organize. (a) The Commissioner may require additional information and conduct whatever investigation necessary to determine whether to issue a permit to organize, including the subpoenaing of books and records, t…

(205 ILCS 205/3006) (from Ch. 17, par. 7303-6) Sec. 3006. Temporary organization and capital subscriptions. (a) Each applicant shall become a member of the organization committee and shall elect officers and directors of the savings bank in organization. (b) The officers and dire…

(205 ILCS 205/3007) (from Ch. 17, par. 7303-7) Sec. 3007. Completion of organization. When all of the requirements of this Act are completed, the Commissioner may require additional assurances, information, capital, or agreements from the officers or directors of the organization…

(205 ILCS 205/4001) (from Ch. 17, par. 7304-1) Sec. 4001. Members. (a) The membership of a mutual savings bank shall consist solely of every depositor or holder of a deposit account issued by the savings bank. (b) The members of a stock savings bank shall be only the owners of it…

(205 ILCS 205/4002) (from Ch. 17, par. 7304-2) Sec. 4002. Annual and special meetings. Dates of annual meetings of members or stockholders shall be specified in the bylaws. Failure to hold an annual meeting shall not cause a forfeiture or dissolution of the savings bank. Special …

(205 ILCS 205/4003) (from Ch. 17, par. 7304-3) Sec. 4003. Notice of meetings. (a) Notice of an annual meeting shall be published once not fewer than 10 days nor more than 40 days before the date of the meeting. The notice shall also be displayed at the place of business of the sa…

(205 ILCS 205/4004) (from Ch. 17, par. 7304-4) Sec. 4004. Quorum of annual or special meetings. The articles of incorporation may specify a quorum requirement, but it may not be less than one-third of the total number of votes entitled to be voted at a meeting. Any meeting, inclu…

(205 ILCS 205/4005) (from Ch. 17, par. 7304-5) Sec. 4005. Voting. (a) Voting at a meeting may be either in person or by proxy executed in writing by the member or stockholder or by his duly authorized attorney-in-fact. (b) In the determination of all questions requiring ascertain…

(205 ILCS 205/4006) (from Ch. 17, par. 7304-6) Sec. 4006. Record date for voting, dividend, and other purposes. (a) For the purposes of determining the holders of stock, capital accounts, and membership entitled to notice of or to vote at any meeting of the members or in order to…

(205 ILCS 205/4007) (from Ch. 17, par. 7304-7) Sec. 4007. Proxies. (a) Voting at a meeting may be either in person or by proxy executed in writing by the member or shareholder or by his duly authorized attorney-in-fact. The forms and wording of all proxies must receive prior appr…

(205 ILCS 205/4008) (from Ch. 17, par. 7304-8) Sec. 4008. Directors. The business and affairs of the savings bank shall be exercised by its elected board of directors. The board of directors shall consist of the number of directors fixed by the bylaws, but shall not be fewer than…

(205 ILCS 205/4009) (from Ch. 17, par. 7304-9) Sec. 4009. Bonds of officers and directors. (a) Every person appointed or elected to any position requiring the receipt, payment, management, or use of money belonging to a savings bank or whose duties permit or require access to or …

(205 ILCS 205/4010) (from Ch. 17, par. 7304-10) Sec. 4010. Conduct of directors and officers. (a) Directors and officers occupy a fiduciary relationship to the savings bank of which they are directors or officers, and a director or officer shall not engage or participate, directl…

(205 ILCS 205/4011) (from Ch. 17, par. 7304-11) Sec. 4011. Right to dissent. (a) A shareholder of a savings bank is entitled to dissent from and obtain payment for his shares in the event of any of the following actions: (1) Consummation of a plan of merger or consolidation or a …

(205 ILCS 205/4012) (from Ch. 17, par. 7304-12) Sec. 4012. Procedure to dissent. (a) If the action giving rise to the right to dissent is to be approved at a meeting of shareholders, the notice of meeting shall inform the shareholders of their right to dissent and the procedure t…

(205 ILCS 205/4013) (from Ch. 17, par. 7304-13) (Text of Section from P.A. 104-123) Sec. 4013. Access to books and records; communication with members and shareholders. (a) Every member or shareholder shall have the right to inspect books and records of the savings bank that pert…

(205 ILCS 205/4014) Sec. 4014. Waiver of notice. Whenever any notice whatsoever is required to be given under this Act or under the provisions of the articles of incorporation or bylaws of a savings bank, a waiver thereof in writing signed by the person entitled to the notice, wh…

(205 ILCS 205/5001) (from Ch. 17, par. 7305-1) Sec. 5001. Minimum capital. (a) A savings bank may be organized to exercise the powers conferred by this Act with minimum capital, surplus, and reserves for operating expenses as determined by the Commissioner. In no case may the Com…

(205 ILCS 205/5002) (from Ch. 17, par. 7305-2) Sec. 5002. Types of capital; personal property. (a) The capital of a stock savings bank shall be represented by capital stock and noncumulative perpetual preferred stock as authorized by the articles of incorporation, related paid-in…

(205 ILCS 205/5003) (from Ch. 17, par. 7305-3) Sec. 5003. Capital stock; nature. Capital stock shall constitute a secondary reserve out of which losses shall be paid after all other available reserves have been exhausted and shall have a par value of $1 each or a greater amount a…

(205 ILCS 205/5004) (from Ch. 17, par. 7305-4) Sec. 5004. Capital stock; authorization of issuance. A savings bank may provide for the issuance of capital stock, either by its original articles of incorporation or by an amendment thereto in accordance with rules and regulations p…

(205 ILCS 205/5005) (from Ch. 17, par. 7305-5) Sec. 5005. Retirement or reduction of capital stock. (a) The board of directors of a savings bank operating with capital stock may propose an amendment to the articles of incorporation providing for the retirement of all of the capit…

(205 ILCS 205/5006) (from Ch. 17, par. 7305-6) Sec. 5006. Who may hold capital. Capital stock of a savings bank may be held: (1) By any individual in his own right, regardless of age or marital status, or by 2 or more individuals. (2) By a fiduciary when authorized by law. (3) By…

(205 ILCS 205/5007) (from Ch. 17, par. 7305-7) Sec. 5007. Capital Maintenance. (a) Each savings bank shall maintain total capital of not less than 3% of total assets. This standard is the minimum acceptable for a savings bank whose overall financial condition is fundamentally sou…

(205 ILCS 205/5008) (from Ch. 17, par. 7305-8) Sec. 5008. Dividends. (a) Subject to the restrictions set forth in this Section and the savings bank's bylaws, the board of directors from time to time may declare dividends on capital stock subject to the following restrictions: (1)…

(205 ILCS 205/5009) (from Ch. 17, par. 7305-9) Sec. 5009. Loans or discounts on capital stock. A savings bank may not make a loan or discount on the security of or be the purchaser or holder of the shares of its own capital stock or preferred stock or on the security of its own d…

(205 ILCS 205/6001) (from Ch. 17, par. 7306-1) Sec. 6001. General provisions. (a) No savings bank shall make any loan or investment authorized by this Article unless the savings bank first has determined that the type, amount, purpose, and repayment provisions of the loan or inve…

(205 ILCS 205/6002) (from Ch. 17, par. 7306-2) Sec. 6002. Investment in loans. (a) Subject to the regulations of the Commissioner, a savings bank may loan funds as follows: (1) On the security of deposit accounts, but no such loan shall exceed the withdrawal value of the pledged …

(205 ILCS 205/6003) (from Ch. 17, par. 7306-3) Sec. 6003. Other investments. A savings bank may invest funds as provided in this Section: (1) In demand, time, or savings deposits or accounts, withdrawable accounts, or other insured obligations of any financial institution the acc…

(205 ILCS 205/6004) (from Ch. 17, par. 7306-4) Sec. 6004. Calculation of interest; postpayments and prepayments. (a) In any contract or loan that is secured by a mortgage, deed of trust, or conveyance in the nature of a mortgage for the purpose of purchase or refinance of residen…

(205 ILCS 205/6005) (from Ch. 17, par. 7306-5) Sec. 6005. General loan contract provisions. Each loan and any agreement for securing the loan shall be evidenced by one or more written instruments, consistent with sound lending practices in the locality. Whenever recordation of an…

(205 ILCS 205/6006) (from Ch. 17, par. 7306-6) Sec. 6006. Modification agreements. A savings bank, at any time, may enter into a written agreement with a borrower to modify, in any manner not inconsistent with the provisions of this Act, the terms of a loan as to the amount, time…

(205 ILCS 205/6007) (from Ch. 17, par. 7306-7) Sec. 6007. Sale, assignment, and servicing of loans and contracts. (a) Any savings bank may sell any loan or a participating interest in a loan at any time in the usual and regular course of business. Loans sold may be sold with or w…

(205 ILCS 205/6008) (from Ch. 17, par. 7306-8) Sec. 6008. Purchase of real estate at forced sale. A savings bank may purchase at any sheriff's or other judicial sale, either public or private, any real estate upon which the savings bank has any mortgage, lien or other encumbrance…

(205 ILCS 205/6009) (from Ch. 17, par. 7306-9) Sec. 6009. Purchase of real estate for office and rental purposes. (a) A savings bank may acquire and hold real estate in fee simple or leaseholds on which a building or buildings exist or are to be erected suitable for the transacti…

(205 ILCS 205/6010) (from Ch. 17, par. 7306-10) Sec. 6010. Prohibited loans. No savings bank may make a loan to any person owning 10% or more of its capital stock, any affiliated person, agent, or attorney of the savings bank, either individually or as an agent or partner of anot…

(205 ILCS 205/6011) (from Ch. 17, par. 7306-11) Sec. 6011. Effect of unauthorized investments. (a) Every loan or other investment made in violation of this Act shall be due and payable according to its terms, and the obligation thereof shall not be impaired. (b) Every director or…

(205 ILCS 205/6012) (from Ch. 17, par. 7306-12) Sec. 6012. Acknowledgments. No acknowledgment of a deed, mortgage, or other instrument shall be invalid because the acknowledgment was taken before an officer authorized by the laws of this State to acknowledge conveyances who is al…

(205 ILCS 205/6013) (from Ch. 17, par. 7306-13) Sec. 6013. Loans to one borrower. (a) Except as provided in subsection (c), the total loans and extensions of credit, both direct and indirect, by a savings bank to any person, other than a municipal corporation for money borrowed, …

(205 ILCS 205/6014) (from Ch. 17, par. 7306-14) Sec. 6014. Commissioner's regulations. (a) The Commissioner shall promulgate rules and regulations to determine permissible levels of investment and permissible concentrations of assets for savings banks applicable to all lending an…

(205 ILCS 205/7001) (from Ch. 17, par. 7307-1) Sec. 7001. Definitions. As used in this Article, the following terms have the following meanings. "Deposit accounts" means certificates of deposit, withdrawable deposits, savings accounts, demand deposit accounts, checking accounts, …

(205 ILCS 205/7002) (from Ch. 17, par. 7307-2) Sec. 7002. Deposit accounts. All savings banks subject to this Act may receive deposits of funds subject to withdrawals or that are to be paid upon the checks of the depositor. All deposits of that type shall be payable on demand, wi…

(205 ILCS 205/7003) (from Ch. 17, par. 7307-3) Sec. 7003. Deposit accounts subject to liens. Every deposit account shall be subject to a lien for the payment of charges as lawfully may accrue thereon under the provisions of this Act, and the bylaws may prescribe the manner of enf…

(205 ILCS 205/7004) (from Ch. 17, par. 7307-4) Sec. 7004. Payment of interest. (a) The board of directors shall determine the rate and amount of interest to be paid on deposit accounts and, for that purpose, may establish reasonable classifications of accounts based on: types of …

(205 ILCS 205/7005) (from Ch. 17, par. 7307-5) Sec. 7005. Holders of deposit accounts. (a) Deposit accounts of a savings bank may be held as follows: (1) by any individual in his own right, regardless of age or marital status, or by 2 or more individuals; (2) by a fiduciary when …

(205 ILCS 205/7006) (from Ch. 17, par. 7307-6) Sec. 7006. Prohibited activities. (a) No savings bank shall participate, directly or indirectly, in the sale or transfer of any equity or debt security or instrument of any affiliate of the savings bank or the parent holding company …

(205 ILCS 205/7007) Sec. 7007. Enforcement of child support. (a) Any savings bank governed by this Act shall encumber or surrender accounts or assets held by the savings bank on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or …

(205 ILCS 205/7008) Sec. 7008. Savings promotion raffle. (a) As used in this Section, "savings promotion raffle" has the same meaning as that term is given in Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463). (b) If authorized by its board of directors, a savings bank may …

(205 ILCS 205/8001) (from Ch. 17, par. 7308-1) Sec. 8001. Amendment of articles and bylaws. A savings bank may amend its articles of incorporation or bylaws in accordance with the procedure set forth in this Article, but those articles and bylaws shall conform to all legal requir…