Illinois Compiled Statutes 205 ILCS 5 — Illinois Banking Act.

Title

Title. This Act may be cited as the Illinois Banking Act. (Source: Laws 1955, p. 83.)

(Text of Section from P

(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 that term in Section 3-419 of the Uniform Commercial Code. "Action" in the sens…

Transfer of powers

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 affect any act done, ratified or confirmed or any right accrued or established or affect or…

Formation and primary powers

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 circulate as money; and such banks shall have the power to loan money on personal and real esta…

Effect on existing banks

Effect on existing banks. The certificates, permits and charters of state banks existing at the time of the adoption of this Act shall continue in full force and effect, and the provisions of this Act shall apply thereto. Any corporation with banking powers availing itself of or accepting the benefits of this Act and a…

General corporate powers

General corporate powers. A bank organized under this Act or subject hereto shall be a body corporate and politic and shall, without specific mention thereof in the charter, have all the powers conferred by this Act and the following additional general corporate powers: (1) To sue and be sued, complain, and defend in i…

Deposits in outside depository

Deposits in outside depository. (a) Except as provided in subsection (b), every bank is liable for deposits made in an outside depository from the time the deposit is made. (b) A bank may adopt a policy that its liability for deposits made in outside depositories will be delayed until the deposits are recorded, and, if…

Ownership of a bankers' bank

Ownership of a bankers' bank. A bank may acquire shares of stock of a bank or holding company which owns or controls such bank if the stock of such bank or company is owned exclusively (except to the extent directors' qualifying shares are required by law) by depository institutions or depository institution holding co…

Notwithstanding any other provision of this Act, a bank may engage in making revolving credit loans secured by mortgages or deeds of trust on real property or by security assignments of beneficial interests in land trusts. For purposes of this Section, "revolving credit", has the meaning defined in Section 4.1 of "An A…

Lending and account authority

Lending and account authority. (a) Notwithstanding the provisions of any other law in connection with extensions of credit, a State bank may elect to contract for and receive interest, fees, and other charges for extensions of credit subject only to the provisions of subsection (1) of Section 4 of the Interest Act, exc…

Non-English language transactions

Non-English language transactions. A bank may conduct transactions in a language other than English through an employee or agent acting as interpreter or through an interpreter provided by the customer. (Source: P.A. 92-578, eff. 6-26-02.)

Savings promotion raffle

Savings promotion raffle. (a) As used in this Section, "savings promotion raffle" has the same meaning as that term is given in Section 20 of the Federal Deposit Insurance Act (12 U.S.C. 1829a). (b) If authorized by its board of directors, a State bank may conduct a savings promotion raffle. The savings promotion raffl…

Organization capital requirements

Organization capital requirements. A bank may be organized to exercise the powers conferred by this Act with minimum capital and surplus as determined by the Commissioner. (Source: P.A. 92-483, eff. 8-23-01.)

Incorporators

Incorporators. A State bank may be organized on application by 5 or more incorporators who shall be individuals except that a bank holding company may be the sole incorporator of a State bank. (Source: P.A. 92-483, eff. 8-23-01.)

Contents of application

Contents of application. The application for a permit to organize shall be in a form specified by the Commissioner and shall be filed with the Commissioner signed by each of the applicants and shall be acknowledged before some officer authorized by law to acknowledge deeds. It shall state: (1) The name, residence, busi…

Reservation of corporate name

Reservation of corporate name. Upon the filing of an application for a permit to organize, an applicant may request that the Commissioner reserve the name of the proposed bank. The reservation shall be made by filing with the Commissioner an application to reserve a specified corporate name on forms prescribed by the C…

Permit to organize

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 earnings prospects, the general character, experience, and qualifications of its proposed manage…

Stock subscription

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 have been fully subscribed for, a meeting of the subscribers to the stock of such bank shall…

Organization

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 not inconsistent with its charter or with law for the administration of the affairs of the…

Issuance of charter

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 fully paid in and a record of the same filed with the Commissioner, the Commissioner or some…

Formation and merger of interim banks

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 savings association. An interim bank shall be chartered and merged purs…

Banks as limited liability companies

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 United States, including any rules promulgated thereunder. A bank organi…

Stock

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 not more than $100 each, however, the par value of shares of a bank effecting a reverse…

Quasi-Reorganization of Capital

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; and (2) has a deficit in its net profits then on hand at the time of such change in ownership;…

Stock and stockholders

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 the stockholders for the election of directors each year on the first business day in Janu…