205 ILCS 205/6013
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 205/ - Savings Bank Act.|Article 6 - Investments

 (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, outstanding at one time shall not  exceed 25% of the savings bank's total capital plus general loan  loss reserves.(b) Except as provided in subsection (c), the total loans and extensions  of credit, both direct and  indirect, by a savings bank to any person outstanding at one time  and at least 100% secured by readily marketable collateral having  a market value, as determined by reliable and continuously  available price quotations, shall not exceed 10% of the savings  bank's total capital plus general loan loss reserves.  This limitation  shall be separate from and  in addition to the limitation contained in subsection (a).(c) If the limit under subsection (a) or (b) on total loans to one  borrower is less than $500,000, a savings bank that meets its minimum capital  requirement under this Act may have loan and extensions of credit, both direct  and indirect, outstanding to any person at one time not to exceed $500,000.  With  the prior written approval of the Commissioner, a savings bank that has capital  in excess of 6% of assets may make loans and extensions of credit to one  borrower for the development of residential housing properties, located or to  be located in this State, not to exceed 30% of the savings bank's total capital  plus general loan loss reserves.(d) For purposes of this Section, the term "person" shall be  deemed to include an individual, firm, corporation, business trust,  partnership, trust, estate, association, joint venture, pool,  syndicate, sole proprietorship, unincorporated association, any  political subdivision, or any similar entity or organization.(e) For the purposes of this Section any loan or extension  of credit granted to one person, the proceeds of which are used for  the direct benefit of a second person, shall be deemed a loan or  extension of credit to the second person as well as the first  person.  In addition, a loan or extension of credit to one person  shall be deemed a loan or extension of credit to others when a common  enterprise exists between the first person and such other persons.(f) For the purposes of this Section, the total liabilities  of a firm, partnership, pool, syndicate, or joint venture shall include the  liabilities of the members of the entity.(g) For the purposes of this Section, the term "readily  marketable collateral" means financial instruments or bullion  that are salable under ordinary circumstances with reasonable  promptness at a fair market value on an auction or a similarly  available daily bid-and-ask price market.  "Financial instruments"  include stocks, bonds, notes, debentures traded on a national  exchange or over the counter, commercial paper, negotiable  certificates of deposit, bankers' acceptances, and shares in money  market or mutual funds.(h) Each savings bank shall institute adequate procedures to  ensure that collateral fully secures the outstanding loan or  extension of credit at all times.(i) If collateral values fall below 100% of the outstanding  loan or extension of credit to the extent that the loan or  extension of credit no longer is in conformance with subsection (b)  and exceeds the 25% limitation of subsection (a), the  loan must be brought into conformance with this Section within 5  business days except where judicial proceedings or other similar  extraordinary occurrences prevent the savings bank from taking  action.(j) This Section shall not apply to loans or extensions of  credit to the United States of America or its agencies or this  State or its agencies or to any loan, investment, or extension of credit made  pursuant to Section 6003 of this Act.(k) This Section does not apply to the obligations as endorser, whether  with or without recourse, or as guarantor, whether conditional or  unconditional, of negotiable or nonnegotiable installment consumer paper of the  person transferring the same if the bank's files or the knowledge of its  officers of the financial condition of each maker of those obligations is  reasonably adequate and if an officer of the bank, designated for that purpose  by the board of directors of the bank, certifies that the responsibility of  each maker of the obligations has been evaluated and that the bank is relying  primarily upon each maker for the payment of the obligations.  The  certification  shall be in writing and shall be retained as part of the records of the bank.(l) The Commissioner may prescribe rules to carry out the purposes of this  Section and to establish limits or requirements other than those specified in  this Section for particular types of loans and extensions of credit.    (Source: P.A. 92-483, eff. 8-23-01; 92-700, eff. 7-19-02.)