2023 Illinois Compiled Statutes › Chapter 205 - FINANCIAL REGULATION › 205 ILCS 620/ - Corporate Fiduciary Act. › Article V - Supervision of Corporate Fiduciaries and Powers of the Commissioner

(205 ILCS 620/Art. V heading)
ARTICLE V.  
		SUPERVISION OF CORPORATE FIDUCIARIES
AND POWERS OF THE COMMISSIONER
(205 ILCS 620/5-1) (from Ch. 17, par. 1555-1)
Sec. 5-1. Commissioner's powers. The Commissioner of Banks and Real
Estate shall have the following powers and
authority and is charged with the duties and responsibilities
designated in this Act:
(a) To promulgate, in accordance with the Illinois Administrative Procedure
Act, reasonable rules for the purpose of administering the provisions of this
Act and for the purpose of incorporating by reference rules promulgated by the
Federal Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, or their successors that pertain to corporate
fiduciaries, including, but not limited to, standards for the operation and
conduct of  the affairs of corporate fiduciaries;
(b) To issue orders for the purpose of administering the
provisions of this Act and any rule promulgated in accordance
with this Act;
(c) To appoint hearing officers to conduct hearings held
pursuant to any of the powers granted to the Commissioner under
this Section for the purpose of administering this Act and any
rule promulgated in accordance with this Act;
(d) To subpoena witnesses, to compel their attendance, to
administer an oath, to examine any person under oath and to
require the production of any relevant books, papers, accounts
and documents in the course of and pursuant to any investigation
being conducted, or any action being taken, by the Commissioner
in respect of any matter relating to the duties imposed upon, or
the powers vested in, the Commissioner under the provisions of
this Act, or any rule or regulation promulgated in accordance
with this Act;
(e) To conduct hearings;
(f) To promulgate the form and content of any applications required
under this Act;
(g) To impose civil penalties of up to $100,000 against any
person or corporate fiduciary for each violation of any provision
of this Act, any rule promulgated in accordance with this Act,
any order of the Commissioner or any other action which, in the
Commissioner's discretion, is a detriment or impediment to
accepting or executing trusts; and
(h) To address any inquiries to any corporate fiduciary, or
the officers thereof, in relation to its doings and conditions,
or any other matter connected with its affairs, and it shall be
the duty of any corporate fiduciary or person so addressed, to
promptly reply in writing to such inquiries.  The Commissioner
may also require reports from any corporate fiduciary at any time
he may deem desirable.
(Source: P.A. 96-1365, eff. 7-28-10.)
(205 ILCS 620/5-2) (from Ch. 17, par. 1555-2)
Sec. 5-2. 
		Examinations of corporate fiduciaries.
(a) The Commissioner, no less frequently than 18 months following the
preceding examination,
and whenever in his judgment it is necessary or expedient,
 either personally or by one or more
competent persons appointed by him, shall visit and examine every
corporate fiduciary in this State
and may, to the extent the Commissioner determines necessary, examine the
affairs of the corporate fiduciary's subsidiaries, affiliates, parent
companies and contractual service providers for fiduciary services of the
corporate fiduciary as shall be necessary to fully disclose the condition
of such subsidiaries, affiliates, parent companies and contractual service
providers and the relation between the corporate fiduciary and such
subsidiaries, affiliates, parent companies and contractual service
providers and the effect of such relations upon the affairs of such
corporate fiduciary.  Instead of the Commissioner making the examination
provided by this
subsection or appointing a competent person to do so, the Commissioner may
accept on an alternating basis the examination made by the corporate
fiduciary's appropriate federal regulatory agency, provided the appropriate
federal regulatory agency has made such an examination.  Fiduciary services
shall include, but not be limited
to, clerical, accounting, bookkeeping, statistical, data processing,
safekeeping or similar functions for a corporate fiduciary.
(b) The Commissioner and every such examiner may administer
an oath to any person whose testimony is required on any such
examination, and compel the appearance and attendance of any such
person for the purpose of examination, by summons, subpoena or
attachment, in the manner now authorized in respect to the
attendance of persons as witnesses in the circuit court; and all
books and papers which are necessary to be examined by the
Commissioner or examiner so appointed shall be produced, and
their production may be compelled in like manner.
(c) The expense of every examination, if any, shall be paid
by the corporate fiduciary examined, in such amount as the
Commissioner certifies to be just and reasonable.
(d) On every examination, inquiry shall be made as to the
condition and resources of the corporate fiduciary generally, the
mode of conducting and managing its affairs, the action of its
directors or trustees, the investments of its funds, the safety
and prudence of its management, the security afforded to those by
whom its engagements are held, and whether the requirements of
its charter and of the laws have been complied with in the
administration of its affairs. The nature and condition of the assets in or
investment of any bonus, pension, or profit sharing plan for officers or
employees of a corporate fiduciary shall be deemed to be included in the
affairs of that corporate fiduciary subject to examination by the
Commissioner.
(e) Whenever any corporate fiduciary causes to be performed, by
contract or otherwise, any fiduciary services for itself, whether on or off its
premises:
(1) such performance shall be subject to examination     by the Commissioner to the same extent as if the services were being performed by the corporate fiduciary itself on its own premises; and
(2) the corporate fiduciary shall notify the     Commissioner of the existence of the service relationship.  Such notification shall be submitted within 30 days after the making of such service contract, or the performance of the service, whichever occurs first.  The Commissioner shall be notified of each subsequent contract in the same manner.
For purposes of this subsection (e), the term "fiduciary services" shall
include such services as the computation and posting of interest and other
credits and charges; preparation and mailing of checks, statements, notices and
similar items; clerical, bookkeeping, accounting, statistical or similar
functions; and any other function which the corporate fiduciary, in the
ordinary course of its business, could have performed itself.
Any report of examination pursuant to this Section and any
copies thereof shall be the property of the Commissioner,
confidential and may only be disclosed under the circumstances
set forth in Section 48.3 of the Illinois Banking Act, as
now or hereafter amended.
(Source: P.A. 92-811, eff. 8-21-02.)
(205 ILCS 620/5-3) (from Ch. 17, par. 1555-3)
Sec. 5-3. 
		Violations; orders.
(a) Whenever it appears to the Commissioner
from any  examination, statement of condition or report, that any
corporate fiduciary has committed any violation of law, has made
or published a false statement of condition or is conducting its
business in an unsafe, unsound or unauthorized manner, he shall,
by an order under his signature, direct the discontinuance of
such illegal and unsafe, unsound or unauthorized practices and
that the corporate fiduciary strictly conform with the
requirements of the law, and with safety and security in its
transactions.
(b) If a corporate fiduciary refuses or neglects to make a
required statement of condition or any report required under this
Act, or to comply with an order as above stated, or if it appears
to the Commissioner that it is unsafe or inexpedient for the
corporate fiduciary to continue to transact business, or that
extraordinary withdrawals of money are jeopardizing the interests
of remaining depositors, or that any corporate fiduciary or
officer of a corporate fiduciary has abused his trust or is
guilty of misconduct in his official position, injurious to the
corporate fiduciary, or that it has suffered a serious loss, he
shall enter an order appropriate to the circumstances, which may
include the appointment of a receiver as hereinafter provided,
the taking of possession of the corporate fiduciary, or the removal of
a
director, officer, employee, or agent of the corporate fiduciary, or
he may, represented by the Attorney General, seek an injunction or other
appropriate order from the court.
(c) No dividends shall be paid by a corporate fiduciary while it
continues its business as a corporate fiduciary to an amount greater than
its net profits then on hand, deducting first therefrom its losses
and bad debts.
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 620/5-4) (from Ch. 17, par. 1555-4)
Sec. 5-4. 
		
		If the Commissioner has satisfactory evidence
that any statement of condition or other report required or
authorized by this Act, made by any officer or officers of a
corporate fiduciary is false, the Commissioner may revoke the
certificate of authority granted on behalf of such corporate
fiduciary and mail a copy of such revocation to that corporate
fiduciary and the clerk of the circuit court in each county in
the state of Illinois.  Such revocation shall not be set aside
until satisfactory evidence is given to the Commissioner that
such corporate fiduciary is in substance and in fact in the
condition set forth in such required statement of condition or
report or that a corrected statement of condition, or report as
the case may be, is prepared, filed with the Commissioner and
published if the original statement or report was required to be
published and satisfactory evidence that all the requirements of
this Act have been complied with.  Such revocation is cause for
the removal of such corporate fiduciary from any appointment held
by it under this Act.
(Source: P.A. 85-858.)
(205 ILCS 620/5-5) (from Ch. 17, par. 1555-5)
Sec. 5-5. 
		
		A special meeting of the board of directors may
be held upon call by the Commissioner or an examiner appointed
under the provisions of this Act, upon not less than 12 hours
notice of such meeting by personal service of such notice, or by
mailing said notice to each of the directors at his residence as
shown by the books of the corporate fiduciary.
(Source: P.A. 85-858.)
(205 ILCS 620/5-6) (from Ch. 17, par. 1555-6)
Sec. 5-6. Removal orders. Whenever, in the opinion of the Secretary,
any director, officer, employee, or agent of a corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary
shall have violated any law, rule, or order relating to the corporate
fiduciary
or subsidiary or corporate parent of the corporate fiduciary, shall have
engaged in an unsafe or unsound practice in conducting
the
business of the corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary, or shall
have violated any law or
engaged or participated in any unsafe or unsound practice in connection with
any financial institution or other business entity such that the character and
fitness of the director, officer, employee, or agent does not assure reasonable
promise of safe and sound operation of the corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary, the Secretary
 may issue an order of
removal.
If in the opinion of the Secretary, any former director, officer,
employee, or agent of a corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary, prior to the
termination of his
or her service with the corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary, violated any
law, rule, or order
relating to the corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary
or engaged in an unsafe or unsound practice
in conducting the business of the corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary
or violated any law or
engaged or participated in any unsafe or unsound practice in connection with
any financial institution or other business entity such that the character and
fitness of the director, officer, employee, or agent would not have assured
reasonable promise of safe and sound operation of the corporate fiduciary
or subsidiary or corporate parent of the corporate fiduciary,
the
Secretary may issue
an order prohibiting that person from further service with a corporate
fiduciary
or subsidiary or corporate parent of the corporate fiduciary
as a director, officer, employee, or agent. An order issued pursuant
to this Section shall be served upon the
director, officer, employee, or
agent.  A copy of the order shall be sent to each director of the corporate
fiduciary
affected by personal service, certified mail return receipt
requested, or any other method that provides proof of service and receipt.  A copy of the order shall
be served upon the corporate fiduciary
of which the person is a
director, officer, employee, or agent, whereupon the person shall cease to be a
director,
officer, employee, or agent of the corporate fiduciary.  Any person who has
been removed or prohibited by an order of the Secretary under this
Section or subsection
(7) of Section 48 of the Illinois Banking Act may not thereafter serve as
director, officer, employee, or agent of any State bank or corporate fiduciary,
or of any other entity that is subject to licensure or regulation by the Division of Banking
 unless the Secretary  
has granted prior approval in writing.   The Secretary may institute a civil
action against the
director,
officer, employee, or agent subject to an order issued under this Section and
against the corporate fiduciary
to enforce compliance with or to enjoin any
violation of the terms of the order.
(Source: P.A. 96-1163, eff. 1-1-11.)
(205 ILCS 620/5-7) (from Ch. 17, par. 1555-7)
Sec. 5-7. 
		
		Any person or corporate fiduciary affected by
any action under this Act, other than under
Section 5-6, may request a hearing before the
Commissioner within 10 days after receipt of notice of such action.  The
hearing shall be held by the Commissioner within 30 days after
such request has been received by the Commissioner.  At the
conclusion of such hearing, the Commissioner shall make a
determination approving, modifying or disapproving the action
taken as the final administrative decision.
(Source: P.A. 86-754.)
(205 ILCS 620/5-8) (from Ch. 17, par. 1555-8)
Sec. 5-8. 
All final administrative decisions of the
Secretary shall be subject to review pursuant
to the provisions of the Administrative Review Law, as now or
hereafter amended, and the rules adopted pursuant thereto.
For matters involving administrative review, venue shall be in either
Sangamon County or Cook County.
(Source: P.A. 96-1163, eff. 1-1-11.)
(205 ILCS 620/5-9) (from Ch. 17, par. 1555-9)
Sec. 5-9. Statement of condition.
(a)  Each corporate fiduciary shall file with
the Commissioner, when requested, a statement under oath, of the
condition of such corporate fiduciary as of the date requested.
The statement of condition shall be in such form and contain such
statements, returns and information, as to the affairs, business
conditions, and resources of the corporate fiduciary or of its
trust department, as the case may be, as the said Commissioner
may, from time to time prescribe or require.
(b) Such statement of condition shall be verified by the
affidavit of the president, vice president or principal
accounting officer of said corporate fiduciary, who shall also
state in such affidavit that he has examined the books and
accounts of said corporate fiduciary or of its trust department,
as the case may be for the purpose of making said report or
statement, and that the information contained in the statement or
report is accurate to the best of his knowledge and belief.  If the statement
is submitted in electronic form, the Commissioner may, in the call for the
report, specify the manner in which the appropriate officer of the corporate
fiduciary shall verify the statement of condition.
(c) (Blank).
(d) Any corporate fiduciary which fails to file an accurate
statement of condition on or before the date it is due may be fined $100 for each
day of noncompliance.
(e) Any corporate fiduciary which is the victim of a robbery
or experiences a
shortage of funds in excess of $10,000, an apparent
misapplication of
the corporate fiduciary's funds by an officer, employee, director,
or
agent, a charge-off of assets of the corporate fiduciary, or any adverse legal action in an amount
in excess of 10% of total capital and surplus of the corporate fiduciary,
including but
not limited to, the entry of an adverse money judgment against the
corporate fiduciary shall report that information in writing to the
Commissioner within 7 days.  Neither the corporate fiduciary,
its directors, officers, employees or agents, in the preparation or
filing of the reports required by this subsection, shall be
subject to any
liability for libel, slander or other charges resulting from information
supplied in such reports, except when the supplying of such information is
done in a corrupt or malicious manner or otherwise not in good faith.
(Source: P.A. 97-492, eff. 1-1-12.)
(205 ILCS 620/5-10) (from Ch. 17, par. 1555-10)
Sec. 5-10. Fees; receivership account.
(a) There shall be paid to the Commissioner by every corporate
fiduciary including each trust company, bank, savings and loan association,
and savings bank to which this Act
shall apply, reasonable
fees that the Commissioner shall assess to recover the costs of administration,
certification, examination and supervision of trusts
authorized under this Act.
(b) In addition to the fees authorized in
subsection (a) of this
Section the Commissioner shall assess reasonable receivership fees and
establish a Non-insured  Institutions Receivership account in the Bank
and Trust Company Fund to provide for the expenses that arise from the
administration of the receivership of a corporate fiduciary under this Act.
The aggregate of such assessments shall be paid into the Non-insured  Institutions Receivership 
account in the Bank and Trust Company Fund.  The assessments for this
account shall be levied until the sum of $4,000,000 has been
deposited into
the account from assessments authorized herein, whereupon the Non-insured  Institutions Receivership 
account assessment shall be abated.  If a receivership of a corporate
fiduciary under this Act requires expenditures from this account,
assessments may be reinstituted until the balance in the Non-insured  Institutions Receivership 
account arising from assessments is restored to $4,000,000.
(c) The Commissioner
may, by rule, establish a reasonable manner of assessing the receivership
assessments under this Section.
(Source: P.A. 96-1365, eff. 7-28-10.)
(205 ILCS 620/5-10.5)
Sec. 5-10.5. Disclosure of records. A corporate fiduciary may not
disclose to any person, except to the customer or the customer's duly
authorized agent, any records pertaining to the fiduciary relationship between
the corporate fiduciary and the customer unless:
(1) the instrument or court order establishing the     fiduciary relationship permits the record to be disclosed under the circumstances;
(2) applicable law authorizes the disclosure;
(3) disclosure by the corporate fiduciary is     necessary to perform a transaction or act that is authorized by the instrument or court order establishing the fiduciary relationship; or
(4) Section 48.1 of the Illinois Banking Act would     permit a bank to disclose the record to the same extent under the circumstances.
For purposes of this Section, "customer" means the person or individual who
contracted to establish the fiduciary relationship or who executed any
instrument or document from which the fiduciary relationship was established, a
person authorized by the customer to provide such direction or, if the
instrument, law, or court order so permits, the beneficiaries of the fiduciary
relationship.
(Source: P.A. 99-642, eff. 7-28-16.)
(205 ILCS 620/5-11) (from Ch. 17, par. 1555-11)
Sec. 5-11. 
		
		A corporate fiduciary shall be reimbursed for costs which
are reasonably necessary and which have been directly incurred in searching
for, reproducing or transporting books, papers, records or other data of a
customer required or requested to be produced pursuant to a lawful
subpoena, summons, warrant or court order.  The Commissioner shall
determine the rates and conditions under which payment may be made.
(Source: P.A. 85-1402.)