2023 Illinois Compiled Statutes › Chapter 205 - FINANCIAL REGULATION › 205 ILCS 620/ - Corporate Fiduciary Act. › Article I - General Provisions

(205 ILCS 620/Art. I heading)
ARTICLE I.  
		GENERAL PROVISIONS
(205 ILCS 620/1-1) (from Ch. 17, par. 1551-1)
Sec. 1-1. 
		Short Title. 
		This Act shall be known and may
be cited as the "Corporate Fiduciary Act".
(Source: P.A. 85-858.)
(205 ILCS 620/1-2) (from Ch. 17, par. 1551-2)
Sec. 1-2. 
		Policy of Act. 
		The General Assembly finds
that corporate fiduciaries perform a vital service in the
administration of trusts, guardianship, receiverships, estates
and other fiduciary capacities; that it is in the public
interest that prior to accepting any fiduciary appointment, a
corporate fiduciary meet minimum qualifications with respect to
financial capacity as well as managerial competence and
integrity; that the operation of a corporate fiduciary is
impressed with a public interest such that it should be
supervised as an activity affecting the general welfare of the
people of the State of Illinois; and that a corporate fiduciary
should obtain its authority, conduct its operations and be
supervised as provided in this Act.
(Source: P.A. 90-655, eff. 7-30-98.)
(205 ILCS 620/1-3) (from Ch. 17, par. 1551-3)
Sec. 1-3. 
		
		Scope of Act; application to national banks,
federally chartered savings and loan associations or federally
chartered savings banks.  After January 1, 1988, no national bank
chartered by the Comptroller of the Currency and having its main office
in Illinois or federal savings
and loan association or federal savings bank chartered by the
Federal Home Loan Bank Board and having its main office in Illinois
shall be required to obtain a
certificate of authority under this Act or in any manner submit
to the regulation or supervision pursuant to this Act, but such
national bank, federal savings and loan association or federal
savings bank shall only be required to obtain the authority to
accept and execute trusts from the particular federal agency
which granted its charter, to be exempt from the provisions of
this Act.
Nothing in this Section 1-3 shall exempt national banks, federal savings
and loan associations or federal savings banks whose main offices are
located outside of Illinois from compliance with the provisions of Article
IV of this Act.
On January 1, 1988, any certificate of authority which has
been issued under the provisions of this Act to a national bank,
federally chartered savings and loan association or federally
chartered savings bank in Illinois shall expire and be of no
further force and effect and upon the request of the
Commissioner, shall be surrendered.
After January 1, 1988, a State bank that has a
certificate
of authority under this Act and proposes to convert to a
national bank and a State chartered savings and loan association
and a State chartered savings bank that has a certificate of authority under
this Act and proposes to convert to a federally chartered savings
and
loan association or federally chartered savings bank, shall
notify the Commissioner of such fact and upon obtaining its
charter from the relevant federal regulator, shall surrender its
certificate of authority issued pursuant to this Act.
(Source: P.A. 91-97, eff. 7-9-99.)
(205 ILCS 620/1-4) (from Ch. 17, par. 1551-4)
Sec. 1-4. 
		Effect on existing corporate fiduciaries. 
		With respect to any existing corporate fiduciary:
(a) any existing certificate of authority shall continue in
full force and effect except as provided in Section 1-3 of this
Act;
(b) all existing appointments in any fiduciary capacity and
any existing contracts by such corporate fiduciary shall continue
in full force and effect; and
(c) no corporate fiduciary which holds a current and valid
certificate of authority under this Act shall be required to
submit an application to obtain a certificate of authority unless
the certificate of authority of such corporate fiduciary
subsequently shall have been relinquished or revoked and such
corporate fiduciary thereafter seeks to again obtain a
certificate of authority.
(Source: P.A. 85-858.)
(205 ILCS 620/1-5) (from Ch. 17, par. 1551-5)
Sec. 1-5. 
		Definitions. 
		The words and phrases defined in
Sections following this Section and preceding Section 1-6 have the meanings
ascribed to them
in those Sections, except to the extent that any such word or
phrase is specifically qualified by its context.
(Source: P.A. 89-364, eff. 8-18-95.)
(205 ILCS 620/1-5.01) (from Ch. 17, par. 1551-5.01)
Sec. 1-5.01. 
		
		"Bank" shall have the same meaning ascribed
to the term in Section 2 of the Illinois Banking Act.
(Source: P.A. 85-858.)
(205 ILCS 620/1-5.02) (from Ch. 17, par. 1551-5.02)
Sec. 1-5.02. 
		
		"Capital" shall have the meaning ascribed to the term "capital"
or "paid-in capital" in the particular Act under which the corporate fiduciary
was organized and received its charter or certificate of incorporation.
(Source: P.A. 88-408.)
(205 ILCS 620/1-5.03) (from Ch. 17, par. 1551-5.03)
Sec. 1-5.03. 
"Commissioner" means the Secretary of Financial and Professional Regulation or a person authorized by the Secretary, the Division of Banking Act, or this Act to act in the Secretary's stead, and, beginning on January 1, 2011 (the effective date of Public Act 96-1163), all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation.
(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10; 97-333, eff. 8-12-11.)
(205 ILCS 620/1-5.04)
Sec. 1-5.04. (Repealed).
(Source: P.A. 85-858. Repealed by P.A. 97-492, eff. 1-1-12.)
(205 ILCS 620/1-5.05) (from Ch. 17, par. 1551-5.05)
Sec. 1-5.05. 
		Corporate fiduciary. 
		"Corporate fiduciary" means a trust
company; the trust department of a bank, savings bank,
savings and loan association, or foreign banking corporation issued a
certificate of authority pursuant to the Foreign Banking Office Act; or
any person that is required to and has received a
certificate of
authority
under this Act authorizing the exercise of trust powers.
The term "corporate fiduciary" also includes a national bank or federally
chartered savings and loan association or savings bank which is authorized
by the appropriate federal agency to accept and execute trusts and which
has its principal place of business in this State, whenever in this Act
such construction is necessary so that the national bank or federally
chartered savings and loan association or savings bank may enjoy and
exercise in this State all of the powers, rights and privileges authorized
or permitted to a corporate fiduciary holding a certificate of authority
under this Act.
(Source: P.A. 89-364, eff. 8-18-95; 89-567, eff. 7-26-96.)
(205 ILCS 620/1-5.06) (from Ch. 17, par. 1551-5.06)
Sec. 1-5.06. 
		
		"Court" means a court of competent
jurisdiction.
(Source: P.A. 85-858.)
(205 ILCS 620/1-5.07) (from Ch. 17, par. 1551-5.07)
Sec. 1-5.07. 
		
		"Depository institution" includes banks,
savings and loan associations, savings banks, and credit unions.
(Source: P.A. 91-97, eff. 7-9-99.)
(205 ILCS 620/1-5.07a)
Sec. 1-5.07a. Division of Banking. "Division of Banking" means the Division of Banking of the Department of Financial and Professional Regulation.
(Source: P.A. 96-1163, eff. 1-1-11.)
(205 ILCS 620/1-5.07b)
Sec. 1-5.07b. Division. "Division" means the Division of Banking within the Department of Financial and Professional Regulation.
(Source: P.A. 96-1365, eff. 7-28-10; 97-333, eff. 8-12-11.)
(205 ILCS 620/1-5.075)
(This Section was renumbered as Section 1-5.07b by P.A. 97-333.)
Sec. 1-5.075. (Renumbered).
(Source: P.A. 96-1365, eff. 7-28-10. Renumbered by P.A.  97-333, eff. 8-12-11.)
(205 ILCS 620/1-5.08) (from Ch. 17, par. 1551-5.08)
Sec. 1-5.08. 
		"Foreign corporation" means:
(a) any bank, savings and loan association, savings bank, or other
corporation now or hereafter organized under the laws of any
state or territory of the United States of America, including the
District of Columbia, other than the State of Illinois;
(b) any national banking association having its principal
place of business in any state or territory of the United States
of America, including the District of Columbia, other than the
State of Illinois; and
(c) any federal savings and loan association or federal
savings bank having its principal place of business in any state
or territory of the United States of America, including the
District of Columbia, other than the State of Illinois.
(Source: P.A. 91-97, eff. 7-9-99.)
(205 ILCS 620/1-5.09) (from Ch. 17, par. 1551-5.09)
Sec. 1-5.09. 
		
		"Person" means an individual, corporation,
partnership, joint venture, trust estate, limited liability company, or
unincorporated
association.
(Source: P.A. 90-424, eff. 1-1-98.)
(205 ILCS 620/1-5.09a)
Sec. 1-5.09a. Secretary. "Secretary" means the Secretary of Financial and Professional Regulation, or a person authorized by the Secretary or by this Act to act in the Secretary's stead.
(Source: P.A. 96-1163, eff. 1-1-11.)
(205 ILCS 620/1-5.10) (from Ch. 17, par. 1551-5.10)
Sec. 1-5.10. 
		
		"Surplus" means the aggregate of (i) amounts paid in
excess of the par value of capital stock and preferred stock; (ii) amounts
contributed other than for capital stock and preferred stock and allocated
to the surplus account; and (iii) amounts transferred from undivided profits.
(Source: P.A. 86-754.)
(205 ILCS 620/1-5.11) (from Ch. 17, par. 1551-5.11)
Sec. 1-5.11. 
		Trust company. 
		"Trust company" means a corporation
incorporated or a limited liability company organized in this State that
holds a certificate of authority issued
pursuant to this Act.
(Source: P.A. 89-364, eff. 8-18-95; 90-424, eff. 1-1-98.)
(205 ILCS 620/1-5.12)
Sec. 1-5.12. 
		Fiduciary. 
		"Fiduciary" means trustee, executor,
administrator, receiver, guardian, assignee for the benefit of creditors, or
any holder of a similar position of trust.
(Source: P.A. 89-364, eff. 8-18-95.)
(205 ILCS 620/1-5.13)
Sec. 1-5.13. 
		Trust business. 
		"Trust business" means the holding out by a
person to the public by advertising, solicitation, or other means that the
person is available to act as a fiduciary in this State, or the accepting or
undertaking to perform the duties of a fiduciary as a significant part of its
regular business.
(Source: P.A. 89-364, eff. 8-18-95.)
(205 ILCS 620/1-5.14)
Sec. 1-5.14. 
		Compliance period. 
		A person who becomes a fiduciary or who
becomes engaged in the trust business and thereby is required to obtain a
certificate of authority from the Commissioner either by the coming into force
of this amendatory Act of 1995 or by the loss of an exemption listed in or by
rule authorized under Section 2-4.5 of this Act shall have 180 days to either
liquidate
the fiduciary or trust business or to obtain a certificate from the
Commissioner.  During this 180-day period the person shall not be guilty of a
Class A misdemeanor.
(Source: P.A. 89-364, eff. 8-18-95.)
(205 ILCS 620/1-6) (from Ch. 17, par. 1551-6)
Sec. 1-6. General corporate powers. A corporate
fiduciary shall have the powers:
(a) if it is a State bank, those powers granted under     Sections 3 and 5 of the Illinois Banking Act; and
(b) if it is a State savings and loan association,     those powers granted under Sections 1-6 through 1-8 of the Illinois Savings and Loan Act of 1985; and
(c) if it is a State savings bank, those powers     granted under the Savings Bank Act; and
(d) if it is a corporation organized under the     Business Corporation Act of 1983, as now or hereafter amended, or a limited liability company organized under the Limited Liability Company Act, those powers granted in Article 8 of the Illinois Trust Code, as now or hereafter amended, to the extent the exercise of such powers by the corporate fiduciary are not contrary to the instrument containing the appointment of the corporate fiduciary, the court order appointing the corporate fiduciary or any other statute specifically limiting the power of the corporate fiduciary under the circumstances; and
(e) subject to Article XLIV of the Illinois Insurance     Code, to act as the agent for any fire, life, or other insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said corporate fiduciary and the insurance company for which it may act as agent; provided, however, that no such corporate fiduciary shall in any case assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided further, that the corporate fiduciary shall not guarantee the truth of any statement made by an assured in filing his application for insurance.
The Commissioner may specify powers of corporate fiduciaries generally
or of a particular corporate fiduciary and
by rule or order limit or restrict such powers of corporate
fiduciaries or a particular corporate fiduciary if he finds the exercise of
such power by corporate fiduciaries generally or of the corporate
fiduciary in particular may tend to be an unsafe or unsound practice, or if
such power is otherwise not in the interest of beneficiaries of
any fiduciary appointment.
(Source: P.A. 101-48, eff. 1-1-20.)
(205 ILCS 620/1-6a)
Sec. 1-6a. 
		Non-English language transactions. 
		A corporate fiduciary 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.)
(205 ILCS 620/1-7) (from Ch. 17, par. 1551-7)
Sec. 1-7. Office locations; corporate fiduciaries.
(a) Any corporate fiduciary may establish branch offices at any
location. Any corporate fiduciary that seeks to establish a branch office
shall, if it is a trust company, apply for and obtain approval for the
branch office from the Secretary.
(b) Any trust company that proposes to establish a subsidiary,
whether by incorporating the subsidiary or by acquiring the subsidiary,
shall apply for and obtain prior approval from the Secretary 60 days
prior to commencing business by the subsidiary, if newly incorporated, or
prior to its acquisition, if it is acquired, provided the Secretary may
specify circumstances and conditions when a trust company may directly or
indirectly acquire a subsidiary without prior approval.
(Source: P.A. 100-48, eff. 8-11-17.)
(205 ILCS 620/1-8) (from Ch. 17, par. 1551-8)
Sec. 1-8. 
		Change of name or location. 
		A corporate fiduciary holding a
certificate of authority
issued pursuant to this Act must notify and receive written approval from
the Commissioner before changing its name or changing the location of its
corporate headquarters.  A corporate fiduciary which is a State bank
chartered by the Commissioner and which accomplishes a change of name in
compliance with Section 13 of the Illinois Banking Act or a
change of location in compliance with Section 13 of the Illinois
Banking
Act, as now or hereafter amended, shall be deemed to have complied with
this Section 1-8.
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 620/1-9)
Sec. 1-9. 
		Name indicating fiduciary capacity; limitation. 
		No corporation
that is not a corporate fiduciary as defined in Section 1-5.05 of this Act or a
foreign corporation having received a certificate of authority under Section
4-5 of this Act shall be allowed to use the word "trust", "trustee", or
"fiduciary" in its corporate name unless the Commissioner has approved that use
after finding that the corporation will not be engaged in business as a
corporate fiduciary and that the use of the word "trust", "trustee", or
"fiduciary" by the corporation will not be misleading to the public.
(Source: P.A. 88-408.)