reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 310 - MINIMUM ORGANIZATIONAL CAPITAL REQUIREMENTS FOR BANKS AND TRUST COMPANIES › Subpart C - TRUST COMPANIES › Section 310.320 - Exceptions to Minimum Organizational Capital Requirements for Trust Companies

Current through Register Vol. 48, No. 28, July 12, 2024
An Illinois trust company organized before January 1, 2003,
				  when a lower capital requirement may have been in effect, may continue to
				  operate under that lower capital requirement unless the Commissioner has
				  increased the required capital for that trust company under Section 2-7 of the
				  Corporate Fiduciary Act.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 310 - MINIMUM ORGANIZATIONAL CAPITAL REQUIREMENTS FOR BANKS AND TRUST COMPANIES › Subpart C - TRUST COMPANIES › Section 310.330 - Merger or Consolidation of Trust Companies

Current through Register Vol. 48, No. 28, July 12, 2024
In any merger or consolidation resulting in a trust company
				  made pursuant to Section 3-1 of the Corporate Fiduciary Act, the resulting
				  trust company must meet the minimum organizational capital requirement in
				  effect at the time of the merger or consolidation. In such cases, the current
				  capital requirement must be met even if a lower capital requirement previously
				  had applied to any or all of the merging or consolidating
				  parties.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 315 - ELECTRONIC FUND TRANSFERS › Subpart A - DEFINITIONS › Section 315.110 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The words and phrases used in this Part and not defined in
				  this Section shall have the meanings ascribed to them in the Electronic Fund
				  Transfer Act [ 205 ILCS 616 ].
"Act" means the Electronic Fund Transfer Act [ 205 ILCS 616
				  ].
"Secretary" means the Secretary of the Department of
				  Financial and Professional Regulation.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 315 - ELECTRONIC FUND TRANSFERS › Subpart C - FEES FOR THE EXAMINATION OF NETWORKS AND SWITCHES › Section 315.310 - Fees and Charges

Current through Register Vol. 48, No. 28, July 12, 2024
The Secretary is authorized by Section 25 of the Act to
				  examine any network and any switch as to any transaction by, with, or involving
				  a financial institution that has established a terminal in this State. The
				  Secretary shall charge a fee of no more than $750 per examiner per day to cover
				  the costs of such an examination. The Secretary reserves the right to charge
				  less than the fee stated in this Section. The same fee will be charged equally
				  to all networks examined under this Part, unless the examination costs of a
				  particular network justify an additional amount (i.e., out-of-state or
				  out-of-country travel or use of contract personnel).
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 315 - ELECTRONIC FUND TRANSFERS › Subpart D - TERMINALS › Section 315.410 - Requirements for Surcharge and Contact Information Signage

Current through Register Vol. 48, No. 28, July 12, 2024
a) No person operating a terminal in this
				State shall impose any surcharge on a consumer for the usage of that terminal
				unless that surcharge is clearly disclosed to the consumer by display screen
				disclosures clearly visible to the consumer that comply with the following
				requirements:
1) Be at least 4" x 4" and bear
				the heading "FEE NOTICE" in at least 18-point type centered at the top of the
				notice with the remaining text of the disclosure in at least 14-point
				type.
2) Clearly state the
				following:
A) Name of the terminal
				operator;
B) Explanation that
				transactions will receive a surcharge that will be deducted from the consumer's
				account in addition to any fees imposed by the access device issuer;
C) Amount or calculation of the surcharge
				fee; and
D) The surcharge is
				assessed by the terminal operator and not the access device issuer.
3) The display screen must:
A) be displayed for a reasonable
				duration;
B) clearly state the
				amount or calculation of the surcharge fee; and
C) clearly give the consumer the
				unconditional right to cancel the transaction without incurring the surcharge
				fee.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 315 - ELECTRONIC FUND TRANSFERS › Subpart D - TERMINALS › Section 315.420 - Acceptance of Deposits

Current through Register Vol. 48, No. 28, July 12, 2024
In order to maintain parity, any financial institution, the
				  deposits in which are insured by an agency or instrumentality of the federal
				  government, may establish or own a terminal in this State that accepts deposits
				  of funds to an account if the main office of such financial institution is
				  located in a state that would permit, under terms no more restrictive than
				  those imposed in Illinois, a financial institution organized under the Illinois
				  Banking Act to establish or own a terminal in that state that accepts deposits
				  of funds to an account.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 315 - ELECTRONIC FUND TRANSFERS › Subpart D - TERMINALS › Section 315.430 - Reverse Order Personal Identification Number Programming

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to subsection (i) of Section 50 of the Act
				  [205 ILCS
				  5/50(i) ], an owner or operator of a
				  terminal in this State may, but is not required to, design and program the
				  terminal so that when a consumer enters his or her personal identification
				  number in reverse order, the terminal automatically sends an alarm to the local
				  law enforcement agency in whose jurisdiction the terminal is located. An owner
				  or operator of a terminal that chooses to program their terminal in this manner
				  shall inform their customers and local law enforcement of the location of the
				  terminal and its programming. This notice shall be given at the time an access
				  device is issued and on an annual basis thereafter. The notice may be included
				  with other disclosures that must be furnished to customer, such as disclosures
				  under the federal Electronic Fund Transfer Act or the Consumer Deposit Account
				  Act. For purposes of this Section, customer includes any individual who has
				  obtained an access device from the owner or operator.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 320 - POWERS INCIDENTAL AND GERMANE TO CARRYING ON A GENERAL BANKING BUSINESS › Section 320.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The powers of a state bank in Illinois are established and
				governed by the provisions of the Illinois Banking Act (the "Act") [205 ILCS 5
				]. Section 3 of the Act authorizes the establishment of banks for the purpose
				of doing a general banking business. Section 5 of the Act further enumerates
				the corporate powers of a state bank. This Part establishes factors which may
				be relevant in determining whether an activity is within a state bank's power
				to do a general banking business or incidental and germane to its power to do a
				general banking business.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 320 - POWERS INCIDENTAL AND GERMANE TO CARRYING ON A GENERAL BANKING BUSINESS › Section 320.20 - General Banking Business

Current through Register Vol. 48, No. 28, July 12, 2024
A state bank has the power to do a general banking business and
				the power to engage in activities which are incidental and germane to carrying
				on a general banking business (Corbett v. Devon Bank, 299 N.E. 2d 521, 529
				(1973)).
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 320 - POWERS INCIDENTAL AND GERMANE TO CARRYING ON A GENERAL BANKING BUSINESS › Section 320.30 - Factors to be Considered

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 following factors are relevant, if applicable, in determining whether an
			 activity is incidental and germane to carrying on a general banking business.
1) Is the activity convenient or useful in
			 connection with the performance of one of the bank's established activities
			 pursuant to its express powers under the Act (i.e., selling traveler's checks,
			 issuing credit cards, issuing license plates)?
2) Is the activity related to ordinary,
			 traditional bank functions (i.e., lending money, paying checks and accepting
			 deposits)?
3) To what extent do
			 other banks participate in this activity?
4) Has the Board of Governors of the Federal
			 Reserve System found the activity appropriate for non-bank subsidiaries of a
			 bank holding company pursuant to
			 12 U.S.C.
			 1843(c)(8) ?
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 320 - POWERS INCIDENTAL AND GERMANE TO CARRYING ON A GENERAL BANKING BUSINESS › Section 320.40 - Procedure

Current through Register Vol. 48, No. 28, July 12, 2024
A state bank may request a declaratory ruling pursuant to
				Section 5-150(a) of the Illinois Administrative Procedure Act [5 ILCS
				100/5-150(a) ] from this Agency that
				an activity is incidental and germane to carrying on a general banking business
				by submitting a written request to the Commissioner which describes the
				proposed activity and contains information addressing the factors set forth in
				this Part and an analysis of the financial risks associated with this
				activity.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 321 - ILLINOIS STATE TREASURER AND OFFICE OF BANKS AND REAL ESTATE JOINT RULES GOVERNING THE UNIFORM DISPOSITION OF UNCLAIMED PROPERTY

Current through Register Vol. 48, No. 28, July 12, 2024
This Part is a joint rule of the Illinois State Treasurer and
				the Office of Banks and Real Estate. The text of the Part appears at 74 Ill.
				Adm. Code 761.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.10 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of this Part:
"Act" means the Illinois Banking Act [205 ILCS 5 ].
"Commissioner" means the Commissioner of Banks and Real Estate,
				or a person authorized by the Commissioner to act in the Commissioner's
				stead.
"Compelling need" means that no other non-confidential source
				is available to obtain information of equal relevance.
"Complete request" means a request that provides all of the
				information required in Section
				325.30
				of this Part.
"Confidential supervisory information" shall have the same
				meaning ascribed to that term in Section 48.3 of the Act [205
				ILCS 5/48.3 ].
"Person" shall have the same meaning ascribed to that term in
				Section 2 of the Act [205 ILCS
				5/2 ].
"Relevant" means the requested confidential supervisory
				information could substantially contribute to the resolution of the issues
				identified in the pleadings contained within the request.
"Requester" means any person who makes a request for the
				discovery or disclosure of confidential supervisory information, whether by
				subpoena, order, or other judicial or administrative process.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
a) Purpose. The
			 purpose of this Part is to establish the procedures and standards by which the
			 Commissioner shall determine whether to disclose confidential supervisory
			 information in response to a request for discovery or disclosure of such
			 information.
b) Scope. This Part
			 applies to requests, whether by subpoena, order, or other judicial or
			 administrative process, for discovery or disclosure of confidential supervisory
			 information prepared or obtained by the Commissioner under the Act, the
			 Electronic Fund Transfer Act, the Corporate Fiduciary Act, the Illinois Bank
			 Holding Company Act of 1957, the Foreign Banking Office Act and any report of
			 examination, visitation or investigation prepared by the state regulatory
			 authority of another state that examines a branch of an Illinois bank in that
			 state. This Part does not apply to:
1) a
			 request made pursuant to the Freedom of Information Act [5 ILCS 140 ] (FOIA),
			 provided that, if the information requested constitutes confidential
			 supervisory information, it shall nonetheless be exempt from disclosure
			 pursuant to Section 7(l)(x) of FOIA;
2) a request made by a party to whom the
			 Commissioner may furnish confidential supervisory information as permitted in
			 Section 48.3 of the Act [205
			 ILCS 5/48.3 ]; or
3) a request made by a party to whom a bank
			 or other financial institution may furnish confidential supervisory information
			 as permitted in Section 48.3(b) of the Act [205
			 ILCS 5/48.3 ].
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.30 - Requests for Confidential Supervisory Information

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 48.3 of the Act [205
				ILCS 5/48.3 ], a request for confidential supervisory
				information arising from an adversarial matter, whether by subpoena, order, or
				other judicial or administrative process, shall be made to the Commissioner. If
				the request is for a record, the requester must adequately describe the records
				sought by type and date. Such request shall be accompanied by:
a) a copy of the formal complaint or pleading
			 setting forth the assertions of the adversarial matter;
b) the caption and docket number assigned to
			 the adversarial proceeding;
c) the
			 name, address, and telephone number of designated legal counsel to each party
			 named in the adversarial proceeding;
d) a statement detailing the relevance of the
			 requested confidential supervisory information;
e) a statement detailing a compelling need
			 for the requested confidential supervisory information;
f) a statement describing any prior judicial
			 decisions or pending motions in the case that may bear on the asserted
			 relevance of the requested information; and
g) a statement detailing why the requester
			 believes that the compelling need outweighs the public interest considerations
			 in maintaining confidentiality and why the compelling need outweighs the burden
			 on the Office of Banks and Real Estate to produce the requested confidential
			 supervisory information.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.40 - Where to Submit a Request

Current through Register Vol. 48, No. 28, July 12, 2024
A person requesting discovery or disclosure of confidential
				supervisory information under this Part shall mail, or hand deliver, the
				request to:
Office of Banks and Real Estate
Bureau of Banks and Trust Companies
500 East Monroe Street
Springfield, Illinois 62701-1509
Attention: Legal Section
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.50 - Consideration of Requests

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Standards for the Disclosure of Confidential Supervisory Information. When
			 making a determination with respect to the disclosure of confidential
			 supervisory information, the Commissioner shall consider the following
			 standards:
1) the confidential supervisory
			 information identified in the request is relevant;
2) a compelling need exists;
3) if the requested confidential supervisory
			 information is to be used in connection with an adversarial matter, the lawsuit
			 or administrative action has been filed; and
4) the production and disclosure of the
			 confidential supervisory information is not unduly burdensome to the Office of
			 Banks and Real Estate.
In determining whether to disclose the requested confidential
				supervisory information, the Commissioner may inquire into the circumstances of
				any case underlying the request and rely on sources of information other than
				the requester, including other parties.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.60 - Disclosure of Confidential Supervisory Information

Current through Register Vol. 48, No. 28, July 12, 2024
a) Conditions and Limitations. The
			 Commissioner may impose any conditions and limitations on the disclosure of
			 confidential supervisory information that are necessary to protect the
			 confidentiality of such information. Except as authorized by the Commissioner,
			 no person obtaining access to confidential supervisory information under this
			 Part may make a copy of the confidential supervisory information.
b) Restrictions on Dissemination of
			 Confidential Supervisory Information. The Commissioner may condition a decision
			 to disclose confidential supervisory information on entry of a protective order
			 by the court or administrative tribunal presiding in the particular case or on
			 a written agreement of confidentiality. In a case in which a protective order
			 or agreement has already been entered between parties other than the
			 Commissioner, the Commissioner may nevertheless condition approval for release
			 of confidential supervisory information upon the inclusion of additional or
			 amended provisions in the protective order. The Commissioner may authorize a
			 party who obtained the records for use in one case to provide them to another
			 party in another case, subject to any conditions that the Commissioner may
			 impose on either or both parties.
c) Notification of Parties and Procedures for
			 Sharing and Using Confidential Supervisory Information in Litigation. The
			 requester shall promptly notify other parties to a case of the release of
			 confidential supervisory information obtained pursuant to this Part and, upon
			 entry of a protective order, shall provide copies of confidential supervisory
			 information to the other parties.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.70 - Retrieval and Destruction of Previously Disclosed Confidential Supervisory Information Used in Litigation

Current through Register Vol. 48, No. 28, July 12, 2024
At the conclusion of an action:
a) the requester shall retrieve the disclosed
			 confidential supervisory information from the judicial or administrative file
			 as soon as the presiding judicial or administrative authority no longer
			 requires the information;
b) the
			 requester, and each party who may have subsequently received confidential
			 supervisory information pursuant to a protective order, shall destroy the
			 disclosed confidential supervisory information covered by the protective order;
			 and
c) each party shall certify to
			 the Commissioner that the disclosed confidential supervisory information
			 covered by the protective order has been destroyed.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 325 - DISCLOSURE OF CONFIDENTIAL SUPERVISORY INFORMATION › Section 325.80 - Fees for Services

Current through Register Vol. 48, No. 28, July 12, 2024
The Commissioner may charge the following fees for any record
				search or copying performed by the Commissioner:
a) Reproduction costs incurred in making
			 photocopies of documents shall be reimbursed at $.25 per exposure.
b) All other costs, including but not limited
			 to telephone costs, telegrams, and shipping costs, incurred in searching for
			 and transporting data pursuant to a request for confidential supervisory
			 information shall be reimbursed at actual costs.
The Commissioner may require a requester to remit payment prior
				to providing the requested confidential supervisory
				information.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart A - GENERAL LENDING PROVISIONS › Section 330.10 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Act" means the Illinois Banking Act [205 ILCS 5 ].
"Department" means the Department of Financial and
				  Professional Regulation.
"Director" means the Director of the Division of Banking with
				  the authority delegated by the Secretary.
"Division" means the Department of Financial and Professional
				  Regulation-Division of Banking with the authority delegated by the
				  Secretary.
"Loan or Extension of Credit" means any direct or indirect
				  advance of funds that results in a liability of any person for money borrowed
				  or otherwise. An indirect advance of funds shall include, but not be limited
				  to, a purchase by a bank of a note or obligation from another person.
"Person" shall have the meaning ascribed to it in Section 2
				  of the Act.
"Secretary" means the Secretary of the Department of
				  Financial and Professional Regulation.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart A - GENERAL LENDING PROVISIONS › Section 330.20 - Renewals of Loans or Extensions of Credit

Current through Register Vol. 48, No. 28, July 12, 2024
A renewal of a loan or extension of credit shall not be
				  deemed to be a new loan or extension of credit except in instances when
				  interest on the renewed loan or extension of credit is
				  capitalized.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart B - AGGREGATION OF LOANS › Section 330.100 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
Section 32 of the Act is intended to prevent one person or a
				  relatively small group of persons, from borrowing an unduly large amount of a
				  bank's funds. It is also intended to safeguard a bank's depositors by
				  diversifying the risk of loan losses among a relatively large number of persons
				  engaged in different types of businesses.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart B - AGGREGATION OF LOANS › Section 330.110 - Combining Loans to Separate Persons

Current through Register Vol. 48, No. 28, July 12, 2024
a) A loan or extension of credit to one
				person shall be considered a loan or extension of credit to a second person if
				the credit worthiness of the one person does not justify the loan or extension
				of credit without reliance on the credit worthiness of the second
				person.
b) Factors which may be
				relevant in determining whether a loan or extension of credit to one person can
				be justified without reliance on the credit worthiness of a second person
				incude the following:
1) Will the credit
				analysis and documentation on file at the bank at the time the loan or
				extension of credit was made substantiate that the one person has or will have
				the financial capacity to generate sufficient funds from his or her own assets
				and operations to repay the loan or extension of credit or is the source of
				repayment the second person?;
2)
				Were the proceeds of the loan or extension of credit to one person used for the
				primary benefit of the one person or was a substantial portion of the proceeds
				used for the benefit of the second person without a corresponding economic
				benefit to the one person?;
3) In
				instances involving a guaranty or other secondary liability, is the liability
				of the second person that an accommodation party pursuant to Section 32(5) of
				the Act, namely a person who becomes obligated on the loan or extension of
				credit to one person and does not receive any of the proceeds thereof, or is
				the purpose of the guaranty or other secondary liability to enhance the loan or
				extension of credit for reasons other than repayment, such as to obtain an
				investment grade rating or to reduce the rate of interest charged on the loan
				or extension of credit, or would the loan or extension of credit to one person
				not have been made without the second person's guaranty or other secondary
				liability?
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart B - AGGREGATION OF LOANS › Section 330.120 - Good Faith Reliance

Current through Register Vol. 48, No. 28, July 12, 2024
When determining whether a loan combination question exists,
				  the directors, officers, employees and agents of a state bank shall be entitled
				  to rely and shall be protected in relying in good faith upon the books and
				  records of the bank and upon credit applications, representations,
				  certifications and other disclosures furnished by the borrower, guarantor and
				  other related persons with respect to the purpose, use and source of repayment
				  for a given loan or extension of credit, interrelationships among the various
				  parties at interest and other pertinent factual considerations, provided
				  careful attention and effort are given to reviewing such
				  information.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart C - DERIVATIVE TRANSACTIONS › Section 330.210 - Lending Limits; Derivatives

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of Section 32 of the Act and Section 6013 of the
				  Savings Bank Act, derivative transactions shall be included in the calculation
				  of lending limits.
a) The calculation
				of derivatives as applied to lending limits for purposes of Section 32 of the
				Act and Section 6013 of the Savings Bank Act shall be determined pursuant to
				Section
				330.230.
b) Intraday credit exposures arising from a
				derivative transaction are not subject to the lending limits of Section 32 of
				the Act and Section 6013 of the Savings Bank Act, as applicable, or this
				Part.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 330 - LENDING LIMITS › Subpart C - DERIVATIVE TRANSACTIONS › Section 330.220 - Nonconforming Loans and Extensions of Credit

Current through Register Vol. 48, No. 28, July 12, 2024
a) A loan or extension of credit, within a
				state bank's legal lending limit when made, will not be deemed a violation but
				will be treated as nonconforming if the loan or extension of credit is no
				longer in conformity with the state bank's lending limit because:
1) The bank's capital has declined, borrowers
				have subsequently merged or formed a common enterprise, lenders have merged, or
				the lending limit or capital rules have changed;
2) Collateral securing the loan to satisfy
				the requirements of a lending limit exception as defined in Sections 32, 33 and
				35 of the Act, or in Sections 6003 or 6013 of the Savings Bank Act, as
				applicable, has declined in value.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 335 - UNIMPAIRED CAPITAL AND UNIMPAIRED SURPLUS › Section 335.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
Section 2 of the Illinois Banking Act defines "unimpaired
				capital and unimpaired surplus" as including a bank's "Tier 1 Capital and Tier
				2 Capital plus such other shareholder equity as may be included by regulation
				of the Commissioner." "Unimpaired capital and unimpaired surplus" is used as
				the basis for determining a state bank's legal lending and investment limits.
				The purpose of the Rule is to add the balance of a state bank's allowance for
				loan and lease losses, otherwise excluded from Tier 1 Capital and Tier 2
				Capital, as additional shareholder equity included in "unimpaired capital and
				unimpaired surplus." This addition is consistent with the objective of P.A.
				88-546 to permit state banks to use the same elements that national banks use
				in calculating lending and investment limits, and it will provide needed
				clarity and consistency regarding the calculation and application of lending
				and investment limits by state banks.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 335 - UNIMPAIRED CAPITAL AND UNIMPAIRED SURPLUS › Section 335.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Allowance for loan and lease losses" are reserves that have
				been established through a charge against earnings to absorb future losses on
				loans or lease financing receivables. Allowance for loan and lease losses
				exclude allocated transfer risk reserves, and reserves created against
				identified losses.
"Allocated transfer risk reserves" are reserves that have been
				established in accordance with Section 905(a) of the International Lending
				Supervision Act of 1983,
				12
				U.S.C. 3904(1993), against
				certain assets whose value has been found by the United States supervisory
				authorities to have been significantly impaired by protracted transfer risk
				problems.
"Appropriate federal banking agency" shall have the meaning as
				defined in Section 2 of the Illinois Banking Act [205
				ILCS 5/2 ] (see P.A. 88-546, effective June 29,
				1994).
"Tier 1 Capital" and "Tier 2 Capital" shall have the meanings
				as defined in Section 2 of the Illinois Banking Act [205 ILCS 5/2] (see P.A.
				88-546, effective June 29, 1994).
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 335 - UNIMPAIRED CAPITAL AND UNIMPAIRED SURPLUS › Section 335.30 - General Rule

Current through Register Vol. 48, No. 28, July 12, 2024
For the purposes of Section 2 of the Illinois Banking Act,
				"unimpaired capital and unimpaired surplus" shall include the balance of the
				state bank's allowance for loan and lease losses not included in the state
				bank's Tier 1 Capital and Tier 2 Capital.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 340 - LOANS TO BANK OFFICERS, EMPLOYEES, DIRECTORS OR TO CORPORATIONS OR FIRMS CONTROLLED BY THEM › Section 340.10 - Scope and Authority

Current through Register Vol. 48, No. 28, July 12, 2024
The Illinois Commissioner of Banks and Real Estate is
				responsible for the administration of the Illinois Banking Act (the Act) [205
				ILCS 5 ]. Section 37(1) of the Act requires the Commissioner to prescribe by
				rule limits on loans made by a state bank to any of its officers, employees,
				directors or to corporations or firms controlled by them or in the management
				of which any of them are actively engaged without receiving the prior approval
				of the bank's board of directors.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 340 - LOANS TO BANK OFFICERS, EMPLOYEES, DIRECTORS OR TO CORPORATIONS OR FIRMS CONTROLLED BY THEM › Section 340.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of this Part:
"actively engaged" means direct involvement in the policies of
				a corporation or firm;
"control" means:
the ownership of or the power to vote 10% or more of any class
				of voting securities of a corporation; or
the ability to direct in any manner the election of a majority
				of a corporation's board of directors.
"director" means any individual elected or appointed to serve
				on a bank's board of directors, whether or not such individual receives
				compensation. An advisory director is not considered a director for purposes of
				this Part. An individual is an advisory director if he:
is not elected by the bank's shareholders;
is not authorized to vote on matters before the board of
				directors; and
provides solely general policy advice to the bank's board of
				directors.
"firm" means a general or limited partnership.
"he" includes the feminine as well as the masculine
				form.
"loan or extension of credit" shall include all direct or
				indirect advances of funds made on the basis of an obligation to repay the
				funds. Such term shall also include any obligation of a state bank to advance
				funds pursuant to a contractual commitment, such as a letter of credit.
"officer" means a president, vice president or other salaried
				officer of the lending bank.
"person" means a bank officer, employee or
				director.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 340 - LOANS TO BANK OFFICERS, EMPLOYEES, DIRECTORS OR TO CORPORATIONS OR FIRMS CONTROLLED BY THEM › Section 340.30 - Limits

Current through Register Vol. 48, No. 28, July 12, 2024
Any loan or extension of credit by a state bank to any of its
				officers, employees, directors or to corporations or firms controlled by them
				or in the management of which any of them are actively engaged must receive the
				prior approval of the board of directors of the bank if such loan or extension
				of credit exceeds the higher of $25,000 or 5% of the bank's capital, surplus
				and undivided profits when aggregated with all other loans or extensions of
				credit then outstanding by the bank to that person or to any corporation or
				firm controlled by that person or in the management of which that person is
				actively engaged. In no event shall a state bank make any loan or extension of
				credit to any of its officers, employees, directors or to corporations or firms
				controlled by them or in the management of which any of them are actively
				engaged in an amount that, when aggregated with all other loans or extensions
				of credit then outstanding by the bank to that person or to any corporation or
				firm controlled by that person or in the management of which that person is
				actively engaged, exceeds $500,000, except with the prior approval of the board
				of directors of the bank. When the bank's board of directors votes on a
				specific loan or extension of credit to the bank's officer, employee, director
				or to a corporation or firm controlled by them or in the management of which
				any of them are actively engaged, that officer, employee or director shall not
				be present during the discussion of such loan or extension of credit and shall
				abstain from participating in the vote.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart A - GENERAL › Section 345.10 - Authority, Purposes, and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				The Illinois Community Reinvestment Act (ILCRA) [205 ILCS 735] authorizes this
				Part.
b) Purposes. This Part is
				intended to carry out the purposes of the Illinois Community Reinvestment Act
				(ILCRA) by establishing the framework and criteria by which the Secretary
				assesses the ILCRA record of a bank, as defined by Section
				345.10. Without limiting the
				aforementioned purpose, specific purposes of this Part include:
1) Establishment of rules pursuant to Section
				35-10(b) of the ILCRA, which requires that this Part incorporate federal rules
				promulgated under the federal Community Reinvestment Act [12 U.S.C. 2901; see
				also 12 CFR 345 ]. Specifically, Section 35-10(b) of the ILCRA states, in
				relevant part:
To assist in carrying out this Act, the Secretary shall
				adopt rules incorporating the regulations applicable to covered financial
				institutions under federal law, and the Secretary may make such adjustments and
				exceptions thereto as are deemed necessary.
[205 ILCS
				735/35-10(b) ]
2) Accordingly, this Part:
A) may include references to federal statutes
				or administrative rules established pursuant to the federal Community
				Reinvestment Act; and
B) except
				where this Subpart makes adjustments or exceptions to the federal rules
				established pursuant to the federal Community Reinvestment Act or where
				inconsistent with the ILCRA or this Subpart, this Subpart shall be construed
				and interpreted consistently with the appropriate federal financial supervisory
				agency's construction and interpretation of the federal rules.
3) Establishment of rules as
				required by Section 35-10(c) of the ILCRA.
4) Establishment of rules as the Secretary
				may deem appropriate as authorized by the Act under Section 35-15(a), Section
				35-35, or otherwise. These rules shall be liberally construed to effectuate
				their purpose.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.200 - Assessment Factors

Current through Register Vol. 48, No. 28, July 12, 2024
As used in this Part, "assessment factors" means the
				  assessment of the following factors to determine whether a bank is meeting the
				  financial services needs of local communities:
a) activities to ascertain the financial
				services needs of the community, including communication with community members
				regarding the financial services provided;
b) extent of marketing to make members of the
				community aware of the financial services offered;
c) origination of mortgage loans including,
				but not limited to, home improvement and rehabilitation loans, and other
				efforts to assist existing low-income and moderate-income resident to be able
				to remain in affordable housing in their neighborhoods;
d) for small business lenders, the
				origination of loans to businesses with gross annual revenues of $1,000,000.00
				or less, particularly those in low-income and moderate-income
				neighborhoods;
e) participation,
				including investments, in community development and redevelopment programs,
				small business technical assistance programs, minority-owned depository
				institutions, community development financial institutions, and mutually owned
				financial institutions;
f) efforts
				working with delinquent customers to facilitate a resolution of the
				delinquency;
g) origination of
				loans that show an under concentration and a systemic pattern of lending
				resulting in the loss of affordable housing units;
h) evidence of discriminatory and prohibited
				practices; and
i) offering retail
				banking services to unbanked and underbanked persons.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.210 - Performance Tests, Standards, and Ratings, in General

Current through Register Vol. 48, No. 28, July 12, 2024
a) Performance tests and standards. The
				Secretary assesses the ILCRA performance of a bank in an examination as
				follows:
1) Lending, investment, and service
				tests. The Secretary applies the assessment factors, as provided in Section
				345.200, and lending, investment, and service tests, as provided in Section
				345.220 through 345.240, in evaluating the performance of a bank, except as
				provided in subsections (a)(2), (a)(3), and (a)(4) of this Section.
2) Community development test for wholesale
				or limited purpose banks. The Secretary applies the community development test
				for a wholesale or limited purpose bank, as provided in Section 345.250, except
				as provided in subsection (a)(4) of this Section.
3) Small bank performance standards. The
				Secretary applies the small bank performance standards as provided in Section
				345.260 in evaluating the performance of a small bank or a bank that was a
				small bank during the prior calendar year, unless the bank elects to be
				assessed as provided in subsections (a)(1), (a)(2), or (a)(4) of this Section.
				The bank may elect to be assessed as provided in subsection (a)(1) of this
				Section only if it collects and reports the data required for other banks under
				Section 345.410.
4) Strategic plan.
				The Secretary evaluates the performance of a bank under a strategic plan if the
				bank submits, and the Secretary approves, a strategic plan as provided in
				Section 345.270.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.220 - Lending Test

Current through Register Vol. 48, No. 28, July 12, 2024
a) Scope of test.
1) The lending test evaluates a bank's record
				of helping to meet the credit needs of its assessment area through its lending
				activities by considering a bank's home mortgage, small business, small farm,
				and community development lending. If consumer lending constitutes a
				substantial majority of a bank's business, the Secretary will evaluate the
				bank's consumer lending in one or more of the following categories: motor
				vehicle, credit card, other secured, and other unsecured loans. In addition, at
				a bank's option, the Secretary will evaluate one or more categories of consumer
				lending, if the bank has collected and maintained, as required in Section
				345.410(c)(1), the data for each category that the bank elects to have the
				Secretary evaluate.
2) The
				Secretary considers originations and initial purchases of loans. The Secretary
				will also consider any other loan data the bank may choose to provide,
				including data on loans outstanding, commitments and letters of
				credit.
3) A bank may ask the
				Secretary to consider loans originated or purchased by consortia in which the
				bank participates or by third parties in which the bank has invested only if
				the loans meet the definition of community development loans and only in
				accordance with subsection (d). The Secretary will not consider these loans
				under any criterion of the lending test except the community development
				lending criterion.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.230 - Investment Test

Current through Register Vol. 48, No. 28, July 12, 2024
a) Scope of test.
				The investment test evaluates a bank's record of helping to meet the credit
				needs of its assessment area through qualified investments that benefit its
				assessment area or a broader statewide or regional area that includes the
				bank's assessment area.
b)
				Exclusion. Activities considered under the lending or service tests may not be
				considered under the investment test.
c) Affiliate investment. At a bank's option,
				the Secretary will consider, in its assessment of a bank's investment
				performance, a qualified investment made by an affiliate of the bank, if the
				qualified investment is not claimed by any other institution. If a bank has
				established a foundation, the Secretary will consider, at the bank's option,
				qualified investments and donations of the foundation if those investments or
				donations have the primary purpose of community development.
d) Disposition of branch premises. Donating,
				selling on favorable terms, or making available on a rent-free basis a branch
				of the bank that is located in a predominantly minority neighborhood to a
				minority depository institution or women's depository institution (as these
				terms are defined in 12
				U.S.C. 2907(b)) will be
				considered as a qualified investment.
e) Performance criteria. The Secretary
				evaluates the investment performance of a bank considering the assessment
				factors in Section 345.200 and pursuant to the following criteria:
1) The dollar amount of qualified
				investments;
2) The innovativeness
				or complexity of qualified investments;
3) The responsiveness of qualified
				investments to credit and community development needs; and
4) The degree to which the qualified
				investments are not routinely provided by private investors.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.250 - Community Development Test for Wholesale or Limited Purpose Banks

Current through Register Vol. 48, No. 28, July 12, 2024
a) Scope of test.
				The FDIC assesses a wholesale or limited purpose bank's record of helping to
				meet the credit needs of its assessment area under the community development
				test through its community development lending, qualified investments, or
				community development services.
b)
				Designation as a wholesale or limited purpose bank. In order to receive a
				designation as a wholesale or limited purpose bank, a bank shall file a
				request, in writing, with the Department, at least three months prior to the
				proposed effective date of the designation. If the Department approves the
				designation, it remains in effect until the bank requests revocation of the
				designation or until one year after the Department notifies the bank that the
				Department has revoked the designation on its own initiative.
c) Performance criteria. The Secretary
				evaluates the community development performance of a wholesale or limited
				purpose bank considering the assessment factors in Section 345.200 and pursuant
				to the following criteria:
1) The number and
				amount of community development loans (including originations and initial
				purchases of loans and other community development loan data provided by the
				bank, such as data on loans outstanding, commitments, and letters of credit),
				qualified investments, or community development services;
2) The use of innovative or complex qualified
				investments, community development loans, or community development services and
				the extent to which the investments are not routinely provided by private
				investors; and
3) The bank's
				responsiveness to credit and community development needs.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.260 - Small Bank Performance Standards

Current through Register Vol. 48, No. 28, July 12, 2024
a) Performance criteria.
1) Small banks that are not intermediate
				small banks. The Secretary evaluates the record of a small bank that is not, or
				that was not during the prior calendar year, an intermediate small bank, of
				helping to meet the credit needs of its assessment area by considering the
				assessment factors in Section 345.200 and pursuant to the criteria set forth in
				subsection (b) of this Section.
2)
				Intermediate small banks. The Secretary evaluates the record of a small bank
				that is, or that was during the prior calendar year, an intermediate small
				bank, of helping to meet the credit needs of its assessment area by considering
				the assessment factors in Section 345.200 and pursuant to the criteria set
				forth in subsections (b) and (c) of this Section.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart B - STANDARDS OF ASSESSING PERFORMANCE › Section 345.270 - Strategic Plan

Current through Register Vol. 48, No. 28, July 12, 2024
a) Alternative
				election. The Secretary will assess a bank's record of helping to meet the
				credit needs of its assessment area considering the assessment factors in
				Section 345.200 under a strategic plan if:
1)
				The bank has submitted the plan to the Secretary as provided for in this
				Section;
2) The Secretary has
				approved the plan;
3) The plan is
				in effect; and
4) The bank has been
				operating under an approved plan for at least one year.