2005 Illinois Code - Chapter 205 Financial Regulation 205 ILCS 680/ Financial Institution Activity Reporting Act.
(205 ILCS 680/1) (from Ch. 17, par. 7401‑1)
Sec. 1.
Short title.
This Act may be cited as the Financial Institution Activity Reporting Act.
(Source: P.A. 87‑725.)
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(205 ILCS 680/5) (from Ch. 17, par. 7401‑5)
Sec. 5.
Legislative findings and purpose.
(a) The General Assembly finds that:
(1) Certain states have adopted laws that impose a |
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franchise, license, or use tax based on income earned within their borders by nonresident financial institutions.
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(2) The result of these taxes is that Illinois
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financial institutions may be subject to multiple taxation and burdensome recordkeeping requirements.
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(3) In order to determine the extent to which these
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taxes and recordkeeping requirements put Illinois financial institutions at a competitive disadvantage to nonresident financial institutions domiciled in states imposing these requirements, the legislature seeks to gather information on the nature and extent of activities and income earned by nonresident financial institutions in Illinois.
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(b) It is the purpose of this Act to compel nonresident financial
institutions to provide information on the nature and extent of their
activities and income earned in Illinois and to provide the General Assembly
with information needed to protect Illinois financial institutions against
potential competitive disadvantages.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.05) (from Ch. 17, par. 7401‑10.05)
Sec. 10.05.
Accounting period.
"Accounting period" means the calendar
or fiscal year, or part thereof, for which a report is due under this Act.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.10) (from Ch. 17, par. 7401‑10.10)
Sec. 10.10.
Business of a financial institution.
"Business of a financial institution" means the following:
(1) For a holding company, a regulated financial corporation, or a
subsidiary of either, the activities that each is authorized to perform
under federal or state law, including the activities authorized by
regulation or order of the Federal Reserve Board for the subsidiary under
Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(8)).
(2) For any other corporation, all of the corporation's business
activities if 80% or more of the corporation's gross income, excluding
extraordinary income, is derived from one or more of the following activities:
(A) Making, acquiring, selling, or servicing loans |
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or extensions of credit. For the purpose of this paragraph, loans and extensions of credit include, without limitation, the following:
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(i) Secured or unsecured consumer loans.
(ii) Installment obligations.
(iii) Mortgage or other secured loans on real
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estate or tangible personal property.
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(iv) Credit card loans.
(v) Secured and unsecured commercial loans of
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(vi) Letters of credit and acceptance of drafts.
(vii) Loans arising in factoring.
(viii) Any other transactions with a comparable
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(B) Leasing or acting as an agent, broker, or
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advisor in connection with leasing real and personal property that is the economic equivalent of the extension of credit if the transaction is not treated as a lease for federal income tax purposes.
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(C) Operating a credit card, debit card, charge
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card, or similar business.
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As used in this paragraph, "gross income" includes
income from interest, fees, penalties, a market discount or other type of
discount, rental income, the gain on a sale of intangible or other property
evidencing a loan or extension of credit, and dividends or other income
received as a means of furthering the activities set out in this paragraph.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.15) (from Ch. 17, par. 7401‑10.15)
Sec. 10.15.
Calendar accounting year.
"Calendar accounting year" means
an accounting period ending on the last day of December on the basis of
which the financial institution is required to report for federal income
tax purposes.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.20) (from Ch. 17, par. 7401‑10.20)
Sec. 10.20.
Commercial domicile.
"Commercial domicile" means:
(1) For a regulated financial corporation:
(A) the "taxing jurisdiction" under the laws of |
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which it is organized; or
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(B) if it is organized under the laws of the United
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States, the place designated as its principal office with the primary regulatory authority.
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(2) For a foreign bank, the state where it has established a federal
agency or federal branch under Section 4 of the International Banking Act
of 1978 (12 U.S.C. 3102) or, if it transacts business in more than one
state, its home state as provided in Section 5(c) of the International
Banking Act of 1978 (12 U.S.C. 3103(c)).
(3) For all other entities, the principal place from which the trade or
business of the entity is directed or managed.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.25) (from Ch. 17, par. 7401‑10.25)
Sec. 10.25.
Commissioner.
"Commissioner" means the Commissioner of Banks
and Real Estate or a person authorized by the Commissioner, the Office of
Banks and Real Estate Act, or this Act to act in the Commissioner's stead.
(Source: P.A. 89‑508, eff. 7‑3‑96.)
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(205 ILCS 680/10.30) (from Ch. 17, par. 7401‑10.30)
Sec. 10.30.
Director.
"Director" means the Director of the Department
of Revenue.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.35) (from Ch. 17, par. 7401‑10.35)
Sec. 10.35.
Financial institution.
"Financial institution" means a
corporation that is transacting the business of a financial institution.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.40) (from Ch. 17, par. 7401‑10.40)
Sec. 10.40.
Fiscal accounting year.
"Fiscal accounting year" means an
accounting period ending on any day other than the last day of December on
the basis of which the financial institution is required to report for
federal income tax purposes.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.45) (from Ch. 17, par. 7401‑10.45)
Sec. 10.45.
Nonresident financial institution.
"Nonresident financial
institution" means any financial institution whose commercial domicile is
not within this State, except for nonresident subsidiaries and affiliates
of resident financial institutions.
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.50) (from Ch. 17, par. 7401‑10.50)
Sec. 10.50.
Regulated financial corporation.
"Regulated financial corporation" means any of the following:
(1) An institution, the deposits, shares, or accounts of which are
insured by the Federal Deposit Insurance Corporation.
(2) An institution that is a member of a Federal Home Loan Bank.
(3) Any other bank or thrift institution incorporated or organized under
the laws of a state that is engaged in the business of receiving deposits.
(4) A credit union incorporated and organized under the laws of this State.
(5) A production credit association organized under 12 U.S.C. 2071.
(6) A corporation organized under 12 U.S.C. 611 through 631 (Edge Act
Corporation).
(7) A federal or state agency or branch of a foreign bank (as defined in
12 U.S.C. 3101).
(Source: P.A. 87‑725.)
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(205 ILCS 680/10.55) (from Ch. 17, par. 7401‑10.55)
Sec. 10.55.
Taxing jurisdiction.
"Taxing jurisdiction" means a state of
the United States, the District of Columbia, the Commonwealth of Puerto
Rico, or a territory or possession of the United States.
(Source: P.A. 87‑725.)
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(205 ILCS 680/15) (from Ch. 17, par. 7401‑15)
Sec. 15.
Notice of Financial Institution Activity Report; necessity
of filing; activities covered. Every nonresident financial institution
that carried on the business of a financial institution in Illinois during
any accounting period ending after December 31, 1991, shall file a
Financial Institution Activity Report.
(Source: P.A. 87‑725.)
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(205 ILCS 680/20) (from Ch. 17, par. 7401‑20)
Sec. 20.
Annual filing; due date.
(a) Every nonresident financial institution required to file a report
under this Act shall annually file a Financial Institution Activity Report
with respect to all or any part of its accounting period ending after
December 31, 1991, no later than the 15th day of the 4th month after the
close of the accounting period.
(b) For purposes of this Act, every nonresident financial institution
shall use the same accounting period on which it reports to the United
States Treasury Department for federal income tax purposes.
(c) The Financial Institution Activity Report shall be filed with the
Commissioner and a copy shall be filed with the Director.
(Source: P.A. 87‑725.)
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(205 ILCS 680/25) (from Ch. 17, par. 7401‑25)
Sec. 25.
Forms of report; certification.
(a) The Commissioner shall design the form for the Financial
Institution Activity Report and forms for any additional statements or
schedules that the Commissioner may require to be filed therewith. The
Commissioner shall require financial institutions required to file under
this Act to indicate the financial institution's gross income from
conducting the business of a financial institution in Illinois and any
other information the Commissioner deems appropriate and desirable.
(b) The Commissioner shall provide for the printing and distribution of
blank forms to financial institutions upon application or otherwise as the
Commissioner may deem necessary. Failure to receive a report form shall
not relieve any financial institution from the obligation to file a report
under the provisions of this Act.
(c) A duly authorized officer of the financial institution shall certify
that the statements contained in the report are true. The fact that an
individual's name is signed on a certification shall be prima facie
evidence that the individual is authorized to sign and certify the report
on behalf of the financial institution.
(Source: P.A. 87‑725.)
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(205 ILCS 680/30) (from Ch. 17, par. 7401‑30)
Sec. 30.
Failure to file timely report.
(a) No nonresident financial institution required to file under this Act
shall maintain any action or proceeding in any State or federal court in
Illinois on any contract executed or any cause of action that arose at any
time prior to the end of the last accounting period for which the
nonresident financial institution failed to file a required timely report,
except as provided in subsection (b) of this Section.
(b) The court having jurisdiction of a matter may excuse the financial
institution for failure to file a report when due and restore the right of
access to the courts in this State. The failure to file a report shall be
excusable only where the court finds the financial institution has
sustained the burden of establishing that (i) the failure to file a timely
report was done in ignorance of the requirement to file and the ignorance
was reasonable in all circumstances; and (ii) all delinquent reports have
been subsequently filed.
(Source: P.A. 87‑725.)
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(205 ILCS 680/35) (from Ch. 17, par. 7401‑35)
Sec. 35.
Administration of Act by Commissioner.
The Commissioner of Banks
and Real Estate shall administer
this Act, adopt regulations necessary or desirable to effectuate its purposes,
prepare instructions for guidance and information, and provide for all other
matters reasonably required for the fair, impartial, and practical
administration of this Act.
(Source: P.A. 89‑508, eff. 7‑3‑96.)
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(205 ILCS 680/40) (from Ch. 17, par. 7401‑40)
Sec. 40.
Exemptions.
A nonresident financial institution is not
required to file a Financial Institution Activity Report if, for the
nonresident financial institution's accounting period, the following
circumstances exist:
(1) the laws of the state of commercial domicile of the nonresident
financial institution do not impose a franchise, income, license, or excise
tax on financial institutions whose state of commercial domicile is Illinois;
(2) the laws of the state of the commercial domicile of the nonresident
financial institution do impose a franchise, income, license, or excise tax on
financial institutions whose state of commercial domicile is Illinois, but
the tax is only imposed on financial institutions that maintain an office
or have an employee or representative conducting the business of a
financial institution within the nonresident financial institution's state
of commercial domicile;
(3) the laws of the state of commercial domicile of the nonresident
financial institution do impose a franchise, income, license, or excise tax
on financial institutions whose state of commercial domicile is Illinois,
but a financial institution whose state of commercial domicile is Illinois,
if conducting the same activities under the same facts and circumstances in
the nonresident financial institution's state of commercial domicile, would
not be subject to the franchise, income, license, or excise tax imposed by that state; or
(4) the nonresident financial institution has filed required tax returns
in Illinois either on a separate company basis or as a member of a unitary
business group.
(Source: P.A. 87‑725.)
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(205 ILCS 680/45) (from Ch. 17, par. 7401‑45)
Sec. 45.
Severability.
The provisions of this Act are severable
under Section 1.31 of the Statute on Statutes.
(Source: P.A. 87‑725.)
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