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2005 Illinois Code - 205 ILCS 105/      Illinois Savings and Loan Act of 1985. Article 7 - Supervision


      (205 ILCS 105/Art. 7 heading)
ARTICLE 7. SUPERVISION

    (205 ILCS 105/7‑1) (from Ch. 17, par. 3307‑1)
    Sec. 7‑1. Office of the Commissioner of Savings and Residential Finance abolished. The Office of the Commissioner of Savings and Residential Finance is abolished and its functions are transferred to the Office of Banks and Real Estate as provided in the Office of Banks and Real Estate Act.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑2) (from Ch. 17, par. 3307‑2)
    Sec. 7‑2. Liability. The Commissioner shall not be subject to any civil liability or penalty, nor to any criminal prosecution, for any error in judgment or discretion made in good faith and upon reasonable grounds in any action taken or omitted by him in his official capacity.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑3) (from Ch. 17, par. 3307‑3)
    Sec. 7‑3. Personnel, records, files, actions and duties, etc. (a) The Commissioner shall appoint, subject to applicable provisions of the Personnel Code, a supervisor, such examiners, employees, experts and special assistants as may be necessary to carry out effectively this Act. The Commissioner shall require each supervisor, examiner, expert and special assistant employed or appointed by him to give bond, with security to be approved by the Commissioner, not less in any case than $15,000, conditioned for the faithful discharge of his duties. The premium on such bond shall be paid by the Commissioner from funds appropriated for that purpose. The bond, along with verification of payment of the premium on such bond, shall be filed in the office of the Secretary of State.
    (b) The Commissioner shall have the following duties and powers:
    (1) To exercise the rights, powers and duties set forth in this Act or in any other related Act;
    (2) To establish such regulations as may be reasonable or necessary to accomplish the purposes of this Act;
    (3) To direct and supervise all the administrative and technical activities of this office and create an Advisory Committee which upon request will make recommendations to him;
    (4) To make an annual report regarding the work of his office as he may consider desirable to the Governor, or as the Governor may request;
    (5) To cause a suit to be filed in his name to enforce any law of this State that applies to an association, subsidiary of an association, or holding company operating under this Act and shall include the enforcement of any obligation of the officers, directors or employees of any association;
    (6) To prescribe a uniform manner in which the books and records of every association are to be maintained; and
    (7) To establish reasonable and rationally based fee structures for each association and holding company operating under this Act and for their service corporations and subsidiaries, which fees shall include but not be limited to annual fees, application fees, regular and special examination fees, and such other fees as the Commissioner establishes and demonstrates to be directly resultant from his responsibilities under this Act and as are directly attributable to individual entities operating under this Act.
(Source: P.A. 85‑313.)

    (205 ILCS 105/7‑3.1) (from Ch. 17, par. 3307‑3.1)
    Sec. 7‑3.1. Supervisory orders.
    (a) The Commissioner has the power to issue orders requiring an association to take affirmative and immediate action to correct conditions resulting from any practices that could harm the interests of the association or its depositors.
    (b) After the issuance of an order under subsection (a), the Commissioner may suspend an affiliated person from office or prohibit that person from participating in any manner in the conduct of the affairs of the association if the Commissioner:
        (1) determines that the action is necessary for the
    
protection of the association or the interests of its depositors; and
        (2) serves the affiliated person with written notice
    
of the suspension order.
    Any suspension order issued under this subsection shall be effective upon service and shall remain in effect and enforceable until the Commissioner modifies or withdraws the order or a court stays or terminates the order.
    No person who, under this subsection, has been suspended from office or prohibited from participating in the conduct of the affairs of an association may continue or commence to hold any office in nor participate in any manner in the conduct of the affairs of any insured depository institution while the suspension is in effect.
    The resignation, termination of employment or participation, or separation of an affiliated person with respect to an association or holding company shall not affect the authority of the Commissioner to issue any order and proceed against any person under this subsection.
    (c) If an order issued under subsection (a) specifies that, on the basis of particular facts and circumstances, an association's books and records are so incomplete or inaccurate that the Commissioner or the appropriate federal agency is unable, through the normal supervisory process, to determine the financial condition of the association or the details or purpose of any transaction that may have a material effect on the financial condition of the association, the Commissioner may issue an order requiring:
        (1) the cessation of any activity or practice that
    
gave rise, in whole or in part, to the incompleteness or inaccuracy of the books and records; or
        (2) affirmative action to restore the books and
    
records to a complete and accurate condition.
    Any order issued under this subsection shall be effective upon service and shall remain in effect until the Commissioner modifies or withdraws the order or a court stays, modifies, or terminates the order.
(Source: P.A. 86‑1295.)

    (205 ILCS 105/7‑3.2)
    Sec. 7‑3.2. Reliance on Commissioner.
    (a) The Commissioner may issue an opinion in response to a specific request from a member of the public or the savings association industry or on his own initiative. The opinion may be in the form of an interpretive letter, no‑objection letter, or other issuance the Commissioner deems appropriate.
    (b) If the Commissioner determines that the opinion is useful for the general guidance of the public or associations, the Commissioner may disseminate the opinion by newsletter, via an electronic medium such as the internet, in a volume of statutes or related materials published by the Commissioner or others, or by other means reasonably calculated to notify persons affected by the opinion. A published opinion must be redacted to preserve the confidentiality of the requesting party unless the requesting party consents to be identified in the published opinion.
    (c) No association or other person shall be liable under this Act for any act done or omitted in good faith in conformity with any rule, interpretation, or opinion issued by the Commissioner, notwithstanding that after the act or omission has occurred, the rule, opinion, or interpretation upon which reliance is placed is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(Source: P.A. 92‑483, eff. 8‑23‑01.)

    (205 ILCS 105/7‑4) (from Ch. 17, par. 3307‑4)
    Sec. 7‑4. Prohibited activities. The Commissioner, deputy commissioners, and employees of the Office of Banks and Real Estate shall be subject to the restrictions provided in Section 2.5 of the Office of Banks and Real Estate Act including, without limitation, the restrictions on (i) owning shares of stock or holding any other equity interest in an entity regulated under this Act or in any corporation or company that owns or controls an entity regulated under this Act; (ii) being an officer, director, employee, or agent of an entity regulated under this Act; and (iii) obtaining a loan or accepting a gratuity from an entity regulated under this Act.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑5) (from Ch. 17, par. 3307‑5)
    Sec. 7‑5. Examination. (a) The Commissioner, at least once every 18 months, but more often if he deems it necessary or expedient, with or without previous notice, shall cause an examination to be made of the affairs of every association, including any holding company and subsidiary thereof. If an association or holding company has not been audited at least once in the preceding 12 months in accordance with this Act, the examination shall include an audit by licensed public accountants employed or appointed by the Commissioner. Such examination shall be made by competent examiners appointed for that purpose who are not officers or agents of, or in any manner interested in, any association or holding company which they examine, except that they may be holders of withdrawable capital.
    (b) The officers, agents or directors of any such association or holding company shall cause the books of the association or holding company to be opened for inspection by the Commissioner or his examiners and otherwise assist in such examination when requested; and for the purpose of examination, the examiner in charge thereof shall have power to administer oaths and to examine under oath any officers, employees, agents or directors of such association or holding company and such other witnesses as he deems necessary relative to the business of the association or holding company.
    (c) The Commissioner shall make a report of each examination to the board of directors of the association or holding company examined, which report shall be read by each director, who will then execute a signed affidavit to be filed and preserved by the association or holding company acknowledging that he has read the Commissioner's report. If the affairs of the association or holding company are not being conducted in accordance with this Act, the Commissioner shall require the directors, officers or employees to take any necessary corrective action. If the necessary corrective action is not made, the Commissioner may issue a formal order to the directors of the association or holding company delivered either personally or by registered or certified mail, specifying a date which may be immediate or may be at a later date for the performance by the association or holding company of the corrective action. Such order or any part thereof shall be subject to Sections 7‑24 through 7‑27 of this Act. If the formal order of the Commissioner in whole or in part contains a finding that the business of the association or holding company is being conducted in a fraudulent, illegal or unsafe manner, or that the violation thereof or the continuance by the association or holding company of the practice to be corrected could cause insolvency or substantial dissipation of assets or earnings or the impairment of its capital, such order or part thereof shall be complied with promptly on and after the effective date thereof until modified or withdrawn by the Commissioner, the Board, or modified or terminated by a circuit court. The Commissioner may apply to the circuit court of the county in which the association or holding company is located for enforcement of any such order requiring prompt compliance. If no hearing has been requested within the time specified by this Act, the Commissioner may, at any time within 90 days after the effective date of the order, institute suit in the Circuit Court of Sangamon County or the circuit court of the county in which the association or holding company is located to compel the directors, officers or employees to make the required corrective action. Such court shall, after due process of law, adjudicate the question and enter the proper order or orders and enforce them. In the interests of the members of the association or holding company, the Commissioner may prepare a statement of the condition of the association or holding company and may mail the statement to the members or may require a single publication thereof.
(Source: P.A. 85‑335.)

    (205 ILCS 105/7‑6) (from Ch. 17, par. 3307‑6)
    Sec. 7‑6. Annual audit. At least once in each year, but in no case more than 12 months after the last audit conducted pursuant to this Section, it shall be mandatory for each association to cause its books and accounts to be audited by a licensed public accountant not connected with such association. The Commissioner may prescribe the scope of such audit within the generally acceptable auditing principles and standards. The report of such audit shall be given to a committee composed of not less than 3 members of the board of directors, none of whom shall be officers, employees or agents of such association, and such committee shall, at the meeting of the board of directors following receipt of the report, present in detail the nature, extent and result of the report. A written summary of such committee's presentation, including a detailed listing of all criticisms made by the accountant conducting the audit and any responses thereto made by any member of the board of directors or any officer of the association, shall be sent by registered mail to all members of the board of directors not present at the meeting at which the committee made its presentation. A copy of the audit report, including a balance sheet of the association on the date of audit and a statement of income and expenses of the association during the year ending with the date of audit and, if and when such is used, a copy of any written summary prepared for absent members of the board of directors, shall be filed with the Commissioner by the committee receiving the report within 90 days of the audit date; except that the Commissioner may, for good cause shown, extend the filing date for up to 60 additional days. The report filed with the Commissioner shall be certified by the licensed public accountant conducting the audit. If any association required to make an audit shall fail to cause an audit to be made, the Commissioner shall cause the same to be made by a licensed public accountant at the association's expense. In lieu of the audit required by this Section, the Commissioner may accept any audit or portion thereof made exclusively for the Federal Deposit Insurance Corporation and the Office of Thrift Supervision.
(Source: P.A. 93‑271, eff. 7‑22‑03.)

    (205 ILCS 105/7‑7) (from Ch. 17, par. 3307‑7)
    Sec. 7‑7. Reports to Commissioner and members; penalty.
    (a) Every association operating under this Act shall file with the Commissioner within 90 days following the close of each fiscal year of such association a statement showing its financial condition at the close of the fiscal year and its operations for the year then ended. For good cause shown in writing directed to the Commissioner within the 90 day period, the Commissioner may authorize up to 60 additional days for filing of the statement of financial condition. Each such statement shall be on forms prescribed by the Commissioner and in conformity with generally accepted accounting principles or regulatory accounting principles permitted, recognized or authorized by the Office of Thrift Supervision for a federal association and subject to the rules and regulations of the Commissioner and in accord with the provisions of this Act. Each such statement shall contain such information and be in such form as prescribed by the Commissioner and shall be verified by the secretary and certified by a licensed public accountant appointed by the board of directors or by 2 officers of the association, if a licensed public accountant has been appointed to audit the books and records of the association as provided in the preceding Section of this Act. Every association including its holding company and subsidiaries shall also file such other reports as the Commissioner may require from time to time.
    Any association which, after notice from the Commissioner sent by certified or registered mail, wilfully fails to submit within the time prescribed the annual financial report required by this Section is subject to a civil penalty of not more than $500 for each such failure. Any association which, after notice from the Commissioner sent by certified or registered mail, wilfully fails to submit within the time prescribed any other report required by this Section is subject to a civil penalty of not more than $100 for each such failure (which penalties shall be cumulative to any other remedies). For the purposes of this Section, the date on which any report required by this Section is postmarked is the date of filing of any such report. The knowing or intentional filing of any such report which is false in any material respect constitutes a felony, and any person convicted thereof shall be punished by a fine of not more than $10,000, or imprisonment in the penitentiary for one to 5 years, or both.
    (b) An association shall file with the Commissioner a report of change of ownership of permanent reserve shares when such change of ownership results in any person as defined by this Act holding 10% or more, through any one transaction or related series of transactions, of the outstanding permanent reserves shares of the association. Such report shall include owners who hold as beneficiaries or through nominees as well as in their own names. The report shall be made within 5 business days after knowledge of such change has been obtained by the officer authorized or required to make reports to the Commissioner. The Commissioner also may require any such person owning 10% or more of permanent reserve shares to report the beneficiary or beneficiaries for whom he is holding title.
    Whenever there is a change in the managing officer of an association or a change amounting to a majority of the directors of an association elected at a regular or special meeting of the members, such change shall likewise be reported within 5 business days to the Commissioner.
    The willful failure by any person required to report or disclose change of ownership or control as defined in this Section constitutes a Class 4 felony.
    (c) Within 60 days after the date of filing the Statement of Financial Condition with the Commissioner, the association shall mail to each member or make available at each of its offices the annual statement of condition or a condensed form thereof approved by the Commissioner, or shall publish the same at least once, and shall also furnish upon the written or personal request of any member a copy of the complete annual statement of condition. The annual statement of condition, or any condensed form thereof, made available to members by publication, mailing, or at the association's offices shall include a statement setting forth the association's assets, liabilities, regulatory capital and deposits. In addition, the statement shall include a statement of the association's goals and intentions in regard to investment of the association's funds in order to reasonably inform the member as to the security of his interest. Notification of the availability of the complete annual statement shall be prominently and conspicuously posted in areas of public access at each of the association's branches or offices.
    (d) Any change of control or ownership of 25% or more of the permanent reserve shares or stock of (a) any association operating under this Act, or (b) of the shares or stock of a subsidiary of the parent or a subsidiary of any association operating under this Act, must be submitted to the Commissioner for review and approval on forms, conditions and terms to be specified by the Commissioner. The Commissioner may accept in satisfaction of this requirement, submissions required under federal statutes and regulations for changes of control. Any doubt as to whether a change of ownership or other change in the outstanding voting stock of any association is sufficient to result in a change of ownership or control, shall be resolved in favor of reporting the facts to the Commissioner. Compliance with this provision shall not relieve an association, its parent or affiliate from complying with other applicable State or federal statutes or regulations. The Commissioner may disapprove any proposed acquisition if:
        (1) The proposed acquisition of control would result
    
in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of Illinois;
        (2) The effect of the proposed acquisition of
    
control in any section of the State may be substantially to lessen competition or to tend to create a monopoly or the proposed acquisition of control would in any other manner be in restraint of trade, and the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served;
        (3) The financial condition or history of any
    
acquiring person is such as might jeopardize the financial stability of the institution or prejudice the interests of the depositors of the institution;
        (4) The competence, experience, or integrity of any
    
acquiring person or any of the proposed management personnel indicates that it would not be in the interest of the depositors of the institution or in the interest of the public to permit such person to control the institution; or
        (5) Any acquiring person neglects, fails or refuses
    
to furnish the Commissioner all the information required by the Commissioner.
(Source: P.A. 93‑271, eff. 7‑22‑03.)

    (205 ILCS 105/7‑8) (from Ch. 17, par. 3307‑8)
    Sec. 7‑8. Commissioner's report to the Governor and the General Assembly. The Commissioner shall prepare and transmit to the Governor and the General Assembly of this State on or before June 30 of each year an annual report on the condition of all associations operating under this Act. Such report shall include, but shall not be limited to, a condensed report on the financial condition of all associations and a listing and analysis of those instances where the Commissioner is required to resort to the courts of this State to enforce his orders, with recommendations as to alternatives to such court action in each instance. The Commissioner may cause a copy of such report, or any part thereof, to be printed and circulated.
    The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report with the Speaker, the Minority Leader and the Clerk of the House of Representatives and the President, the Minority Leader and the Secretary of the Senate and the Legislative Research Unit, as required by Section 3.1 of "An Act to revise the law in relation to the General Assembly", approved February 25, 1874, as amended, and filing such additional copies with the State Government Report Distribution Center for the General Assembly as is required under paragraph (t) of Section 7 of the State Library Act.
(Source: P.A. 84‑543.)

    (205 ILCS 105/7‑9) (from Ch. 17, par. 3307‑9)
    Sec. 7‑9. Disclosure of reports of examinations and confidential supervisory information; limitations.
    (a) Any report of examination, visitation, or investigation prepared by the Commissioner under this Act, any report of examination, visitation, or investigation prepared by the state regulatory authority of another state that examines a branch of an Illinois State association in that state, any document or record prepared or obtained in connection with or relating to any examination, visitation, or investigation, and any record prepared or obtained by the Commissioner to the extent that the record summarizes or contains information derived from any report, document, or record described in this subsection shall be deemed confidential supervisory information. "Confidential supervisory information" shall not include any information or record routinely prepared by an association and maintained in the ordinary course of business or any information or record that is required to be made publicly available pursuant to State or federal law or rule. Confidential supervisory information shall be the property of the Commissioner and shall only be disclosed under the circumstances and for the purposes set forth in this Section.
    The Commissioner may disclose confidential supervisory information only under the following circumstances:
        (1) The Commissioner may furnish confidential
    
supervisory information to federal and state depository institution regulators, or any official or examiner thereof duly accredited for the purpose. Nothing contained in this Act shall be construed to limit the obligation of any association to comply with the requirements relative to examinations and reports nor to limit in any way the powers of the Commissioner relative to examinations and reports.
        (2) The Commissioner may furnish confidential
    
supervisory information to the United States or any agency thereof that to any extent has insured an association's deposits, or any official or examiner thereof duly accredited for the purpose. Nothing contained in this Act shall be construed to limit the obligation relative to examinations and reports of any association in which deposits are to any extent insured by the United States or any agency thereof nor to limit in any way the powers of the Commissioner with reference to examination and reports of the association.
        (3) The Commissioner may furnish confidential
    
supervisory information to the appropriate law enforcement authorities when the Commissioner reasonably believes an association, which the Commissioner has caused to be examined, has been a victim of a crime.
        (4) The Commissioner may furnish confidential
    
supervisory information related to an association, which the Commissioner has caused to be examined, to the administrator of the Uniform Disposition of Unclaimed Property Act.
        (5) The Commissioner may furnish confidential
    
supervisory information relating to an association, which the Commissioner has caused to be examined, relating to its performance of obligations under the Illinois Income Tax Act and the Illinois Estate and Generation‑Skipping Transfer Tax Act to the Illinois Department of Revenue.
        (6) The Commissioner may furnish confidential
    
supervisory information relating to an association, which the Commissioner has caused to be examined, under the federal Currency and Foreign Transactions Reporting Act, 31 United States Code, Section 1051 et seq.
        (7) The Commissioner may furnish confidential
    
supervisory information to any other agency or entity that the Commissioner determines to have a legitimate regulatory interest.
        (8) The Commissioner may furnish confidential
    
supervisory information as otherwise permitted or required by this Act and may furnish confidential supervisory information under any other statute that by its terms or by regulations promulgated thereunder requires the disclosure of financial records other than by subpoena, summons, warrant, or court order.
        (9) At the request of the affected association, the
    
Commissioner may furnish confidential supervisory information relating to the association, which the Commissioner has caused to be examined, in connection with the obtaining of insurance coverage or the pursuit of an insurance claim for or on behalf of the association; provided that, when possible, the Commissioner shall disclose only relevant information while maintaining the confidentiality of financial records not relevant to such insurance coverage or claim and, when appropriate, may delete identifying data relating to any person.
        (10) The Commissioner may furnish a copy of a report
    
of any examination performed by the Commissioner of the condition and affairs of any electronic data processing entity to the associations serviced by the electronic data processing entity.
        (11) In addition to the foregoing circumstances, the
    
Commissioner may, but is not required to, furnish confidential supervisory information under the same circumstances authorized for the association pursuant to subsection (b) of this Section, except that the Commissioner shall provide confidential supervisory information under circumstances described in paragraph (3) of subsection (b) of this Section only upon the request of the association.
    (b) An association or its officers, agents, and employees may disclose confidential supervisory information only under the following circumstances:
        (1) to the board of directors of the association, as
    
well as the president, vice‑president, cashier, and other officers of the association to whom the board of directors may delegate duties with respect to compliance with recommendations for action, and to the board of directors of an association holding company that owns at least 80% of the outstanding stock of the association or other financial institution.
        (2) to attorneys for the association and to a
    
certified public accountant engaged by the association to perform an independent audit; provided that the attorney or certified public accountant shall not permit the confidential supervisory information to be further disseminated.
        (3) to any person who seeks to acquire a controlling
    
interest in, or who seeks to merge with, the association; provided that the person shall agree to be bound to respect the confidentiality of the confidential supervisory information and to not further disseminate the information other than to attorneys, certified public accountants, officers, agents, or employees of that person who likewise shall agree to be bound to respect the confidentiality of the confidential supervisory information and to not further disseminate the information.
        (4) to the association's insurance company, if the
    
supervisory information contains information that is otherwise unavailable and is strictly necessary to obtaining insurance coverage or pursuing an insurance claim for or on behalf of the association; provided that, when possible, the association shall disclose only information that is relevant to obtaining insurance coverage or pursuing an insurance claim, while maintaining the confidentiality of financial information pertaining to customers; and provided further that, when appropriate, the association may delete identifying data relating to any person.
    The disclosure of confidential supervisory information by an association pursuant to this subsection (b) and the disclosure of information to the Commissioner or other regulatory agency in connection with any examination, visitation, or investigation shall not constitute a waiver of any legal privilege otherwise available to the association with respect to the information.
    (c) (1) Notwithstanding any other provision of this Act or any other law, confidential supervisory information shall be the property of the Commissioner and shall be privileged from disclosure to any person except as provided in this Section. No person in possession of confidential supervisory information may disclose that information for any reason or under any circumstances not specified in this Section without the prior authorization of the Commissioner. Any person upon whom a demand for production of confidential supervisory information is made, whether by subpoena, order, or other judicial or administrative process, must withhold production of the confidential supervisory information and must notify the Commissioner of the demand, at which time the Commissioner is authorized to intervene for the purpose of enforcing the limitations of this Section or seeking the withdrawal or termination of the attempt to compel production of the confidential supervisory information.
    (2) Any request for discovery or disclosure of confidential supervisory information, whether by subpoena, order, or other judicial or administrative process, shall be made to the Commissioner, and the Commissioner shall determine within 15 days whether to disclose the information pursuant to procedures and standards that the Commissioner shall establish by rule. If the Commissioner determines that such information will not be disclosed, the Commissioner's decision shall be subject to judicial review under the provisions of the Administrative Review Law, and venue shall be in either Sangamon County or Cook County.
    (3) Any court order that compels disclosure of confidential supervisory information may be immediately appealed by the Commissioner, and the order shall be automatically stayed pending the outcome of the appeal.
    (d) If any officer, agent, attorney, or employee of an association knowingly and willfully furnishes confidential supervisory information in violation of this Section, the Commissioner may impose a civil monetary penalty up to $1,000 for the violation against the officer, agent, attorney, or employee.
(Source: P.A. 93‑271, eff. 7‑22‑03.)

    (205 ILCS 105/7‑10) (from Ch. 17, par. 3307‑10)
    Sec. 7‑10. Procedure upon the impairment of permanent reserve capital. If the Commissioner finds, from a report or examination of an association, that the permanent reserve capital is impaired, he shall direct whichever of the following procedures is appropriate:
    (a) The board of directors either (1) shall require the permanent reserve shareholders to contribute an amount at least sufficient to eliminate the impairment; or (2) shall reduce the par value of the permanent reserve capital in at least the amount of the impairment and allocate such reduction to undivided profits or reserves to absorb the loss which created the impairment; or
    (b) If such impairment causes the book value of the permanent reserve capital to be less than the amount of minimum initial permanent reserve capital which the association, if it were being newly authorized to issue such capital, would be required to issue under the provisions of the Section of this Act concerning Permanent Reserve Shares‑‑Authorization of Issuance; Minimum Amount, then the board of directors shall require the permanent reserve shareholders to contribute the amount necessary to make up the difference. If any permanent reserve shareholder, within 30 days after notice to contribute has been mailed to him, shall neglect or refuse to pay his proportionate contribution, the board of directors shall cause a sufficient amount of such holder's permanent reserve shares to be sold at public auction. Not less than 20 days before the date of such sale, notice thereof shall be posted in the business office of the association and shall be published. Any proceeds of such sale in excess of such proportionate contribution shall be returned to the shareholder. The permanent reserve shareholders shall not be personally liable nor be required to make any contribution or fund assessment in excess of his investment in the permanent reserve shares which he owns.
(Source: P.A. 84‑543.)

    (205 ILCS 105/7‑11) (from Ch. 17, par. 3307‑11)
    Sec. 7‑11. Commissioner's authority to take custody and appoint a conservator. The Commissioner in his discretion may take custody of, and appoint a conservator for, the property, liabilities, books, records, business and assets of every kind and character of any association, trust or association in liquidation, for any of the purposes hereinafter enumerated, if it appears from reports made to the Commissioner, or from examination made by or on behalf of the Commissioner:
        (a) That the directors, officers, trustees or
    
liquidators have neglected, failed or refused to take any action which the Commissioner may deem necessary for the protection of the association or trust or have impeded or obstructed an examination; or
        (b) That the withdrawable capital of the association
    
is impaired to the extent that the realizable value of its assets is insufficient to pay in full its creditors and holders of its withdrawable capital; or that its permanent reserve capital is impaired; or
        (c) That the association is unable to continue
    
operation; or
        (d) That the business of the association, trust or
    
association in liquidation is being conducted in a fraudulent, illegal or unsafe manner; or
        (e) That the officers, employees, trustees or
    
liquidators have continued to assume duties or perform acts without giving bond as required by the provisions of this Act.
    Unless the Commissioner finds that an emergency exists which may result in loss to members or creditors and requires that he take custody immediately, he first shall give written notice to the directors, trustees or liquidators specifying the conditions criticized and state a reasonable time within which correction may be made. If however, an association whose accounts are insured by the insurance corporation is impaired within the meaning of paragraph (b) above, or any other condition exists which would give the Commissioner authority to take custody of an insured institution, the action of the Commissioner can be withheld provided that the Commissioner determines from reports made to him by the association, and such other examinations as may be deemed necessary, that the association has sufficient liquid assets and has adopted and implemented an operating plan satisfactory to the Commissioner. In such case the Commissioner may defer a custody action pending a satisfactory resolution of the impairment as suggested by either the association or the insurance corporation.
    If any condition exists that would give the Commissioner authority to take custody of an association, the action of the Commissioner may be withheld pending a satisfactory resolution of the condition as suggested by the insurance corporation provided the association has sufficient liquidity and has adopted and implemented an operating plan the Commissioner considers prudent.
    No action or inaction of the Commissioner taken pursuant to this Article shall cause the Commissioner to be personally liable for such action or inaction unless the Commissioner's action or inaction is found to be in violation of a criminal statute. The Commissioner shall promulgate rules and regulations to govern the determination of a need for a conservator and the selection, appointment and conduct of a conservatorship, including allocation of payment and costs.
(Source: P.A. 93‑271, eff. 7‑22‑03.)

    (205 ILCS 105/7‑12) (from Ch. 17, par. 3307‑12)
    Sec. 7‑12. Purposes of taking custody. The purposes of taking such custody of an association or trust may be examination, further examination, conserving of its assets, restoration of impaired capital, the making of any necessary or equitable adjustment deemed necessary by the Commissioner under any plan of reorganization or liquidation, establishing a conservatorship to run and manage an association as an ongoing concern until the grounds for custody and conservatorship are remedied, or the maturing of the obligation of the insurance corporation.
(Source: P.A. 85‑1143.)

    (205 ILCS 105/7‑13) (from Ch. 17, par. 3307‑13)
    Sec. 7‑13. Commissioner's powers during custody. During the period in which the Commissioner has such custody, the Commissioner and any of his duly authorized agents shall have all powers necessary to accomplish the purposes of custody, including (but not limited to) the power to manage and run the institution, the powers, privileges and authority previously vested in the officers, directors, liquidators or trustees and the power to call meetings of the members, former officers and directors, liquidators or trustees to consider and act upon matters deemed by the Commissioner to be of sufficient importance to consider the views of such persons.
(Source: P.A. 85‑1143.)

    (205 ILCS 105/7‑14) (from Ch. 17, par. 3307‑14)
    Sec. 7‑14. Custody of insured associations. If an association of which the Commissioner takes custody under authority of this Article is an insured association, the Commissioner, in addition to powers conferred above, is authorized to:
    (a) Forthwith notify the insurance corporation of such custody, his reasons therefor, and, as soon as practicable, furnish the insurance corporation with a copy of the Commissioner's report of examination and condition of the association;
    (b) Permit the insurance corporation to submit any plan or proposal for the reorganization, merger or liquidation of the association which it may deem feasible; and
    (c) Determine and declare the association to be in default, find from his examination and report the amount of the members' insured withdrawable capital and make any necessary orders, findings and determinations which may be required for the purpose of making the insurance available to the members.
(Source: P.A. 84‑543.)

    (205 ILCS 105/7‑15) (from Ch. 17, par. 3307‑15)
    Sec. 7‑15. Notice of custody; action to enjoin. Immediately upon taking custody of an association or trust, the Commissioner shall mail a written notice thereof to the president or secretary and not less than 2 directors of such association or to 2 or more of the trustees of any trust or to 2 or more of the liquidators of an association in liquidation. If the contention is made that the Commissioner has no legal grounds for taking custody of the association or trust, the directors or officers of the association or the trustees or liquidators thereof, as the case may be, at any time within 10 days after the mailing of such notice, or within such further periods of time as the Commissioner may extend, but not to exceed an additional 60 days, may file a complaint in the Circuit Court of Sangamon County, Illinois, or in the Circuit Court of the county in which the association is located, to enjoin further custody. The court thereupon shall cite the Commissioner to show cause why further custody should not be enjoined. If upon a hearing thereon, the court finds that such grounds did not or do not then exist, it may enter an appropriate order in accordance with the findings of fact or an order enjoining the Commissioner or any appointees acting under his direction from further custody.
(Source: P.A. 84‑543.)

    (205 ILCS 105/7‑16) (from Ch. 17, par. 3307‑16)
    Sec. 7‑16. Segregation of collections during custody. All payments received on withdrawable capital on members' unpledged shares or accounts during custody of the association by the Commissioner shall be segregated in a separate account until the association shall be redelivered to the directors or to trustees or liquidators or delivered to a conservator or receiver. Any member whose payments have been so segregated may request the return of such payments, and the Commissioner shall repay the same without interest or dividends. Before delivery of the association or its assets to any liquidators or to a receiver or conservator, the Commissioner shall return the money so collected from members and so segregated.
(Source: P.A. 85‑1143.)

    (205 ILCS 105/7‑17) (from Ch. 17, par. 3307‑17)
    Sec. 7‑17. Redelivery of possession. If, after examination of the association and consideration of all conditions affecting its affairs, the Commissioner finds that the cause or causes for taking custody have been removed, he shall relinquish custody and remove the conservator, if one was appointed, of the association and redeliver the same and all assets, books and records thereof to the directors of the association or to the trustees or liquidators qualified to accept the same.
(Source: P.A. 85‑1143.)

    (205 ILCS 105/7‑18) (from Ch. 17, par. 3307‑18)
    Sec. 7‑18. Limitations upon custody. The custody of an association by the Commissioner, including a conservatorship, may be continued for a reasonable period not to exceed 6 months, unless further extension shall be agreed upon by a vote of 2/3 of the directors of the association or upon application for such extension and by order entered in a court of competent jurisdiction.
(Source: P.A. 85‑1143.)

    (205 ILCS 105/7‑19) (from Ch. 17, par. 3307‑19)
    Sec. 7‑19. Expenses and fees. (a) The reasonable expense of any examination, audit, investigation, conservatorship or custody by the Commissioner under any provision of this Act shall be borne by the association or trust.
    (b) Except as to fees which are fixed by this Act, the Commissioner by regulation may prescribe reasonable fees for filing reports and other documents, furnishing transcripts, holding hearings, applications for permits to organize and investigations thereof and any other action taken by his office.
(Source: P.A. 85‑1143.)

    (205 ILCS 105/7‑19.1)(from Ch. 17, par. 3307‑19.1)
    Sec. 7‑19.1. Savings and Residential Finance Regulatory Fund.
    (a) The aggregate of all fees collected by the Commissioner under this Act shall be paid promptly after receipt of the same, accompanied by a detailed statement thereof, into the State treasury and shall be set apart in the Savings and Residential Finance Regulatory Fund, a special fund hereby created in the State treasury. The amounts deposited into the Fund shall be used for the ordinary and contingent expenses of the Office of Banks and Real Estate. Nothing in this Act shall prevent continuing the practice of paying expenses involving salaries, retirement, social security, and State‑paid insurance of State officers by appropriation from the General Revenue Fund.
    (b) Except as otherwise provided in subsection (b‑5), moneys in the Savings and Residential Finance Regulatory Fund may not be appropriated, assigned, or transferred to another State fund. The moneys in the Fund shall be for the sole benefit of the institutions assessed.
    (b‑5) Moneys in the Savings and Residential Finance Regulatory Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105‑300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
    (c) All earnings received from investments of funds in the Savings and Residential Finance Regulatory Fund shall be deposited into the Savings and Residential Finance Regulatory Fund and may be used for the same purposes as fees deposited into that Fund.
(Source: P.A. 94‑91, eff. 7‑1‑05.)

    (205 ILCS 105/7‑20) (from Ch. 17, par. 3307‑20)
    Sec. 7‑20. Board of Savings Institutions; appointment. The Savings and Loan Board is hereby redesignated the Board of Savings Institutions. The Board shall be composed of 7 persons appointed by the Governor. Four persons shall represent the public interest. Three persons shall have been engaged actively in savings and loan or savings bank management in this State for at least 5 years immediately prior to appointment. Each member of the Board shall receive compensation of $50 per day for each day actually and necessarily consumed in the performance of the duties of office, plus necessary expenses incurred in the performance of those duties. The members of the Board serving immediately before the effective date of this amendatory Act of 1996 shall continue to serve for the balance of their respective terms. Members shall be appointed for 4‑year terms to expire on the third Monday in January. Except as otherwise provided in this Section, members of the Board shall serve until their respective successors are appointed and qualified. A member who tenders a written resignation shall serve only until the resignation is accepted by the Chairman. A member who fails to attend 3 consecutive Board meetings without an excused absence shall no longer serve as a member. The Governor shall fill any vacancy by the appointment of a member for the unexpired term in the same manner as in the making of original appointments.
(Source: P.A. 89‑508, eff. 7‑3‑96; 89‑603, eff. 8‑2‑96.)

    (205 ILCS 105/7‑21) (from Ch. 17, par. 3307‑21)
    Sec. 7‑21. Board of Savings Institutions; organization and meetings. The Board shall elect a chairman, vice‑chairman and secretary; shall adopt regulations for the holding and conducting of meetings and for holding hearings concerning all matters within its powers; and shall keep a record of all meetings and transactions and make such other provisions for the daily conduct of its business as it deems necessary. A majority of the members of the Board, excluding those members who are no longer serving as members as provided in Section 7‑20, shall constitute a quorum. The act of the majority of the members of the Board present at a meeting at which a quorum is present shall be the act of the Board. Regular meetings shall be held as provided in the regulations, and special meetings may be called by the Chairman or upon the request of any 3 members of the Board or the Commissioner. The Board shall maintain at the office of the Commissioner permanent records of its meetings, hearings and decisions. The Commissioner shall provide adequate quarters and personnel for use by the Board.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑22) (from Ch. 17, par. 3307‑22)
    Sec. 7‑22. Board of Savings Institutions; powers. The Board shall have the following powers:
    (a) To consider, hold public or private hearings and act upon appeals from any order, decision or action of the Commissioner by any aggrieved person except as otherwise specifically provided in this Act or the Savings Bank Act;
    (b) To advise the Governor and the Commissioner upon appointments and employment of personnel in connection with the supervision of savings and loan associations and savings banks; and
    (c) To advise the Governor on legislation proposed to amend this Act, the Savings Bank Act, or any related Act.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑23) (from Ch. 17, par. 3307‑23)
    Sec. 7‑23. Proceedings on objections to Commissioner's action. Any person aggrieved by any decision, order, or action of the Commissioner, except one under paragraph (b) of Section 1‑9, Section 2‑3, paragraph (j) of Section 3‑4, or Section 7‑9 of this Act, or under Section 1006(b), Section 3005, or Section 9012 of the Savings Bank Act, or involving a change of location of an office or the establishment of an additional office under the Savings Bank Act, may receive a hearing as provided in Sections 7‑24 through 7‑27 of this Act.
(Source: P.A. 93‑271, eff. 7‑22‑03.)

    (205 ILCS 105/7‑24) (from Ch. 17, par. 3307‑24)
    Sec. 7‑24. The Board shall upon the verified complaint in writing of any person setting forth facts which if proved would constitute grounds for reversal or change of any decision, order or action of the Commissioner, except as provided in Section 7‑23 of this Act, grant a hearing thereon. If the aggrieved party desires such a hearing, he or she shall, within 10 days of receipt of notice of such decision, order or action, file written notice with the Board of intent to demand a hearing and shall, within 30 days of receipt of notice of such decision, order or action, file his or her verified complaint in writing. The date of such hearing may not be earlier than 15 days nor later than 30 days after the date of receipt of verified complaint in writing. The Board shall, at least 10 days prior to the date set for the hearing, notify in writing the person adversely affected by such decision, order or action, referred to in this Section as the respondent, and all other parties to the action, that a hearing will be held on the date designated and shall afford the respondent and all other parties to the action an opportunity to be heard in person or by counsel in reference thereto. Such written notice may be served by delivery of the same personally to the respondent and all other parties to the action, or by mailing the notice by registered or certified mail to the place of business last theretofore specified by the respondent and all other parties to the action in the last notification to the Board. At the time and place fixed in the notice, the Board or its authorized agent, referred to in this Section as the hearing officer, shall proceed to hear the charges, and both the respondent and all other parties to the action and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the issues. The hearing officer may continue such hearing from time to time.
    The hearing officer may subpoena any person in this State and may take testimony either orally or by deposition or by exhibit, with the same fees and mileage and in the same manner as prescribed by law in judicial proceedings in civil cases in circuit courts of this State.
    The hearing officer may administer oaths to witnesses at any hearing which the hearing officer is authorized by law to conduct.
    After the hearing, the Board shall make a determination approving, modifying or disapproving the decision, order or action of the Commissioner as its final administrative decision.
(Source: P.A. 84‑543.)

    (205 ILCS 105/7‑25) (from Ch. 17, par. 3307‑25)
    Sec. 7‑25. Record of Board proceedings; expenses. The Board, at its expense, unless otherwise provided in this Act or the Savings Bank Act, shall provide a stenographer to take down the testimony and preserve a record of all proceedings at the hearing. The notice of hearing, complaint and all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony, the report of the hearing officer and orders of the Board shall be the record of such proceedings. The Board shall furnish a transcript of such record to any person interested in such hearing upon payment of the actual cost thereof.
    A copy of the hearing officer's report and the Board's orders shall be served upon the respondent and all other parties to the action by the Board, either personally or by registered or certified mail as provided in this Act for the service of the notice of hearing. All expenses incurred by the Board, including the compensation of the hearing officer, shall be paid by the parties to the hearing and shall be divided among them in equal shares.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑26) (from Ch. 17, par. 3307‑26)
    Sec. 7‑26. Subpoena; deposition. All subpoenas issued under the laws of this State pertaining to savings and loan associations or savings banks may be served by any person who is not a minor. The fees of witnesses for attendance and travel shall be the same as fees of witnesses before the circuit courts of this State, such fees to be paid at the time the witness is excused from further attendance, when the witness is subpoenaed at the instance of the Board or the Commissioner or any officer or any employee designated by him, her or it for the purpose of conducting any such investigation, inquiry or hearing; and the disbursements made in the payment of such fees shall be audited and paid in the same manner as are other expenses of the Board or Commissioner. Whenever a subpoena is issued at the instance of a complainant, respondent or other party to any proceeding, the Board may require that the cost of service thereof and the fee of the same shall be borne by the party at whose instance the witness is summoned, and the Board or Commissioner shall have power, in his, her or its discretion, to require a deposit to cover the cost of such service and witness fees and the payment of legal witness fees and mileage to the witness when served with subpoena. A subpoena issued under this Section shall be served in the same manner as a subpoena issued out of a court.
    Any person who shall be served with a subpoena to appear and testify, or to produce books, papers, accounts or documents, either in person or by deposition, in the manner provided in this Section, issued by the Board or Commissioner or by any officer, or any employee designated by him, her or it to conduct any such investigation, inquiry or hearing, in the course of an investigation, inquiry or hearing conducted under any of the provisions of the laws of this State pertaining to savings and loan associations or savings banks, and who shall refuse or neglect to appear or to testify, or to produce books, papers, accounts and documents relative to such investigation, inquiry or hearing as commanded in such subpoena, shall be guilty of a petty offense.
    Any circuit court of this State, upon application of the Board or Commissioner, or an officer, or an employee designated by him, her or it for the purpose of conducting any such investigation, inquiry or hearing, may, in its discretion, compel the attendance of witnesses, the production of books, papers, accounts and documents and the giving of testimony before the Board or Commissioner, or before any officer thereof, or any employee designated by him, her or it for the purpose of conducting any such investigation, inquiry or hearing, in person or by deposition, in the manner provided in this Section, by an attachment for contempt or otherwise, in the same manner as production of evidence may be compelled before such court.
    The Board or Commissioner or any officer, or any employee designated by him, her or it for the purpose of conducting any investigation, inquiry or hearing, or any party may, in any investigation, inquiry or hearing, cause the deposition of witnesses residing within or without the State to be taken in the manner prescribed by law for taking like depositions in civil cases in courts of this State, and to that end may compel the attendance of witnesses and the production of papers, books, accounts and documents.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑27) (from Ch. 17, par. 3307‑27)
    Sec. 7‑27. Any person affected by a decision of the Commissioner under paragraph (b) of Section 1‑9, Section 2‑3 or paragraph (j) of Section 3‑4 of this Act or under Section 1006(b) or 3005 of the Savings Bank Act, or involving a change of location of an office or the establishment of an additional office under the Savings Bank Act, may have the decision reviewed only under and in accordance with the Administrative Review Law, if such person files, within 10 days of receipt of service of a copy of the final decision sought to be reviewed, a written notice with the Commissioner of intent to seek review under the Administrative Review Law.
    Any person affected by a final administrative decision of the Board under Sections 7‑21 through 7‑26 of this Act may have the decision reviewed only under and in accordance with the Administrative Review Law, if the person files with the Board, within 10 days of receipt of service of a copy of the final decision sought to be reviewed, a written notice of intent to seek review under the Administrative Review Law.
    The provisions of the Administrative Review Law, and all amendments and modifications thereof, and the rules adopted pursuant thereto, shall apply to and govern all proceedings for the judicial review of final administrative decisions of the Commissioner or the Board under this Act. The term "administrative decision" is defined as in Section 3‑101 of the Code of Civil Procedure.
    Appeals from all final orders and judgments entered by a court in review of any final administrative decision of the Board under this Act may be taken as in other civil cases.
(Source: P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑28) (from Ch. 17, par. 3307‑28)
    Sec. 7‑28. (Repealed).
(Source: P.A. 87‑1098. Repealed by P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑29) (from Ch. 17, par. 3307‑29)
    Sec. 7‑29. (Repealed).
(Source: P.A. 87‑1098. Repealed by P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑30) (from Ch. 17, par. 3307‑30)
    Sec. 7‑30. (Repealed).
(Source: P.A. 87‑1098. Repealed by P.A. 89‑508, eff. 7‑3‑96.)

    (205 ILCS 105/7‑31) (from Ch. 17, par. 3307‑31)
    Sec. 7‑31. (Repealed).
(Source: P.A. 87‑1098. Repealed by P.A. 89‑508, eff. 7‑3‑96.)

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