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* Interpretive Letter
superseded or made obsolete by statutory or regulatory changes
| Letter
Number |
Date
Issued |
Sections
of Acts Construed |
Description |
| 90-01 |
01-03-90 |
15(3) and 17 IBA |
State bank must amend its charter in order to eliminate cumulative voting rights. |
| 90-02 |
01-29-90 |
32 IBA |
Loans to corporation guaranteed by individual will not be aggregated with loans to individual and to partnership in which individual is general partner. |
| 90-03 |
01-30-90 |
5(15) IBA |
Transfer of funds using personal computer home banking service is not branch
banking. |
| 90-04 |
02-07-90 |
33 IBA, 5(1)
TTA |
State bank
may not invest in certificates in closed-end investment company that
are not "readily marketable." |
| 90-05 |
02-20-90 |
23 IBA |
Written notice must be given to shareholders of state bank at least 30 days prior to any meeting at which a vote on a merger will take place. |
| 90-06 |
02-26-90 |
46 IBA |
Business may not use the term "merchant bank" in its corporate name
if such use may mislead the public. |
| 90-07 |
04-11-90 |
35(1) and 35(3) IBA |
State bank may factor account receivables due from the U.S. Government with respect
to any one contractor without limitation. |
| 90-08 |
05-22-90 |
32 IBA, 303(a)
ULPA |
Loan to individual is not aggregated with loan to limited partnership of which individual
is a limited partner. |
| 90-09 |
05-30-90 |
16(2) IBA |
Shareholders of state bank may fix number of directors by two-thirds affirmative
vote at any meeting called for that purpose. |
90-10
(90-10 rescinded and superceded by 2002-07) |
06-29-90 |
5(11) and 35(3) IBA |
State bank is authorized to purchase stock in and become a member of a Federal
Home Loan Bank to the same extent as a national bank. |
| 90-11 |
07-30-90 |
18 IBA |
Employee
Stock Ownership Plan that acquires more than 20% outstanding stock
of a bank holding company that controls a state bank must file a change
of control application. |
| 90-12 |
08-03-90 |
5(13) IBA |
State bank
may automatically renew letters of credit, even though it may only
accept drafts for payment up to one year from date of acceptance. |
| 90-13 |
08-08-90 |
5(5) and
33 IBA |
State bank
may establish a deferred compensation plan for the benefit of senior
bank officers and fund the plan with life insurance contracts without
regard to investment limitations. |
| 90-14 |
08-08-90 |
IBA |
* |
| 90-15 |
08-22-90 |
16 IBA |
Board of
state bank may operate with five directors notwithstanding that stockholders
fixed number of directors at six. |
| 90-16 |
08-22-90 |
34(5) IBA |
State bank
may accept assignment of letters of credit issued by affiliated bank
as security for loans without regard to lending limits. |
| 90-17 |
09-04-90 |
5(15) and
31 IBA |
* |
| 90-18 |
09-13-90 |
16 IBA |
State bank
may appoint director emeritus or advisory director who does not vote
and performs only advisory functions. |
| 90-19 |
09-14-90 |
5(5) and
33 IBA |
State bank
may purchase insurance contracts for legitimate insurance purposes
but not for investment purposes. |
| 90-20 |
10-12-90 |
32 IBA |
State bank
that has second mortgage may purchase title to real estate at foreclosure
sale, but may not purchase first mortgage prior to foreclosure if
aggregate of loans would exceed lending limits. |
| 90-21 |
10-19-90 |
5(16) IBA |
State bank
may deploy a mobile ATM that will operate within the bank's home county
and contiguous counties. |
| 90-22 |
10-25-90 |
5(12) IBA |
State bank
may form subsidiary to hold title to assets acquired in foreclosure;
Commissioner will waive 60 day notice period in extenuating circumstances. |
| 90-23 |
11-14-90 |
FBROA |
National
bank located outside of Illinois may offer unsecured lines of credit
at its licensed representative office. |
| 90-24 |
12-10-90 |
5(15) and
13(d) IBA |
* |
| 90-25 |
12-14-90 |
5(21) IBA |
State bank
may invest in joint venture to expand industrial park as a project
that promotes development of the community and its welfare. |
| 91-01 |
01-10-91 |
5(7) IBA |
State bank
may not pledge its assets to secure the deposits of its customers,
unless the deposits are public funds. |
| 91-02 |
01-23-91 |
3 IBA |
University's
use of debit card system for its students is not "general banking
business." |
| 91-03 |
02-11-91 |
15(8) IBA |
Person who
is not a bank shareholder is not entitled access to the bank's shareholder
list. |
| 91-04 |
02-26-91 |
5(7) IBA |
State banks
may collateralize deposits of grantees of public agencies if the deposited
grants are public funds that remain under some control of the public
agency. |
| 91-05 |
03-02-91 |
2, 5(21),
33, 34 and 35 IBA |
State banks
are authorized to invest in marketable investment securities, projects
designed to promote the development of a community and its welfare,
and collateralized mortgage obligations, subject to the criteria and
limitations set forth in the Illinois Banking Act. |
| 91-06 |
03-14-91 |
5(7) IBA |
Illinois
Banking Act does not impose restrictions on state banks as to the
type, identification or segregation of assets pledged to secure public
funds. |
| 91-07 |
03-21-91 |
48.3 IBA |
Commissioner
may share examination report of an Illinois bank with out-of-state
bank regulator who has a legitimate regulatory interest. |
| 91-08 |
04-11-91 |
33 IBA |
Universal
life insurance policy that lists chairman of board as owner and chairman's
sons as beneficiaries is not a permissible investment. |
| 91-09 |
04-19-9 |
2 and 47
IBA |
Quarterly
call report must be published in newspaper of general circulation
that is published at least weekly and has been in business for at
least one year prior to first call report publication. |
| 91-10 |
05-02-91 |
32(3) IBA |
State bank
may correct technical deficiency by obtaining appraiser's oath for
one of two required appraisals in order for loan to be qualified real
estate loan. |
| 91-11 |
05-23-91 |
35(7) IBA |
Certificate
of deposit in lending bank that is pledged as collateral for a loan
may be used as a segregated deposit account for purposes of the lending
limit exemptions. |
| 91-12 |
06-10-91 |
4-4 CFA,
FBROA, 2 IBA |
Foreign bank
representative office that solicits customers for loan, deposit and
investment products, but does not accept deposits or make loans, is
not engaged in the business of banking. |
| 91-13 |
06-24-91 |
5(12) IBA,
2 and 3.05 IBHCA |
State bank
may establish limited purpose national bank which will not accept
deposits or pay checks as an operating subsidiary to conduct credit
card operations. |
| 91-14 |
07-08-91 |
5(15) and
31 IBA |
* |
| 91-15 |
07-08-91 |
17 IBA |
* |
| 91-16 |
07-12-91 |
8.75 BCA,
5(19) and 39 IBA |
State banks
may indemnify officers, directors, employees and agents to same extent
that corporations are so authorized; provided, however, state banks
may not indemnify directors and officers for those acts for which
the Illinois Banking Act imposes personal liability. |
| 91-17 |
07-25-91 |
3 FBROA,
2 IBA |
Out-of-state
bank may establish a loan production office in Illinois to perform
representational functions, including the solicitation of deposits,
if it obtains a license under the Foreign Bank Representative Office
Act. |
| 91-18 |
07-31-91 |
34(3) and
35(4) IBA |
Investments
in "alternate bonds" that are supported by the full faith
and credit of a municipality located in the county in which the state
bank is located are exempt from investment limits. |
| 91-19 |
08-06-91 |
2, 5(15),
5(16) and 5(17) IBA |
Automatic
teller machines are not branches for purposes of home office protection. |
| 91-20 |
08-28-91 |
32, 33, 34
and 35 IBA |
Loans collateralized
by hospital or nursing home's assignment of rights to Medicaid payments
qualify for exceptions and exemptions from lending limits under Section
34 and may also qualify under Section 35. |
| 91-21 |
09-04-91 |
FBROA, 2
IBA |
Illinois
state bank may establish an in-state loan production office without
prior approval from Commissioner. |
| 91-22 |
09-12-91 |
3 and 13
FBOA, 5(9) and 5(12) IBA |
Foreign bank
may establish a non-bank subsidiary to hold title to and administer
property obtained in collection of a debt. |
| 91-23 |
09-13-91 |
2 and 5(15)
IBA |
National
bank contract with armored car service to count cash, currency and
food stamps at armored car company's processing center for bank customers
is not a violation of state branching restrictions if deposits are
credited when received by bank. |
| 91-24 |
09-16-91 |
5(15)(g)
IBA |
* |
| 91-25 |
09-19-91 |
3 IBA |
State bank's
incidental powers include the authority to contribute to bank trade
association's building fund. |
| 91-26 |
09-30-91 |
19.1 IBA |
Date of bank
charter resulting from conversion of trust company is date of certificate
of authority issued to predecessor trust company. |
| 91-27 |
10-28-91 |
5(9) and
14(8) IBA |
State bank
may transfer ORE to its bank holding company as a dividend in order
to comply with divestiture rules. |
| 91-28 |
10-28-91 |
3.071 IBHCA |
* |
| 91-29 |
10-30-91 |
6 and 7 CCIA |
* |
| 91-30 |
11-04-91 |
16 IBA |
When state
bank has less than five directors, at least one director may not be
an officer or employee of bank. |
| 91-31 |
11-25-91 |
2 and 35(4)
IBA |
Loan to fire
protection district backed by full faith and credit of district is
a general obligation of a municipality that is exempt from lending
limits. |
| 91-32 |
12-05-91 |
2, 5(12)
and 5(21) IBA |
National
bank may invest in a development credit corporation that makes loans
for its own account without violating branching laws. |
| 91-33 |
12-11-91 |
3 and 5(8)
IBA |
State bank
that is owned by foreign corporation may purchase a residence for
use by bank personnel temporarily assigned to Illinois. |
| 91-34 |
12-12-91 |
32 IBA |
State bank
that has made a commercial real estate loan in the amount of its lending
limit may redeem the property for delinquent taxes and such expenditures
will be deemed a liability "otherwise" extended for purposes
of Section 32. |
| 91-35 |
12-23-91 |
2-1 and 2-4
CFA, 13 CILA, 3 and 16(7) IBA |
Trust department
of state bank and its officers may act under a power of attorney that
encompasses property and financial matters. |
| 92-01 |
02-21-92 |
5(16) IBA |
National
bank may establish ATM on riverboat so long as ATM remains within
confines of bank's home or contiguous counties. |
| 92-02 |
04-17-92 |
21 CILA,
4 and 4(a) IA |
State bank
may charge late charges pursuant to Section 4a of Interest Act or
may elect to make a loan of less than $10,000 under the Consumer Installment
Loan Act and comply with the provisions of that Act. |
| 92-03 |
04-24-92 |
5(15) and
44.1 IBA |
State bank
that establishes a banking facility at senior citizen's or long term
care facility is not required to file Notice of Intent to Branch with
Commissioner. |
| 92-04 |
05-14-92 |
2 and 5(15)
IBA |
State bank
may operate a depository receptacle that is accessible through an
ATM, but may not operate a stand-alone, off-premises depository receptacle. |
| 92-05 |
05-14-92 |
5(11) and
5(12) IBA |
State banks
are authorized to purchase stock issued by the Federal Home Loan Mortgage
Corporation and the Student Loan Marketing Corporation. |
| 92-06 |
05-19-92 |
18 IBA |
Solicitation
and receipt of revocable written proxies do not constitute a change
of control. |
| 92-07 |
06-22-92 |
48.1 and
48.3 IBA |
Examination
report that includes bank customers' names or loan accounts is not
a financial record of such customers, and bank is not authorized to
notify specific customers of subpoena for examination report. |
| 92-08 |
06-24-92 |
6 and 7 CCIA |
* |
| 92-09 |
06-24-92 |
6 and 7 CCIA |
* |
| 92-10 |
08-19-92 |
8-101 and
8-104(1) EFTA |
ATM that
accepts commercial deposits may be |
| 92-11 |
08-20-92 |
17 IBA |
Infusion
of funds directly into surplus without issuance of stock or change
in par value does not require a charter amendment. |
| 92-12 |
08-28-92 |
1-6 CFA,
5 TTA |
Corporate
fiduciary may engage in securities lending for personal trust accounts
if appropriate policies and safeguards are implemented, unless prohibited
by the trust instrument. |
| 92-13 |
09-03-92 |
32 IBA |
Loans to
individuals guaranteed by their corporation are each subject to the
lending limit applicable to individuals, while the corporation's guarantees
are aggregated for purposes of the limit on a state bank's total liabilities. |
| 92-14 |
09-15-92 |
21 CILA,
4a IA |
State bank
that chooses to operate under the Consumer Installment Loan Act (CILA)
in order to collect the charges permitted under CILA must comply with
the disclosure provisions for Rule of 78ths. |
| 92-15 |
09-17-92 |
33 and 34
IBA |
Marketable
investment securities must be rated on a per issue basis; rating requirements
do not apply to general obligations issued by municipalities and other
public agencies. |
| 92-16 |
10-26-92 |
6-106 EFTA,
5(12), 5(16) and 5(17) IBA |
State bank
may invest in stock in Delaware corporation that operates an electronic
funds transfer network. |
| 92-17 |
12-08-92 |
5(11) and
32 IBA |
Earn-out
portion of sale of state bank subsidiary financed by selling bank
is not subject to Section 32 lending limits, provided sale is performed
in commercially reasonable manner that minimizes risk to bank in event
purchaser defaults. |
| 92-18 |
12-22-92 |
5, 16, 33,
34 and 35 IBA |
State bank
may delegate its discretionary investment authority to unaffiliated
third party, provided bank adopts certain oversight procedures and
values securities at lesser of cost or market value. |
| 93-01 |
02-03-93 |
4-2, 4-4
and 4-5 CFA, 2 and 3 FBROA |
National
bank with principal office outside of Illinois may establish trust
representative office in Illinois to perform limited representative
functions. |
| 93-02 |
02-09-93 |
2 and 32
IBA |
State bank
using push down accounting should not subtract value of unamortized
fixed assets and investments from surplus in calculating lending limits. |
| 93-03 |
02-11-93 |
48.1 IBA |
Federal law
that prohibits bank from disclosing subpoena requesting customer's
financial records preempts state law that requires bank to mail copy
of subpoena to customer. |
| 93-04 |
02-24-93 |
5(4), 5(15)
and 48 IBA |
State bank's
appointment of out-of-state banks as agents to issue and pay certificates
of deposit does not constitute the establishment of branches. |
| 93-05 |
04-23-93 |
2 IBA, 3.05
and 3.071 IBHCA |
Out-of-state
bank holding company may form a de novo Illinois chartered bank to
acquire the assets and liabilities of a financial institution in default
or in danger of default. |
| 93-06 |
04-27-93 |
8-104 EFTA |
* |
| 93-07 |
04-29-93 |
2 and 5(16)
IBA |
* |
| 93-07.1 |
07-02-93 |
5(8) IBA |
State bank
is authorized to acquire real estate to swap for property to be used
as bank premises. |
| 93-08 |
07-02-93 |
18 IBA |
Out-of-state
bank holding company does not have to file a change in control or
interstate application when it changes its state of incorporation
by merger. |
| 93-09 |
07-02-93 |
5(8) IBA |
State bank
may purchase real estate for use as employee parking lot. |
| 93-10 |
07-06-93 |
48.1 IBA |
* |
| 93-11 |
07-15-93 |
33, 34 and
35 IBA |
Tax increment
financing bonds are not general obligations of the issuing municipality
and are subject to Section 33 investment limits. |
| 93-12 |
07-22-93 |
5(14), 32,
33, 35 and 35.1 IBA |
State bank
may acquire and lease personal property to county hospital, subject
to 20% investment limit; exceptions and exemptions to lending limit
in Sections 34 and 35 of Illinois Banking Act do not apply to personal
property leases made under Section 35.1 of Act. |
| 93-13 |
07-30-93 |
32 IBA, 3-419
UCC |
Lending limits
applicable to aggregate guarantees are determined by the forms of
the guarantees; guarantees of payment are limited to 20% of unimpaired
capital plus 20% of unimpaired surplus, calculated separately from
the lending limit; guarantees of collection are limited to 25% of
deposits, but may not be more than 50% of unimpaired capital and surplus,
calculated by adding such guarantees together with all other liabilities
of the guarantor to the bank. |
| 93-14 |
08-04-93 |
32(3) IBA |
Bank officer
who is certified appraiser may not prepare appraisal for qualified
real estate loans. |
| 93-15 |
08-24-93 |
2, 5(23)
IBA |
A savings
and loan association or savings bank that is at least 80% owned by
a bank holding company is a "bank" for purposes of acting
as an "affiliate facility." |
| 93-16 |
09-24-93 |
|
Bank holding
company that acquires 100% of second bank holding company must use
push down accounting. |
| 93-17 |
10-14-93 |
2 and 8 IBA,
3.05 IBHCA |
Proposed
bank holding company may not be an incorporator of an interim state
bank. |
| 93-18 |
10-18-93 |
16(4) IBA |
* |
| 93-19 |
10-21-93 |
33, 34 and
35 IBA |
Investments
in general obligations of municipalities located in bank's county
are not subject to investment limits; investments in revenue bonds
secured by obligations of State of Illinois are limited to 50% of
bank's unimpaired capital and surplus. |
| 93-20 |
10-27-93 |
3.05 and
3.10 BCA, 2 and 46 IBA |
Corporation
that only provides equipment financing to other corporations is not
doing a general banking business. |
| 93-21 |
10-28-93 |
32 IBA, 3-419
UCC |
For determination
of lending limits, language of guarantee must clearly identify guarantee
as one of collection or guarantee will be deemed a guarantee of payment. |
| 93-22 |
10-28-93 |
33 IBA |
Non-rated
bonds issued by a public agency are a permitted investment; definition
of "public agency." |
| 93-23 |
11-05-93 |
3.071 IBHCA |
* |
| 93-24 |
11-29-93 |
3 IBA |
State banks
may offer involuntary unemployment insurance coverage to their borrowers
in the same manner that they may offer credit life insurance and credit
accident/health insurance. |
| 93-25 |
12-10-93 |
2, 5(14),
34, 35 and 35.1 IBA |
School district
is a "person" for purposes of the leasing authority granted
by Section 35.1 of the Banking Act. |
| 93-26 |
12-15-93 |
32 and 35
IBA |
Portion of
loan collateralized by deposit account of guarantor is exempt from
lending limits; limit applicable to aggregate guarantees depends on
the form of the guarantees. |
| 93-27 |
12-15-93 |
5(11), 32,
35 and 35.1 IBA |
State bank
may own and lease real property and personal property to a municipality,
subject to the same restrictions applicable to a national bank. |
| 93-28 |
12-16-93 |
35.2 IBA |
Loans secured
by bank holding company stock are "covered transactions"
that are aggregated for lending limit purposes. |
| 93-29 |
12-16-93 |
6, 7 CCIA |
* |
| 93-30 |
12-21-93 |
5(11) IBA |
Bank may
retain corporate stock received as dividends from investment in "small
business investment company." |
| 93-31 |
12-21-93 |
35.2 IBA |
Loans among
affiliates, the stock of which is at least 80% owned by parent company,
are exempt from lending limit and collateral requirements. |
| 93-32 |
12-22-93 |
2, 5(15)
and 5(16) IBA |
Illinois
Banking Act does not prohibit establishment of mobile branches, but
applicable branch applications and notices may be required for each
change in location; mobile ATMs are permitted. |
| 94-01 |
01-20-94 |
6 and 7 CCIA |
* |
| 94-02 |
01-28-94 |
8-103 EFTA |
Placement
of proprietary message on ATM screen that can be accessed only by
customers of the establishing bank does not violate prohibition against
proprietary advertising on the ATM terminal. |
| 94-03 |
03-14-94 |
13(a) IBA |
* |
| 94-04 |
03-23-94 |
3, 5(7)(a)
and 44.1 IBA |
State bank
that assists residents of senior citizens centers and nursing homes
on a limited basis is not establishing branches; state bank is authorized
to purchase guaranty bonds to secure excess deposits. |
| 94-05 |
04-12-94 |
4a, 4(2)(b)
IA |
Finance company
may offer installment loans and retail installment loans with variable
interest rates for resale to Illinois banks, subject to requirement
that payments are made in periodic equal amounts. |
| 94-06 |
05-02-94 |
32 IBA |
Loan to limited
partnership is not aggregated with other loans to general partner
of limited partnership if lending bank's recourse is limited to the
assets of the limited partnership by the loan documents. |
| 94-07 |
05-04-94 |
4-4 CFA |
Out of state
banks are not permitted to establish offices for the conduct of business
as corporate fiduciaries in Illinois. |
| 94-08 |
05-25-94 |
5(9) IBA |
Other real
estate owned ("OREO") that is subject to a lease must still
be accounted for as OREO for regulatory reporting purposes. |
| 94-09 |
05-25-94 |
5(2) TTA |
Corporate
fiduciary may invest trust assets in a mutual fund for which it performs
services and from which it receives fees provided that the trust instruments
permit such an investment, the fees are reasonable, disclosure is
made to the trust beneficiaries, and such an investment complies with
ERISA, if applicable. |
| 94-10 |
06-15-94 |
2 and 5(15)
IBA |
State bank
may establish as branches stand-alone night receptacles in malls and
in mall parking lots that are not connected to or otherwise near an
ATM or other facility and are accessible only to bank's customers. |
| 94-11 |
06-15-94 |
3 and 5(11)
IBA |
State bank
may offer debt cancellation agreements to its customers as incidental
to its authority to loan money and carry on a general banking business
and under the authority of Section 5(11). |
| 94-12 |
06-30-94 |
3.071 IBHCA |
* |
| 94-13 |
07-27-94 |
3 IBA |
State bank
may offer guaranteed asset protection plans to car loan customers
because such plans are similar to debt cancellation agreements that
have been determined as incidental and germane to the business of
banking. |
| 94-14 |
08-27-94 |
1b CCIA |
State bank
that complies with the requirements of the Federal Equal Credit Opportunity
Act when issuing credit cards does not have to make the additional
disclosures set forth in Section 1b of the Credit Card Issuance Act. |
| 94-15 |
08-26-94 |
2-4 CFA,
3 FBOA, 3, 4 and 5(11) IBA |
A foreign
banking corporation that possesses a certificate of authority under
the Foreign Banking Office Act may apply for a certificate of authority
to accept and execute trusts under the Corporate Fiduciary Act. |
| 94-16 |
09-01-94 |
4-2, 4-4
and 4-5 CFA |
An Indiana
trust company may perform representative services at a representative
office in Illinois, but may not establish a place of business in Illinois
to conduct business as a fiduciary. |
| 94-17 |
09-01-94 |
2-4 CFA |
State bank
that acts as a bond registrar is conducting business as a fiduciary
and must have a certificate of authority to accept and execute trusts. |
| 94-18 |
09-02-94 |
32(3) IBA |
Higher lending
limit under Section 32(3) for qualified real estate loans is not available
for the purchase of a participation if both appraisals are not obtained
at the time the loan is made or refinanced. |
| 94-19 |
09-15-94 |
3 and 5(11)
IBA, 3 FBOA |
Bank may
trade energy derivatives for its customers, provided it has the management
and controls necessary to ensure safe and sound banking practices. |
| 94-20 |
09-22-94 |
2, 47 IBA |
Bank may
publish its quarterly call reports in any newspaper of general circulation
in the community in which the bank is located. |
| 94-21 |
10-04-94 |
4, 4a IA |
State banks
may contract for and receive interest and charges at any agreed upon
rate. |
| 94-22 |
10-04-94 |
35.2IBA |
Transactions
between affiliates that are at least 80% commonly owned are not subject
to the limitations set forth in Section 35.2 if conducted in a safe
and sound manner and do not involve purchase of low quality assets. |
| 94-23 |
10-19-94 |
5(4), 5(5)
and 5(8) IBA |
State bank
may not purchase and hold a vacation home for the use of senior executive
officers in a non-qualified employee benefit trust. |
| 94-24 |
11-01-94 |
5(11) and
33 IBA |
State bank
may purchase and hold non-rated marketable investment securities under
the authority of Section 5(11), subject to the standards and limitations
applicable to a national bank for the type of investment, notwithstanding
the limitations in Section 33. |
| 94-25 |
12-01-94 |
2 IBA |
State bank
may establish a deposit courier service provided it complies with
the requirements for a branch, or customers may use an independent
third party to provide the service. |
| 95-01 |
03-02-95 |
5(11) IBA |
State bank
is authorized to purchase the residence of an employee who has been
transferred to another area, provided that the bank divests ownership
of the property as soon as practicable. |
| 95-02 |
04-19-95 |
5(5) and
33 IBA |
State bank
is not authorized to retain life insurance policy on life of retired
director once legitimate insurance need is eliminated. |
| 95-03 |
06-06-95 |
48 IBA, 100
IUIA |
Illinois
Department of Employment Security may visit state bank despite exclusive
visitation provision of Section 48 solely for purpose of verifying
unemployment tax records. |
| 95-04 |
07-12-95 |
3.071 IBHCA |
* |
| 95-04a |
09-8-95 |
3.071 IBHCA |
* |
| 95-05 |
07-28-95 |
3.071 IBHCA |
* |
| 95-06 |
08-01-95 |
2 and 32
IBA |
State bank
may repurchase portions of a loan participation that the bank had
sold provided the amount of the loan held on its books complies with
the current statutory limit. |
| 95-07 |
08-29-95 |
5 IBA, 3
FBOA |
Risk participations
in a loan between branches of the same foreign bank do not constitute
an unauthorized guarantee of another bank's loan. |
| 95-08 |
09-13-95 |
4a(b) &
4.1a(b) IA |
Service charges
in addition to interest on simple interest loans for more than $800
are not limited by Section 4a(b) of the Interest Act which limits
changes on loans that are less than $800.Section 4.1a(b) permits banks
to collect bad check charges. |
| 95-09 |
9-27-95 |
2 SFAA |
A corporate
fiduciary may not deposit fiduciary account securities with a broker
pursuant to the Securities in Fiduciary Accounts Act unless that broker
is organized and qualified to accept and execute trusts or the trust
instrument directs such a deposit. |
| 95-10 |
10-02-95 |
10-10 LLCA32
IBA |
A loan to
a limited liability company is not aggregated with individual borrowings
of a company member unless the bank is actually looking to the member
for repayment. |
| 95-11 |
10-27-95 |
1-6 CFA,
4.01 and 4.21 TTA, 2 IBA, 3.10 BCA |
An Illinois
trust company may deal with trust owned farm real estate as trustee
or may engage in farm real estate management and brokerage in an agency
capacity according to Illinois law. |
| 95-12 |
11-21-95 |
2-4 CFA |
A common
law assignee for the benefit of creditors, whether court supervised
or not, is not required to obtain a certificate of authority from
the Commissioner to act as such in Illinois. |
| 95-13 |
12-19-95 |
16, 48.1
and 48.3 IBA |
When the
boards of a bank holding company, of the lead bank subsidiary of the
bank holding company, and of an affiliated bank holding company are
all composed of the identical individuals, and the boards conduct
a common meeting for the affiliated entities, then consolidated minutes
of such meeting may be kept. |
| 95-14 |
12-19-95 |
8 IBA |
Incorporators
of an Illinois state bank in organization may, to satisfy the requirement
of Section 8, subscribe to stock of the bank or stock of the corporation
formed to be the bank holding company of the bank. |
| 95-15 |
12-20-95 |
3 FBOA |
Foreign banks
that possess certificates under Foreign Banking Office Act have the
same powers as state banks which in turn have the same powers as national
banks to own, hold or trade financial derivatives. Commissioner may
still require prior approval. |
| 96-01 |
01-24-96 |
3,4,6 IFSDA |
State bank's
home equity line of credit is a revolving credit plan pursuant to
the Financial Services Development Act (IFSDA). Early Cancellation
Fee is a "charge which may be provided in the agreement between
the Bank and customer. Interest Act provisions do not limit revolving
credit plans pursuant to IFSDA. |
| 96-02 |
03-18-96 |
5(11) IBA |
Purchases
of stock in the Federal National Mortgage Association ("FNMA")
are not subject to investment limits. However, the Agency may still
have safety and soundness concerns based on concentrations or lack
of diversification of the bank's investments. |
| 96-03 |
06-24-96 |
35 EFT |
Financial
institution's main office may be directly connected to a different
switch than the switch used by one or more of its branches, although
each banking office may only be directly connected to one switch. |
| 96-04 |
08-14-96 |
5(6), 5(21)
IBA |
Bank may
conduct activity as an Internet Service Provider if the activity is
undertaken for the enhancement and support of community development
and to enrich the lives and educational opportunities for bank customers
and community residents. |
| 96-05 |
08-27-96 |
5.2 TTA,
21-2.14, 21-1.07 PA |
Under Illinois
law, an Illinois corporate fiduciary may invest trust assets in a
mutual fund from which it receives fees for the provision of administrative
services without creating an impermissible conflict of interest. |
| 96-06 |
10-03-96 |
3 & 5(12)
IBA, 10-10(a) LLCA |
State bank
may make minority equity investment in limited liability company,
corporation or partnership pursuant to conditions outlined. |
| 96-07 |
12-04-96 |
5(17) IBA,
30 EFTA |
ATM's which
only dispense cash may be established in Illinois at any location
and by any establisher. |
| 97-01 |
01-21-97 |
5(3), 5(5),
5(11) IBA |
State Bank
may provide tax preparation services to its customers or the public,
but the Bank may not act as an expert tax consultant, and should take
appropriate precautions to inform customers for the service of this
fact. |
| 97-02 |
03-11-97 |
5, 5(11)
IBA |
State Bank
may accept and hold stock issued by a borrower, not as an investment per se, but rather as an incident to an attempt to work out
a problem loan and maximize the bank's recovery. |
| 97-03 |
03-24-97 |
1 et seq.
TIA, 1-1 et seq. CFA, 4.01-4.24 TTA, 499.1 IIC |
Acting as
agent for sale of title insurance is permitted for Illinois state
chartered trust company; title insurance agent is not engaged in the
"insurance business;" therefore, trust company is not prohibited
from acting as title insurance agent by Sec. 499.1 of the Illinois
Insurance Code. |
| 97-04 |
07-09-97 |
0.01 et seq.,
4(2)(a), 6IA |
Retroactively
charging higher interest rates to borrowers who prepay their mortgage
loans whose interest rate is over 8% would constitute a prohibited
prepayment penalty under Section 4(2) (a) of the Interest Act. However,
banks may provide incentives, such as cash bonuses and fee waivers,
to induce borrowers not to prepay. |
| 97-05 |
07-10-97 |
5/2, 5/3
IBA |
Illinois
state-chartered banks may provide temporary banking services at colleges
or universities. These would include opening checking and savings
accounts, soliciting applications for credit cards, ad providing information
on other bank services and locations. So long as the bank does not
receive deposits, pay checks, or make loans, the service would not
be considered a branch and would not need to file an application or
notice with the agency. |
| 97-06 |
10-16-97 |
1-5.05, 8-2
CFA |
An Illinois
corporate fiduciary may deal with trust owned farm real estate as
trustee or may engage in farm real estate management and brokerage
in an agency capacity. |
| 98-01 |
01-16-98 |
4(1)(1),
4a(a)(i) IA |
Loans
secured by a real estate mortgage are governed by Section 4(1)(1),
and not Section 4a(a)(i), of the Interest Act. |
| 98-02 |
04-09-98 |
16(2),
16(3), 43 IBA |
Shareholders
of bank have sole authority to change the number of members on the
bank's board of directors. The board may only exercise authority
to appoint a new director prescribed in the by-laws if the vacancy
on the board arose between shareholder meetings. |
| 98-03 |
05-06-98 |
5(9)
IBA |
If
a bank merges with another bank and thereby acquires title to the
other bank's residual other real estate owned ("OREO"),
the 10 year OREO holding timetable is reset. Furthermore, the
Office of Banks and Real Estate no longer has the authority to grant
extensions for banks to hold OREO. |
| 98-04 |
05-26-98 |
2
IBA |
For
a banking facility to be considered a branch, it must engage in one
of the core banking functions, must be established by the bank, and
must be accessible to the public, giving the bank a competitive advantage
in obtaining customers. |
| 98-05 |
06-25-98 |
32
IBA |
If
a bank makes a loan which is guaranteed by various guarantors and
a portion of the loan is subsequently participated to another bank,
the guarantees would follow the loan on a pro rata basis. |
| 98-06 |
07/20/98 |
1
PRA |
The
phrase, "other than property the ownership of which is subject
to a legal dispute" in Section 1 of the Pawnbroker Regulation
Act [205 ILCS 510/1] means that if a pawnbroker has actual knowledge
that there is a dispute about the ownership of an item, that pawnbroker
may not accept such an item for pawn. Furthermore, those
who deal in the purchase of property on the condition of selling the
property back again at a stipulated price are included in the definition
of "pawnbroker". |
| 98-07 |
07/22/98 |
2
CDAA,
10 CPCNA |
A
check printer may use the next consecutive check number indicated
by the account holder's current check supply when filing an order
for a customer. A check printer who is unable to determine the
date on which an account was opened shall use the date of the earliest
transaction or the earliest order of checks for the account that can
be verified. The status of the financial institution in which
the account is held, rather than the residency of the account holder,
shall determine whether the check printer must comply with the verification
requirements of the Check Printer and Check Number Act. |
| 98-08 |
08/25/98 |
44.1
IBA |
The
provision of basic banking services, including check cashing, deposit
transactions, and statement reconciliation on a limited basis to residents
of a retirement apartment complex is authorized by Section 44.1 of
the Illinois Banking Act and does not constitute the establishment
of a branch by the bank. |
| 98-09 |
09/08/98 |
3,
5(11), 5(24), 5(25) IBA, 1 et seq. TIA, 1402 IIC |
State
banks may sell title insurance, subject to licensure by the Illinois
Department of Financial Institutions. |
| 98-10 |
09/08/98 |
5(25)
IBA, 6003(7) SBA |
State
banks may engage in real estate development activities or projects,
subject to the same restrictions that apply to insured savings associations.
State banks' real estate development authority may have to be conducted
through a subsidiary with the approval of the FDIC. |
| 98-11 |
09/08/98 |
5(25)
IBA, 1008(a)(18) SBA, 12 USC 1861 et seq. BSCA |
State
banks may offer data processing and data transmission services on
a for-profit basis either directly, through a subsidiary or through
a bank service corporation. |
| 98-12 |
09/08/98 |
5(25)
IBA, 1008(a)(13)(B) SBA |
State
Banks may pledge assets to secure private deposits. |
| 98-13 |
09/29/98 |
1
PRA |
An
establishment that purchases jewelry from an individual for refurbishing
and reselling is not acting as a pawnbroker for purposes of the Pawnbroker
Regulation Act if there is no condition or agreement that the establishment
resell the property to that same individual at a stipulated price. |
| 98-14 |
09/29/98 |
5
& 15 CPCNA |
The
verification requirements in the Check Printer and Check Number Act
("Act") do not apply to check orders (1) drawn on existing
consumer deposit accounts for which the check printer has previously
filled an order and to which there are no changes, (2) originating
from the financial institution in which the consumer deposit account
is held, and (3) drawn on existing consumer deposit accounts with
only minor, technical changes. In addition, the requirements
will only apply to accounts held in "financial institutions"
as defined in the Act. |
| 98-15 |
10/09/98 |
3
& 5(11) IBA |
State
banks may purchase Illinois real estate tax sale certificates.
Banks should have adequate policies, procedures and controls in place
to protect against inherent risk and safety and soundness concerns
relating to the purchase of such certificates. |
| 99-01 |
03/19/99 |
5(14), 34(3)
& 35.1 IBA |
State bank
may own and lease personal property to a municipality. The amount
of the bank's permissible investment in the personal property subject
to the lease is generally 20% of the unimpaired capital and surplus
of the bank unless the lease is a general obligations of the municipality,
in which case bank's investment is limited to the amount of bank's
unimpaired capital and surplus or is limitless. |
| 99-02 |
09/27/99 |
3 & 33
IBA |
Bank may
invest seed money in a mutual fund for which it will also act as an
investment subadviser. |
| 99-03 |
10/06/99 |
3 IBA |
Bank may
provide certain tax and accounting services that are incidental to
the business of banking. Such services include accounting, gathering
books and records for preparing tax returns, offering routine tax
planning and advice, and dealing with the Internal Revenue Service
as an enrolled agent on behalf of a tax customer for the public. |
| 99-04 |
12/15/99 |
1-5,13 &
2-4 CFA |
Not-for-profit
corporation acting as trustee of its own deferred compensation plan
is not "engaging in the trust business." |
