(205 ILCS 105/1‑1)(from Ch. 17, par. 3301‑1) Sec. 1‑1. Short title. This Act shall be known and may be cited as the "Illinois Savings and Loan Act of 1985". (Source: P.A. 84‑543.)
(205 ILCS 105/1‑1.5) Sec. 1‑1.5. References to Office or Commissioner of Banks and Real Estate. On and after the effective date of this amendatory Act of the 94th General Assembly, unless the context requires otherwise: (1) References in this Act to the Office of Banks and
Real Estate or "the Office" mean the Department of Financial and Professional Regulation.
(2) References in this Act to the Commissioner of
Banks and Real Estate or "the Commissioner" mean the Secretary of Financial and Professional Regulation.
(Source: P.A. 94‑833, eff. 6‑6‑06.)
(205 ILCS 105/1‑2)(from Ch. 17, par. 3301‑2) Sec. 1‑2. Policy of Act. The General Assembly has found and declares: (a) That the savings and loan business has so expanded in recent years and has become so integrated with the financial institutions of this State and is so important as a method of promoting home ownership and thrift that such business is affected with a public interest and should continue to be supervised as a business affecting the economic security and general welfare of the people of this State; (b) That such business should be organized and conducted in accordance with the authority provided in this Act; (c) That the public interest requires the promotion and fostering of the savings and loan business and the assurance of its financial stability; and (d) That in order to further the policies herein expressed, the provisions of this Act shall be liberally construed to promote and foster the savings and loan business. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑3)(from Ch. 17, par. 3301‑3) Sec. 1‑3. Scope of Act; application to federal associations. (a) This Act applies to all existing savings and loan associations, and other similar associations, including savings banks, by whatever name called, organized under this or any prior Act, and to the business conducted in Illinois by all foreign associations or savings banks duly authorized to do business in this State. (b) Unless Federal laws or regulations provide otherwise, Federal Associations and their members shall possess all of the rights, powers, privileges, immunities and exemptions granted by this Act to associations operating hereunder and to the members thereof, or by any other Act or Section thereof, to such associations or members, whether or not specifically mentioned in the Section or Sections granting such rights, powers, privileges, immunities and exemptions. (Source: P.A. 86‑137; 86‑210; 86‑952.)
(205 ILCS 105/1‑4)(from Ch. 17, par. 3301‑4) Sec. 1‑4. Effect on existing associations. With respect to any existing association: (a) The by‑laws, shares and contracts of such association shall continue in full force and effect, but the association shall be operated in accordance with the provisions of this Act; (b) If the association accepts the benefits of, or avails itself of the powers given by, this Act, the association shall be subject to the provisions and requirements of this Act in every particular, as if the association had been organized under this Act; and (c) That portion of the statement of incorporation, charter or certificate of complete organization of an existing association which corresponds to the contents of articles of incorporation, as defined in Section 2‑8 of this Act, shall be deemed to be the articles of incorporation of such association; and that portion of its statement of incorporation, charter and certificate of complete organization corresponding to the contents of by‑laws, as defined in Section 2‑9 of this Act, shall be deemed to be the by‑laws of such existing association. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑5)(from Ch. 17, par. 3301‑5) Sec. 1‑5. Prohibitions. (a) No person or group of persons, except an association duly incorporated under this Act or a prior Act or a Federal association or a foreign association duly authorized to do business in this State, shall transact business within the scope of this Act or do any business under any name or title or circulate or use any advertising or make any representation or give any information to any person which indicates or reasonably implies the operation of a business which is within the scope of this Act. (b) A circuit court may issue an injunction to restrain any person from violating or continuing to violate subsection (a) of this Section. (b‑5) Except as otherwise expressly permitted by law or with the written consent of the association, no person or group of persons may use the name of or a name similar to the name of an existing association when marketing or soliciting business from customers or prospective customers if the name or similar name is used in a manner that would cause a reasonable person to believe that the marketing material or solicitation originated from or is endorsed by the existing association or that the existing association is in any other way responsible for the marketing material or solicitation. (c) Any person or group of persons who violates subsection (a) of this Section commits a business offense and shall be fined not to exceed $5,000. (d) In addition to any other available remedies, an existing association may report an alleged violation of any provision of this Section to the Secretary. If the Secretary of Financial and Professional Regulation finds that any person or group of persons is in violation of any provision of this Section, then the Secretary may direct that person or group of persons to cease and desist from that violation. If the Secretary issues a cease and desist order against any person or group of persons for violation of subsection (b‑5), then the order must require that person or group of persons to cease and desist from using the offending marketing material or solicitation in Illinois. If the person or group of persons against whom the Secretary issued the cease and desist order persists in the violation, then the Secretary may impose a civil penalty of up to $10,000 for each violation. Each day that a person or group of persons is in violation of this Section constitutes a separate violation of this Section and each instance in which marketing material or a solicitation is sent in violation of subsection (b‑5) constitutes a separate violation of this Section. (e) The Department of Financial and Professional Regulation may adopt rules to administer the provisions of this Section. (Source: P.A. 94‑833, eff. 6‑6‑06.)
(205 ILCS 105/1‑6)(from Ch. 17, par. 3301‑6) Sec. 1‑6. General corporate powers. An association operating under this Act shall be a body corporate and politic and shall have all of the powers conferred by this Act including, but not limited to, the following powers: (a) To sue and be sued, complain and defend in its corporate name, and to have a common seal, which it may alter or renew at pleasure; (b) To obtain and maintain insurance of the association's withdrawable capital by an insurance corporation as defined in this Act; (c) Notwithstanding anything to the contrary contained in this Act, to become a member of the Federal Home Loan Bank, and to have all of the powers granted to a savings or thrift institution organized under the laws of the United States and which is located and doing business in the State of Illinois, subject to regulations of the Commissioner; (d) To act as a fiscal agent for the United States, the State of Illinois or any department, branch, arm or agency of the State or any unit of local government or school district in the State when duly designated for that purpose, and as agent to perform the reasonable functions as may be required of it; (e) To become a member of or deal with any corporation or agency of the United States or the State of Illinois, to the extent that the agency assists in furthering or facilitating the association's purposes or powers and to that end to purchase stock or securities thereof or deposit money therewith, and to comply with any other conditions of membership or credit; (f) To make donations in reasonable amounts for the public welfare or for charitable, scientific, religious or educational purposes; (g) To adopt and operate reasonable insurance, bonus, profit sharing, and retirement plans for officers and employees; likewise, directors who are not officers, including, but not limited to, advisory, honorary, and emeritus directors, may participate in those plans; (h) To reject any application for membership, to retire withdrawable capital by enforced retirement as provided in this Act and the by‑laws, and to limit the issuance of or payments on withdrawable capital, subject, however, to contractual obligations; (i) To purchase stock in service corporations and to invest in any form of indebtedness of any service corporation as defined in this Act, subject to regulations of the Commissioner; (j) To purchase stock of a corporation whose principal purpose is to operate a safe deposit company or escrow service company; (k) To act as Trustee or Custodian under the Federal Self‑Employed Individuals' Tax Retirement Act of 1962 or any amendments thereto or any other retirement account and invest any funds held in such capacity in a savings account of the institution; (l) (Blank); (m) To establish, maintain and operate terminals as authorized by the Electronic Fund Transfer Act and by Section 5 of the Illinois Banking Act. The establishment, maintenance, operation and location of such terminals shall be subject to the approval of the Commissioner; (n) Subject to the approval and regulations of the Commissioner, an association may purchase or assume all or any part of the assets or liabilities of an eligible insured bank; (o) To purchase from a bank, as defined in Section 2 of the Illinois Banking Act, an insubstantial portion of the total deposits of an insured bank. For the purpose of this subparagraph, "insubstantial portion of the total deposits" shall have the same meaning as provided in Section 5(d)(2)(D) of the Federal Deposit Insurance Act; (p) To effect an acquisition of or conversion to another financial institution pursuant to Section 205 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989; (q) To pledge its assets: (1) to enable it to act as an agent for the sale of
obligations of the United States;
(2) to secure deposits; (3) to secure deposits of money whenever required by
the National Bankruptcy Act;
(4) (Blank); and (5) to secure trust funds commingled with the
institution's funds, whether deposited by the institution or an affiliate of the institution, as required under Section 2‑8 of the Corporate Fiduciary Act;
(r) To provide temporary periodic service to persons residing in a bona fide nursing home, senior citizens' retirement home, or long‑term care facility; (s) To purchase for its own account shares of stock of a bankers' bank, described in Section 13(b)(1) of the Illinois Banking Act, on the same terms and conditions as a bank may purchase such shares. In no event shall the total amount of such stock held by an association in such bankers' bank exceed 10% of its capital and surplus (including undivided profits) and in no event shall an association acquire more than 5% of any class of voting securities of such bankers' bank; (t) To effect a conversion to a State bank pursuant to the provisions of the Illinois Banking Act; (u) Subject to Article XLIV of the Illinois Insurance Code, to act as the agent for any fire, life, or other insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; provided, however, that no such association shall in any case assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided further, that the association shall not guarantee the truth of any statement made by an assured in filing his application for insurance; and (v) To exercise all powers necessary to qualify as a trustee or custodian under federal or State law, however, the authority to accept and execute trusts is subject to the Corporate Fiduciary Act and to the supervision of those activities by the Commissioner. (Source: P.A. 91‑97, eff. 7‑9‑99; 92‑483, eff. 8‑23‑01.)
(205 ILCS 105/1‑6a)(from Ch. 17, par. 3301‑6a) Sec. 1‑6a. Reverse mortgage loans. Notwithstanding any other provision of this Act, an association may engage in making "reverse mortgage" loans to persons for the purpose of making home improvements or repairs, paying insurance premiums, or paying real estate taxes on the homestead properties of those persons. For purposes of this Section, a "reverse mortgage" loan shall be a loan extended on the basis of existing equity in homestead property. An association, in making a "reverse mortgage" loan, may add deferred interest to principal or otherwise provide for the charging of interest or premium on the deferred interest. The loans shall be repaid upon sale of the property or upon the death of the owner or, if the property is in joint tenancy, upon the death of the last surviving joint tenant who had an interest in the property at the time the loan was initiated. "Homestead" property, for purposes of this Section, means the domicile and contiguous real estate owned and occupied by the mortgagor. The Commissioner of Banks and Real Estate shall prescribe rules governing this Section and Section 5a of the Illinois Banking Act. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑6b)(from Ch. 17, par. 3301‑6b) Sec. 1‑6b. Notwithstanding any other provision of this Act, an association may engage in making revolving credit loans secured by mortgages or deeds of trust on real property or by security assignments of beneficial interests in land trusts. For purposes of this Section, "revolving credit" has the meaning defined in Section 4.1 of "An Act in relation to the rate of interest and other charges in connection with sales on credit, and the lending of money", approved May 24, 1879, as amended. Any mortgage or deed of trust given to secure a revolving credit loan may, and when so expressed therein shall, secure not only the existing indebtedness but also such future advances, whether such advances are obligatory or to be made at the option of the lender, or otherwise, as are made within twenty years from the date thereof, to the same extent as if such future advances were made on the date of the execution of such mortgage or deed of trust, although there may be no advance made at the time of execution of such mortgage or other instrument, and although there may be no indebtedness outstanding at the time any advance is made. The lien of such mortgage or deed of trust, as to third persons without actual notice thereof, shall be valid as to all such indebtedness and future advances from the time said mortgage or deed of trust is filed for record in the office of the Recorder of Deeds or the Registrar of Titles of the county where the real property described therein is located. The total amount of indebtedness that may be so secured may increase or decrease from time to time, but the total unpaid balance so secured at any one time shall not exceed a maximum principal amount which must be specified in such mortgage or deed of trust, plus interest thereon, and any disbursements made for the payment of taxes, special assessments, or insurance on said real property, with interest on such disbursements. Any such mortgage or deed of trust shall be valid and have priority over all subsequent liens and encumbrances, including statutory liens, except taxes and assessments levied on said real property. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑6c)(from Ch. 17, par. 3301‑6c) Sec. 1‑6c. Non‑recourse reverse mortgage loans. Any association organized under or subject to this Act may make non‑recourse reverse mortgage loans as provided in Section 6.1 of the Illinois Banking Act. (Source: P.A. 87‑488.)
(205 ILCS 105/1‑6d) Sec. 1‑6d. Enforcement of child support. (a) Any association governed by this Act shall encumber or surrender accounts or assets held by the association on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) or its successor agency pursuant to Section 10‑25.5 of the Illinois Public Aid Code, or upon notice of interstate lien or levy from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act. (b) Within 90 days after receiving notice from the Department of Healthcare and Family Services (formerly Department of Public Aid) that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each association governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the association. Upon receiving from the Department of Healthcare and Family Services (formerly Department of Public Aid) a copy of a child support enforcement debit authorization form signed by an obligor, an association holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑6e) Sec. 1‑6e. Reverse mortgage; disclosure. At the time a reverse mortgage loan is made, the lender must provide to the mortgagor a separate document that informs the mortgagor that by obtaining the reverse mortgage the mortgagor's eligibility to obtain a tax deferral under the Senior Citizens Real Estate Tax Deferral Act may be adversely affected. The mortgagor must sign the disclosure document as part of the reverse mortgage transaction. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑6f) Sec. 1‑6f. Non‑English language transactions. An association may conduct transactions in a language other than English through an employee or agent acting as interpreter or through an interpreter provided by the customer. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑7)(from Ch. 17, par. 3301‑7) Sec. 1‑7. Power to borrow. (a) The board of directors may borrow money for the uses and purposes of the association and may pledge, mortgage or otherwise encumber any of its assets in connection therewith; but such borrowing shall not exceed 50% of the aggregate withdrawal value of the association's withdrawable capital without prior approval of the Commissioner. An association may, at any time through action of its board of directors, issue such capital notes, debentures or other capital obligations as are authorized under rules and regulations of the Commissioner. (b) A subsequent reduction of withdrawable capital does not affect in any way outstanding obligations for borrowed money. (c) A debt incurred by the association in violation of this Section is not invalid or illegal as to the rights of the lender. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑8)(from Ch. 17, par. 3301‑8) Sec. 1‑8. Incidental powers. An association also shall have any power conferred on a corporation by the "Business Corporation Act of 1983" and any power not prohibited by law which is reasonably incident to the accomplishment of the express powers conferred upon the association by this Act. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑8a)(from Ch. 17, par. 3301‑8a) Sec. 1‑8a. Subject to such reasonable regulations as the Commissioner may prescribe for the protection of depositors, in counties with a population more than 250,000 and less than 300,000, an association may take such action as is necessary for the provision of financial services to persons residing in any bona fide nursing home, senior citizens' retirement home or long term care facility and may provide financial services at such location on a limited basis. (Source: P.A. 86‑505.)
(205 ILCS 105/1‑9)(from Ch. 17, par. 3301‑9) Sec. 1‑9. Supplemental Powers. (a) An association to which this Act applies may accept or carry any demand, commercial or checking account, to the extent authorized by the laws and regulations of the United States for federally chartered associations. The Commissioner may issue regulations authorizing the establishment of negotiable order of withdrawal accounts. (b) An association may establish branches or offices at which savings or investments are regularly received or loans approved, as follows: (1) to the geographical extent branch powers and
offices are granted to state banks under the "Illinois Banking Act", as amended, or as it may be amended or supplemented;
(2) within the Geographic Area defined in Section
1A‑1 of this Act and subject to the provisions of Section 1A‑6 of this Act;
(3) to the same geographical extent to which a
savings and loan association organized under the laws of the United States and doing business in Illinois is permitted; and
(4) as the result of mergers, consolidations or bulk
sales; or, facilities in the case of relocations. The Commissioner may adopt regulations which provide for the establishment of facilities and branches to be defined by the Commissioner.
(c) Notwithstanding any other provision of this Act, an association that purchases or assumes all or any part of the assets or liabilities of an eligible insured bank may retain and maintain the main premises or branches purchased from the eligible insured bank as branches of the purchasing association, provided it assumes the deposit liabilities of the eligible insured bank maintained at such main banking premises or branches. (Source: P.A. 86‑952.)
(205 ILCS 105/1‑10)(from Ch. 17, par. 3301‑10) Sec. 1‑10. Definitions. The words and phrases defined in the Sections following this Section and preceding Section 1‑11 have the meanings ascribed to them in those Sections, except to the extent that any such word or phrase is specifically qualified by its context. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑10.01)(from Ch. 17, par. 3301‑10.01) Sec. 1‑10.01. "Board": the Board of Savings Institutions, as described in Sections 7‑20 through 7‑26 of this Act. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑10.02)(from Ch. 17, par. 3301‑10.02) Sec. 1‑10.02. "Aggregate withdrawal value": the sum of all payments made on all withdrawable capital accounts of the association and all dividends, and bonuses credited or allocated to such accounts, and all dividends credited to "divided profits" for subsequent crediting to accounts upon maturity; less all withdrawals, retirements and other proper deductions from accounts and all unpaid charges thereon. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.03)(from Ch. 17, par. 3301‑10.03) Sec. 1‑10.03. "Association": every depository institution to which this Act applies, as defined in Section 1‑3. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑10.04)(from Ch. 17, par. 3301‑10.04) Sec. 1‑10.04. "Commissioner": the Commissioner of Banks and Real Estate or some person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑10.05)(from Ch. 17, par. 3301‑10.05) Sec. 1‑10.05. "Community": a city, village, or incorporated town in this State. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.06)(from Ch. 17, par. 3301‑10.06) Sec. 1‑10.06. "Continuing association": the association which continues to exist after a merger of associations has been effected. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.07)(from Ch. 17, par. 3301‑10.07) Sec. 1‑10.07. "Federal association": a savings and loan association or savings bank incorporated under the Home Owner's Loan Act of 1933, as now or hereafter amended, whose principal business office is loca
(205 ILCS 105/1‑1)(from Ch. 17, par. 3301‑1) Sec. 1‑1. Short title. This Act shall be known and may be cited as the "Illinois Savings and Loan Act of 1985". (Source: P.A. 84‑543.)
(205 ILCS 105/1‑1.5) Sec. 1‑1.5. References to Office or Commissioner of Banks and Real Estate. On and after the effective date of this amendatory Act of the 94th General Assembly, unless the context requires otherwise: (1) References in this Act to the Office of Banks and
Real Estate or "the Office" mean the Department of Financial and Professional Regulation.
(2) References in this Act to the Commissioner of
Banks and Real Estate or "the Commissioner" mean the Secretary of Financial and Professional Regulation.
(Source: P.A. 94‑833, eff. 6‑6‑06.)
(205 ILCS 105/1‑2)(from Ch. 17, par. 3301‑2) Sec. 1‑2. Policy of Act. The General Assembly has found and declares: (a) That the savings and loan business has so expanded in recent years and has become so integrated with the financial institutions of this State and is so important as a method of promoting home ownership and thrift that such business is affected with a public interest and should continue to be supervised as a business affecting the economic security and general welfare of the people of this State; (b) That such business should be organized and conducted in accordance with the authority provided in this Act; (c) That the public interest requires the promotion and fostering of the savings and loan business and the assurance of its financial stability; and (d) That in order to further the policies herein expressed, the provisions of this Act shall be liberally construed to promote and foster the savings and loan business. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑3)(from Ch. 17, par. 3301‑3) Sec. 1‑3. Scope of Act; application to federal associations. (a) This Act applies to all existing savings and loan associations, and other similar associations, including savings banks, by whatever name called, organized under this or any prior Act, and to the business conducted in Illinois by all foreign associations or savings banks duly authorized to do business in this State. (b) Unless Federal laws or regulations provide otherwise, Federal Associations and their members shall possess all of the rights, powers, privileges, immunities and exemptions granted by this Act to associations operating hereunder and to the members thereof, or by any other Act or Section thereof, to such associations or members, whether or not specifically mentioned in the Section or Sections granting such rights, powers, privileges, immunities and exemptions. (Source: P.A. 86‑137; 86‑210; 86‑952.)
(205 ILCS 105/1‑4)(from Ch. 17, par. 3301‑4) Sec. 1‑4. Effect on existing associations. With respect to any existing association: (a) The by‑laws, shares and contracts of such association shall continue in full force and effect, but the association shall be operated in accordance with the provisions of this Act; (b) If the association accepts the benefits of, or avails itself of the powers given by, this Act, the association shall be subject to the provisions and requirements of this Act in every particular, as if the association had been organized under this Act; and (c) That portion of the statement of incorporation, charter or certificate of complete organization of an existing association which corresponds to the contents of articles of incorporation, as defined in Section 2‑8 of this Act, shall be deemed to be the articles of incorporation of such association; and that portion of its statement of incorporation, charter and certificate of complete organization corresponding to the contents of by‑laws, as defined in Section 2‑9 of this Act, shall be deemed to be the by‑laws of such existing association. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑5)(from Ch. 17, par. 3301‑5) Sec. 1‑5. Prohibitions. (a) No person or group of persons, except an association duly incorporated under this Act or a prior Act or a Federal association or a foreign association duly authorized to do business in this State, shall transact business within the scope of this Act or do any business under any name or title or circulate or use any advertising or make any representation or give any information to any person which indicates or reasonably implies the operation of a business which is within the scope of this Act. (b) A circuit court may issue an injunction to restrain any person from violating or continuing to violate subsection (a) of this Section. (b‑5) Except as otherwise expressly permitted by law or with the written consent of the association, no person or group of persons may use the name of or a name similar to the name of an existing association when marketing or soliciting business from customers or prospective customers if the name or similar name is used in a manner that would cause a reasonable person to believe that the marketing material or solicitation originated from or is endorsed by the existing association or that the existing association is in any other way responsible for the marketing material or solicitation. (c) Any person or group of persons who violates subsection (a) of this Section commits a business offense and shall be fined not to exceed $5,000. (d) In addition to any other available remedies, an existing association may report an alleged violation of any provision of this Section to the Secretary. If the Secretary of Financial and Professional Regulation finds that any person or group of persons is in violation of any provision of this Section, then the Secretary may direct that person or group of persons to cease and desist from that violation. If the Secretary issues a cease and desist order against any person or group of persons for violation of subsection (b‑5), then the order must require that person or group of persons to cease and desist from using the offending marketing material or solicitation in Illinois. If the person or group of persons against whom the Secretary issued the cease and desist order persists in the violation, then the Secretary may impose a civil penalty of up to $10,000 for each violation. Each day that a person or group of persons is in violation of this Section constitutes a separate violation of this Section and each instance in which marketing material or a solicitation is sent in violation of subsection (b‑5) constitutes a separate violation of this Section. (e) The Department of Financial and Professional Regulation may adopt rules to administer the provisions of this Section. (Source: P.A. 94‑833, eff. 6‑6‑06.)
(205 ILCS 105/1‑6)(from Ch. 17, par. 3301‑6) Sec. 1‑6. General corporate powers. An association operating under this Act shall be a body corporate and politic and shall have all of the powers conferred by this Act including, but not limited to, the following powers: (a) To sue and be sued, complain and defend in its corporate name, and to have a common seal, which it may alter or renew at pleasure; (b) To obtain and maintain insurance of the association's withdrawable capital by an insurance corporation as defined in this Act; (c) Notwithstanding anything to the contrary contained in this Act, to become a member of the Federal Home Loan Bank, and to have all of the powers granted to a savings or thrift institution organized under the laws of the United States and which is located and doing business in the State of Illinois, subject to regulations of the Commissioner; (d) To act as a fiscal agent for the United States, the State of Illinois or any department, branch, arm or agency of the State or any unit of local government or school district in the State when duly designated for that purpose, and as agent to perform the reasonable functions as may be required of it; (e) To become a member of or deal with any corporation or agency of the United States or the State of Illinois, to the extent that the agency assists in furthering or facilitating the association's purposes or powers and to that end to purchase stock or securities thereof or deposit money therewith, and to comply with any other conditions of membership or credit; (f) To make donations in reasonable amounts for the public welfare or for charitable, scientific, religious or educational purposes; (g) To adopt and operate reasonable insurance, bonus, profit sharing, and retirement plans for officers and employees; likewise, directors who are not officers, including, but not limited to, advisory, honorary, and emeritus directors, may participate in those plans; (h) To reject any application for membership, to retire withdrawable capital by enforced retirement as provided in this Act and the by‑laws, and to limit the issuance of or payments on withdrawable capital, subject, however, to contractual obligations; (i) To purchase stock in service corporations and to invest in any form of indebtedness of any service corporation as defined in this Act, subject to regulations of the Commissioner; (j) To purchase stock of a corporation whose principal purpose is to operate a safe deposit company or escrow service company; (k) To act as Trustee or Custodian under the Federal Self‑Employed Individuals' Tax Retirement Act of 1962 or any amendments thereto or any other retirement account and invest any funds held in such capacity in a savings account of the institution; (l) (Blank); (m) To establish, maintain and operate terminals as authorized by the Electronic Fund Transfer Act and by Section 5 of the Illinois Banking Act. The establishment, maintenance, operation and location of such terminals shall be subject to the approval of the Commissioner; (n) Subject to the approval and regulations of the Commissioner, an association may purchase or assume all or any part of the assets or liabilities of an eligible insured bank; (o) To purchase from a bank, as defined in Section 2 of the Illinois Banking Act, an insubstantial portion of the total deposits of an insured bank. For the purpose of this subparagraph, "insubstantial portion of the total deposits" shall have the same meaning as provided in Section 5(d)(2)(D) of the Federal Deposit Insurance Act; (p) To effect an acquisition of or conversion to another financial institution pursuant to Section 205 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989; (q) To pledge its assets: (1) to enable it to act as an agent for the sale of
obligations of the United States;
(2) to secure deposits; (3) to secure deposits of money whenever required by
the National Bankruptcy Act;
(4) (Blank); and (5) to secure trust funds commingled with the
institution's funds, whether deposited by the institution or an affiliate of the institution, as required under Section 2‑8 of the Corporate Fiduciary Act;
(r) To provide temporary periodic service to persons residing in a bona fide nursing home, senior citizens' retirement home, or long‑term care facility; (s) To purchase for its own account shares of stock of a bankers' bank, described in Section 13(b)(1) of the Illinois Banking Act, on the same terms and conditions as a bank may purchase such shares. In no event shall the total amount of such stock held by an association in such bankers' bank exceed 10% of its capital and surplus (including undivided profits) and in no event shall an association acquire more than 5% of any class of voting securities of such bankers' bank; (t) To effect a conversion to a State bank pursuant to the provisions of the Illinois Banking Act; (u) Subject to Article XLIV of the Illinois Insurance Code, to act as the agent for any fire, life, or other insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; provided, however, that no such association shall in any case assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided further, that the association shall not guarantee the truth of any statement made by an assured in filing his application for insurance; and (v) To exercise all powers necessary to qualify as a trustee or custodian under federal or State law, however, the authority to accept and execute trusts is subject to the Corporate Fiduciary Act and to the supervision of those activities by the Commissioner. (Source: P.A. 91‑97, eff. 7‑9‑99; 92‑483, eff. 8‑23‑01.)
(205 ILCS 105/1‑6a)(from Ch. 17, par. 3301‑6a) Sec. 1‑6a. Reverse mortgage loans. Notwithstanding any other provision of this Act, an association may engage in making "reverse mortgage" loans to persons for the purpose of making home improvements or repairs, paying insurance premiums, or paying real estate taxes on the homestead properties of those persons. For purposes of this Section, a "reverse mortgage" loan shall be a loan extended on the basis of existing equity in homestead property. An association, in making a "reverse mortgage" loan, may add deferred interest to principal or otherwise provide for the charging of interest or premium on the deferred interest. The loans shall be repaid upon sale of the property or upon the death of the owner or, if the property is in joint tenancy, upon the death of the last surviving joint tenant who had an interest in the property at the time the loan was initiated. "Homestead" property, for purposes of this Section, means the domicile and contiguous real estate owned and occupied by the mortgagor. The Commissioner of Banks and Real Estate shall prescribe rules governing this Section and Section 5a of the Illinois Banking Act. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑6b)(from Ch. 17, par. 3301‑6b) Sec. 1‑6b. Notwithstanding any other provision of this Act, an association may engage in making revolving credit loans secured by mortgages or deeds of trust on real property or by security assignments of beneficial interests in land trusts. For purposes of this Section, "revolving credit" has the meaning defined in Section 4.1 of "An Act in relation to the rate of interest and other charges in connection with sales on credit, and the lending of money", approved May 24, 1879, as amended. Any mortgage or deed of trust given to secure a revolving credit loan may, and when so expressed therein shall, secure not only the existing indebtedness but also such future advances, whether such advances are obligatory or to be made at the option of the lender, or otherwise, as are made within twenty years from the date thereof, to the same extent as if such future advances were made on the date of the execution of such mortgage or deed of trust, although there may be no advance made at the time of execution of such mortgage or other instrument, and although there may be no indebtedness outstanding at the time any advance is made. The lien of such mortgage or deed of trust, as to third persons without actual notice thereof, shall be valid as to all such indebtedness and future advances from the time said mortgage or deed of trust is filed for record in the office of the Recorder of Deeds or the Registrar of Titles of the county where the real property described therein is located. The total amount of indebtedness that may be so secured may increase or decrease from time to time, but the total unpaid balance so secured at any one time shall not exceed a maximum principal amount which must be specified in such mortgage or deed of trust, plus interest thereon, and any disbursements made for the payment of taxes, special assessments, or insurance on said real property, with interest on such disbursements. Any such mortgage or deed of trust shall be valid and have priority over all subsequent liens and encumbrances, including statutory liens, except taxes and assessments levied on said real property. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑6c)(from Ch. 17, par. 3301‑6c) Sec. 1‑6c. Non‑recourse reverse mortgage loans. Any association organized under or subject to this Act may make non‑recourse reverse mortgage loans as provided in Section 6.1 of the Illinois Banking Act. (Source: P.A. 87‑488.)
(205 ILCS 105/1‑6d) Sec. 1‑6d. Enforcement of child support. (a) Any association governed by this Act shall encumber or surrender accounts or assets held by the association on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) or its successor agency pursuant to Section 10‑25.5 of the Illinois Public Aid Code, or upon notice of interstate lien or levy from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act. (b) Within 90 days after receiving notice from the Department of Healthcare and Family Services (formerly Department of Public Aid) that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each association governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the association. Upon receiving from the Department of Healthcare and Family Services (formerly Department of Public Aid) a copy of a child support enforcement debit authorization form signed by an obligor, an association holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑6e) Sec. 1‑6e. Reverse mortgage; disclosure. At the time a reverse mortgage loan is made, the lender must provide to the mortgagor a separate document that informs the mortgagor that by obtaining the reverse mortgage the mortgagor's eligibility to obtain a tax deferral under the Senior Citizens Real Estate Tax Deferral Act may be adversely affected. The mortgagor must sign the disclosure document as part of the reverse mortgage transaction. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑6f) Sec. 1‑6f. Non‑English language transactions. An association may conduct transactions in a language other than English through an employee or agent acting as interpreter or through an interpreter provided by the customer. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑7)(from Ch. 17, par. 3301‑7) Sec. 1‑7. Power to borrow. (a) The board of directors may borrow money for the uses and purposes of the association and may pledge, mortgage or otherwise encumber any of its assets in connection therewith; but such borrowing shall not exceed 50% of the aggregate withdrawal value of the association's withdrawable capital without prior approval of the Commissioner. An association may, at any time through action of its board of directors, issue such capital notes, debentures or other capital obligations as are authorized under rules and regulations of the Commissioner. (b) A subsequent reduction of withdrawable capital does not affect in any way outstanding obligations for borrowed money. (c) A debt incurred by the association in violation of this Section is not invalid or illegal as to the rights of the lender. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑8)(from Ch. 17, par. 3301‑8) Sec. 1‑8. Incidental powers. An association also shall have any power conferred on a corporation by the "Business Corporation Act of 1983" and any power not prohibited by law which is reasonably incident to the accomplishment of the express powers conferred upon the association by this Act. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑8a)(from Ch. 17, par. 3301‑8a) Sec. 1‑8a. Subject to such reasonable regulations as the Commissioner may prescribe for the protection of depositors, in counties with a population more than 250,000 and less than 300,000, an association may take such action as is necessary for the provision of financial services to persons residing in any bona fide nursing home, senior citizens' retirement home or long term care facility and may provide financial services at such location on a limited basis. (Source: P.A. 86‑505.)
(205 ILCS 105/1‑9)(from Ch. 17, par. 3301‑9) Sec. 1‑9. Supplemental Powers. (a) An association to which this Act applies may accept or carry any demand, commercial or checking account, to the extent authorized by the laws and regulations of the United States for federally chartered associations. The Commissioner may issue regulations authorizing the establishment of negotiable order of withdrawal accounts. (b) An association may establish branches or offices at which savings or investments are regularly received or loans approved, as follows: (1) to the geographical extent branch powers and
offices are granted to state banks under the "Illinois Banking Act", as amended, or as it may be amended or supplemented;
(2) within the Geographic Area defined in Section
1A‑1 of this Act and subject to the provisions of Section 1A‑6 of this Act;
(3) to the same geographical extent to which a
savings and loan association organized under the laws of the United States and doing business in Illinois is permitted; and
(4) as the result of mergers, consolidations or bulk
sales; or, facilities in the case of relocations. The Commissioner may adopt regulations which provide for the establishment of facilities and branches to be defined by the Commissioner.
(c) Notwithstanding any other provision of this Act, an association that purchases or assumes all or any part of the assets or liabilities of an eligible insured bank may retain and maintain the main premises or branches purchased from the eligible insured bank as branches of the purchasing association, provided it assumes the deposit liabilities of the eligible insured bank maintained at such main banking premises or branches. (Source: P.A. 86‑952.)
(205 ILCS 105/1‑10)(from Ch. 17, par. 3301‑10) Sec. 1‑10. Definitions. The words and phrases defined in the Sections following this Section and preceding Section 1‑11 have the meanings ascribed to them in those Sections, except to the extent that any such word or phrase is specifically qualified by its context. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑10.01)(from Ch. 17, par. 3301‑10.01) Sec. 1‑10.01. "Board": the Board of Savings Institutions, as described in Sections 7‑20 through 7‑26 of this Act. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑10.02)(from Ch. 17, par. 3301‑10.02) Sec. 1‑10.02. "Aggregate withdrawal value": the sum of all payments made on all withdrawable capital accounts of the association and all dividends, and bonuses credited or allocated to such accounts, and all dividends credited to "divided profits" for subsequent crediting to accounts upon maturity; less all withdrawals, retirements and other proper deductions from accounts and all unpaid charges thereon. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.03)(from Ch. 17, par. 3301‑10.03) Sec. 1‑10.03. "Association": every depository institution to which this Act applies, as defined in Section 1‑3. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑10.04)(from Ch. 17, par. 3301‑10.04) Sec. 1‑10.04. "Commissioner": the Commissioner of Banks and Real Estate or some person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑10.05)(from Ch. 17, par. 3301‑10.05) Sec. 1‑10.05. "Community": a city, village, or incorporated town in this State. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.06)(from Ch. 17, par. 3301‑10.06) Sec. 1‑10.06. "Continuing association": the association which continues to exist after a merger of associations has been effected. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.07)(from Ch. 17, par. 3301‑10.07) Sec. 1‑10.07. "Federal association": a savings and loan association or savings bank incorporated under the Home Owner's Loan Act of 1933, as now or hereafter amended, whose principal business office is loca
(205 ILCS 105/1‑1)(from Ch. 17, par. 3301‑1) Sec. 1‑1. Short title. This Act shall be known and may be cited as the "Illinois Savings and Loan Act of 1985". (Source: P.A. 84‑543.)
(205 ILCS 105/1‑1.5) Sec. 1‑1.5. References to Office or Commissioner of Banks and Real Estate. On and after the effective date of this amendatory Act of the 94th General Assembly, unless the context requires otherwise: (1) References in this Act to the Office of Banks and
Real Estate or "the Office" mean the Department of Financial and Professional Regulation.
(2) References in this Act to the Commissioner of
Banks and Real Estate or "the Commissioner" mean the Secretary of Financial and Professional Regulation.
(Source: P.A. 94‑833, eff. 6‑6‑06.)
(205 ILCS 105/1‑2)(from Ch. 17, par. 3301‑2) Sec. 1‑2. Policy of Act. The General Assembly has found and declares: (a) That the savings and loan business has so expanded in recent years and has become so integrated with the financial institutions of this State and is so important as a method of promoting home ownership and thrift that such business is affected with a public interest and should continue to be supervised as a business affecting the economic security and general welfare of the people of this State; (b) That such business should be organized and conducted in accordance with the authority provided in this Act; (c) That the public interest requires the promotion and fostering of the savings and loan business and the assurance of its financial stability; and (d) That in order to further the policies herein expressed, the provisions of this Act shall be liberally construed to promote and foster the savings and loan business. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑3)(from Ch. 17, par. 3301‑3) Sec. 1‑3. Scope of Act; application to federal associations. (a) This Act applies to all existing savings and loan associations, and other similar associations, including savings banks, by whatever name called, organized under this or any prior Act, and to the business conducted in Illinois by all foreign associations or savings banks duly authorized to do business in this State. (b) Unless Federal laws or regulations provide otherwise, Federal Associations and their members shall possess all of the rights, powers, privileges, immunities and exemptions granted by this Act to associations operating hereunder and to the members thereof, or by any other Act or Section thereof, to such associations or members, whether or not specifically mentioned in the Section or Sections granting such rights, powers, privileges, immunities and exemptions. (Source: P.A. 86‑137; 86‑210; 86‑952.)
(205 ILCS 105/1‑4)(from Ch. 17, par. 3301‑4) Sec. 1‑4. Effect on existing associations. With respect to any existing association: (a) The by‑laws, shares and contracts of such association shall continue in full force and effect, but the association shall be operated in accordance with the provisions of this Act; (b) If the association accepts the benefits of, or avails itself of the powers given by, this Act, the association shall be subject to the provisions and requirements of this Act in every particular, as if the association had been organized under this Act; and (c) That portion of the statement of incorporation, charter or certificate of complete organization of an existing association which corresponds to the contents of articles of incorporation, as defined in Section 2‑8 of this Act, shall be deemed to be the articles of incorporation of such association; and that portion of its statement of incorporation, charter and certificate of complete organization corresponding to the contents of by‑laws, as defined in Section 2‑9 of this Act, shall be deemed to be the by‑laws of such existing association. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑5)(from Ch. 17, par. 3301‑5) Sec. 1‑5. Prohibitions. (a) No person or group of persons, except an association duly incorporated under this Act or a prior Act or a Federal association or a foreign association duly authorized to do business in this State, shall transact business within the scope of this Act or do any business under any name or title or circulate or use any advertising or make any representation or give any information to any person which indicates or reasonably implies the operation of a business which is within the scope of this Act. (b) A circuit court may issue an injunction to restrain any person from violating or continuing to violate subsection (a) of this Section. (b‑5) Except as otherwise expressly permitted by law or with the written consent of the association, no person or group of persons may use the name of or a name similar to the name of an existing association when marketing or soliciting business from customers or prospective customers if the name or similar name is used in a manner that would cause a reasonable person to believe that the marketing material or solicitation originated from or is endorsed by the existing association or that the existing association is in any other way responsible for the marketing material or solicitation. (c) Any person or group of persons who violates subsection (a) of this Section commits a business offense and shall be fined not to exceed $5,000. (d) In addition to any other available remedies, an existing association may report an alleged violation of any provision of this Section to the Secretary. If the Secretary of Financial and Professional Regulation finds that any person or group of persons is in violation of any provision of this Section, then the Secretary may direct that person or group of persons to cease and desist from that violation. If the Secretary issues a cease and desist order against any person or group of persons for violation of subsection (b‑5), then the order must require that person or group of persons to cease and desist from using the offending marketing material or solicitation in Illinois. If the person or group of persons against whom the Secretary issued the cease and desist order persists in the violation, then the Secretary may impose a civil penalty of up to $10,000 for each violation. Each day that a person or group of persons is in violation of this Section constitutes a separate violation of this Section and each instance in which marketing material or a solicitation is sent in violation of subsection (b‑5) constitutes a separate violation of this Section. (e) The Department of Financial and Professional Regulation may adopt rules to administer the provisions of this Section. (Source: P.A. 94‑833, eff. 6‑6‑06.)
(205 ILCS 105/1‑6)(from Ch. 17, par. 3301‑6) Sec. 1‑6. General corporate powers. An association operating under this Act shall be a body corporate and politic and shall have all of the powers conferred by this Act including, but not limited to, the following powers: (a) To sue and be sued, complain and defend in its corporate name, and to have a common seal, which it may alter or renew at pleasure; (b) To obtain and maintain insurance of the association's withdrawable capital by an insurance corporation as defined in this Act; (c) Notwithstanding anything to the contrary contained in this Act, to become a member of the Federal Home Loan Bank, and to have all of the powers granted to a savings or thrift institution organized under the laws of the United States and which is located and doing business in the State of Illinois, subject to regulations of the Commissioner; (d) To act as a fiscal agent for the United States, the State of Illinois or any department, branch, arm or agency of the State or any unit of local government or school district in the State when duly designated for that purpose, and as agent to perform the reasonable functions as may be required of it; (e) To become a member of or deal with any corporation or agency of the United States or the State of Illinois, to the extent that the agency assists in furthering or facilitating the association's purposes or powers and to that end to purchase stock or securities thereof or deposit money therewith, and to comply with any other conditions of membership or credit; (f) To make donations in reasonable amounts for the public welfare or for charitable, scientific, religious or educational purposes; (g) To adopt and operate reasonable insurance, bonus, profit sharing, and retirement plans for officers and employees; likewise, directors who are not officers, including, but not limited to, advisory, honorary, and emeritus directors, may participate in those plans; (h) To reject any application for membership, to retire withdrawable capital by enforced retirement as provided in this Act and the by‑laws, and to limit the issuance of or payments on withdrawable capital, subject, however, to contractual obligations; (i) To purchase stock in service corporations and to invest in any form of indebtedness of any service corporation as defined in this Act, subject to regulations of the Commissioner; (j) To purchase stock of a corporation whose principal purpose is to operate a safe deposit company or escrow service company; (k) To act as Trustee or Custodian under the Federal Self‑Employed Individuals' Tax Retirement Act of 1962 or any amendments thereto or any other retirement account and invest any funds held in such capacity in a savings account of the institution; (l) (Blank); (m) To establish, maintain and operate terminals as authorized by the Electronic Fund Transfer Act and by Section 5 of the Illinois Banking Act. The establishment, maintenance, operation and location of such terminals shall be subject to the approval of the Commissioner; (n) Subject to the approval and regulations of the Commissioner, an association may purchase or assume all or any part of the assets or liabilities of an eligible insured bank; (o) To purchase from a bank, as defined in Section 2 of the Illinois Banking Act, an insubstantial portion of the total deposits of an insured bank. For the purpose of this subparagraph, "insubstantial portion of the total deposits" shall have the same meaning as provided in Section 5(d)(2)(D) of the Federal Deposit Insurance Act; (p) To effect an acquisition of or conversion to another financial institution pursuant to Section 205 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989; (q) To pledge its assets: (1) to enable it to act as an agent for the sale of
obligations of the United States;
(2) to secure deposits; (3) to secure deposits of money whenever required by
the National Bankruptcy Act;
(4) (Blank); and (5) to secure trust funds commingled with the
institution's funds, whether deposited by the institution or an affiliate of the institution, as required under Section 2‑8 of the Corporate Fiduciary Act;
(r) To provide temporary periodic service to persons residing in a bona fide nursing home, senior citizens' retirement home, or long‑term care facility; (s) To purchase for its own account shares of stock of a bankers' bank, described in Section 13(b)(1) of the Illinois Banking Act, on the same terms and conditions as a bank may purchase such shares. In no event shall the total amount of such stock held by an association in such bankers' bank exceed 10% of its capital and surplus (including undivided profits) and in no event shall an association acquire more than 5% of any class of voting securities of such bankers' bank; (t) To effect a conversion to a State bank pursuant to the provisions of the Illinois Banking Act; (u) Subject to Article XLIV of the Illinois Insurance Code, to act as the agent for any fire, life, or other insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; provided, however, that no such association shall in any case assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided further, that the association shall not guarantee the truth of any statement made by an assured in filing his application for insurance; and (v) To exercise all powers necessary to qualify as a trustee or custodian under federal or State law, however, the authority to accept and execute trusts is subject to the Corporate Fiduciary Act and to the supervision of those activities by the Commissioner. (Source: P.A. 91‑97, eff. 7‑9‑99; 92‑483, eff. 8‑23‑01.)
(205 ILCS 105/1‑6a)(from Ch. 17, par. 3301‑6a) Sec. 1‑6a. Reverse mortgage loans. Notwithstanding any other provision of this Act, an association may engage in making "reverse mortgage" loans to persons for the purpose of making home improvements or repairs, paying insurance premiums, or paying real estate taxes on the homestead properties of those persons. For purposes of this Section, a "reverse mortgage" loan shall be a loan extended on the basis of existing equity in homestead property. An association, in making a "reverse mortgage" loan, may add deferred interest to principal or otherwise provide for the charging of interest or premium on the deferred interest. The loans shall be repaid upon sale of the property or upon the death of the owner or, if the property is in joint tenancy, upon the death of the last surviving joint tenant who had an interest in the property at the time the loan was initiated. "Homestead" property, for purposes of this Section, means the domicile and contiguous real estate owned and occupied by the mortgagor. The Commissioner of Banks and Real Estate shall prescribe rules governing this Section and Section 5a of the Illinois Banking Act. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑6b)(from Ch. 17, par. 3301‑6b) Sec. 1‑6b. Notwithstanding any other provision of this Act, an association may engage in making revolving credit loans secured by mortgages or deeds of trust on real property or by security assignments of beneficial interests in land trusts. For purposes of this Section, "revolving credit" has the meaning defined in Section 4.1 of "An Act in relation to the rate of interest and other charges in connection with sales on credit, and the lending of money", approved May 24, 1879, as amended. Any mortgage or deed of trust given to secure a revolving credit loan may, and when so expressed therein shall, secure not only the existing indebtedness but also such future advances, whether such advances are obligatory or to be made at the option of the lender, or otherwise, as are made within twenty years from the date thereof, to the same extent as if such future advances were made on the date of the execution of such mortgage or deed of trust, although there may be no advance made at the time of execution of such mortgage or other instrument, and although there may be no indebtedness outstanding at the time any advance is made. The lien of such mortgage or deed of trust, as to third persons without actual notice thereof, shall be valid as to all such indebtedness and future advances from the time said mortgage or deed of trust is filed for record in the office of the Recorder of Deeds or the Registrar of Titles of the county where the real property described therein is located. The total amount of indebtedness that may be so secured may increase or decrease from time to time, but the total unpaid balance so secured at any one time shall not exceed a maximum principal amount which must be specified in such mortgage or deed of trust, plus interest thereon, and any disbursements made for the payment of taxes, special assessments, or insurance on said real property, with interest on such disbursements. Any such mortgage or deed of trust shall be valid and have priority over all subsequent liens and encumbrances, including statutory liens, except taxes and assessments levied on said real property. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑6c)(from Ch. 17, par. 3301‑6c) Sec. 1‑6c. Non‑recourse reverse mortgage loans. Any association organized under or subject to this Act may make non‑recourse reverse mortgage loans as provided in Section 6.1 of the Illinois Banking Act. (Source: P.A. 87‑488.)
(205 ILCS 105/1‑6d) Sec. 1‑6d. Enforcement of child support. (a) Any association governed by this Act shall encumber or surrender accounts or assets held by the association on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) or its successor agency pursuant to Section 10‑25.5 of the Illinois Public Aid Code, or upon notice of interstate lien or levy from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act. (b) Within 90 days after receiving notice from the Department of Healthcare and Family Services (formerly Department of Public Aid) that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each association governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the association. Upon receiving from the Department of Healthcare and Family Services (formerly Department of Public Aid) a copy of a child support enforcement debit authorization form signed by an obligor, an association holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑6e) Sec. 1‑6e. Reverse mortgage; disclosure. At the time a reverse mortgage loan is made, the lender must provide to the mortgagor a separate document that informs the mortgagor that by obtaining the reverse mortgage the mortgagor's eligibility to obtain a tax deferral under the Senior Citizens Real Estate Tax Deferral Act may be adversely affected. The mortgagor must sign the disclosure document as part of the reverse mortgage transaction. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑6f) Sec. 1‑6f. Non‑English language transactions. An association may conduct transactions in a language other than English through an employee or agent acting as interpreter or through an interpreter provided by the customer. (Source: P.A. 95‑331, eff. 8‑21‑07.)
(205 ILCS 105/1‑7)(from Ch. 17, par. 3301‑7) Sec. 1‑7. Power to borrow. (a) The board of directors may borrow money for the uses and purposes of the association and may pledge, mortgage or otherwise encumber any of its assets in connection therewith; but such borrowing shall not exceed 50% of the aggregate withdrawal value of the association's withdrawable capital without prior approval of the Commissioner. An association may, at any time through action of its board of directors, issue such capital notes, debentures or other capital obligations as are authorized under rules and regulations of the Commissioner. (b) A subsequent reduction of withdrawable capital does not affect in any way outstanding obligations for borrowed money. (c) A debt incurred by the association in violation of this Section is not invalid or illegal as to the rights of the lender. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑8)(from Ch. 17, par. 3301‑8) Sec. 1‑8. Incidental powers. An association also shall have any power conferred on a corporation by the "Business Corporation Act of 1983" and any power not prohibited by law which is reasonably incident to the accomplishment of the express powers conferred upon the association by this Act. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑8a)(from Ch. 17, par. 3301‑8a) Sec. 1‑8a. Subject to such reasonable regulations as the Commissioner may prescribe for the protection of depositors, in counties with a population more than 250,000 and less than 300,000, an association may take such action as is necessary for the provision of financial services to persons residing in any bona fide nursing home, senior citizens' retirement home or long term care facility and may provide financial services at such location on a limited basis. (Source: P.A. 86‑505.)
(205 ILCS 105/1‑9)(from Ch. 17, par. 3301‑9) Sec. 1‑9. Supplemental Powers. (a) An association to which this Act applies may accept or carry any demand, commercial or checking account, to the extent authorized by the laws and regulations of the United States for federally chartered associations. The Commissioner may issue regulations authorizing the establishment of negotiable order of withdrawal accounts. (b) An association may establish branches or offices at which savings or investments are regularly received or loans approved, as follows: (1) to the geographical extent branch powers and
offices are granted to state banks under the "Illinois Banking Act", as amended, or as it may be amended or supplemented;
(2) within the Geographic Area defined in Section
1A‑1 of this Act and subject to the provisions of Section 1A‑6 of this Act;
(3) to the same geographical extent to which a
savings and loan association organized under the laws of the United States and doing business in Illinois is permitted; and
(4) as the result of mergers, consolidations or bulk
sales; or, facilities in the case of relocations. The Commissioner may adopt regulations which provide for the establishment of facilities and branches to be defined by the Commissioner.
(c) Notwithstanding any other provision of this Act, an association that purchases or assumes all or any part of the assets or liabilities of an eligible insured bank may retain and maintain the main premises or branches purchased from the eligible insured bank as branches of the purchasing association, provided it assumes the deposit liabilities of the eligible insured bank maintained at such main banking premises or branches. (Source: P.A. 86‑952.)
(205 ILCS 105/1‑10)(from Ch. 17, par. 3301‑10) Sec. 1‑10. Definitions. The words and phrases defined in the Sections following this Section and preceding Section 1‑11 have the meanings ascribed to them in those Sections, except to the extent that any such word or phrase is specifically qualified by its context. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑10.01)(from Ch. 17, par. 3301‑10.01) Sec. 1‑10.01. "Board": the Board of Savings Institutions, as described in Sections 7‑20 through 7‑26 of this Act. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑10.02)(from Ch. 17, par. 3301‑10.02) Sec. 1‑10.02. "Aggregate withdrawal value": the sum of all payments made on all withdrawable capital accounts of the association and all dividends, and bonuses credited or allocated to such accounts, and all dividends credited to "divided profits" for subsequent crediting to accounts upon maturity; less all withdrawals, retirements and other proper deductions from accounts and all unpaid charges thereon. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.03)(from Ch. 17, par. 3301‑10.03) Sec. 1‑10.03. "Association": every depository institution to which this Act applies, as defined in Section 1‑3. (Source: P.A. 86‑137.)
(205 ILCS 105/1‑10.04)(from Ch. 17, par. 3301‑10.04) Sec. 1‑10.04. "Commissioner": the Commissioner of Banks and Real Estate or some person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead. (Source: P.A. 89‑508, eff. 7‑3‑96.)
(205 ILCS 105/1‑10.05)(from Ch. 17, par. 3301‑10.05) Sec. 1‑10.05. "Community": a city, village, or incorporated town in this State. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.06)(from Ch. 17, par. 3301‑10.06) Sec. 1‑10.06. "Continuing association": the association which continues to exist after a merger of associations has been effected. (Source: P.A. 84‑543.)
(205 ILCS 105/1‑10.07)(from Ch. 17, par. 3301‑10.07) Sec. 1‑10.07. "Federal association": a savings and loan association or savings bank incorporated under the Home Owner's Loan Act of 1933, as now or hereafter amended, whose principal business office is loca
