Banks and Trust Companies

12131-12134

"Americans with Disabilities Act Grievance Procedure"

Corporation that only provides equipment financing to other corporations is not doing a general banking business.

Corporation that only provides equipment financing to other corporations is not doing a general banking business.

95-11

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.

Use of the terms "bancorp, bancorporation or bancshares" does not violate prohibition against use of the terms "bank, banker or banking."

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.

12 USC 1861 et seq.

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.

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.

A check printer may use the next consecutive check number indicated by the account holder's current check supply when filling 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.

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.

A check printer may use the next consecutive check number indicated by the account holder's current check supply when filling 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.

01-06

A state chartered bank may provide consumer deposit account holders with the required annual disclosure by electronic means. In addition, a state chartered bank or trust company may provide customers periodic account statements by electronic means.

Trust department of state bank and its officers may act under a power of attorney that encompasses property and financial matters.

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.

92-14

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 78s.

Acting as agent for sale of title insurance is permitted for Illinois state chartered trust company.

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.

Not-for-profit corporation acting as trustee of its own deferred compensation plan is not "engaging in the trust business."

Corporate fiduciary may engage in securities lending for personal trust accounts if appropriate policies and safeguards are implemented, unless prohibited by the trust instrument.

95-11

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.

"Corporate Fiduciary Applications and Notices"

"Application to Establish a Subsidiary of an Illinois Corporate Fiduciary"

Trust department of state bank and its officers may act under a power of attorney that encompasses property and financial matters.

Trust department of state bank and its officers may act under a power of attorney that encompasses property and financial matters.

94-15

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.

94-17

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.

95-12

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.

99-04

Not-for-profit corporation acting as trustee of its own deferred compensation plan is not "engaging in the trust business."

"Application to Amend Certificate of Authority Exercise Fiduciary Powers for State Banks, State Savings Banks and Foreign Banking Offices"

National Bank with principal office outside of Illinois may establish trust representative office in Illinois to perform limited representative functions.

94-16

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.

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.

93-01

National bank with principal office outside of Illinois may establish trust representative office in Illinois to perform limited representative functions.

94-07

Out of state banks are not permitted to establish offices for the conduct of business as corporate fiduciaries in Illinois.

94-16

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.

"Application to Amend a Certificate of Authority to Act as a Foreign Corporate Fiduciary"

"Application for a License to Operate a Foreign Bank Representative Office"

National bank with principal office outside of Illinois may establish trust representative office in Illinois to perform limited representative functions.

94-16

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.

"Application to Amend a Certificate of Authority to Act as a Foreign Corporate Fiduciary"

"Application for a License to Operate a Foreign Bank Representative Office"

"Hearings Before the Office of Banks and Real Estate"

38 IAC 399

"Standards for Operation and Conduct of Affairs of Corporate Fiduciaries"

"Hearings for Removal of Directors, Officers, Employees or Agents of a State Bank"

"Corporate Fiduciary Receivership Account"

01-01

Scope and effect of Section 5-10.5 (4) of the Corporate Fiduciary Act as compared to the federal privacy regulations enacted pursuant to the Gramm-Leach-Bliley Act.

04-02

Illinois financial privacy laws are not inconsistent with the privacy provisions of Gramm-Leach- Bliley and are not pre-empted.

"Reimbursement to Banks and Corporate Fiduciaries for Financial Records"

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.

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.

State bank may invest in stock in Delaware corporation that operates an electronic funds transfer network.

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.

06-01

State-chartered banks may comply with the Illinois Electronic Fund Transfer (EFT) Act surcharge notice requirements by fulfilling the notice requirements imposed under the Federal Electronic Fund Transfer Act.

06-01

State-chartered banks may comply with the Illinois Electronic Fund Transfer (EFT) Act surcharge notice requirements by fulfilling the notice requirements imposed under the Federal Electronic Fund Transfer Act.

"Hearings Before the Office of Banks and Real Estate"

38 IAC 315

"Electronic Fund Transfers"

ATM's which only dispense cash may be established in Illinois at any location and by any establisher.

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.

10-03

Branding agreements are permissible for state-chartered banks for the purpose of advertising on non-bank owned ATMs.

National bank located outside of Illinois may offer unsecured lines of credit at its licensed representative office.

91-12

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.

91-21

Illinois state bank may establish an in-state loan production office without prior approval from Commissioner.

National bank with principal office outside of Illinois may establish trust representative office in Illinois to perform limited representative functions.

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.

93-01

National bank with principal office outside of Illinois may establish trust representative office in Illinois to perform limited representative functions.

Foreign bank may establish a non-bank subsidiary to hold title to and administer property obtained in collection of a debt.

94-15

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.

94-19

Bank may trade energy derivatives for its customers, provided it has the management and controls necessary to ensure safe and sound banking practices.

95-07

Risk participations in a loan between branches of the same foreign bank do not constitute an unauthorized guarantee of another bank's loan.

95-15

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.

"Hearings Before the Office of Banks and Real Estate"

"Freedom of Information Act"

11-01

Employees of Illinois chartered banks and thrifts are not subject to licensure under the S.A.F.E. Act, but they must register with the NMLS

10-04

(rescinded and superceded by 11-01)

Employees of Illinois chartered banks and thrifts are not subject to licensure under the S.A.F.E. Act, but they must register with the NMLS

"Public Information, Rulemaking and Organization"

Voting trust created by family members that control a state bank is a bank holding "company."

Voting trust created by family members that control a state bank is a bank holding "company."

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.

93-17

Proposed bank holding company may not be an incorporator of an interim state bank.

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.

04-01

Out of State Banks may de novo branch into Illinois, provided the home state statute grants reciprocity to Illinois Banks seeking to establish a de novo out of state bank.

State bank's home equity line of credit is a revolving credit plan pursuant to the Illinois 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.

"Bank Lease Agreements with Insurance Registered Firms and Insurers"

State banks may sell title insurance, subject to licensure by the Illinois Department of Financial Institutions.

Illinois Department of Employment Security may visit state bank despite exclusive visitation provision of Section 43 solely for purpose of verifying unemployment tax records.

94-05

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.

94-21

State banks may contract for and receive interest and charges at any agreed upon rate.

97-04

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.

98-01

Loans secured by a real estate mortgage are governed by Section 4(1)(1), and not Section 4a(a)(i), of the Interest Act.

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.

92-14

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 78s.

94-05

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.

94-21

State banks may contract for and receive interest and charges at any agreed upon rate.

95-08

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

98-01

Loans secured by a real estate mortgage are governed by Section 4(1)(1), and not Section 4a(a)(i), of the Interest Act.

State bank's home equity line of credit is a revolving credit plan pursuant to the Illinois 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.

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.

98-01

Loans secured by a real estate mortgage are governed by Section 4(1)(1), and not Section 4a(a)(i), of the Interest Act.

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.

State bank may make minority equity investment in limited liability company, corporation or partnership pursuant to conditions outlined.

"Blacklist Discrimination"

24-01

Customer disclosures on preprinted and computer-based pawn tickets

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".

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.

06-03

Pawnbroker may conduct limited courier services incidental to licensed activity.

16-02

State Chartered Pawnbrokers can use a mobile application for renewals.

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.

Sec. 21-2.06

02-01

Illinois corporate fiduciary is not permitted to invest a ward's assets in certificates of deposit that earn interest contingent on the performance of an established equity market because such interest is not FDIC-insured until maturity.

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.

20-04

Legal Lending Limits – Exemption for SBA Paycheck Protection Program Loans

20-01

Authority to treat debt secured by real estate as loans

04-01

Out of State Banks may de novo branch into Illinois, provided the home state statute grants reciprocity to Illinois Banks seeking to establish a de novo out of state bank.

Sec. 1008(a)(13)(B)

98-12

State banks may pledge assets to secure private deposits.

Sec. 1008(a)(18)

98-11

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.

04-02
Illinois financial privacy laws are not inconsistent with the privacy provisions of Gramm-Leach- Bliley and are not pre-empted.

Sec. 6003(7)

98-10
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.

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.

00-04

An Illinois state bank, state savings bank or state savings and loan association may exchange stock that it holds in an EFT network for stock in the corporation into which the network merged which entity has engaged in the same activities as the EFT network and which will be engaged in the same permissible activities after the merger.

04-02

Illinois financial privacy laws are not inconsistent with the privacy provisions of Gramm-Leach- Bliley and are not pre-empted.

Sec. 1 et seq.

Acting as agent for sale of title insurance is permitted for Illinois state chartered trust company.

98-09

State banks may sell title insurance, subject to licensure by the Illinois Department of Financial Institutions.

Acting as agent for sale of title insurance is permitted for Illinois state chartered trust company.

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.

Sec. 5

02-01

Illinois corporate fiduciary may invest trust assets in certificates of deposit with returns based on the performance of an established equity market index.

State bank may not invest in certificates in closed-end investment company that are not "readily marketable."

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.

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.

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.

93-21

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.

Loan to individual is not aggregated with loan to limited partnership of which individual is a limited partner.