Accomplishments
CBAI Legislative Accomplishments 1990 - 2009 Resolved the call report fee/fund sweep lawsuit against the Blagojevich administration.Provided state-chartered banks with substantial call report fee refunds for overpayment of call report fees dating from December 2003 to December 2008.Going forward, rolled back the 27.5 percent call report fee increase of December 2003 by 14 percent, with prohibition of any increase in fees until 2011, and codified call report fees so an increase will not be allowed by rule, but must be accomplished through an act of the General Assembly.Prevented ILCs from operating retail banks on commercial premises.FHLB stock ownership qualified as an exception to a state-chartered financial institution’s investment limits (20% of total capital).Permit interstate de novo branching on a reciprocal basis.Enabled financial institutions to hold deposits of a public agency and participate in programs such as CDARS (i.e. Certificate of Deposit Account Registry Service), provided that deposited funds are initiated at an Illinois bank and that said funds are federally-insured. Increased lending limits for state-chartered financial institutions to 25%.Provided bank directors & officers with a liability protection for reliance on third party advice or counsel.Created penalties for misleading marketing solicitations that misuse the name of a bank.Expanded criminal penalties applicable to check fraud to other financial institutions.Expanded payable on death accounts to include joint accounts and allow the designation of an additional beneficiary, in the event both account holders were to die.Removed annual independent audit requirement to bank trust departments. Expanded the rights of lien holders and mortgagees in cases of delinquent property taxes.Enacted the Data Processing Services for Financial Institutions Act to require primary & secondary data processors to share info; enabling Illinois banks to purchase products from a secondary vendor without interference.Authorized public treasurers to accept FHLB letters of credit as collateral to secure public funds in excess of FDIC insurance limitation.Authorized Illinois banks to change their main address, with the OBRE Commissioners approval, without a shareholder’s meeting or charter amendment.Eliminated the need to amend state bank charters to establish a limited liability to the bank or its shareholder(s) for breach of fiduciary duty by a director.Enhanced IFDA State Guarantees to become “full faith and credit” guarantees, allowing all Illinois banks (state and national) to utilize exceptions to lending limit statutes. Expanded the rights of lien holders and mortgagees in cases of delinquent property taxes.Authorized parity between state-chartered banks and Federally-chartered savings banks and thrifts through enactment of the so-called “Wild Card” provision.Authorized lenders to perfect a security interest in a CD by possession, & in an uncertified CD in the same manner as a deposit account. This enables the use of CD’s as collateral to prevent customers from withdrawing CD’s to early.Clarified that a fiduciary is permitted to deposit beneficiary proceeds into a personal account (according to specific criteria) without committing a breach of obligation.Simplified and re-organized Ag lending by designating the Secretary of State as the exclusive, central filing officer for security interests in farm collateral, etc.Created a liability protection for lenders who become victims of a fraudulent Power of Attorney.Authorized reverse stock splits for bank holding companies, making it easier to take advantage of Sub-S tax benefits.Reduced the number of times a Call Report must be published (now only annually).Repealed the requirement that a notice of a special stockholders’ meeting to vote on either a merger or a charter amendment be published.Provided direction and clarity as to a banks role when in receipt of an adverse claim to a deposit account.Authorized state-chartered thrifts, savings banks and their holding companies to acquire stock of a bankers bank (or banker’s bank holding company).Removed the requirement to include unnecessary real estate descriptions in crop financing statements.Defined lender liability to a third party not in privity of contract with the lender under a credit agreement to clarify confusion around “interference torts”.*Enacted 5 year de novo rule following federal enactment of Reigle-Neal Act.Created an exemption for qualified holders of security interests from liability under the state Leaking Underground Storage Tank Program.Provided a director & officer liability protection from shareholders of an institution for losses attributable to loans, investments, etc.Extended the “hostile takeover defense” to include banks not within a holding company.Effectively raised the 20% lending limit by reformulating calculations of unimpaired capital and surplus.Allowed for the perfection of a security interest in a deposit account to occur within the scope of Article 9 of the UCC, rather than become subject to the whims of common law rights of set-off.Enacted the Check Numbering Act to establish criteria for institutions to meet to be able to issue checks starting with a number greater than 101. Expanded liability protection for financial institutions under the Illinois EPA Act by changing the definition of owner/operator to exclude financial institutions.Created the Financial Institution Activity Reporting Act to require non-resident institutions to report any activities in Illinois to our Commissioner at the OBRE.Twice increased the fees banks may charge for late payments of retail installment accounts.Enabled any travel agencies owned or operated by a bank prior to 7/1/91 to continue to do business as such.Authorized banks to offer FDIC insurance in excess of $100,000 through CDARS program.Amended unclaimed property law related to account activity to provide that activity in one customer’s account constitutes activity in all of the customer’s accounts.If you have any questions, please contact Senior Vice President of Governmental Relations, Kraig Lounsberry or Vice President of Governmental Relations, Megan Stieren or call CBAI Headquarters at 217-529-2265. |
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