Community Bankers Association of Illinois

ILLINOIS LEGISLATION EFFECTIVE IN 2011

Public Act 96-901 (House Bill 3762): Amends the Illinois Code of Civil Procedure by adding a section to the Illinois Mortgage Foreclosure Law, providing that a mortgagor who was deployed to a combat or “combat supporting” position on active military duty and was serving overseas within the previous 12 months, such mortgagor is entitled to a 90-days stay of foreclosure proceedings upon filing a request for the stay with the court; defines “active military duty” as including service as a member of the U.S. Armed Forces, the Illinois National Guard, or any reserve component of the U.S. Armed Forces. [Effective Date: January 1, 2011]

Public Act 96-1163 (Senate Bill 2581): Amends the Illinois Banking Act for the purposes of reactivating and reconstituting the State Banking Board of Illinois (“the Board”), which, despite the Banking Act’s mandate for at least one annual meeting, has not met since 2004. Reduces the number of the Board’s members from 17 to 12, but preserves asset category diversification as follows: 2 members from state banks having total assets of less than $75 million; 2 members from state banks between $75 million and $150 million in assets; 2 members from state banks between $150 million and $500 million in assets; 2 members from state banks between $500 million and $2 billion in assets; and one member from a state bank having more than $2 billion in assets, in addition to the Director of the Illinois Department of Financial & Professional Regulation’s (“IDFPR’s”) Division of Banking and two public at-large members (who cannot be an officer, director, or owner of more than 5% of the shares of any bank). Removes rulemaking and some other powers from the Board, including the Board’s previous function as an administrative hearing panel in cases where a banker had been the object of an Order of Removal issued by IDFPR, but maintains the Board’s function as an advisory board “(t)o review, consider, and make recommendations to the Director of Banking upon any banking matters” and adds to the Board’s responsibilities the administration of the Illinois Bank Examiners’ Education Foundation. Also makes technical, revisory changes to the Illinois Bank Holding Company Act and the Corporate Fiduciary Act regarding references to the office formerly known as “the Commissioner.” [Effective Date: January 1, 2011]

Public Act 96-1216 (Senate Bill 3781): Amends the Residential Mortgage License Act of 1987 to clarify that an individual who is not employed by an exempt financial institution and acting on behalf of an exempt financial institution remains subject to the Act’s mortgage loan originator licensing requirements. [Effective Date: January 1, 2011]

Public Act 96-1426 (House Bill 4658): Creates the Employee Credit Privacy Act to prohibit employers from using credit history “to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment. However, for purposes of this law, banks, their holding companies and their subsidiaries are among the “employers” to whom the new law is not applicable. [Effective Date: January 1, 2011]

Public Act 96-1195 (House Bill 6477): Makes numerous revisions and additions to The Illinois Power of Attorney Act to specify that an agent must act with good faith “using due care, competence and diligence” when exercising the agent’s power on behalf of the principal. Clarifies that execution of a power of attorney does not revoke a prior-executed power of attorney unless the subsequent power of attorney expressly revokes prior power(s) of attorney. Requires an agent to keep a record of all receipts, disbursements and significant actions taken and to provide a copy of such record to the principal, guardian or other fiduciary acting on behalf of the principal, and to the personal representative or successors in interest of the principal’s estate following the principal’s death, and to the appropriate State agency or official; forbids an agent from being compensated from the principal’s estate if a court finds that the agent did not act for the benefit of the principal or otherwise caused or threatened harm to the principal’s person or property. Adds a new section authorizing a principal to name one or more successor agents who would act in the event that the prior agent resigns, dies or becomes incapacitated. Also adds a section prohibiting co-agents and addressing how powers would be exercised in the event that co-agents were appointed contrary to the prohibition. [Effective Date: July 1, 2011]

For further information or to obtain a copy of any of these new laws, please contact CBAI General Counsel Jerry Cavanaugh by phone (1/800-736-2224 from within Illinois) or by email at jerryc@cbai.com.
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