§ 51 — Capital impairment, etc.; correction

Illinois § 51

• Jurisdiction: Illinois
• Topic: REGULATION
• Ch. 205: FINANCIAL REGULATION
• Act 205 ILCS 5/: Illinois Banking Act.

Text

(a) If the Commissioner with respect to a State bank shall find: (1) its capital is impaired or it is otherwise in an unsound condition; or (2) its business is being conducted in an unlawful, including, without limitation, in violation of any provisions of State or federal law, or in a fraudulent or unsafe manner; or (3) it is unable to continue operations; or (4) its examination has been obstructed or impeded; or (5) that losses have occurred or are likely to occur that have or will deplete all or substantially all of the State bank's capital; the Commissioner may give notice to the board of directors of his or her finding or findings. If the situation so found by the Commissioner shall not be corrected to his satisfaction within a period of at least 60 but no more than 180 days after receipt of such notice, which period shall be determined by the Commissioner and set forth in the notice, the Commissioner at the termination of said period may take possession and control of the bank and its assets as in this Act provided for the purpose of examination, reorganization or liquidation through receivership. (b) If the Commissioner has given notice to the board of directors of his findings, as provided in subsection (a), and the time period prescribed in that notice has expired, the Commissioner may extend the time period prescribed in that notice for such period as the Commissioner deems appropriate.

Legislative History

(Source: P.A. 96-1365, eff. 7-28-10.)