Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 1075 - SAVINGS BANK ACT
Subpart F - SERVICE CORPORATION AND OPERATING SUBSIDIARIES
Section 1075.620 - Investment Limitations

Universal Citation: 38 IL Admin Code ยง 1075.620

Current through Register Vol. 48, No. 28, July 12, 2024

a) A savings bank may make investments in capital stock of service corporations that are 90% or more owned by one or more savings banks in an amount that shall not exceed 10% of the savings bank's total assets. A savings bank that has met and maintained the capital levels required for a savings bank, the deposit accounts of which are insured by the Federal Deposit Insurance Corporation, may invest an additional 50% of the excess capital provided that in no event shall a savings bank's maximum investment in service corporations exceed 20% of its total assets.

b) A savings bank may make investments in capital stock of service corporations that are at least 51% but less than 90% owned by one or more savings banks, in an amount not to exceed 1% of the savings bank's total assets.

c) All loans to service corporations shall be subject to all lending limitations contained in the Act and this Part, except that:

1) a savings bank may make loans to a wholly owned service corporation in an amount equal to the savings bank's total capital or in an amount that exceeds the savings bank's total capital if the excess amount is fully secured by collateral, of a type upon which the savings bank itself could lend, of a value determined in accordance with the Act and with rules promulgated by the Director; and

2) loans shall not be subject to the percentage of asset limitations of Section 6002(8) of the Act.

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