Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 1075 - SAVINGS BANK ACT
Subpart R - PAYDAY LOANS
Section 1075.5030 - Issuance of Payday Loans by Savings Banks
Universal Citation: 38 IL Admin Code ยง 1075.5030
Current through Register Vol. 48, No. 12, March 22, 2024
a) A savings bank making a payday loan shall satisfactorily address all safety and soundness considerations identified by the Division of Banking in its examination and supervision of the savings bank. Safety and soundness considerations include, without limitation:
1) Risk-management practices for payday loan
activities, particularly with regard to concentrations of payday
loans;
2) Capital adequacy,
depending on the level and volatility of risk;
3) Allowance for loan losses to ensure the
allowance is adequate to absorb estimated credit losses within the payday loan
portfolio;
4) Classification of
payday loans, given the unsecured nature of the credit and weakness of
repayment capacity inherent in payday loans; and
5) The establishment and maintenance of
extension, deferral, renewal and rewrite standards consistent with the
PLRA.
b) In the event the Division of Banking determines the savings bank's management of safety and soundness risks relating to its payday loan portfolio is deficient, the Division of Banking may initiate corrective enforcement action, as authorized under the Savings Bank Act.
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