Illinois Code § 205 ILCS 5/14.1

Quasi-Reorganization of Capital.
Open in Lexace · Ask the AI about this section
(a) For the purposes of declaring dividends pursuant to Section 14(8)(b) of
this Act upon a change in control, if a bank:

 
 
(1) incurs a change in ownership of more than 50% of 
 
its voting stock; and

 
 
(2) has a deficit in its net profits then on hand at 
 
the time of such change in ownership; and

 
 
(3) receives the prior written approval of the 
 
Secretary; 
such bank
may restate its asset and liability accounts to fair value for the purpose
of reorganizing the capital accounts of the bank so that net profits then
on hand are restated to zero; provided that in no event may total capital
be increased as a result of a capital reorganization made pursuant to this Section.

 
(b) A bank may reorganize its capital accounts pursuant to item (3) of subsection (a) of this Section without a change in control to the same extent and in the same manner authorized for national banks, subject to the same limitations and restrictions as are applicable to national banks, upon receiving the prior written approval of the Secretary. 

its voting stock; and
the time of such change in ownership; and
Secretary;

‹ Prev All Illinois sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.