Yes, as a state-chartered bank subject to the Illinois Banking Act, you must provide written notice to the Secretary of the IDFPR 60 days before your new subsidiary commences business (or prior to acquiring stock in a corporation that already has commenced business). After receiving the notice, the Secretary may waive or reduce the balance of the 60-day notice period. A link to the notice form is included in our resources below.
Note that there is an exception to this notice requirement if the subsidiary is established “to manage, market and dispose of real estate obtained in satisfaction of debt previously contracted” and the bank has a controlling interest in the subsidiary.
For resources related to our guidance, please see:
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Illinois Banking Act, 205 ILCS 5/5(12) (“A bank organized under this Act or subject hereto shall . . . have all the powers conferred by this Act and the following additional general corporate powers: . . . To own, possess, and carry as assets stock of one or more corporations that is, or are, engaged in one or more of the following businesses: . . . (c) carrying on or administering any of the activities excepting the receipt of deposits or the payment of checks or other orders for the payment of money in which a bank may engage in carrying on its general banking business. . . .”)
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Illinois Banking Act, 205 ILCS 5/5(12) (“Any bank intending to establish a subsidiary under this subsection (12) shall give written notice to the Commissioner 60 days prior to the subsidiary’s commencing of business or, as the case may be, prior to acquiring stock in a corporation that has already commenced business. After receiving the notice, the Commissioner may waive or reduce the balance of the 60 day notice period. The Commissioner may specify the form of the notice, may designate the types of subsidiaries not subject to this notice requirement, and may promulgate rules and regulations to administer this subsection (12).”)
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Illinois Banking Act, 205 ILCS 5/2 (“{B}eginning on April 6, 2009 (the effective date of Public Act 95-1047), all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation.”)
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IDPFR Applications and Notices used by State Banks, Notice of Intent to Establish a Subsidiary or Acquire Stock in a Corporation
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38 Ill. Admin. Code 305.100 (“A state bank that seeks to establish and maintain a subsidiary in order to manage, market and dispose of real estate obtained in satisfaction of debt previously contracted need not submit notice pursuant to Section 5(12) of the Act when the bank has a controlling interest in the subsidiary.”)