Illinois Compiled Statutes
205 ILCS 620/ - Corporate Fiduciary Act.
Article VI - Receiver and Involuntary Liquidation

(205 ILCS 620/Art. VI heading)

(205 ILCS 620/6-1) (from Ch. 17, par. 1556-1)
Sec. 6-1.
Exclusive remedy.
The proceedings pursuant to
this Article 6 shall be the exclusive remedy and the only
proceedings commenced in any court for the dissolution or for the
winding up of the affairs or for the appointment of a receiver
for any corporate fiduciary.

(Source: P.A. 85-858.)

(205 ILCS 620/6-2) (from Ch. 17, par. 1556-2)
Sec. 6-2.
Control by Commissioner.
(a) If the Commissioner with respect to a
corporate fiduciary shall find:
(b) If, in addition to a finding as provided in subsection
(a) of this Section, the Commissioner shall be of the opinion and
shall find that an emergency exists which may result in serious
losses to the beneficiaries of fiduciary relationships with the
corporate fiduciary, he may, in his discretion, without having
given the notice provided for in subsection (a) of this Section,
and whether or not proceedings under subsection (a) of this
Section have been instituted or are then pending, forthwith take
possession and control of the corporate fiduciary and its assets
for the purpose of examination, reorganization or liquidation
through receivership.

(Source: P.A. 92-483, eff. 8-23-01.)

(205 ILCS 620/6-3) (from Ch. 17, par. 1556-3)
Sec. 6-3.

The Commissioner may take possession and
control of a corporate fiduciary, its assets, and assets held for
the beneficiaries of its fiduciary obligations by posting upon
the premises of each office at which it transacts its business as
a corporate fiduciary a notice reciting that he is assuming
possession pursuant to this Act, and the time when his possession
shall be deemed to commence.

(Source: P.A. 85-858.)

(205 ILCS 620/6-4) (from Ch. 17, par. 1556-4)
Sec. 6-4.
Judicial proceedings; examination.
(a) Promptly after taking possession and control of a corporate
fiduciary, the Commissioner shall file a copy of the notice posted upon the
premises in the circuit court in the county in which the corporate fiduciary is
located, which cause shall be entered as a court action upon the dockets of
such court under the name and style of "In the matter of the possession and
control of the Commissioner of Banks and Real Estate
of ......" (inserting the name of such corporate fiduciary). If the
Commissioner
determines (which determination may be made at the time of, or at any time
subsequent to, his taking possession and control of a corporate fiduciary) that
no practical possibility exists to reorganize the corporate fiduciary after
reasonable efforts have been made, the Commissioner, represented by the
Attorney General shall also file a complaint, if he has not already done so
under Section 58 of the Illinois Banking Act, as now or hereafter amended, for
the appointment of a receiver or such other proceeding as is appropriate under
the circumstances. The court where the cause is docketed shall be vested with
jurisdiction to hear and determine all issues and matters pertaining to or
connected with the Commissioner's possession and control of such corporate
fiduciary as provided in this Act, and such further issues and matters
pertaining to or connected with the Commissioner's possession and control as
may be submitted to such court for its adjudication by the Commissioner.
(b) The Commissioner, upon taking possession and control of a corporate
fiduciary, may, and, if he has not previously done so, shall, immediately upon
filing a complaint for dissolution, make an examination of the
affairs of the corporate fiduciary or appoint a corporate fiduciary or
other suitable person to make the examination as the Commissioner's agent.
The examination shall be conducted in accordance with and pursuant to the
authority granted under Section 5-2 of this Act, and the corporate
fiduciary or other suitable person conducting the examination shall have
and may exercise on behalf of the Commissioner all of the powers and
authority granted to the Commissioner thereunder. The report of
examination shall, to the extent reasonably possible, identify those
governing instruments with specific instructions concerning the appointment
of a successor fiduciary. A copy of the report shall be filed in any
dissolution proceeding filed by the Commissioner. The reasonable fees and
necessary expenses of the examining corporate fiduciary or other suitable
person, as approved by the Commissioner or as recommended by the
Commissioner and approved by the court if a dissolution proceeding has been
filed, shall be borne by the subject corporate fiduciary and shall have the
same priority for payment as the reasonable and necessary
expenses of the Commissioner in conducting an examination.
As soon as reasonably can be done, the Commissioner, if he deems it
advisable, shall seek the advice and instruction of the court concerning
the removal of the corporate fiduciary as to all of its fiduciary accounts
and the appointment of a successor fiduciary (which may be the examining
corporate fiduciary) to take over and administer all of the fiduciary
accounts being administered by the trust department of the corporate
fiduciary. The corporate fiduciary or other suitable person appointed to make
the examination shall make a proper accounting, in the manner and scope as
determined by the Commissioner to be practical and advisable under the
circumstances, on behalf of the trust department of the corporate fiduciary
and no guardian ad litem need be appointed to review the accounting.

(Source: P.A. 89-508, eff. 7-3-96.)

(205 ILCS 620/6-5) (from Ch. 17, par. 1556-5)
Sec. 6-5.

When the Commissioner has taken possession and
control of a corporate fiduciary and its assets, he shall be
vested with the full powers of management and control, including
but not limited to, the following:
(1) The power to continue or to discontinue the business;
(2) The power to stop or to limit the payment of its
obligations;
(3) The power to collect and to use its assets and to give
valid receipts and acquittances therefor;
(4) The power to employ and to pay any necessary
assistants;
(5) The power to execute any instrument in the name of the
corporate fiduciary;
(6) The power to commence, defend and conduct in its name
any action or proceeding in which it may be a party;
(7) The power, upon the order of the court, to sell and
convey its assets in whole or in part, and to sell or compound
bad or doubtful debts upon such terms and conditions as may be
fixed in such order;
(8) The power, upon the order of the court, to make and to
carry out agreements with other corporate fiduciaries, financial
institutions or with the United States or any agency thereof, for
the payment or assumption of the corporate fiduciaries
liabilities, in whole or in part, and to transfer assets and to
make guaranties, in whole or in part, and to transfer assets and
to make guaranties in connection therewith;
(9) The power, upon the order of the court, to borrow money
in the name of the corporate fiduciary and to pledge its assets
as security for the loan;
(10) The power to terminate his possession and control by
restoring the corporate fiduciary to its board of directors;
(11) The power to reorganize the corporate fiduciary as
provided in this Act;
(12) The power to appoint a receiver which may be the
Office of the Commissioner, a corporate fiduciary or another suitable
person and to order liquidation of the corporate
fiduciary as provided in this Act; and
(13) The power, upon the order of the court and without the
appointment of a receiver, to determine that the corporate
fiduciary has been closed for the purpose of liquidation without
adequate provision being made for payment of its fiduciary
obligations, and thereupon the corporate fiduciary shall be
deemed to have been closed on account of inability to meet its
obligations to its beneficiaries.

(Source: P.A. 86-754.)

(205 ILCS 620/6-6) (from Ch. 17, par. 1556-6)
Sec. 6-6.

Upon taking possession, the Commissioner shall
make an examination of the condition of the corporate fiduciary,
an inventory of the assets and unless the time shall be extended
by order of the court or, unless the Commissioner shall have
otherwise settled the affairs of a corporate fiduciary pursuant
to the provisions of this Act, within 30 days from the time
of taking possession and control of the corporate fiduciary for
the purpose of examination, reorganization or liquidation through
receivership, the Commissioner shall either terminate his
possession and control by restoring the corporate fiduciary to
its board of
directors or appoint a receiver which may be the Office of the
Commissioner, a corporate fiduciary or another suitable person and order
the liquidation of the corporate
fiduciary as provided in this Act.
All necessary and reasonable expenses of the Commissioner's
possession and control and of its reorganization shall be a
priority claim and shall be borne by the corporate fiduciary and
may be paid by the Commissioner from its own assets as
distinguished from those of beneficiaries of fiduciary relations.

(Source: P.A. 86-754.)

(205 ILCS 620/6-7) (from Ch. 17, par. 1556-7)
Sec. 6-7.

If the Commissioner takes possession and
control of a corporate fiduciary and its assets, or appoints
a receiver which may be the Office of the Commissioner, a corporate
fiduciary or another suitable person for the purpose of
so doing, any period of
limitation fixed by a statute or agreement which would otherwise expire
on a claim or right of action of the corporate
fiduciary, on its own
behalf or on behalf of a beneficiary in any of its fiduciary capacities, or
upon
which an appeal must be taken or a pleading or other document
must be filed by the corporate fiduciary in any pending action or
proceeding shall be tolled until 6 months after the commencement
of such possession and no judgment, lien, levy, attachment or
other similar legal process shall be enforced upon or satisfied
in whole or in part from any asset of the corporate
fiduciary or from
any asset of a beneficiary of any of its fiduciary capacities while
it is in the possession of the Commissioner or receiver, except upon
the order of the court.

(Source: P.A. 86-754.)

(205 ILCS 620/6-7.1) (from Ch. 17, par. 1556-7.1)
Sec. 6-7.1.

If the Commissioner appoints a receiver to take
possession and control of the assets of the beneficiaries of such fiduciary
relations, for the purpose of holding such assets as fiduciary for the
benefit of such beneficiaries pending the winding up of the affairs of the
corporate fiduciary being liquidated and the appointment of a successor
fiduciary or fiduciaries for such beneficiaries, any period of limitation
fixed by statute, rule of court or agreement which would otherwise expire on
a claim or right of action in favor of or against the beneficiary of such
fiduciary relations, or upon which an appeal must be taken or a pleading or
other document which must be filed by a corporate fiduciary on behalf of a
beneficiary in any pending action or proceeding shall be tolled for a
period of 6 months after the appointment of a receiver, and no judgment,
lien, levy, attachment or other similar legal process shall be enforced
upon or satisfied in whole or in part from any asset of the beneficiary of
such fiduciary relations while it is in the possession of such receiver,
except upon the order of the court.

(Source: P.A. 86-754.)

(205 ILCS 620/6-8) (from Ch. 17, par. 1556-8)
Sec. 6-8.

The Commissioner, while in possession and
control of a corporate fiduciary may propose a reorganization
plan, which plan may be amended from time to time because of
changes in circumstances, if he finds:
(1) The plan is feasible and fair to all classes of
beneficiaries, creditors and stockholders.
(2) The face amount of the interest accorded to any class
of creditors or stockholders under the plan does not exceed the
value of the assets upon liquidation less the full amount of the
claims of all prior classes, subject, however, to any fair
adjustment for new capital that any class will pay in under the
plan.
(3) The plan assures the removal of any director, officer
or employee responsible for any unsound or unlawful action or the
existence of an unsound condition.
(4) Any merger or consolidation provided by the plan
conforms to the requirements of this Act.
(5) Any reorganized corporate fiduciary provided by the plan
conforms to the requirements of this Act for the organization of
a corporate fiduciary.

(Source: P.A. 85-1402.)

(205 ILCS 620/6-9) (from Ch. 17, par. 1556-9)
Sec. 6-9.

If the Commissioner determines at any time
that no reasonable possibility exists for the corporate fiduciary
to be reorganized after reasonable efforts have been made, and
that it should be liquidated through receivership, he shall
appoint a receiver. The Commissioner may require of the receiver
such bond and security as the Commissioner deems proper. The
Commissioner, represented by the Attorney General, shall file a
complaint for the dissolution or winding up of the affairs of such
corporate fiduciary in a court of the county where the principal office of
such corporate fiduciary is located and shall cause notice to be given
in a newspaper of general circulation once each week for four
consecutive weeks that persons who may have claims against the
corporate fiduciary present them to the receiver and to make
legal proof thereof and notifying all such persons and all to
whom it may concern of the filing of a complaint for the
dissolution or winding up of the affairs of the corporate
fiduciary and stating the name and location of said court. All
persons who may have claims against the assets of such corporate fiduciary, as
distinguished from the assets of the beneficiaries of such fiduciary relations, and
the receiver to whom such persons have presented their claims may
present them to the clerk of such court, and the allowance or
disallowance of such claims by said court in connection with such
proceedings shall be deemed an adjudication in a court of
competent jurisdiction.

(Source: P.A. 86-754.)

(205 ILCS 620/6-10) (from Ch. 17, par. 1556-10)
Sec. 6-10.
The receiver for a corporate fiduciary, under
the direction of the Commissioner, shall have the power and
authority and is charged with the duties and responsibilities as
follows:
(Source: P.A. 101-48, eff. 1-1-20; 101-81, eff. 7-12-19.)

(205 ILCS 620/6-11) (from Ch. 17, par. 1556-11)
Sec. 6-11.

Upon the order of the court wherein the
Commissioner's complaint for the dissolution or winding up of the
affairs of the corporate fiduciary was filed, the receiver for
the corporate fiduciary shall have the power and authority and is
charged with the duties and responsibilities as follows:
(1) The receiver may sell and compound all bad and doubtful
debts on such terms as the court shall direct.
(2) The receiver may sell the real and personal property of
the corporate fiduciary, as distinguished from the real and personal
property of the beneficiaries of such fiduciary relations, on such terms
as the court shall direct.
(3) The receiver may petition the court for the authority to
borrow money, and to pledge the assets of the corporate fiduciary
as security therefor, whereupon the practice and procedure shall
be as follows:
(a) Upon the filing of such petition the court shall
set a date for the hearing of such petition and shall prescribe
the form and manner of the notice to be given to the officers,
stockholders, creditors and other persons interested in such
corporate fiduciary.
(b) Upon such hearing, any officer, stockholder,
creditor or person interested shall have the right to be heard.
(c) If the court grants such authority, then the
receiver may borrow money and issue evidences of indebtedness
therefor, and may secure the payment of such loan by the
mortgage, pledge, transfer in trust or hypothecation of any or
all property and assets of such corporate fiduciary, whether
real, personal, or mixed, superior to any charge thereon for the
expenses of liquidation.
(d) Such loan may be obtained in such amounts upon
such terms and conditions, and with provisions for repayment as
may be deemed necessary or expedient.
(e) Such loan may be obtained for the purpose of
facilitating liquidation, protecting or preserving the assets,
expediting the making of distributions to depositors and other
creditors, providing for the expenses of administration and
liquidation, aiding in the reopening or reorganization of such
corporate fiduciary or its merger or consolidation with another
corporate fiduciary, or in the sale of its assets.
(f) The receiver shall be under no personal obligation
to repay any such loan and shall have authority to take any
action necessary or proper to consummate such loan and to provide
for the repayment thereof, and may, when required, give bond for
the faithful performance of all undertakings in connection
therewith.
(g) Prior to petitioning the court for authority to
make any such loan, the receiver may make application for or
negotiate any loan subject to obtaining an order of the court
approving the same.
(4) The receiver may make and carry out agreements with other
corporate fiduciaries, banks, or with the United States or any
agency thereof for the payment or assumption of the corporate
fiduciary's liabilities, in whole or in part, and the receiver may
transfer assets and make guaranties in connection therewith.
(5) After the expiration of 4 weeks after the first
publication of the Commissioner's notice as provided in Section
6-9, the receiver shall file with the court a correct list of all
creditors of the corporate fiduciary, as shown by its books, who
have not presented their claims and the amount of their
respective claims after allowing all just credits, deductions and
set-offs as shown by the books of the corporate fiduciary. Such
claims so filed shall be deemed proven, unless objections are
filed thereto by a party or parties interested therein within
such time as is fixed by the court.
(6) At the termination of the receiver's
administration, the receiver shall petition the court for the entry of a judgment of
dissolution. After a hearing upon such notice as the court may
prescribe, the court may enter a judgment of dissolution
whereupon the corporate fiduciary's corporate existence shall be terminated
and the receivership concluded.

(Source: P.A. 86-754.)

(205 ILCS 620/6-12) (from Ch. 17, par. 1556-12)
Sec. 6-12.

The receiver shall serve at the pleasure of the
Commissioner and upon the death, inability to act, resignation
or removal by the Commissioner of a receiver, the Commissioner may
appoint a successor and upon such appointment all rights and duties of the
predecessor shall at once devolve upon such appointee.

(Source: P.A. 85-1402.)

(205 ILCS 620/6-13) (from Ch. 17, par. 1556-13)
Sec. 6-13.

All expenses of a receivership, including
reasonable receiver's and attorney's fees, approved by the
Commissioner, shall be paid out of the assets of the corporate
fiduciary. All expenses of any preliminary or other examination
into the condition of any such corporate fiduciary or
receivership, and all expenses incident to and in connection with
the possession and control of the corporate fiduciary and its
assets for the purpose of examination, reorganization or
liquidation through receivership shall be paid out of the assets
of such corporate fiduciary. The payment herein authorized may
be made by the Commissioner with monies and property of the
corporate fiduciary in his or her possession and control and
shall have priority over all claims but shall not give rise to a
claim against properties held by the corporate fiduciary in a
fiduciary capacity.
If monies and property of the corporate fiduciary are insufficient to pay
such expenses, they may be paid from the Corporate Fiduciary Receivership
account in the Bank and Trust Company Fund established pursuant to Section
5-10 of this Act.

(Source: P.A. 86-754; 86-952; 86-1028.)

(205 ILCS 620/6-13.5)
Sec. 6-13.5. Pledging requirements.
(a) The Commissioner may require a trust company holding a certificate of
authority under this Act to pledge to the Commissioner securities or a surety
bond which shall run to the Commissioner in an amount, not to exceed $2,000,000, that the Commissioner deems appropriate for costs associated with
the receivership of the trust company. In the event of a receivership of a
trust company, the Commissioner may, without regard to any priorities,
preferences, or adverse claims, reduce the pledged securities or the surety
bond to cash and, as soon as practicable, utilize the cash to cover costs
associated with the receivership.
(b) If the trust company chooses to pledge securities to satisfy the
provisions of this Section, the securities shall be held at a depository
institution or a Federal Reserve Bank approved by the Commissioner. The
Commissioner may specify the types of securities that may be pledged in
accordance with this Section. Any fees associated with holding such securities
shall be the responsibility of the trust company.
(c) If the trust company chooses to purchase a surety bond to satisfy the
provisions of this Section, the bond shall be issued by a bonding company,
approved by the Commissioner, that is authorized to do business in this State
and that has a rating in one of the 3 highest grades as determined by a
national rating service. The bond shall be in a form approved by the
Commissioner. The trust company may not obtain a surety bond from any entity
in which the trust company has a financial interest.

(Source: P.A. 97-492, eff. 1-1-12.)

(205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
Sec. 6-14.
From time to time during receivership the
Commissioner shall make and pay from monies of the corporate
fiduciary a ratable dividend on all claims as may be proved to
his or her satisfaction or adjudicated by the court. After one
year from the entry of a judgment of dissolution, all unclaimed
dividends shall be remitted to the State Treasurer in accordance with the Revised
Uniform Unclaimed Property Act, as now or hereafter amended,
together with a list of all unpaid claimants, their last known addresses and
the amounts unpaid.

(Source: P.A. 100-22, eff. 1-1-18.)

(205 ILCS 620/6-15) (from Ch. 17, par. 1556-15)
Sec. 6-15.

Whenever the Commissioner shall have taken
possession and control of a corporate fiduciary and its assets
for the purpose of examination, reorganization or liquidation
through receivership, or whenever the Commissioner shall have
appointed a receiver for a corporate fiduciary and filed a
complaint for the dissolution or for the winding up of the
affairs of a corporate fiduciary, and the corporate fiduciary
denies the grounds for such actions, it may at any time within
10 days apply to the Circuit Court of Sangamon County, Illinois,
to enjoin further proceedings in the premises; and such court
shall cite the Commissioner to show cause why further proceedings
should not be enjoined, and if the court shall find that such
grounds do not exist, the court shall make an order enjoining the
Commissioner and any receiver acting under his direction from all
further proceedings on account of such alleged grounds.

(Source: P.A. 85-858.)