Illinois Code § 2007

§ 2007.

(a) A savings bank, including a mutual savings bank operating under this Act, may reorganize so as to become a holding company by: (1) chartering one or more subsidiary savings banks, the ownership of which shall be evidenced by stock shares, to be owned by the chartering parent savings bank; and (2) either of the following: (i) transferring the substantial portion of its assets and all of its insured deposits and part or all of its other liabilities to one or more subsidiary savings banks; or (ii) reorganizing in any other manner as approved by the Secretary. (b) In order to effect reorganization under subsection (a), the board of directors of the original savings bank must approve a plan providing for the reorganization that shall be submitted for approval by a majority of the voting members of the savings bank. Approval must occur in accordance with the savings bank's articles of incorporation and bylaws at a meeting called by the board of directors. The Secretary may promulgate rules to regulate the formation of and the ongoing business of the subsidiaries and the holding company, including the rights of members, levels of investment in holding company subsidiaries, and stock sales. (Source: P.A. 97-492, eff. 1-1-12.)