CHAPTER 205 - Regulation - Financial Regulation - Financial Institution Activity Reporting Act.

(205 ILCS 680/1) (from Ch. 17, par. 7401-1)
Sec. 1. Short title. This Act may be cited as the Financial Institution Activity Reporting Act.
(Source: P.A. 87-725.)

    (205 ILCS 680/5) (from Ch. 17, par. 7401-5)
    Sec. 5. Legislative findings and purpose.
    (a) The General Assembly finds that:
        (1) Certain states have adopted laws that impose a

franchise, license, or use tax based on income earned within their borders by nonresident financial institutions.

(2) The result of these taxes is that Illinois

financial institutions may be subject to multiple taxation and burdensome recordkeeping requirements.

(3) In order to determine the extent to which these

taxes and recordkeeping requirements put Illinois financial institutions at a competitive disadvantage to nonresident financial institutions domiciled in states imposing these requirements, the legislature seeks to gather information on the nature and extent of activities and income earned by nonresident financial institutions in Illinois.

(b) It is the purpose of this Act to compel nonresident financial institutions to provide information on the nature and extent of their activities and income earned in Illinois and to provide the General Assembly with information needed to protect Illinois financial institutions against potential competitive disadvantages.
(Source: P.A. 87-725.)

(205 ILCS 680/10.05) (from Ch. 17, par. 7401-10.05)
Sec. 10.05. Accounting period. "Accounting period" means the calendar or fiscal year, or part thereof, for which a report is due under this Act.
(Source: P.A. 87-725.)

    (205 ILCS 680/10.10) (from Ch. 17, par. 7401-10.10)
    Sec. 10.10. Business of a financial institution.
    "Business of a financial institution" means the following:
    (1) For a holding company, a regulated financial corporation, or a subsidiary of either, the activities that each is authorized to perform under federal or state law, including the activities authorized by regulation or order of the Federal Reserve Board for the subsidiary under Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(8)).
    (2) For any other corporation, all of the corporation's business activities if 80% or more of the corporation's gross income, excluding extraordinary income, is derived from one or more of the following activities:
        (A) Making, acquiring, selling, or servicing loans

or extensions of credit. For the purpose of this paragraph, loans and extensions of credit include, without limitation, the following:

            (i) Secured or unsecured consumer loans.
            (ii) Installment obligations.
            (iii) Mortgage or other secured loans on real

estate or tangible personal property.

(iv) Credit card loans.
(v) Secured and unsecured commercial loans of

any type.

            (vi) Letters of credit and acceptance of drafts.
            (vii) Loans arising in factoring.
            (viii) Any other transactions with a comparable

economic effect.

(B) Leasing or acting as an agent, broker, or

advisor in connection with leasing real and personal property that is the economic equivalent of the extension of credit if the transaction is not treated as a lease for federal income tax purposes.

card, or similar business.

As used in this paragraph, "gross income" includes income from interest, fees, penalties, a market discount or other type of discount, rental income, the gain on a sale of intangible or other property evidencing a loan or extension of credit, and dividends or other income received as a means of furthering the activities set out in this paragraph.
(Source: P.A. 87-725.)

(205 ILCS 680/10.15) (from Ch. 17, par. 7401-10.15)
Sec. 10.15. Calendar accounting year. "Calendar accounting year" means an accounting period ending on the last day of December on the basis of which the financial institution is required to report for federal income tax purposes.
(Source: P.A. 87-725.)

    (205 ILCS 680/10.20) (from Ch. 17, par. 7401-10.20)
    Sec. 10.20. Commercial domicile. "Commercial domicile" means:
    (1) For a regulated financial corporation:
        (A) the "taxing jurisdiction" under the laws of

which it is organized; or

(B) if it is organized under the laws of the United

States, the place designated as its principal office with the primary regulatory authority.

(2) For a foreign bank, the state where it has established a federal agency or federal branch under Section 4 of the International Banking Act of 1978 (12 U.S.C. 3102) or, if it transacts business in more than one state, its home state as provided in Section 5(c) of the International Banking Act of 1978 (12 U.S.C. 3103(c)).
(3) For all other entities, the principal place from which the trade or business of the entity is directed or managed.
(Source: P.A. 87-725.)

(205 ILCS 680/10.25) (from Ch. 17, par. 7401-10.25)
Sec. 10.25. Commissioner. "Commissioner" means the Commissioner of Banks and Real Estate or a person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead.
(Source: P.A. 89-508, eff. 7-3-96.)

(205 ILCS 680/10.30) (from Ch. 17, par. 7401-10.30)
Sec. 10.30. Director. "Director" means the Director of the Department of Revenue.
(Source: P.A. 87-725.)

(205 ILCS 680/10.35) (from Ch. 17, par. 7401-10.35)
Sec. 10.35. Financial institution. "Financial institution" means a corporation that is transacting the business of a financial institution.
(Source: P.A. 87-725.)

(205 ILCS 680/10.40) (from Ch. 17, par. 7401-10.40)
Sec. 10.40. Fiscal accounting year. "Fiscal accounting year" means an accounting period ending on any day other than the last day of December on the basis of which the financial institution is required to report for federal income tax purposes.
(Source: P.A. 87-725.)

(205 ILCS 680/10.45) (from Ch. 17, par. 7401-10.45)
Sec. 10.45. Nonresident financial institution. "Nonresident financial institution" means any financial institution whose commercial domicile is not within this State, except for nonresident subsidiaries and affiliates of resident financial institutions.
(Source: P.A. 87-725.)

    (205 ILCS 680/10.50) (from Ch. 17, par. 7401-10.50)
    Sec. 10.50. Regulated financial corporation.
    "Regulated financial corporation" means any of the following:
    (1) An institution, the deposits, shares, or accounts of which are insured by the Federal Deposit Insurance Corporation.
    (2) An institution that is a member of a Federal Home Loan Bank.
    (3) Any other bank or thrift institution incorporated or organized under the laws of a state that is engaged in the business of receiving deposits.
    (4) A credit union incorporated and organized under the laws of this State.
    (5) A production credit association organized under 12 U.S.C. 2071.
    (6) A corporation organized under 12 U.S.C. 611 through 631 (Edge Act Corporation).
    (7) A federal or state agency or branch of a foreign bank (as defined in 12 U.S.C. 3101).
(Source: P.A. 87-725.)

(205 ILCS 680/10.55) (from Ch. 17, par. 7401-10.55)
Sec. 10.55. Taxing jurisdiction. "Taxing jurisdiction" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a territory or possession of the United States.
(Source: P.A. 87-725.)

(205 ILCS 680/15) (from Ch. 17, par. 7401-15)
Sec. 15. Notice of Financial Institution Activity Report; necessity of filing; activities covered. Every nonresident financial institution that carried on the business of a financial institution in Illinois during any accounting period ending after December 31, 1991, shall file a Financial Institution Activity Report.
(Source: P.A. 87-725.)

    (205 ILCS 680/20) (from Ch. 17, par. 7401-20)
    Sec. 20. Annual filing; due date.
    (a) Every nonresident financial institution required to file a report under this Act shall annually file a Financial Institution Activity Report with respect to all or any part of its accounting period ending after December 31, 1991, no later than the 15th day of the 4th month after the close of the accounting period.
    (b) For purposes of this Act, every nonresident financial institution shall use the same accounting period on which it reports to the United States Treasury Department for federal income tax purposes.
    (c) The Financial Institution Activity Report shall be filed with the Commissioner and a copy shall be filed with the Director.
(Source: P.A. 87-725.)

    (205 ILCS 680/25) (from Ch. 17, par. 7401-25)
    Sec. 25. Forms of report; certification.
    (a) The Commissioner shall design the form for the Financial Institution Activity Report and forms for any additional statements or schedules that the Commissioner may require to be filed therewith. The Commissioner shall require financial institutions required to file under this Act to indicate the financial institution's gross income from conducting the business of a financial institution in Illinois and any other information the Commissioner deems appropriate and desirable.
    (b) The Commissioner shall provide for the printing and distribution of blank forms to financial institutions upon application or otherwise as the Commissioner may deem necessary. Failure to receive a report form shall not relieve any financial institution from the obligation to file a report under the provisions of this Act.
    (c) A duly authorized officer of the financial institution shall certify that the statements contained in the report are true. The fact that an individual's name is signed on a certification shall be prima facie evidence that the individual is authorized to sign and certify the report on behalf of the financial institution.
(Source: P.A. 87-725.)

    (205 ILCS 680/30) (from Ch. 17, par. 7401-30)
    Sec. 30. Failure to file timely report.
    (a) No nonresident financial institution required to file under this Act shall maintain any action or proceeding in any State or federal court in Illinois on any contract executed or any cause of action that arose at any time prior to the end of the last accounting period for which the nonresident financial institution failed to file a required timely report, except as provided in subsection (b) of this Section.
    (b) The court having jurisdiction of a matter may excuse the financial institution for failure to file a report when due and restore the right of access to the courts in this State. The failure to file a report shall be excusable only where the court finds the financial institution has sustained the burden of establishing that (i) the failure to file a timely report was done in ignorance of the requirement to file and the ignorance was reasonable in all circumstances; and (ii) all delinquent reports have been subsequently filed.
(Source: P.A. 87-725.)

(205 ILCS 680/35) (from Ch. 17, par. 7401-35)
Sec. 35. Administration of Act by Commissioner. The Commissioner of Banks and Real Estate shall administer this Act, adopt regulations necessary or desirable to effectuate its purposes, prepare instructions for guidance and information, and provide for all other matters reasonably required for the fair, impartial, and practical administration of this Act.
(Source: P.A. 89-508, eff. 7-3-96.)

    (205 ILCS 680/40) (from Ch. 17, par. 7401-40)
    Sec. 40. Exemptions. A nonresident financial institution is not required to file a Financial Institution Activity Report if, for the nonresident financial institution's accounting period, the following circumstances exist:
    (1) the laws of the state of commercial domicile of the nonresident financial institution do not impose a franchise, income, license, or excise tax on financial institutions whose state of commercial domicile is Illinois;
    (2) the laws of the state of the commercial domicile of the nonresident financial institution do impose a franchise, income, license, or excise tax on financial institutions whose state of commercial domicile is Illinois, but the tax is only imposed on financial institutions that maintain an office or have an employee or representative conducting the business of a financial institution within the nonresident financial institution's state of commercial domicile;
    (3) the laws of the state of commercial domicile of the nonresident financial institution do impose a franchise, income, license, or excise tax on financial institutions whose state of commercial domicile is Illinois, but a financial institution whose state of commercial domicile is Illinois, if conducting the same activities under the same facts and circumstances in the nonresident financial institution's state of commercial domicile, would not be subject to the franchise, income, license, or excise tax imposed by that state; or
    (4) the nonresident financial institution has filed required tax returns in Illinois either on a separate company basis or as a member of a unitary business group.
(Source: P.A. 87-725.)

(205 ILCS 680/45) (from Ch. 17, par. 7401-45)
Sec. 45. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 87-725.)