Sec. 10020. Capital impairment; correction.

229 words·~1 min read·/il/chapter-205/act-205/10020·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)If the Secretary, with respect to a savings bank, shall find:

(1)its capital is impaired or it is otherwise in an unsound condition;

(2)its business is being conducted in an unlawful manner, including, without

limitation, in violation of any provisions of this Act, or in a fraudulent or unsafe manner;

(3)it is unable to continue operations; or

(4)its examination has been obstructed or impeded;

then the Secretary may give notice to the board of directors of his or her finding or findings. If the situation so found by the Secretary shall not be corrected to his or her satisfaction within a period of at least 60 but no more than 180 days after receipt of the notice, which period shall be determined by the Secretary and set forth in the notice, then the Secretary, at the termination of that period, may take possession and control of the savings bank and its assets as provided for in this Act for the purpose of examination, reorganization, or liquidation through receivership.

(b)If the Secretary has given notice to the board of directors of his or her findings, as provided in subsection (a), and the time period prescribed in that notice has expired, the Secretary may extend the time period prescribed in that notice for such period as the Secretary deems appropriate.