Sec. 1106. Trust - Participation.

143 words·~1 min read·/il/chapter-215/act-5/1106

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

(1)A banking association and its member banks may participate in any trust created under this Article if it:

(a)Meets the underwriting standards for acceptance into the trust;

(b)Files a written application for coverage, agreeing to meet all of the membership conditions of the trust;

(c)Is a member of the association sponsoring the trust;

(d)Agrees to meet the ongoing loss control provisions and risk pooling arrangements set forth by the trustees;

(e)Pays its premium contribution on a timely basis as required; and

(f)Pays its predetermined annual required contribution into the contingency reserve fund.

(2)Any bank accepted for trust membership and participating in the trust under this Article shall be liable for payment to the trust of the amount of its annual premium contribution and its annual predetermined contingency reserve fund contribution.