(c) Order an association to hire employees, retain outside experts, attorneys and accountants.

Section 14. Relationship of savings associations with the Commissioner

A. Except as provided by subsection (C) of this section a savings association or any director, officer, employee or attorney of an association shall not grant or give to the Commissioner, or to any officer or employee of the Commissioner's office, any sum of money or any property as compensation or a a gift, loan or otherwise, directly or indirectly.

B. Neither the Commissioner nor any accountant, attorney or other person employed in or by the Commissioner shall:

(1) Hold an office or position in any association or exercise any right to vote on any association matter by reason of being a member of the association;

(2) Be interested, directly or indirectly in any savings association; or (3) Be or become indebted, directly or indirectly, as borrower, endorser, surety or guarantor, or sell or otherwise dispose of any loan or investment to any savings association.

C. Notwithstanding subsection (B) of this section, the Commissioner or any accountant, attorney or other person employed in or by his office may be an account holder and receive earnings on such account.

D. If the Commissioner or other person has any prohibited right or interest in a savings association, either directly or indirectly, at the time of his appointment or employment, he shall dispose of it within 120 days after the date of his appointment or employment.

Section 15. Confidential information

A. The Commissioner and each examiner and other person employed by the Commissioner and acting under this Chapter:

(1) Shall keep the facts and information obtained in the course of an examination or by reason of his official position confidential, except when the legal duty of such person requires him to report upon or to take official action regarding the affairs of the association.

(2) Shall not willfully and knowingly make a false official report as to the condition of an association examined.

B. Statements of financial condition filed pursuant to statutory or regulatory requirements are public records available for public inspection, but the work papers and reports of examiners made to the Commissioner shall be regarded as confidential and not available for public inspection, except when the public interest in disclosure outweighs the interests of the association, its officers, employees and customers in preserving the confidentiality of such information.

C. Nothing in this section prevents the exchange of information relating to savings associations and the business thereof with the representatives of savings and loan departments of other states, with the official supervising banks, or with representatives of the Federal Home Loan Bank Board, a Federal Home Loan Bank or other federal or state financial agency organized pursuant to the laws of the United States or of this or any other state and authorized to loan to or otherwise act as a reserve or insuring agency for savings associations. However, except as provided by subsection (B) of this section, the private business and affairs of an individual or company shall not be disclosed by the Commissioner, any examiner or other person employed in or by the Commissioner.

D. Any official or employee violating this section shall be liable to any person injured by disclosure of such confidential information for all damages sustained thereby. Penalties hereunder provided shall not be exclusive of other penalties hereinafter provided.

Section 16. Violations

A. Any official of the Department who knowingly violates the provisions of either Section 14 or Section 15 shall be guilty of a misdemeanor and shall upon conviction thereof, be subject to imprisonment for a period of not less than six months and not more than two years and a fine of five thousand dollars ($5,000).

Section 17. Employment

The Commissioner shall be ineligible during the time the Commissioner is in office and for a period of two years thereafter to hold any office, position, or employment in any savings and loan association, in a holding company of such association, or in an affiliate of a holding company of such association, and may not, during such two-year period, voluntarily acquire any interest in such association, company or affiliate, or exercise any voting rights attributable to the ownership of any security issued by such association, company or affiliate.

Hon. WILLIAM PROXMIRE,

FAIRVIEW HEIGHTS, ILL., May 18, 1977.

Chairman, Senate Banking, Housing and Urban Affairs Committee, Senate Office Building, Washington, D.C.

DEAR SENATOR PROXMIRE: I am a member of the Board of Directors of a local Bank & Trust Company in the City of Fairview Heights, Illinois. This letter concerns Senate Bill 73 introduced by you which is due for hearing the latter part of this month before your Committee on Banking, Housing and Urban Affairs.

I urge the elimination of portion of Section 2(c) (ii) regarding bank affiliation as follows: "Excluding from the computation of each aggregate the voting stock held by any person who owns less than 5 percent of the voting stock of the corporation".

If not eliminated, this would destroy and eliminate many of the services we now provide.

Very truly yours,

O

EVERETT W. MOODY.