Illinois Compiled Statutes 215 ILCS 5/1105 – Risk Retention Trust
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(1) Any banking association which has been in existence for a period of not less than 2 years may create a risk retention trust for the pooling of risks in order to provide casualty coverage authorized under § 5 of the Illinois Banking Act, as now or hereafter amended, for its member banks. Such trust shall be administered by at least 3 trustees who are appointed by the trust sponsor and who represent association member banks which have agreed in writing to participate in the trust.
(2) The trustees shall appoint a qualified administrator who shall administer the affairs of the risk retention trust.
(3) The trustees shall retain a licensed service company to perform claims adjusting, loss control and data processing.
(4) The trust sponsor, the trustees and the trust administrator shall be fiduciaries of the trust.
(5) Any trust created under this Article shall be consummated by a written trust agreement and shall be subject to the laws of this State governing the creation and operation of trusts, to the extent not inconsistent with this Article.
(2) The trustees shall appoint a qualified administrator who shall administer the affairs of the risk retention trust.
Terms Used In Illinois Compiled Statutes 215 ILCS 5/1105
- Banking association: means any Illinois corporation, whether for-profit or not-for-profit, which functions as a professional or trade association of dues-paying member commercial banks. See Illinois Compiled Statutes 215 ILCS 5/1102
- Licensed service company: means an entity licensed under § 464a of the Illinois Insurance Code to perform claims adjusting, loss control and data processing. See Illinois Compiled Statutes 215 ILCS 5/1102
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
- Trust sponsor: means a banking association which has created a risk retention trust under this Article. See Illinois Compiled Statutes 215 ILCS 5/1102
(3) The trustees shall retain a licensed service company to perform claims adjusting, loss control and data processing.
(4) The trust sponsor, the trustees and the trust administrator shall be fiduciaries of the trust.
(5) Any trust created under this Article shall be consummated by a written trust agreement and shall be subject to the laws of this State governing the creation and operation of trusts, to the extent not inconsistent with this Article.