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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3517 Introduced 2/17/2023, by Rep. Nabeela Syed SYNOPSIS AS INTRODUCED:
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Amends the Illinois Banking Act. Provides that no financial institution shall make a loan or extension of credit to a small business that contains a confession of judgment clause.
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| | A BILL FOR |
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| | HB3517 | | LRB103 27624 SPS 54000 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Banking Act is amended by adding |
| 5 | | Section 32.2 as follows:
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| 6 | | (205 ILCS 5/32.2 new) |
| 7 | | Sec. 32.2. Loans to small businesses; confessions of |
| 8 | | judgment prohibited. No financial institution shall make a |
| 9 | | loan or extension of credit to a small business that contains a |
| 10 | | confession of judgment clause. As used in this Section, "small |
| 11 | | business" means a corporation or a concern, including
its |
| 12 | | affiliates, that is independently owned and operated, not |
| 13 | | dominant in
its field, and employs fewer than 50 full-time |
| 14 | | employees or has gross
annual sales of less than $4,000,000.
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