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| | SB2318 Enrolled | | LRB104 11891 BAB 21982 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, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Banking Act is amended by changing |
| 5 | | Section 46 as follows:
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| 6 | | (205 ILCS 5/46) (from Ch. 17, par. 357) |
| 7 | | Sec. 46. Misleading practices and names prohibited; |
| 8 | | penalty. |
| 9 | | (a) No person, firm, partnership, or corporation that is |
| 10 | | not a bank shall transact business in this State in a manner |
| 11 | | which has a substantial likelihood of misleading the public by |
| 12 | | implying that the business is a bank, or shall use the word |
| 13 | | "bank", "banker", or "banking" in connection with the |
| 14 | | business. Any person, firm, partnership or corporation |
| 15 | | violating this Section shall be deemed guilty of a Class A |
| 16 | | misdemeanor, and the Attorney General or State's Attorney of |
| 17 | | the county in which any such violation occurs may restrain |
| 18 | | such violation by a complaint for injunctive relief. |
| 19 | | (b) If the Commissioner is of the opinion and finds that a |
| 20 | | person, firm, partnership, or corporation that is not a bank |
| 21 | | has transacted or intends to transact business in this State |
| 22 | | in a manner which has a substantial likelihood of misleading |
| 23 | | the public by implying that the business is a bank, or has used |
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| 1 | | or intends to use the word "bank", "banker", or "banking" in |
| 2 | | connection with the business, then the Commissioner may direct |
| 3 | | that person, firm, partnership, or corporation to cease and |
| 4 | | desist from transacting the business or using the word "bank", |
| 5 | | "banker", or "banking". If that person, firm, partnership, or |
| 6 | | corporation persists in transacting the business or using the |
| 7 | | word "bank", "banker", or "banking", then the Commissioner may |
| 8 | | impose a civil penalty of up to $10,000 for each violation. |
| 9 | | Each day that the person, firm, partnership, or corporation |
| 10 | | continues transacting the business or using the word "bank", |
| 11 | | "banker", or "banking" in connection with the business shall |
| 12 | | constitute a separate violation of these provisions. |
| 13 | | (c) A person, firm, partnership, or corporation that is |
| 14 | | not a bank, and is not transacting or intending to transact |
| 15 | | business in this State in a manner that has a substantial |
| 16 | | likelihood of misleading the public by implying that such |
| 17 | | business is a bank, may apply to the Commissioner for |
| 18 | | permission to use the word "bank", "banker", or "banking" in |
| 19 | | connection with the business. If the Commissioner determines |
| 20 | | that there is no substantial likelihood of misleading the |
| 21 | | public, and upon such conditions as the Commissioner may |
| 22 | | impose to prevent the person, firm, partnership, or |
| 23 | | corporation from holding itself out in a misleading manner, |
| 24 | | then such person, firm, partnership, or corporation may use |
| 25 | | the word "bank", "banker", or "banking". |
| 26 | | (d) (1) Unless otherwise expressly permitted by law, |
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| 1 | | no person, firm, partnership, or corporation may use the |
| 2 | | name of an existing bank when marketing to or soliciting |
| 3 | | business from customers or prospective customers if the |
| 4 | | reference to the existing bank is made without the consent |
| 5 | | of the existing bank. |
| 6 | | (1.5) Unless otherwise expressly permitted by law, no |
| 7 | | person, firm, partnership, or corporation may use a name |
| 8 | | similar to that of an existing bank when marketing to or |
| 9 | | soliciting business from customers or prospective |
| 10 | | customers if the similar name is used in a manner that |
| 11 | | could cause a reasonable person to believe that the |
| 12 | | marketing material or solicitation originated from or is |
| 13 | | endorsed by the existing bank or that the existing bank is |
| 14 | | in any other way responsible for the marketing material or |
| 15 | | solicitation. |
| 16 | | (2) An existing bank may, in addition to any other |
| 17 | | remedies available under the law, report an alleged |
| 18 | | violation of this subsection (d) to the Commissioner. If |
| 19 | | the Commissioner finds the marketing material or |
| 20 | | solicitation in question to be in violation of this |
| 21 | | subsection, the Commissioner may direct the person, firm, |
| 22 | | partnership, or corporation to cease and desist from using |
| 23 | | that marketing material or solicitation in Illinois. If |
| 24 | | that person, firm, partnership, or corporation persists in |
| 25 | | the use of the marketing material or solicitation, then |
| 26 | | the Commissioner may impose a civil penalty of up to |
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| 1 | | $10,000 for each violation. Each instance in which the |
| 2 | | marketing material or solicitation is sent to a customer |
| 3 | | or prospective customer shall constitute a separate |
| 4 | | violation of these provisions. The Commissioner is |
| 5 | | authorized to adopt promulgate rules to administer these |
| 6 | | provisions. |
| 7 | | (3) (Blank). |
| 8 | | (e) If a person, firm, partnership, or corporation that |
| 9 | | (i) does not accept insured deposits as a substantial portion |
| 10 | | of its operations and (ii) is not chartered by a State or the |
| 11 | | United States violates subsection (a), (b), or (c) of this |
| 12 | | Section, the Commissioner may impose a civil penalty of up to |
| 13 | | the maximum amount permitted under paragraph (8) of Section 48 |
| 14 | | of this Act for each violation. |
| 15 | | (Source: P.A. 92-476, eff. 8-23-01; 92-811, eff. 8-21-02.) |