State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Enrolled ][ Senate Amendment 001 ]


92_HB1030eng

 
HB1030 Engrossed                               LRB9206827JSpc

 1        AN ACT concerning banking.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Banking  Act  is  amended  by
 5    changing Sections 9 and 46 as follows:

 6        (205 ILCS 5/9) (from Ch. 17, par. 316)
 7        Sec. 9. Contents of application.
 8        (a)  The application for a permit to organize shall be in
 9    a form specified by the Commissioner and shall be filed  with
10    the  Commissioner  signed by each of the applicants and shall
11    be acknowledged before some  officer  authorized  by  law  to
12    acknowledge deeds. It shall state:
13        (1)  The  name,  residence,  business  or  occupation and
14    address of each applicant, and a statement  of  the  proposed
15    management;
16        (2)  The name for the proposed bank;
17        (3)  The location of the proposed bank;
18        (4)  The  amount  of capital and surplus for the proposed
19    bank;
20        (5)  The number of shares of capital stock, the number of
21    shares and classes of preferred stock, if any, the par  value
22    of  the capital stock and preferred stock, and the amount for
23    which each share of capital stock and preferred stock  is  to
24    be sold;
25        (6)  A  statement  of  the financial worth of each of the
26    applicants;
27        (7)  (Blank);
28        (8)  Such other relevant information as the  Commissioner
29    may require.
30        (b)  Information  provided  in  the  application  that is
31    personal or proprietary, including but  not  limited  to  the
 
HB1030 Engrossed            -2-                LRB9206827JSpc
 1    names  of proposed management and the statements of financial
 2    worth of the applicants, may be submitted in  a  confidential
 3    section of or addendum to the application.
 4    (Source: P.A. 90-301, eff. 8-1-97; 90-665, eff. 7-30-98.)

 5        (205 ILCS 5/46) (from Ch. 17, par. 357)
 6        Sec.  46.  Misleading  practices  and  names  prohibited;
 7    penalty.
 8        (a)  No person, firm, partnership, or corporation that is
 9    not  a bank shall transact business in this State in a manner
10    which has a substantial likelihood of misleading  the  public
11    by  implying  that  the  business is a bank, or shall use the
12    word "bank", "banker", or "banking" in  connection  with  the
13    business.   Any  person,  firm,  partnership  or  corporation
14    violating this Section shall be deemed guilty of  a  Class  A
15    misdemeanor,  and the Attorney General or State's Attorney of
16    the county in which any such violation  occurs  may  restrain
17    such violation by a complaint for injunctive relief.
18        (b)  If the Commissioner is of the opinion and finds that
19    a  person,  firm,  partnership,  or corporation that is not a
20    bank has transacted or intends to transact business  in  this
21    State  in  a  manner  which  has  a substantial likelihood of
22    misleading the public by implying  that  the  business  is  a
23    bank,  or  has  used  or  intends  to  use  the  word "bank",
24    "banker", or "banking" in connection with the business,  then
25    the  Commissioner  may direct that person, firm, partnership,
26    or corporation to  cease  and  desist  from  transacting  the
27    business  or  using  the word "bank", "banker", or "banking".
28    If that person, firm, partnership, or corporation persists in
29    transacting the business or using the word "bank",  "banker",
30    or  "banking",  then  the  Commissioner  may  impose  a civil
31    penalty of up to $10,000 for each violation.  Each  day  that
32    the  person,  firm,  partnership,  or  corporation  continues
33    transacting  the business or using the word "bank", "banker",
 
HB1030 Engrossed            -3-                LRB9206827JSpc
 1    or "banking" in connection with the business shall constitute
 2    a separate violation of these provisions.
 3        (c)  A person, firm, partnership, or corporation that  is
 4    not  a  bank, and is not transacting or intending to transact
 5    business in this State in a manner  that  has  a  substantial
 6    likelihood  of  misleading  the  public by implying that such
 7    business is  a  bank,  may  apply  to  the  Commissioner  for
 8    permission  to use the word "bank", "banker", or "banking" in
 9    connection with the business.  If the Commissioner determines
10    that there is no substantial  likelihood  of  misleading  the
11    public,  and  upon  such  conditions  as the Commissioner may
12    impose  to  prevent  the  person,   firm,   partnership,   or
13    corporation  from  holding itself out in a misleading manner,
14    then such person, firm, partnership, or corporation  may  use
15    the word "bank", "banker", or "banking".
16             (d) (1)  No    person,    firm,    partnership,   or
17        corporation may use the name of an existing  bank,  or  a
18        name  deceptively  similar  to  that of an existing bank,
19        when marketing to or soliciting business  from  customers
20        or prospective customers if the reference to the existing
21        bank is made (i) without the consent of the existing bank
22        and (ii) in a manner that could cause a reasonable person
23        to  believe  that  the marketing material or solicitation
24        originated from or is endorsed by the  existing  bank  or
25        that  the  existing  bank is in any other way responsible
26        for the marketing material or solicitation.
27             (2)  An existing bank may, in addition to any  other
28        remedies  available  under  the  law,  report  an alleged
29        violation of this subsection (d) to the Commissioner.  If
30        the  Commissioner  finds  the   marketing   material   or
31        solicitation  in  question  to  be  in  violation of this
32        subsection, the Commissioner may direct the person, firm,
33        partnership, or corporation  to  cease  and  desist  from
34        using   that   marketing   material  or  solicitation  in
 
HB1030 Engrossed            -4-                LRB9206827JSpc
 1        Illinois.   If  that  person,   firm,   partnership,   or
 2        corporation persists in the use of the marketing material
 3        or solicitation, then the Commissioner may impose a civil
 4        penalty  of  up  to  $10,000  for  each  violation.  Each
 5        instance in which the marketing material or  solicitation
 6        is  sent  to  a  customer  or  prospective customer shall
 7        constitute a separate violation of these provisions.
 8             (3)  Nothing in this subsection  (d)  prohibits  the
 9        use  of  or  reference to the name of an existing bank in
10        marketing materials or solicitations, provided  that  the
11        use   or   reference  would  not  deceive  or  confuse  a
12        reasonable  person  regarding   whether   the   marketing
13        material  or solicitation originated from or was endorsed
14        by the existing bank or whether the existing bank was  in
15        any  other  way responsible for the marketing material or
16        solicitation.   The   Commissioner   is   authorized   to
17        promulgate rules to administer these provisions.
18    (Source: P.A. 89-567, eff. 7-26-96.)

19        Section  99.  Effective date.  This Act takes effect upon
20    becoming law.

[ Top ]