Public Act 104-0144
 
SB2318 EnrolledLRB104 11891 BAB 21982 b

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