Bill Text: IL HB3553 | 2025-2026 | 104th General Assembly | Introduced

---

Bill Title: Amends the Illinois Banking Act. In provisions concerning the penalty for misleading practices and names, changes the civil penalty that may be imposed to the maximum amount otherwise permitted under specified provisions, $100,000 for each violation (rather than $10,000 for each violation). Provides that the remedies provided in those provisions are in addition to, not to the exclusion of, any other remedies available under the law. Defines terms. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3553 Detail]

Download: Illinois-2025-HB3553-Introduced.html

---

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3553 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
205 ILCS 5/46 from Ch. 17, par. 357
Amends the Illinois Banking Act. In provisions concerning the penalty for misleading practices and names, changes the civil penalty that may be imposed to the maximum amount otherwise permitted under specified provisions, $100,000 for each violation (rather than $10,000 for each violation). Provides that the remedies provided in those provisions are in addition to, not to the exclusion of, any other remedies available under the law. Defines terms. Makes other changes.
LRB104 11892 BAB 21983 b
A BILL FOR
HB3553 LRB104 11892 BAB 21983 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

HB3553 - 2 - LRB104 11892 BAB 21983 b
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 the maximum amount permitted
under paragraph (8) of Section 48 of this Act $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

HB3553 - 3 - LRB104 11892 BAB 21983 b
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 State 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

HB3553 - 4 - LRB104 11892 BAB 21983 b
impose a civil penalty of up to the maximum amount permitted
under paragraph (8) of Section 48 of this Act $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 promulgate rules to administer
these provisions.
(3) (Blank).
(e) The Commissioner is authorized to adopt rules to
implement these provisions.
(f) The remedies provided in this Section are in addition
to, not to the exclusion of, any other remedies available
under the law.
(g) For purposes of this Section, the following words and
phrases shall have the following meanings:
(1) "bank" means a State bank or an entity of which a
substantial portion of its operations is the business of
accepting deposits and which such deposits are insured, to
the applicable limit, by the Federal Deposit Insurance
Corporation or any successors thereto;
(2) "State bank" has the meaning stated in Section 2
of this Act; and
(3) "transact business in Illinois" means offering or
providing in any manner any product or service to a person
located in Illinois; and
(4) "person" has the meaning stated in Section 2 of

HB3553 - 5 - LRB104 11892 BAB 21983 b
this Act.
(Source: P.A. 92-476, eff. 8-23-01; 92-811, eff. 8-21-02.)