Financial Institutions Committee
Adopted in House Comm. on Jan 24, 2006
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 4345




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    AMENDMENT NO. ______. Amend House Bill 4345 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Illinois Savings and Loan Act of 1985 is 
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amended  by by adding Section 1-1.5 and by changing Section 1-5   
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as follows:
 
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    (205 ILCS 105/1-1.5  new)
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    Sec. 1-1.5. References to Office or Commissioner of Banks 
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and Real Estate. On and after the effective date of this 
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amendatory Act of the 94th General Assembly, unless the context 
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requires otherwise:
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        (1) References in this Act to the Office of Banks and 
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    Real Estate or "the Office" mean the Department of 
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    Financial and Professional Regulation.
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        (2) References in this Act to the Commissioner of Banks 
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    and Real Estate or "the Commissioner" mean the Secretary of 
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    Financial and Professional Regulation.
 



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    (205 ILCS 105/1-5)  (from Ch. 17, par. 3301-5)



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    Sec. 1-5. Prohibitions. 
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    (a) No person or group of persons, except an association 
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duly
incorporated under this Act or a prior Act or a Federal 
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association or a
foreign association duly authorized to do 
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business in this State, shall
transact business within the 
 


 






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scope of this Act or do any business under any
name or title or 
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circulate or use any advertising or make any
representation or 
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give any information to any person which indicates or

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reasonably implies the operation of a business which is within 
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the scope of
this Act.

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    (b) A circuit court may issue an injunction to restrain any 
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person from
violating or continuing to violate subsection (a)

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any of the foregoing provisions of this Section.

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    (b-5) Except as otherwise expressly permitted by law or 
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with the written consent of the association, no person or group 
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of persons may use the name of or a name similar to the name of 
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an existing association when marketing or soliciting business 
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from customers or prospective customers if the name or similar 
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name is used in  a manner that would cause a reasonable person 
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to believe that the marketing material or solicitation 
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originated from or is endorsed by the existing association or 
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that the existing association is in any other way responsible 
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for the marketing material or solicitation.

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    (c) Any person or group of persons who violates subsection 
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(a) of
any provision of this Section commits a
business offense 
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and shall be fined not to exceed $5,000. 
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    (d) In addition to any other available remedies, an 
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existing association may report an alleged violation of any 
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provision of this Section to the Secretary. If the Secretary of 
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Financial and Professional Regulation finds that any person or 
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group of persons is in violation of any provision of this 
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Section, then the Secretary may direct that person or group of 
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persons to cease and desist from that violation. If the 
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Secretary issues a cease and desist order against any person or 
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group of persons for violation of subsection (b-5), then the 
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order must require that person or group of persons to cease and 
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desist from using the offending marketing material or 
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solicitation in Illinois.
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    If the person or group of persons against whom the 
 


 






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Secretary issued the cease and desist order persists in the 
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violation, then the Secretary may impose a civil penalty of up 
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to $10,000 for each violation. Each day that a person or group 
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of persons is in violation of this Section constitutes a 
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separate violation of this Section and each instance in which 
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marketing material or a solicitation is sent in violation of 
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subsection (b-5) constitutes a separate violation of this 
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Section.
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    (e) The Department of Financial and Professional 
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Regulation  may adopt rules to administer the provisions of this 
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Section.


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(Source: P.A. 84-543.)

 
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    Section 10. The Savings Bank Act is amended  by adding 
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Section 1001.5 and by changing Section 1004 as follows:
 
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    (205 ILCS 205/1001.5  new)
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    Sec. 1001.5. References to Office or Commissioner of Banks 
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and Real Estate. On and after the effective date of this 
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amendatory Act of the 94th General Assembly, unless the context 
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requires otherwise:
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        (1) References in this Act to the Office of Banks and 
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    Real Estate or "the Office" mean the Department of 
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    Financial and Professional Regulation.
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        (2) References in this Act to the Commissioner of Banks 
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    and Real Estate or "the Commissioner" mean the Secretary of 
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    Financial and Professional Regulation.
 



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    (205 ILCS 205/1004)  (from Ch. 17, par. 7301-4)



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    Sec. 1004. Applicability. 

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    (a) This Act shall apply to all financial institutions  no

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matter how named or chartered,  if they comply with the

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provisions of this Act and with the rules of the Commissioner

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promulgated pursuant to this Act.

 


 






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    (b) No person or group of persons, except a savings bank 
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duly organized
or authorized under this Act, a predecessor Act, 
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or a federal Act may
transact business within the scope of this 
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Act or do business under any
name or title or circulate or use 
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any advertising or make any
representations or give any 
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information to anyone using any media,
including electronic 
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media, that indicates or implies the operation of a
business 
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within the scope of this Act.  Nothing herein
shall prohibit the 
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continued use of the name or title "savings bank" by any
bank 
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or savings and loan association if the use of that name or 
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title was
in effect before January 1, 1990.

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    (c) Except as otherwise expressly permitted by law or with 
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the written consent of the savings bank, no person or group of 
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persons may use the name of or a name similar to the name of an 
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existing savings bank when marketing or soliciting business 
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from customers or prospective customers if the name or similar 
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name is used in  a manner that would cause a reasonable person 
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to believe that the marketing material or solicitation 
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originated from or is endorsed by the existing savings bank or 
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that the existing savings bank is in any other way responsible 
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for the marketing material or solicitation.

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    (d) Any person who violates subsection (b) of this Section 
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commits a business offense and shall be fined in an amount not 
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to exceed $5,000.

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    (e) In addition to any other available remedies, any 
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existing savings bank may report an alleged violation of any 
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provision of this Section to the Secretary of Financial and 
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Professional Regulation. If the Secretary finds that any person 
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or group of persons is in violation of any provision of this 
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Section, then the Secretary may direct that person or group of 
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persons to cease and desist from that violation. If the 
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Secretary issues a cease and desist order against any person or 
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group of persons for violation of subsection (c), then the 
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order must require that person or group of persons to cease and 
 


 






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desist from using the offending marketing material or 
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solicitation in Illinois.
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    If the person or group of persons against whom the 
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Secretary issued the cease and desist order persists in the 
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violation, then the Secretary may impose a civil penalty of up 
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to $10,000 for each violation. Each day that a person or group 
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of persons is in violation of this Section constitutes a 
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separate violation of this Section and each instance in which 
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marketing material or a solicitation is sent in violation of 
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subsection (c) constitutes a separate violation of this 
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Section.
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    (f) The Department of Financial and Professional 
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Regulation may adopt rules to administer the provisions of this 
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Section.

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(Source: P.A. 86-1213.)

 

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