HB3517 103RD GENERAL ASSEMBLY

LRB103 27624 SPS 54000 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3517

Introduced 2/17/2023, by Rep. Nabeela Syed

SYNOPSIS AS INTRODUCED:

205 ILCS 5/32.2 new

Amends the Illinois Banking Act. Provides that no financial institution shall make a loan or extension of credit to a small business that contains a confession of judgment clause.

A BILL FOR

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 adding Section 32.2 as follows:

(205 ILCS 5/32.2 new)

Sec. 32.2. Loans to small businesses; confessions of judgment prohibited. No financial institution shall make a loan or extension of credit to a small business that contains a confession of judgment clause. As used in this Section, "small business" means a corporation or a concern, including its affiliates, that is independently owned and operated, not dominant in its field, and employs fewer than 50 full-time employees or has gross annual sales of less than $4,000,000.