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HB4474 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4474

Introduced 1/20/2026, by Rep. Hoan Huynh

SYNOPSIS AS INTRODUCED:

205 ILCS 5/48
205 ILCS 205/9002

from Ch. 17, par. 7309-2
205 ILCS 305/8

from Ch. 17, par. 4409
720 ILCS 5/17-1b
810 ILCS 5/3-806 rep.
815 ILCS 205/4.1a

from Ch. 17, par. 6406

Amends the Illinois Banking Act, the Savings Bank Act, and the
Illinois Credit Union Act. Directs the Secretary of Financial and
Professional Regulation to adopt and enforce administrative rules that
prohibit the imposition by a bank, savings bank, or credit union of charges
in connection with (i) a check drawn or other written order upon, or
electronic transfer sought to be effectuated against, insufficient funds
or uncollected balances in a consumer account, whether or not the
financial institution pays such check, written order, or electronic
transfer or (ii) a check or other written order received by such an
institution for deposit or collection drawn against a consumer account and
subsequently dishonored and returned for any reason by the drawee. Amends
the Uniform Commercial Code. Repeals a provision that authorizes the
imposition of overdraft fees. Amends the Criminal Code of 2012 and the
Interest Act to make conforming changes.
LRB104 14113 SPS 27245 b

A BILL FOR

HB4474
LRB104 14113 SPS 27245 b
1

AN ACT concerning financial regulation.

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 changing
5
Section 48 as follows:

6

(205 ILCS 5/48)
7

Sec. 48.
Secretary's powers; duties.
The Secretary shall
8
have the powers and authority, and is charged with the duties
9
and responsibilities designated in this Act, and a State bank
10
shall not be subject to any other visitorial power other than
11
as authorized by this Act, except those vested in the courts,
12
or upon prior consultation with the Secretary, a foreign bank
13
regulator with an appropriate supervisory interest in the
14
parent or affiliate of a State bank. In the performance of the
15
Secretary's duties:
16

(1) The Commissioner shall call for statements from
17

all State banks as provided in Section 47 at least one time
18

during each calendar quarter.
19

(2) (a) The Commissioner, as often as the Commissioner
20

shall deem necessary or proper, and no less frequently
21

than 18 months following the preceding examination, shall
22

appoint a suitable person or persons to make an
23

examination of the affairs of every State bank, except

HB4474
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LRB104 14113 SPS 27245 b
1

that for every eligible State bank, as defined by
2

regulation, the Commissioner in lieu of the examination
3

may accept on an alternating basis the examination made by
4

the eligible State bank's appropriate federal banking
5

agency pursuant to Section 111 of the Federal Deposit
6

Insurance Corporation Improvement Act of 1991, provided
7

the appropriate federal banking agency has made such an
8

examination. A person so appointed shall not be a
9

stockholder or officer or employee of any bank which that
10

person may be directed to examine, and shall have powers
11

to make a thorough examination into all the affairs of the
12

bank and in so doing to examine any of the officers or
13

agents or employees thereof on oath and shall make a full
14

and detailed report of the condition of the bank to the
15

Commissioner. In making the examination the examiners
16

shall include an examination of the affairs of all the
17

affiliates of the bank, as defined in subsection (b) of
18

Section 35.2 of this Act, or subsidiaries of the bank as
19

shall be necessary to disclose fully the conditions of the
20

subsidiaries or affiliates, the relations between the bank
21

and the subsidiaries or affiliates and the effect of those
22

relations upon the affairs of the bank, and in connection
23

therewith shall have power to examine any of the officers,
24

directors, agents, or employees of the subsidiaries or
25

affiliates on oath. After May 31, 1997, the Commissioner
26

may enter into cooperative agreements with state

HB4474
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LRB104 14113 SPS 27245 b
1

regulatory authorities of other states to provide for
2

examination of State bank branches in those states, and
3

the Commissioner may accept reports of examinations of
4

State bank branches from those state regulatory
5

authorities. These cooperative agreements may set forth
6

the manner in which the other state regulatory authorities
7

may be compensated for examinations prepared for and
8

submitted to the Commissioner.
9

(b) After May 31, 1997, the Commissioner is authorized
10

to examine, as often as the Commissioner shall deem
11

necessary or proper, branches of out-of-state banks. The
12

Commissioner may establish and may assess fees to be paid
13

to the Commissioner for examinations under this subsection
14

(b). The fees shall be borne by the out-of-state bank,
15

unless the fees are borne by the state regulatory
16

authority that chartered the out-of-state bank, as
17

determined by a cooperative agreement between the
18

Commissioner and the state regulatory authority that
19

chartered the out-of-state bank.
20

(2.1) Pursuant to paragraph (a) of subsection (6) of
21

this Section, the Secretary shall adopt rules that ensure
22

consistency and due process in the examination process.
23

The Secretary may also establish guidelines that (i)
24

define the scope of the examination process and (ii)
25

clarify examination items to be resolved. The rules,
26

formal guidance, interpretive letters, or opinions

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LRB104 14113 SPS 27245 b
1

furnished to State banks by the Secretary may be relied
2

upon by the State banks.
3

(2.5) Whenever any State bank, any subsidiary or
4

affiliate of a State bank, or after May 31, 1997, any
5

branch of an out-of-state bank causes to be performed, by
6

contract or otherwise, any bank services for itself,
7

whether on or off its premises:
8

(a) that performance shall be subject to
9

examination by the Commissioner to the same extent as
10

if services were being performed by the bank or, after
11

May 31, 1997, branch of the out-of-state bank itself
12

on its own premises; and
13

(b) the bank or, after May 31, 1997, branch of the
14

out-of-state bank shall notify the Commissioner of the
15

existence of a service relationship. The notification
16

shall be submitted with the first statement of
17

condition (as required by Section 47 of this Act) due
18

after the making of the service contract or the
19

performance of the service, whichever occurs first.
20

The Commissioner shall be notified of each subsequent
21

contract in the same manner.
22

For purposes of this subsection (2.5), the term "bank
23

services" means services such as sorting and posting of
24

checks and deposits, computation and posting of interest
25

and other credits and charges, preparation and mailing of
26

checks, statements, notices, and similar items, or any

HB4474
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LRB104 14113 SPS 27245 b
1

other clerical, bookkeeping, accounting, statistical, or
2

similar functions performed for a State bank, including,
3

but not limited to, electronic data processing related to
4

those bank services.
5

(3) The expense of administering this Act, including
6

the expense of the examinations of State banks as provided
7

in this Act, shall to the extent of the amounts resulting
8

from the fees provided for in paragraphs (a), (a-2), and
9

(b) of this subsection (3) be assessed against and borne
10

by the State banks:
11

(a) Each bank shall pay to the Secretary a Call
12

Report Fee which shall be paid in quarterly
13

installments equal to one-fourth of the sum of the
14

annual fixed fee of $800, plus a variable fee based on
15

the assets shown on the quarterly statement of
16

condition delivered to the Secretary in accordance
17

with Section 47 for the preceding quarter according to
18

the following schedule: 16¢ per $1,000 of the first
19

$5,000,000 of total assets, 15¢ per $1,000 of the next
20

$20,000,000 of total assets, 13¢ per $1,000 of the
21

next $75,000,000 of total assets, 9¢ per $1,000 of the
22

next $400,000,000 of total assets, 7¢ per $1,000 of
23

the next $500,000,000 of total assets, and 5¢ per
24

$1,000 of all assets in excess of $1,000,000,000, of
25

the State bank. The Call Report Fee shall be
26

calculated by the Secretary and billed to the banks

HB4474
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LRB104 14113 SPS 27245 b
1

for remittance at the time of the quarterly statements
2

of condition provided for in Section 47. The Secretary
3

may require payment of the fees provided in this
4

Section by an electronic transfer of funds or an
5

automatic debit of an account of each of the State
6

banks. In case more than one examination of any bank is
7

deemed by the Secretary to be necessary in any
8

examination frequency cycle specified in subsection
9

2(a) of this Section, and is performed at his
10

direction, the Secretary may assess a reasonable
11

additional fee to recover the cost of the additional
12

examination. In lieu of the method and amounts set
13

forth in this paragraph (a) for the calculation of the
14

Call Report Fee, the Secretary may specify by rule
15

that the Call Report Fees provided by this Section may
16

be assessed semiannually or some other period and may
17

provide in the rule the formula to be used for
18

calculating and assessing the periodic Call Report
19

Fees to be paid by State banks.
20

(a-1) If in the opinion of the Commissioner an
21

emergency exists or appears likely, the Commissioner
22

may assign an examiner or examiners to monitor the
23

affairs of a State bank with whatever frequency he
24

deems appropriate, including, but not limited to, a
25

daily basis. The reasonable and necessary expenses of
26

the Commissioner during the period of the monitoring

HB4474
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LRB104 14113 SPS 27245 b
1

shall be borne by the subject bank. The Commissioner
2

shall furnish the State bank a statement of time and
3

expenses if requested to do so within 30 days of the
4

conclusion of the monitoring period.
5

(a-2) On and after January 1, 1990, the reasonable
6

and necessary expenses of the Commissioner during
7

examination of the performance of electronic data
8

processing services under subsection (2.5) shall be
9

borne by the banks for which the services are
10

provided. An amount, based upon a fee structure
11

prescribed by the Commissioner, shall be paid by the
12

banks or, after May 31, 1997, branches of out-of-state
13

banks receiving the electronic data processing
14

services along with the Call Report Fee assessed under
15

paragraph (a) of this subsection (3).
16

(a-3) After May 31, 1997, the reasonable and
17

necessary expenses of the Commissioner during
18

examination of the performance of electronic data
19

processing services under subsection (2.5) at or on
20

behalf of branches of out-of-state banks shall be
21

borne by the out-of-state banks, unless those expenses
22

are borne by the state regulatory authorities that
23

chartered the out-of-state banks, as determined by
24

cooperative agreements between the Commissioner and
25

the state regulatory authorities that chartered the
26

out-of-state banks.

HB4474
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LRB104 14113 SPS 27245 b
1

(b) "Fiscal year" for purposes of this Section 48
2

is defined as a period beginning July 1 of any year and
3

ending June 30 of the next year. The Commissioner
4

shall receive for each fiscal year, commencing with
5

the fiscal year ending June 30, 1987, a contingent fee
6

equal to the lesser of the aggregate of the fees paid
7

by all State banks under paragraph (a) of subsection
8

(3) for that year, or the amount, if any, whereby the
9

aggregate of the administration expenses, as defined
10

in paragraph (c), for that fiscal year exceeds the sum
11

of the aggregate of the fees payable by all State banks
12

for that year under paragraph (a) of subsection (3),
13

plus any amounts transferred into the Bank and Trust
14

Company Fund from the State Pensions Fund for that
15

year, plus all other amounts collected by the
16

Commissioner for that year under any other provision
17

of this Act, plus the aggregate of all fees collected
18

for that year by the Commissioner under the Corporate
19

Fiduciary Act, excluding the receivership fees
20

provided for in Section 5-10 of the Corporate
21

Fiduciary Act, and the Foreign Banking Office Act. The
22

aggregate amount of the contingent fee thus arrived at
23

for any fiscal year shall be apportioned among,
24

assessed upon, and paid by the State banks and foreign
25

banking corporations, respectively, in the same
26

proportion that the fee of each under paragraph (a) of

HB4474
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LRB104 14113 SPS 27245 b
1

subsection (3), respectively, for that year bears to
2

the aggregate for that year of the fees collected
3

under paragraph (a) of subsection (3). The aggregate
4

amount of the contingent fee, and the portion thereof
5

to be assessed upon each State bank and foreign
6

banking corporation, respectively, shall be determined
7

by the Commissioner and shall be paid by each,
8

respectively, within 120 days of the close of the
9

period for which the contingent fee is computed and is
10

payable, and the Commissioner shall give 20 days'
11

advance notice of the amount of the contingent fee
12

payable by the State bank and of the date fixed by the
13

Commissioner for payment of the fee.
14

(c) The "administration expenses" for any fiscal
15

year shall mean the ordinary and contingent expenses
16

for that year incident to making the examinations
17

provided for by, and for otherwise administering, this
18

Act, the Corporate Fiduciary Act, excluding the
19

expenses paid from the Corporate Fiduciary
20

Receivership account in the Bank and Trust Company
21

Fund, the Foreign Banking Office Act, the Electronic
22

Fund Transfer Act, and the Illinois Bank Examiners'
23

Education Foundation Act, including all salaries and
24

other compensation paid for personal services rendered
25

for the State by officers or employees of the State,
26

including the Commissioner and the Deputy

HB4474
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LRB104 14113 SPS 27245 b
1

Commissioners, communication equipment and services,
2

office furnishings, surety bond premiums, and travel
3

expenses of those officers and employees, employees,
4

expenditures or charges for the acquisition,
5

enlargement or improvement of, or for the use of, any
6

office space, building, or structure, or expenditures
7

for the maintenance thereof or for furnishing heat,
8

light, or power with respect thereto, all to the
9

extent that those expenditures are directly incidental
10

to such examinations or administration. The
11

Commissioner shall not be required by paragraph (c) or
12

(d-1) of this subsection (3) to maintain in any fiscal
13

year's budget appropriated reserves for accrued
14

vacation and accrued sick leave that is required to be
15

paid to employees of the Commissioner upon termination
16

of their service with the Commissioner in an amount
17

that is more than is reasonably anticipated to be
18

necessary for any anticipated turnover in employees,
19

whether due to normal attrition or due to layoffs,
20

terminations, or resignations.
21

(d) The aggregate of all fees collected by the
22

Secretary under this Act, the Corporate Fiduciary Act,
23

or the Foreign Banking Office Act on and after July 1,
24

1979, shall be paid promptly after receipt of the
25

same, accompanied by a detailed statement thereof,
26

into the State treasury and shall be set apart in a

HB4474
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LRB104 14113 SPS 27245 b
1

special fund to be known as the Bank and Trust Company
2

Fund, except as provided in paragraph (c) of
3

subsection (11) of this Section. All earnings received
4

from investments of funds in the Bank and Trust
5

Company Fund shall be deposited into the Bank and
6

Trust Company Fund and may be used for the same
7

purposes as fees deposited into that Fund. The amount
8

from time to time deposited into the Bank and Trust
9

Company Fund shall be used: (i) to offset the ordinary
10

administrative expenses of the Secretary as defined in
11

this Section or (ii) as a credit against fees under
12

paragraph (d-1) of this subsection (3). Nothing in
13

Public Act 81-131 shall prevent continuing the
14

practice of paying expenses involving salaries,
15

retirement, social security, and State-paid insurance
16

premiums of State officers by appropriations from the
17

General Revenue Fund. However, the General Revenue
18

Fund shall be reimbursed for those payments made on
19

and after July 1, 1979, by an annual transfer of funds
20

from the Bank and Trust Company Fund. Moneys in the
21

Bank and Trust Company Fund may be transferred to the
22

Professions Indirect Cost Fund, as authorized under
23

Section 2105-300 of the Department of Professional
24

Regulation Law of the Civil Administrative Code of
25

Illinois.
26

Notwithstanding provisions in the State Finance

HB4474
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LRB104 14113 SPS 27245 b
1

Act, as now or hereafter amended, or any other law to
2

the contrary, the Governor may, during any fiscal year
3

through January 10, 2011, from time to time direct the
4

State Treasurer and Comptroller to transfer a
5

specified sum not exceeding 10% of the revenues to be
6

deposited into the Bank and Trust Company Fund during
7

that fiscal year from that Fund to the General Revenue
8

Fund in order to help defray the State's operating
9

costs for the fiscal year. Notwithstanding provisions
10

in the State Finance Act, as now or hereafter amended,
11

or any other law to the contrary, the total sum
12

transferred during any fiscal year through January 10,
13

2011, from the Bank and Trust Company Fund to the
14

General Revenue Fund pursuant to this provision shall
15

not exceed during any fiscal year 10% of the revenues
16

to be deposited into the Bank and Trust Company Fund
17

during that fiscal year. The State Treasurer and
18

Comptroller shall transfer the amounts designated
19

under this Section as soon as may be practicable after
20

receiving the direction to transfer from the Governor.
21

(d-1) Adequate funds shall be available in the
22

Bank and Trust Company Fund to permit the timely
23

payment of administration expenses. In each fiscal
24

year the total administration expenses shall be
25

deducted from the total fees collected by the
26

Commissioner and the remainder transferred into the

HB4474
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LRB104 14113 SPS 27245 b
1

Cash Flow Reserve Account, unless the balance of the
2

Cash Flow Reserve Account prior to the transfer equals
3

or exceeds one-fourth of the total initial
4

appropriations from the Bank and Trust Company Fund
5

for the subsequent year, in which case the remainder
6

shall be credited to State banks and foreign banking
7

corporations and applied against their fees for the
8

subsequent year. The amount credited to each State
9

bank and foreign banking corporation shall be in the
10

same proportion as the Call Report Fees paid by each
11

for the year bear to the total Call Report Fees
12

collected for the year. If, after a transfer to the
13

Cash Flow Reserve Account is made or if no remainder is
14

available for transfer, the balance of the Cash Flow
15

Reserve Account is less than one-fourth of the total
16

initial appropriations for the subsequent year and the
17

amount transferred is less than 5% of the total Call
18

Report Fees for the year, additional amounts needed to
19

make the transfer equal to 5% of the total Call Report
20

Fees for the year shall be apportioned among, assessed
21

upon, and paid by the State banks and foreign banking
22

corporations in the same proportion that the Call
23

Report Fees of each, respectively, for the year bear
24

to the total Call Report Fees collected for the year.
25

The additional amounts assessed shall be transferred
26

into the Cash Flow Reserve Account. For purposes of

HB4474
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LRB104 14113 SPS 27245 b
1

this paragraph (d-1), the calculation of the fees
2

collected by the Commissioner shall exclude the
3

receivership fees provided for in Section 5-10 of the
4

Corporate Fiduciary Act.
5

(e) The Commissioner may upon request certify to
6

any public record in his keeping and shall have
7

authority to levy a reasonable charge for issuing
8

certifications of any public record in his keeping.
9

(f) In addition to fees authorized elsewhere in
10

this Act, the Commissioner may, in connection with a
11

review, approval, or provision of a service, levy a
12

reasonable charge to recover the cost of the review,
13

approval, or service.
14

(4) Nothing contained in this Act shall be construed
15

to limit the obligation relative to examinations and
16

reports of any State bank, deposits in which are to any
17

extent insured by the United States or any agency thereof,
18

nor to limit in any way the powers of the Commissioner with
19

reference to examinations and reports of that bank.
20

(5) The nature and condition of the assets in or
21

investment of any bonus, pension, or profit sharing plan
22

for officers or employees of every State bank or, after
23

May 31, 1997, branch of an out-of-state bank shall be
24

deemed to be included in the affairs of that State bank or
25

branch of an out-of-state bank subject to examination by
26

the Commissioner under the provisions of subsection (2) of

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LRB104 14113 SPS 27245 b
1

this Section, and if the Commissioner shall find from an
2

examination that the condition of or operation of the
3

investments or assets of the plan is unlawful, fraudulent,
4

or unsafe, or that any trustee has abused his trust, the
5

Commissioner shall, if the situation so found by the
6

Commissioner shall not be corrected to his satisfaction
7

within 60 days after the Commissioner has given notice to
8

the board of directors of the State bank or out-of-state
9

bank of his findings, report the facts to the Attorney
10

General who shall thereupon institute proceedings against
11

the State bank or out-of-state bank, the board of
12

directors thereof, or the trustees under such plan as the
13

nature of the case may require.
14

(6) The Commissioner shall have the power:
15

(a) To
adopt and enforce

promulgate
reasonable
16

rules for the purpose of administering the provisions
17

of this Act.
18

(a-2) To adopt and enforce rules that prohibit the
19

imposition by a bank of charges in connection with (i)
20

a check drawn or other written order upon, or
21

electronic transfer sought to be effectuated against,
22

insufficient funds or uncollected balances in a
23

consumer account, whether or not the bank pays such
24

check, written order, or electronic transfer or (ii) a
25

check or other written order received by a bank for
26

deposit or collection drawn against a consumer account

HB4474
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LRB104 14113 SPS 27245 b
1

and subsequently dishonored and returned for any
2

reason by the drawee.

3

(a-5) To impose conditions on any approval issued
4

by the Commissioner if he determines that the
5

conditions are necessary or appropriate. These
6

conditions shall be imposed in writing and shall
7

continue in effect for the period prescribed by the
8

Commissioner.
9

(b) To issue orders against any person, if the
10

Commissioner has reasonable cause to believe that an
11

unsafe or unsound banking practice has occurred, is
12

occurring, or is about to occur, if any person has
13

violated, is violating, or is about to violate any
14

law, rule, or written agreement with the Commissioner,
15

or for the purpose of administering the provisions of
16

this Act and any rule promulgated in accordance with
17

this Act.
18

(b-1) To enter into agreements with a bank
19

establishing a program to correct the condition of the
20

bank or its practices.
21

(c) To appoint hearing officers to execute any of
22

the powers granted to the Commissioner under this
23

Section for the purpose of administering this Act and
24

any rule promulgated in accordance with this Act and
25

otherwise to authorize, in writing, an officer or
26

employee of the Office of Banks and Real Estate to

HB4474
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LRB104 14113 SPS 27245 b
1

exercise his powers under this Act.
2

(d) To subpoena witnesses, to compel their
3

attendance, to administer an oath, to examine any
4

person under oath, and to require the production of
5

any relevant books, papers, accounts, and documents in
6

the course of and pursuant to any investigation being
7

conducted, or any action being taken, by the
8

Commissioner in respect of any matter relating to the
9

duties imposed upon, or the powers vested in, the
10

Commissioner under the provisions of this Act or any
11

rule promulgated in accordance with this Act.
12

(e) To conduct hearings.
13

(7) Whenever, in the opinion of the Secretary, any
14

director, officer, employee, or agent of a State bank or
15

any subsidiary or bank holding company of the bank or,
16

after May 31, 1997, of any branch of an out-of-state bank
17

or any subsidiary or bank holding company of the bank
18

shall have violated any law, rule, or order relating to
19

that bank or any subsidiary or bank holding company of the
20

bank, shall have obstructed or impeded any examination or
21

investigation by the Secretary, shall have engaged in an
22

unsafe or unsound practice in conducting the business of
23

that bank or any subsidiary or bank holding company of the
24

bank, or shall have violated any law or engaged or
25

participated in any unsafe or unsound practice in
26

connection with any financial institution or other

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1

business entity such that the character and fitness of the
2

director, officer, employee, or agent does not assure
3

reasonable promise of safe and sound operation of the
4

State bank, the Secretary may issue an order of removal.
5

If, in the opinion of the Secretary, any former director,
6

officer, employee, or agent of a State bank or any
7

subsidiary or bank holding company of the bank, prior to
8

the termination of his or her service with that bank or any
9

subsidiary or bank holding company of the bank, violated
10

any law, rule, or order relating to that State bank or any
11

subsidiary or bank holding company of the bank, obstructed
12

or impeded any examination or investigation by the
13

Secretary, engaged in an unsafe or unsound practice in
14

conducting the business of that bank or any subsidiary or
15

bank holding company of the bank, or violated any law or
16

engaged or participated in any unsafe or unsound practice
17

in connection with any financial institution or other
18

business entity such that the character and fitness of the
19

director, officer, employee, or agent would not have
20

assured reasonable promise of safe and sound operation of
21

the State bank, the Secretary may issue an order
22

prohibiting that person from further service with a bank
23

or any subsidiary or bank holding company of the bank as a
24

director, officer, employee, or agent. An order issued
25

pursuant to this subsection shall be served upon the
26

director, officer, employee, or agent. A copy of the order

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1

shall be sent to each director of the bank affected by
2

registered mail. A copy of the order shall also be served
3

upon the bank of which he is a director, officer,
4

employee, or agent, whereupon he shall cease to be a
5

director, officer, employee, or agent of that bank. The
6

Secretary may institute a civil action against the
7

director, officer, or agent of the State bank or, after
8

May 31, 1997, of the branch of the out-of-state bank
9

against whom any order provided for by this subsection (7)
10

of this Section 48 has been issued, and against the State
11

bank or, after May 31, 1997, out-of-state bank, to enforce
12

compliance with or to enjoin any violation of the terms of
13

the order. Any person who has been the subject of an order
14

of removal or an order of prohibition issued by the
15

Secretary under this subsection or Section 5-6 of the
16

Corporate Fiduciary Act may not thereafter serve as
17

director, officer, employee, or agent of any State bank or
18

of any branch of any out-of-state bank, or of any
19

corporate fiduciary, as defined in Section 1-5.05 of the
20

Corporate Fiduciary Act, or of any other entity that is
21

subject to licensure or regulation by the Division of
22

Banking unless the Secretary has granted prior approval in
23

writing.
24

For purposes of this paragraph (7), "bank holding
25

company" has the meaning prescribed in Section 2 of the
26

Illinois Bank Holding Company Act of 1957.

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1

(7.5) Notwithstanding the provisions of this Section,
2

the Secretary shall not:
3

(1) issue an order against a State bank or any
4

subsidiary organized under this Act for unsafe or
5

unsound banking practices solely because the entity
6

provides or has provided financial services to a
7

cannabis-related legitimate business;
8

(2) prohibit, penalize, or otherwise discourage a
9

State bank or any subsidiary from providing financial
10

services to a cannabis-related legitimate business
11

solely because the entity provides or has provided
12

financial services to a cannabis-related legitimate
13

business;
14

(3) recommend, incentivize, or encourage a State
15

bank or any subsidiary not to offer financial services
16

to an account holder or to downgrade or cancel the
17

financial services offered to an account holder solely
18

because:
19

(A) the account holder is a manufacturer or
20

producer, or is the owner, operator, or employee
21

of a cannabis-related legitimate business;
22

(B) the account holder later becomes an owner
23

or operator of a cannabis-related legitimate
24

business; or
25

(C) the State bank or any subsidiary was not
26

aware that the account holder is the owner or

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1

operator of a cannabis-related legitimate
2

business; and
3

(4) take any adverse or corrective supervisory
4

action on a loan made to an owner or operator of:
5

(A) a cannabis-related legitimate business
6

solely because the owner or operator owns or
7

operates a cannabis-related legitimate business;
8

or
9

(B) real estate or equipment that is leased to
10

a cannabis-related legitimate business solely
11

because the owner or operator of the real estate
12

or equipment leased the equipment or real estate
13

to a cannabis-related legitimate business.
14

(8) The Commissioner may impose civil penalties of up
15

to $100,000 against any person for each violation of any
16

provision of this Act, any rule promulgated in accordance
17

with this Act, any order of the Commissioner, or any other
18

action which in the Commissioner's discretion is an unsafe
19

or unsound banking practice.
20

(9) The Commissioner may impose civil penalties of up
21

to $100 against any person for the first failure to comply
22

with reporting requirements set forth in the report of
23

examination of the bank and up to $200 for the second and
24

subsequent failures to comply with those reporting
25

requirements.
26

(10) All final administrative decisions of the

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1

Commissioner hereunder shall be subject to judicial review
2

pursuant to the provisions of the Administrative Review
3

Law. For matters involving administrative review, venue
4

shall be in either Sangamon County or Cook County.
5

(11) The endowment fund for the Illinois Bank
6

Examiners' Education Foundation shall be administered as
7

follows:
8

(a) (Blank).
9

(b) The Foundation is empowered to receive
10

voluntary contributions, gifts, grants, bequests, and
11

donations on behalf of the Illinois Bank Examiners'
12

Education Foundation from national banks and other
13

persons for the purpose of funding the endowment of
14

the Illinois Bank Examiners' Education Foundation.
15

(c) The aggregate of all special educational fees
16

collected by the Secretary and property received by
17

the Secretary on behalf of the Illinois Bank
18

Examiners' Education Foundation under this subsection
19

(11) on or after June 30, 1986, shall be either (i)
20

promptly paid after receipt of the same, accompanied
21

by a detailed statement thereof, into the State
22

treasury and shall be set apart in a special fund to be
23

known as the Illinois Bank Examiners' Education Fund
24

to be invested by either the Treasurer of the State of
25

Illinois in the Public Treasurers' Investment Pool or
26

in any other investment he is authorized to make or by

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1

the Illinois State Board of Investment as the State
2

Banking Board of Illinois may direct or (ii) deposited
3

into an account maintained in a commercial bank or
4

corporate fiduciary in the name of the Illinois Bank
5

Examiners' Education Foundation pursuant to the order
6

and direction of the Board of Trustees of the Illinois
7

Bank Examiners' Education Foundation.
8

(12) (Blank).
9

(13) The Secretary may borrow funds from the General
10

Revenue Fund on behalf of the Bank and Trust Company Fund
11

if the Director of Banking certifies to the Governor that
12

there is an economic emergency affecting banking that
13

requires a borrowing to provide additional funds to the
14

Bank and Trust Company Fund. The borrowed funds shall be
15

paid back within 3 years and shall not exceed the total
16

funding appropriated to the Agency in the previous year.
17

(14) In addition to the fees authorized in this Act,
18

the Secretary may assess reasonable receivership fees
19

against any State bank that does not maintain insurance
20

with the Federal Deposit Insurance Corporation. All fees
21

collected under this subsection (14) shall be paid into
22

the Non-insured Institutions Receivership account in the
23

Bank and Trust Company Fund, as established by the
24

Secretary. The fees assessed under this subsection (14)
25

shall provide for the expenses that arise from the
26

administration of the receivership of any such institution

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1

required to pay into the Non-insured Institutions
2

Receivership account, whether pursuant to this Act, the
3

Corporate Fiduciary Act, the Foreign Banking Office Act,
4

or any other Act that requires payments into the
5

Non-insured Institutions Receivership account. The
6

Secretary may establish by rule a reasonable manner of
7

assessing fees under this subsection (14).
8
(Source: P.A. 102-558, eff. 8-20-21; 103-154, eff. 6-30-23.)

9

Section 10.
The Savings Bank Act is amended by changing
10
Section 9002 as follows:

11

(205 ILCS 205/9002)

(from Ch. 17, par. 7309-2)
12

Sec. 9002.
Powers of Secretary.
13

(a) The Secretary shall have the following powers and
14
duties:
15

(1) To exercise the rights, powers, and duties set
16

forth in this Act or in any related Act.
17

(2) To
adopt and enforce rules

establish regulations

18

as may be reasonable or necessary to accomplish the
19

purposes of this Act.
20

(2.5) To adopt and enforce rules that prohibit the
21

imposition by a savings bank of charges in connection with
22

(i) a check drawn or other written order upon, or
23

electronic transfer sought to be effectuated against,
24

insufficient funds or uncollected balances in a consumer

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1

account, whether or not the savings bank pays such check,
2

written order, or electronic transfer or (ii) a check or
3

other written order received by a savings bank for deposit
4

or collection drawn against a consumer account and
5

subsequently dishonored and returned for any reason by the
6

drawee.

7

(3) To make an annual report regarding the work of his
8

or her office under this Act as he may consider desirable
9

to the Governor, or as the Governor may request.
10

(4) To cause a suit to be filed in his or her name to
11

enforce any law of this State that applies to savings
12

banks, their service corporations, subsidiaries,
13

affiliates, or holding companies operating under this Act,
14

including the enforcement of any obligation of the
15

officers, directors, agents, or employees of any savings
16

bank.
17

(5) To prescribe a uniform manner in which the books
18

and records of every savings bank are to be maintained.
19

(6) To establish a reasonable fee structure for
20

savings banks and holding companies operating under this
21

Act and for their service corporations and subsidiaries.
22

The fees shall include, but not be limited to, annual
23

fees, application fees, regular and special examination
24

fees, and other fees as the Secretary establishes and
25

demonstrates to be directly resultant from the Secretary's
26

responsibilities under this Act and as are directly

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1

attributable to individual entities operating under this
2

Act. The aggregate of all moneys collected by the
3

Secretary on and after the effective date of this Act
4

shall be paid promptly after receipt of the same,
5

accompanied by a detailed statement thereof, into the
6

Savings Bank Regulatory Fund established under Section
7

9002.1 of this Act. Nothing in this Act shall prevent
8

continuing the practice of paying expenses involving
9

salaries, retirement, social security, and State-paid
10

insurance of State officers by appropriation from the
11

General Revenue Fund. The Secretary may require payment of
12

the fees under this Act by an electronic transfer of funds
13

or an automatic debit of an account of each of the savings
14

banks.
15

(b) Notwithstanding the provisions of subsection (a), the
16
Secretary shall not:
17

(1) issue an order against a savings bank or holding
18

company organized under this Act for unsafe or unsound
19

banking practices solely because the entity provides or
20

has provided financial services to a cannabis-related
21

legitimate business;
22

(2) prohibit, penalize, or otherwise discourage a
23

savings bank or holding company organized under this Act
24

from providing financial services to a cannabis-related
25

legitimate business solely because the entity provides or
26

has provided financial services to a cannabis-related

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LRB104 14113 SPS 27245 b
1

legitimate business;
2

(3) recommend, incentivize, or encourage a savings
3

bank or holding company organized under this Act not to
4

offer financial services to an account holder or to
5

downgrade or cancel the financial services offered to an
6

account holder solely because:
7

(A) the account holder is a manufacturer or
8

producer, or is the owner, operator, or employee of, a
9

cannabis-related legitimate business;
10

(B) the account holder later becomes an owner or
11

operator of a cannabis-related legitimate business; or
12

(C) the savings bank or holding company organized
13

under this Act was not aware that the account holder is
14

the owner or operator of a cannabis-related legitimate
15

business; or
16

(4) take any adverse or corrective supervisory action
17

on a loan made to an owner or operator of:
18

(A) a cannabis-related legitimate business solely
19

because the owner or operator owns or operates a
20

cannabis-related legitimate business; or
21

(B) real estate or equipment that is leased to a
22

cannabis-related legitimate business solely because
23

the owner or operator of the real estate or equipment
24

leased the equipment or real estate to a
25

cannabis-related legitimate business.
26
(Source: P.A. 101-593, eff. 12-4-19.)

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1

Section 15.
The Illinois Credit Union Act is amended by
2
changing Section 8 as follows:

3

(205 ILCS 305/8)

(from Ch. 17, par. 4409)
4

Sec. 8.
Secretary's powers and duties.
Credit unions are
5
regulated by the Department. The Secretary in executing the
6
powers and discharging the duties vested by law in the
7
Department has the following powers and duties:
8

(1) To exercise the rights, powers, and duties set
9

forth in this Act or any related Act. The Director shall
10

oversee the functions of the Division and report to the
11

Secretary, with respect to the Director's exercise of any
12

of the rights, powers, and duties vested by law in the
13

Secretary under this Act. All references in this Act to
14

the Secretary shall be deemed to include the Director, as
15

a person authorized by the Secretary or this Act to assume
16

responsibility for the oversight of the functions of the
17

Department relating to the regulatory supervision of
18

credit unions under this Act.
19

(2) To adopt
and enforce
rules for the administration
20

of this Act. The provisions of the Illinois Administrative
21

Procedure Act are hereby expressly adopted and
22

incorporated herein as though a part of this Act, and
23

shall apply to all administrative rules and procedures of
24

the Department under this Act. Rules adopted by the

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LRB104 14113 SPS 27245 b
1

Secretary shall be within the statutory authority upon
2

which they are based. If there is a conflict,
3

inconsistency, or variation between the terms of this Act
4

and the provisions in a rule adopted by the Secretary, the
5

terms of this Act shall control. A conflict,
6

inconsistency, or variation may not be deemed to exist if
7

the Act specifically delegates authority to the Secretary
8

to adopt by rule standards or limitations on a particular
9

matter, provided the rule is within the statutory
10

authority upon which it is based.
11

(2.5) To adopt and enforce rules that prohibit the
12

imposition by a credit union of charges in connection with
13

(i) a check drawn or other written order upon, or
14

electronic transfer sought to be effectuated against,
15

insufficient funds or uncollected balances in a consumer
16

account, whether or not the credit union pays such check,
17

written order, or electronic transfer or (ii) a check or
18

other written order received by a credit union for deposit
19

or collection drawn against a consumer account and
20

subsequently dishonored and returned for any reason by the
21

drawee.

22

(3) To direct and supervise all the administrative and
23

technical activities of the Department including the
24

employment of a Credit Union Supervisor who shall have
25

knowledge in the theory and practice of, or experience in,
26

the operations or supervision of financial institutions,

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LRB104 14113 SPS 27245 b
1

preferably credit unions, and such other persons as are
2

necessary to carry out his functions. The Secretary shall
3

ensure that all examiners appointed or assigned to examine
4

the affairs of State-chartered credit unions possess the
5

necessary training and continuing education to effectively
6

execute their jobs.
7

(4) To issue cease and desist orders when in the
8

opinion of the Secretary, a credit union is engaged or has
9

engaged, or the Secretary has reasonable cause to believe
10

the credit union is about to engage, in an unsafe or
11

unsound practice, or is violating or has violated or the
12

Secretary has reasonable cause to believe is about to
13

violate a law, rule, or regulation or any condition
14

imposed in writing by the Department.
15

(5) To suspend from office and to prohibit from
16

further participation in any manner in the conduct of the
17

affairs of any credit union any director, officer, or
18

committee member who has committed any violation of a law,
19

rule, or regulation or of a cease and desist order or who
20

has engaged or participated in any unsafe or unsound
21

practice in connection with the credit union or who has
22

committed or engaged in any act, omission, or practice
23

which constitutes a breach of his fiduciary duty as such
24

director, officer, or committee member, when the Secretary
25

has determined that such action or actions have resulted
26

or will result in substantial financial loss or other

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LRB104 14113 SPS 27245 b
1

damage that seriously prejudices the interests of the
2

members.
3

(6) To assess a civil penalty against a credit union
4

provided that:
5

(A) the Secretary reasonably determines, based on
6

objective facts and an accurate assessment of
7

applicable legal standards, that the credit union has:
8

(i) committed a violation of this Act, any
9

rule adopted in accordance with this Act, or any
10

order of the Secretary issued pursuant to his or
11

her authority under this Act; or
12

(ii) engaged or participated in any unsafe or
13

unsound practice;
14

(B) before a civil penalty is assessed under this
15

item (6), the Secretary must make the further
16

reasonable determination, based on objective facts and
17

an accurate assessment of applicable legal standards,
18

that the credit union's action constituting a
19

violation under subparagraph (i) of paragraph (A) of
20

this item (6) or an unsafe and unsound practice under
21

subparagraph (ii) of paragraph (A) of this item (6):
22

(i) directly resulted in a substantial and
23

material financial loss or created a reasonable
24

probability that a substantial and material
25

financial loss will directly result; or
26

(ii) constituted willful misconduct or a

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LRB104 14113 SPS 27245 b
1

material breach of fiduciary duty of any director,
2

officer, or committee member of the credit union;
3

Material financial loss, as referenced in this
4

paragraph (B), shall be assessed in light of
5

surrounding circumstances and the relative size and
6

nature of the financial loss or probable financial
7

loss. Certain benchmarks shall be used in determining
8

whether financial loss is material, such as a
9

percentage of total assets or total gross income for
10

the immediately preceding 12-month period. Absent
11

compelling and extraordinary circumstances, no civil
12

penalty shall be assessed, unless the financial loss
13

or probable financial loss is equal to or greater than
14

either 1% of the credit union's total assets for the
15

immediately preceding 12-month period, or 1% of the
16

credit union's total gross income for the immediately
17

preceding 12-month period, whichever is less;
18

(C) before a civil penalty is assessed under this
19

item (6), the credit union must be expressly advised
20

in writing of the:
21

(i) specific violation that could subject it
22

to a penalty under this item (6); and
23

(ii) specific remedial action to be taken
24

within a specific and reasonable time frame to
25

avoid imposition of the penalty;
26

(D) civil penalties assessed under this item (6)

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LRB104 14113 SPS 27245 b
1

shall be remedial, not punitive, and reasonably
2

tailored to ensure future compliance by the credit
3

union with the provisions of this Act and any rules
4

adopted pursuant to this Act;
5

(E) a credit union's failure to take timely
6

remedial action with respect to the specific violation
7

may result in the issuance of an order assessing a
8

civil penalty up to the following maximum amount,
9

based upon the total assets of the credit union:
10

(i) Credit unions with assets of less than $10
11

million
................................................
$1,000
12

(ii) Credit unions with assets of at least $10
13

million and less than $50 million
......................
$2,500
14

(iii) Credit unions with assets of at least
15

$50 million and less than $100 million
.................
$5,000
16

(iv) Credit unions with assets of at least
17

$100 million and less than $500 million
...............
$10,000
18

(v) Credit unions with assets of at least $500
19

million and less than $1 billion
......................
$25,000
20

(vi) Credit unions with assets of $1 billion
21

and greater
.....................................
$50,000; and
22

(F) an order assessing a civil penalty under this
23

item (6) shall take effect upon service of the order,
24

unless the credit union makes a written request for a
25

hearing under 38 Ill. Adm. Code 190.20 of the
26

Department's rules for credit unions within 90 days

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LRB104 14113 SPS 27245 b
1

after issuance of the order; in that event, the order
2

shall be stayed until a final administrative order is
3

entered.
4

This item (6) shall not apply to violations separately
5

addressed in rules as authorized under item (7) of this
6

Section.
7

(7) Except for the fees established in this Act, to
8

prescribe, by rule and regulation, fees and penalties for
9

preparing, approving, and filing reports and other
10

documents; furnishing transcripts; holding hearings;
11

investigating applications for permission to organize,
12

merge, or convert; failure to maintain accurate books and
13

records to enable the Department to conduct an
14

examination; and taking supervisory actions.
15

(8) To destroy, in his discretion, any or all books
16

and records of any credit union in his possession or under
17

his control after the expiration of three years from the
18

date of cancellation of the charter of such credit unions.
19

(9) To make investigations and to conduct research and
20

studies and to publish some of the problems of persons in
21

obtaining credit at reasonable rates of interest and of
22

the methods and benefits of cooperative saving and lending
23

for such persons.
24

(10) To authorize, foster, or establish experimental,
25

developmental, demonstration, or pilot projects by public
26

or private organizations including credit unions which:

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LRB104 14113 SPS 27245 b
1

(a) promote more effective operation of credit
2

unions so as to provide members an opportunity to use
3

and control their own money to improve their economic
4

and social conditions; or
5

(b) are in the best interests of credit unions,
6

their members and the people of the State of Illinois.
7

(11) To cooperate in studies, training, or other
8

administrative activities with, but not limited to, the
9

NCUA, other state credit union regulatory agencies and
10

industry trade associations in order to promote more
11

effective and efficient supervision of Illinois chartered
12

credit unions.
13

(12) Notwithstanding the provisions of this Section,
14

the Secretary shall not:
15

(1) issue an order against a credit union
16

organized under this Act for unsafe or unsound banking
17

practices solely because the entity provides or has
18

provided financial services to a cannabis-related
19

legitimate business;
20

(2) prohibit, penalize, or otherwise discourage a
21

credit union from providing financial services to a
22

cannabis-related legitimate business solely because
23

the entity provides or has provided financial services
24

to a cannabis-related legitimate business;
25

(3) recommend, incentivize, or encourage a credit
26

union not to offer financial services to an account

HB4474
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LRB104 14113 SPS 27245 b
1

holder or to downgrade or cancel the financial
2

services offered to an account holder solely because:
3

(A) the account holder is a manufacturer or
4

producer, or is the owner, operator, or employee
5

of a cannabis-related legitimate business;
6

(B) the account holder later becomes an owner
7

or operator of a cannabis-related legitimate
8

business; or
9

(C) the credit union was not aware that the
10

account holder is the owner or operator of a
11

cannabis-related legitimate business; and
12

(4) take any adverse or corrective supervisory
13

action on a loan made to an owner or operator of:
14

(A) a cannabis-related legitimate business
15

solely because the owner or operator owns or
16

operates a cannabis-related legitimate business;
17

or
18

(B) real estate or equipment that is leased to
19

a cannabis-related legitimate business solely
20

because the owner or operator of the real estate
21

or equipment leased the equipment or real estate
22

to a cannabis-related legitimate business.
23
(Source: P.A. 102-858, eff. 5-13-22; 103-154, eff. 6-30-23;
24
103-1034, eff. 8-9-24.)

25

Section 20.
The Criminal Code of 2012 is amended by

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1
changing Section 17-1b as follows:

2

(720 ILCS 5/17-1b)
3

Sec. 17-1b.
State's Attorney's bad check diversion
4
program.
5

(a) In this Section:
6

"Offender" means a person charged with, or for whom
7
probable cause exists to charge the person with, deceptive
8
practices.
9

"Pretrial diversion" means the decision of a prosecutor to
10
refer an offender to a diversion program on condition that the
11
criminal charges against the offender will be dismissed after
12
a specified period of time, or the case will not be charged, if
13
the offender successfully completes the program.
14

"Restitution" means all amounts payable to a victim of
15
deceptive practices under the bad check diversion program
16
created under this Section, including the amount of the check
17
and any transaction fees payable to a victim as set forth in
18
subsection (g) but does not include amounts recoverable under
19
Section 3-806 of the Uniform Commercial Code and
subsection
20
(E) of Section 17-1 of this Code.
21

(b) A State's Attorney may create within his or her office
22
a bad check diversion program for offenders who agree to
23
voluntarily participate in the program instead of undergoing
24
prosecution. The program may be conducted by the State's
25
Attorney or by a private entity under contract with the

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State's Attorney. If the State's Attorney contracts with a
2
private entity to perform any services in operating the
3
program, the entity shall operate under the supervision,
4
direction, and control of the State's Attorney. Any private
5
entity providing services under this Section is not a
6
"collection agency" as that term is defined under the
7
Collection Agency Act.
8

(c) If an offender is referred to the State's Attorney,
9
the State's Attorney may determine whether the offender is
10
appropriate for acceptance in the program. The State's
11
Attorney may consider, but shall not be limited to
12
consideration of, the following factors:

13

(1) the amount of the check that was drawn or passed;

14

(2) prior referrals of the offender to the program;

15

(3) whether other charges of deceptive practices are
16

pending against the offender;

17

(4) the evidence presented to the State's Attorney
18

regarding the facts and circumstances of the incident;

19

(5) the offender's criminal history; and

20

(6) the reason the check was dishonored by the
21

financial institution.
22

(d) The bad check diversion program may require an
23
offender to do one or more of the following:

24

(i) pay for, at his or her own expense, and
25

successfully complete an educational class held by the
26

State's Attorney or a private entity under contract with

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the State's Attorney;

2

(ii) make full restitution for the offense;

3

(iii) pay a per-check administrative fee as set forth
4

in this Section.
5

(e) If an offender is diverted to the program, the State's
6
Attorney shall agree in writing not to prosecute the offender
7
upon the offender's successful completion of the program
8
conditions. The State's Attorney's agreement to divert the
9
offender shall specify the offenses that will not be
10
prosecuted by identifying the checks involved in the
11
transactions.
12

(f) The State's Attorney, or private entity under contract
13
with the State's Attorney, may collect a fee from an offender
14
diverted to the State's Attorney's bad check diversion
15
program. This fee may be deposited in a bank account
16
maintained by the State's Attorney for the purpose of
17
depositing fees and paying the expenses of the program or for
18
use in the enforcement and prosecution of criminal laws. The
19
State's Attorney may require that the fee be paid directly to a
20
private entity that administers the program under a contract
21
with the State's Attorney. The amount of the administrative
22
fees collected by the State's Attorney under the program may
23
not exceed $35 per check. The county board may, however, by
24
ordinance, increase the fees allowed by this Section if the
25
increase is justified by an acceptable cost study showing that
26
the fees allowed by this Section are not sufficient to cover

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the cost of providing the service.

2

(g)

(1) The private entity shall be required to maintain
3

adequate general liability insurance of $1,000,000 per
4

occurrence as well as adequate coverage for potential loss
5

resulting from employee dishonesty. The State's Attorney
6

may require a surety bond payable to the State's Attorney
7

if in the State's Attorney's opinion it is determined that
8

the private entity is not adequately insured or funded.

9

(2)

(A) Each private entity that has a contract with
10

the State's Attorney to conduct a bad check diversion
11

program shall at all times maintain a separate bank
12

account in which all moneys received from the
13

offenders participating in the program shall be
14

deposited, referred to as a "trust account", except
15

that negotiable instruments received may be forwarded
16

directly to a victim of the deceptive practice
17

committed by the offender if that procedure is
18

provided for by a writing executed by the victim.
19

Moneys received shall be so deposited within 5
20

business days after posting to the private entity's
21

books of account. There shall be sufficient funds in
22

the trust account at all times to pay the victims the
23

amount due them.

24

(B) The trust account shall be established in a
25

financial institution which is federally or State
26

insured or otherwise secured as defined by rule. If

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the account is interest bearing, the private entity
2

shall pay to the victim interest earned on funds on
3

deposit after the 60th day.

4

(C) Each private entity shall keep on file the
5

name of the financial institution in which each trust
6

account is maintained, the name of each trust account,
7

and the names of the persons authorized to withdraw
8

funds from each account. The private entity, within 30
9

days of the time of a change of depository or person
10

authorized to make withdrawal, shall update its files
11

to reflect that change. An examination and audit of a
12

private entity's trust accounts may be made by the
13

State's Attorney as the State's Attorney deems
14

appropriate. A trust account financial report shall be
15

submitted annually on forms acceptable to the State's
16

Attorney.

17

(3) The State's Attorney may cancel a contract entered
18

into with a private entity under this Section for any one
19

or any combination of the following causes:

20

(A) Conviction of the private entity or the
21

principals of the private entity of any crime under
22

the laws of any U.S. jurisdiction which is a felony, a
23

misdemeanor an essential element of which is
24

dishonesty, or of any crime which directly relates to
25

the practice of the profession.

26

(B) A determination that the private entity has

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engaged in conduct prohibited in item (4).

2

(4) The State's Attorney may determine whether the
3

private entity has engaged in the following prohibited
4

conduct:

5

(A) Using or threatening to use force or violence
6

to cause physical harm to an offender, his or her
7

family, or his or her property.

8

(B) Threatening the seizure, attachment, or sale
9

of an offender's property where such action can only
10

be taken pursuant to court order without disclosing
11

that prior court proceedings are required.

12

(C) Disclosing or threatening to disclose
13

information adversely affecting an offender's
14

reputation for creditworthiness with knowledge the
15

information is false.

16

(D) Initiating or threatening to initiate
17

communication with an offender's employer unless there
18

has been a default of the payment of the obligation for
19

at least 30 days and at least 5 days prior written
20

notice, to the last known address of the offender, of
21

the intention to communicate with the employer has
22

been given to the employee, except as expressly
23

permitted by law or court order.

24

(E) Communicating with the offender or any member
25

of the offender's family at such a time of day or night
26

and with such frequency as to constitute harassment of

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the offender or any member of the offender's family.
2

For purposes of this clause (E) the following conduct
3

shall constitute harassment:

4

(i) Communicating with the offender or any
5

member of his or her family at any unusual time or
6

place or a time or place known or which should be
7

known to be inconvenient to the offender. In the
8

absence of knowledge of circumstances to the
9

contrary, a private entity shall assume that the
10

convenient time for communicating with a consumer
11

is after 8 o'clock a.m. and before 9 o'clock p.m.
12

local time at the offender's residence.

13

(ii) The threat of publication or publication
14

of a list of offenders who allegedly refuse to pay
15

restitution, except by the State's Attorney.

16

(iii) The threat of advertisement or
17

advertisement for sale of any restitution to
18

coerce payment of the restitution.

19

(iv) Causing a telephone to ring or engaging
20

any person in telephone conversation repeatedly or
21

continuously with intent to annoy, abuse, or
22

harass any person at the called number.

23

(v) Using profane, obscene or abusive language
24

in communicating with an offender, his or her
25

family, or others.

26

(vi) Disclosing or threatening to disclose

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information relating to a offender's case to any
2

other person except the victim and appropriate law
3

enforcement personnel.

4

(vii) Disclosing or threatening to disclose
5

information concerning the alleged criminal act
6

which the private entity knows to be reasonably
7

disputed by the offender without disclosing the
8

fact that the offender disputes the accusation.

9

(viii) Engaging in any conduct which the
10

State's Attorney finds was intended to cause and
11

did cause mental or physical illness to the
12

offender or his or her family.

13

(ix) Attempting or threatening to enforce a
14

right or remedy with knowledge or reason to know
15

that the right or remedy does not exist.

16

(x) Except as authorized by the State's
17

Attorney, using any form of communication which
18

simulates legal or judicial process or which gives
19

the appearance of being authorized, issued or
20

approved by a governmental agency or official or
21

by an attorney at law when it is not.

22

(xi) Using any badge, uniform, or other
23

indicia of any governmental agency or official,
24

except as authorized by law or by the State's
25

Attorney.

26

(xii) Except as authorized by the State's

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Attorney, conducting business under any name or in
2

any manner which suggests or implies that the
3

private entity is bonded if such private entity is
4

or is a branch of or is affiliated with any
5

governmental agency or court if such private
6

entity is not.

7

(xiii) Misrepresenting the amount of the
8

restitution alleged to be owed.

9

(xiv) Except as authorized by the State's
10

Attorney, representing that an existing
11

restitution amount may be increased by the
12

addition of attorney's fees, investigation fees,
13

or any other fees or charges when those fees or
14

charges may not legally be added to the existing
15

restitution.

16

(xv) Except as authorized by the State's
17

Attorney, representing that the private entity is
18

an attorney at law or an agent for an attorney if
19

the entity is not.

20

(xvi) Collecting or attempting to collect any
21

interest or other charge or fee in excess of the
22

actual restitution or claim unless the interest or
23

other charge or fee is expressly authorized by the
24

State's Attorney, who shall determine what
25

constitutes a reasonable collection fee.

26

(xvii) Communicating or threatening to

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communicate with an offender when the private
2

entity is informed in writing by an attorney that
3

the attorney represents the offender concerning
4

the claim, unless authorized by the attorney. If
5

the attorney fails to respond within a reasonable
6

period of time, the private entity may communicate
7

with the offender. The private entity may
8

communicate with the offender when the attorney
9

gives his consent.

10

(xviii) Engaging in dishonorable, unethical,
11

or unprofessional conduct of a character likely to
12

deceive, defraud, or harm the public.

13

(5) The State's Attorney shall audit the accounts of
14

the bad check diversion program after notice in writing to
15

the private entity.

16

(6) Any information obtained by a private entity that
17

has a contract with the State's Attorney to conduct a bad
18

check diversion program is confidential information
19

between the State's Attorney and the private entity and
20

may not be sold or used for any other purpose but may be
21

shared with other authorized law enforcement agencies as
22

determined by the State's Attorney.
23

(h) The State's Attorney, or private entity under contract
24
with the State's Attorney, shall recover, in addition to the
25
face amount of the dishonored check or draft, a transaction
26
fee to defray the costs and expenses incurred by a victim who

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received a dishonored check that was made or delivered by the
2
offender. The face amount of the dishonored check or draft and
3
the transaction fee shall be paid by the State's Attorney or
4
private entity under contract with the State's Attorney to the
5
victim as restitution for the offense. The amount of the
6
transaction fee must not exceed: $25 if the face amount of the
7
check or draft does not exceed $100; $30 if the face amount of
8
the check or draft is greater than $100 but does not exceed
9
$250; $35 if the face amount of the check or draft is greater
10
than $250 but does not exceed $500; $40 if the face amount of
11
the check or draft is greater than $500 but does not exceed
12
$1,000; and $50 if the face amount of the check or draft is
13
greater than $1,000.
14

(i) The offender, if aggrieved by an action of the private
15
entity contracted to operate a bad check diversion program,
16
may submit a grievance to the State's Attorney who may then
17
resolve the grievance. The private entity must give notice to
18
the offender that the grievance procedure is available. The
19
grievance procedure shall be established by the State's
20
Attorney.
21
(Source: P.A. 95-41, eff. 1-1-08; 96-1551, eff. 7-1-11
.)

22

(810 ILCS 5/3-806 rep.)
23

Section 25.
The Uniform Commercial Code is amended by
24
repealing Section 3-806.

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Section 30.
The Interest Act is amended by changing
2
Section 4.1a as follows:

3

(815 ILCS 205/4.1a)

(from Ch. 17, par. 6406)
4

Sec. 4.1a.
Charges for and cost of the following items
5
paid or incurred by any lender in connection with any loan
6
shall not be deemed to be charges for or in connection with any
7
loan of money referred to in Section 6 of this Act, or charges
8
by the lender as a consideration for the loan referred to in
9
this Section:
10

(a) hazard, mortgage or life insurance premiums,
11

survey, credit report, title insurance, abstract and
12

attorneys' fees, recording charges, escrow and appraisal
13

fees, and similar charges.
14

(b) in the case of construction loans, in addition to
15

the matters referred to in clause (a) above, the actual
16

cost incurred by the lender for services for making
17

physical inspections, processing payouts, examining and
18

reviewing contractors' and subcontractors' sworn
19

statements and waivers of lien and the like.
20

(c) in the case of any loan made pursuant to the
21

provisions of the Emergency Home Purchase Assistance Act
22

of 1974 (Section 313 of the National Housing Act, Chapter
23

B of Title 12 of the United States Code), in addition to
24

the matters referred to in paragraphs (a) and (b) of this
25

Section all charges required or allowed by the Government

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National Mortgage Association, whether designated as
2

processing fees, commitment fees, loss reserve and
3

marketing fees, discounts, origination fees or otherwise
4

designated.
5

(d) in the case of a single payment loan, made for a
6

period of 6 months or less, a regulated financial
7

institution or licensed lender may contract for and
8

receive a maximum charge of $15 in lieu of interest. Such
9

charge may be collected when the loan is made, but only one
10

such charge may be contracted for, received, or collected
11

for any such loan, including any extension or renewal
12

thereof.
13

(e)
(blank).

if the agreement governing the loan so
14

provides, a charge not to exceed the rate permitted under
15

Section 3-806 of the Uniform Commercial Code-Commercial
16

Paper for any check, draft or order for the payment of
17

money submitted in accordance with said agreement which is
18

unpaid or not honored by a bank or other depository
19

institution
.
20

(f) if the agreement governing the loan so provides,
21

for each loan installment in default for a period of not
22

less than 10 days, a charge in an amount not in excess of
23

5% of such loan installment. Only one delinquency charge
24

may be collected on any such loan installment regardless
25

of the period during which it remains in default. Payments
26

timely received by the lender under a written extension or

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deferral agreement shall not be subject to any delinquency
2

charge.
3

Notwithstanding items (k) and (l) of subsection (1) of
4
Section 4 of this Act, the lender, in the case of any nonexempt
5
residential mortgage loan, as defined in Section 1-4 of the
6
Residential Mortgage License Act of 1987, other than a high
7
risk home loan as defined in Section 10 of the High Risk Home
8
Loan Act, shall have the right to include a prepayment penalty
9
that extends no longer than the fixed rate period of a variable
10
rate mortgage provided that, if a prepayment is made during
11
the fixed rate period and not in connection with the sale or
12
destruction of the dwelling securing the loan, the lender
13
shall receive an amount that is no more than:
14

(1) 3% of the total loan amount if the prepayment is
15

made within the first 12-month period following the date
16

the loan was made;
17

(2) 2% of the total loan amount if the prepayment is
18

made within the second 12-month period following the date
19

the loan was made; or
20

(3) 1% of the total loan amount if the prepayment is
21

made within the third 12-month period following the date
22

the loan was made, if the fixed rate period extends 3
23

years.
24

This Section applies to loans made, refinanced, renewed,
25
extended, or modified on or after the effective date of this
26
amendatory Act of the 95th General Assembly.

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1

Where there is a charge in addition to the stated rate of
2
interest payable directly or indirectly by the borrower and
3
imposed directly or indirectly by the lender as a
4
consideration for the loan, or for or in connection with the
5
loan of money, whether paid or payable by the borrower, the
6
seller, or any other person on behalf of the borrower to the
7
lender or to a third party, or for or in connection with the
8
loan of money, other than as hereinabove in this Section
9
provided, whether denominated "points," "service charge,"
10
"discount," "commission," or otherwise, and without regard to
11
declining balances of principal which would result from any
12
required or optional amortization of the principal of the
13
loan, the rate of interest shall be calculated in the
14
following manner:
15

The percentage of the principal amount of the loan
16
represented by all of such charges shall first be computed,
17
which in the case of a loan with an interest rate in excess of
18
8% per annum secured by residential real estate, other than
19
loans described in paragraphs (e) and (f) of Section 4, shall
20
not exceed 3% of such principal amount. Said percentage shall
21
then be divided by the number of years and fractions thereof of
22
the period of the loan according to its stated maturity. The
23
percentage thus obtained shall then be added to the percentage
24
of the stated annual rate of interest.
25
(Source:
P.A. 97-849, eff. 1-10-14 (see Section 10 of P.A.
26
97-1159, 78 Fed. Reg. 6855, 6857, 78 Fed. Reg. 10695, 10696,

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1
and 78 Fed. Reg. 44685, 44686).)

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