2023 Illinois Compiled Statutes › Chapter 205 - FINANCIAL REGULATION › 205 ILCS 205/ - Savings Bank Act. › Article 11 - Enforcement Powers

(205 ILCS 205/Art. 11 heading)
ARTICLE 11.  
		Enforcement Powers
(205 ILCS 205/11001) (from Ch. 17, par. 7311-1)
Sec. 11001. 
		
		Affirmative action to correct conditions resulting
from violations of law, regulations, or orders or from practices.
The Commissioner is hereby granted authority to issue orders
under this Act that require a savings bank or an
institution-affiliated party to take affirmative action to correct
any conditions resulting from any violations or practices cited
with respect to the order.  The order may require the savings bank
or the institution-affiliated party to:
(1) Make restitution or provide reimbursement,     indemnification, or guarantees for or against losses if:
(A) the savings bank or the institution         affiliated party was unjustly enriched or received direct or indirect personal benefit in connection with the violation or practice; or
(B) the violation or practice involved a reckless         disregard for applicable laws, regulations, or written agreements or written orders of the Commissioner or other appropriate regulator.
(2) Restrict the savings bank's growth or institute     appropriate operating restrictions.
(3) Dispose of any loan or asset involved.
(4) Rescind agreements or contracts.
(5) Submit candidates for future directors,     employees, or officers to the Commissioner for approval.
(6) Take any other actions the Commissioner deems     necessary.
(Source: P.A. 86-1213.)
(205 ILCS 205/11002) (from Ch. 17, par. 7311-2)
Sec. 11002. 
		Cease and desist orders;  books and records.
(a) If the notice of charges and orders under Section 11001
specifies that the books
and records of a savings bank are so incomplete and inaccurate that the
Commissioner is unable to determine the financial condition of the savings
bank or unable to determine the nature, details, or purpose of any
transaction that may have a material effect on the savings bank's financial
condition, then the Commissioner shall issue an order that shall be
immediately effective requiring:
(1) Specific, affirmative steps to restore,     reconstruct, or adjust the books and records to accuracy and compliance.
(2) Rescission or cessation of transactions or     activities that led to the incomplete or inaccurate condition of the books and records.
(3) The establishment of reserves for any losses that     the Commissioner finds were incurred due to the condition of the books and records.
(b) Orders under this Section shall be effective until the
Commissioner's examination determines that the condition has been
corrected.
(Source: P.A. 86-1213.)
(205 ILCS 205/11003) (from Ch. 17, par. 7311-3)
Sec. 11003. Removal and prohibition authority.
(a) In addition to other provisions of this Act concerning
officers and directors, the Commissioner may remove or suspend  from any
savings bank operating under this Act any officer, director,
employee, or agent of a savings bank, and the Commissioner may prohibit
participation in the affairs of any savings bank by any current, former, or
prospective officer, director, employee, or agent of a savings bank, if he
finds any of the following:
(1) The person or persons have directly or indirectly     violated any law, regulation, or order including orders, conditions, and agreements between the savings bank and the Commissioner or between the savings bank and its federal regulators.
(2) The person or persons have breached their     fiduciary or professional responsibilities to the savings bank.
(3) The person or persons have engaged or     participated in unsafe action in conducting the business of a savings bank, a savings bank holding company, or a savings bank affiliate.
(4) The person or persons have obstructed or impeded     an examination or investigation of a savings bank, a savings bank holding company, or savings bank affiliate.
(5) The person or persons have similarly behaved     towards any other insured depository institution or otherwise regulated entity or that the person or persons are the subject of any final order issued by the federal insurer, the Office of the Comptroller of the Currency, the Federal Reserve Board, a state financial institutions regulator, the Securities and Exchange Commission, or by a state or federal court of law.
(b) The  Commissioner may serve upon a party a written
notice of the Commissioner's intention to remove or suspend the
party from office in the savings bank or to prohibit any
participation in any manner by the party in the
affairs of any savings bank, if the Commissioner
finds because of
a violation of subsection (a) any of the following:
(1) Any savings bank, other insured depository     institution, or other regulated entity has or probably will suffer financial loss or other damage.
(2) The interests of the savings bank's depositors or     other insured depository institution's depositors have been or could be prejudiced.
(3) The party has received financial gain or other     benefit by reason of the violation and the Commissioner finds that the violation or breach involves personal dishonesty on the part of the party or demonstrates willful or continuing disregard by the party for the safety and soundness of the savings bank or other insured depository institution.
(Source: P.A. 96-585, eff. 8-18-09.)
(205 ILCS 205/11004) (from Ch. 17, par. 7311-4)
Sec. 11004. 
		Industrywide prohibition.
(a) Except as provided in regulations of the Commissioner, any person
who has been removed or suspended from office in a savings bank operating
under this Act or prohibited from participating in the
affairs of a savings bank operating under this Act may not, while an order
is in effect, continue or begin to hold any office in, or participate in
any manner in the affairs of any savings bank regulated by
the State of Illinois, another insured depository institution regulated by
the State of Illinois, or any other financial services entity regulated by
the State of Illinois.
(b) Any violation of subsection (a) by any person who is
subject to an order described in that subsection shall be treated
as violation of the order.
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 205/11005) (from Ch. 17, par. 7311-5)
Sec. 11005. Institution affiliated party. As used in this
Act, the term "institution affiliated party" shall mean a
director, officer, employee, agent, or controlling stockholder
of a savings bank operating under this Act; a person who has
filed or is required to file a change-in-control application with
the Commissioner; any person subject to an order of or a party to an
agreement with the Commissioner pertaining to a savings bank; a shareholder
of, consultant to, joint venture
partner of, or an independent contractor for (including accountants,
appraisers and attorneys) any other person who participates in
a significant way in the affairs of a savings bank operating
under this Act.
(Source: P.A. 96-585, eff. 8-18-09.)
(205 ILCS 205/11006) (from Ch. 17, par. 7311-6)
Sec. 11006. Civil penalties. The Commissioner, in addition to any
other powers granted in this Act, shall have the power and authority to:
(1) Impose civil penalties of up to $100,000 against     any person for each violation of any provision of this Act, any rule promulgated in accordance with this Act, any order of the Commissioner, or any other action that in the Commissioner's discretion, is an unsafe or unsound banking practice.
(2) Impose civil penalties of up to $100 against any     person for the first failure to comply with reporting requirements set forth in the report of examination of the bank and up to $200 for the second and subsequent failures to comply with those reporting requirements.
(Source: P.A. 96-1365, eff. 7-28-10.)
(205 ILCS 205/11007) (from Ch. 17, par. 7311-7)
Sec. 11007. 
		
		Effect of termination or resignation of an
institution-affiliated party. The resignation, termination of employment,
or separation of an institution-affiliated party from the savings bank
affected by the party's activities shall not affect the jurisdiction and
authority of the Commissioner to issue any appropriate notice or to take
any appropriate action if the notice is served within 6 years of the party's
ceasing to be an institution-affiliated party of the savings bank in question.
(Source: P.A. 86-1213.)
(205 ILCS 205/11008) (from Ch. 17, par. 7311-8)
Sec. 11008. 
		Unauthorized participation by convicted individual.
(a) Except with the prior written consent of the Commissioner,
no person who has been convicted of any criminal offense involving
dishonesty or a breach of trust may own or control directly or indirectly
more than 0.001% of the capital stock of, receive benefit directly or
indirectly from, or participate directly or indirectly
in any manner in the affairs of a savings bank.
(b) A savings bank may not permit participation by a person
described in subsection (a).
(c) Whoever knowingly violates subsection (a) or (b) is guilty of a Class 3
felony and may be fined not more than $10,000 for each day of violation.
(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)
(205 ILCS 205/11009) (from Ch. 17, par. 7311-9)
Sec. 11009. 
		Perjury; false statements.
(a) Any person who knowingly makes, causes, or
allows someone else to make or cause to be made, a false
statement, either under oath as required by this Act or on any
report or statement required to be made to or by the Commissioner,
shall be subject to the provisions of Section 11006.
(b) Where financial loss to a savings bank is caused by those
statements, the penalties shall be commensurate with that loss.
(Source: P.A. 86-1213.)
(205 ILCS 205/11010) (from Ch. 17, par. 7311-10)
Sec. 11010. 
		Slander. 
		Any person who knowingly makes, utters, circulates, or
transmits to another or others any statement untrue in fact,
derogatory to the financial condition of any savings bank subject
to this Act with intent to injure any savings bank, or who
counsels, aids, procures, or induces another to originate, make,
utter, transmit, or circulate any statement or rumor, with like
intent, is guilty of slander and shall be punished by a civil money
penalty of not more than $10,000.  However, if, as the result of
the statement or rumor a savings bank suffers loss of deposits
or other financial loss, the Commissioner may assess each person
who knowingly participated in the slander, a civil money penalty
of up to $100,000 per savings bank.  The person will be deemed
to be significantly involved in the affairs of a savings bank and
the Commissioner may also proceed against that person as provided
in Section 11006.
(Source: P.A. 86-1213.)
(205 ILCS 205/11011) (from Ch. 17, par. 7311-11)
Sec. 11011. 
		False advertising.
(a) No savings bank shall issue, publish, or cause or
permit to be issued or published any advertisement that, in part
or taken as a whole, is in any way false or misleading.
(b) The Commissioner may require any savings bank to file
a true copy of the text of any advertisement in the office of the
Commissioner within 2 days after the issuance, circulation, or
publication of the advertisement.  All of the powers granted
under this Article shall be available to the Commissioner
with respect to a savings bank's violation of this Section.
(Source: P.A. 86-1213.)
(205 ILCS 205/11012)
Sec. 11012. 
		(Repealed).
(Source: P.A. 90-161, eff. 7-23-97. Repealed by P.A. 92-483, eff. 8-23-01.)