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.)