Bill
HB 3467
Modernizes the Illinois Banking Act to expand bank activities, allow remote meetings and electronic notices, broaden investments, and shift false-statements penalties to civil enfo
Status & timeline
- Bill No.: HB 3467 — Enacted as Public Act 104‑0310.
- Filed: Feb 27, 2025. Passed both chambers May 22, 2025. Sent to Governor June 20, 2025. Governor approved Aug 15, 2025.
- Effective date: August 15, 2025.
- Primary sponsors: Rep. Dagmara Avelar and Sen. Robert F. Martwick; Sen. Jason Plummer (cosponsor).
Purpose / intent
- Modernize and clarify provisions of the Illinois Banking Act (and related state banking/savings bank/credit union statutes) to (a) expand permissible bank activities, (b) update governance and notice rules for shareholder/member meetings, (c) revise enforcement/penalty treatment for certain false statements, and (d) permit additional operational and investment flexibility for state‑chartered banks and savings banks.
Key provisions and changes
- Definitions and statutory housekeeping: Amends multiple sections (205 ILCS 5/2, 5, 13, 15, 16, 16.5, 32.1, 48, 48.1, 48.2) to update definitions and cross‑references used throughout the Illinois Banking Act.
- State Banking Board membership: Revises the composition (membership details in the Act are changed; bill updates who serves on the Board).
- Borrowing and collateral for deposits: Explicitly authorizes a bank to borrow or incur obligations and to pledge assets to secure deposits.
- Data processing for profit: Allows banks to provide data‑processing services to third parties on a for‑profit basis.
- Investment authority: Permits banks to invest in financial futures and options transactions (expansion of permissible investment activity).
- Remote shareholder/member meetings: Boards of banks and savings banks may, by resolution, permit shareholders/members to attend, participate in and vote at annual or special meetings via conference telephone or interactive technology if specific conditions are met.
- Savings bank authorities: Authorizes savings banks to (a) loan funds by purchasing fixed‑rate annuity contracts, and (b) accept deposits and open accounts in the name of minors, with bank rules binding on the minor as if of full age.
- Electronic notice: Updates various notice provisions to permit electronic notice methods where appropriate.
- Penalty changes for false statements: Replaces the prior Class 3 felony exposure for making false statements/entries intended to deceive bank examiners (or the Commissioner) with civil penalties imposed by the Commissioner — shifting enforcement emphasis from criminal prosecution to administrative/civil sanctions.
- Bank & Trust Company Fund: Authorizes the Board to approve transfers from the Bank and Trust Company Fund (procedural/financial management change).
- Credit Union Act: Clarifies that furnishing financial records of a deceased member to a public administrator for burial‑related purposes is not prohibited; other technical updates included.
Who is affected
- Illinois state‑chartered banks and savings banks (primary).
- Out‑of‑state bank branches operating in Illinois (where referenced).
- Bank shareholders and savings bank members (meeting participation and voting rules).
- Depositors, including minors (ability to open accounts in minor’s name).
- Bank regulators: Commissioner / Secretary of Financial & Professional Regulation and the State Banking Board (new authorities and penalty regime).
- Credit unions (narrow change regarding records of deceased members).
Potential impacts and considerations
- Increased operational flexibility and potential revenue streams for banks (data services, broader investment authority).
- Greater convenience and modernized governance through remote meetings and electronic notice.
- Consumer implications: permitting minors’ accounts is consumer‑facing; expanded investment powers (futures/options) may raise risk management considerations.
- Enforcement shift: moving false‑statement cases from criminal to civil penalties could change deterrence dynamics and enforcement outcomes.
- Fiscal/administrative: authorization to transfer funds from the Bank & Trust Company Fund may affect fund management and regulatory resources.
For full statutory text and specific statutory edits, consult Public Act 104‑0310 (HB 3467) as enrolled and the enacted codified language in the Illinois Banking Act.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
