We do not believe that Illinois has a law setting a ceiling for prepaid finance charges with respect to financial institutions. Section 5e of the Banking Act states that “[n]otwithstanding the provisions of any other law in connection with extensions of credit” banks may charge any fees, “subject only to the provisions of [subsection 4(1)] of the Interest Act,” provided that the bank sets fees based on its “prudent business judgment and safe and sound operating standards.” 205 ILCS 5/5e. And subsection 4(1) of the Interest Act states that a bank is authorized “to receive or contract to receive and collect interest and charges at any rate or rates agreed upon by the bank or branch and the borrower.” 815 ILCS 205/4(1).

In addition, if a loan is secured by a mortgage on real estate, the Illinois Supreme court has confirmed that the Section 4.1a’s restrictions on loans secured by real estate were implicitly repealed by the later-enacted Section 4(1)(l) of the Interest Act. 815 ILCS 205/4(1)(l)United States Bank Nat’l Ass’n v. Clark, 216 Ill.2d 334, 349 (2005); see also IDFPR Interpretive Letter 98-01.)