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Public Act 097-0708
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| SB3249 Enrolled | LRB097 17301 CEL 62502 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Collateral Recovery Act is amended by |
changing Sections 10 and 30 as follows:
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(225 ILCS 422/10) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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(Section scheduled to be repealed on January 1, 2022) |
Sec. 10. Definitions. In this Act: |
"Assignment" means a written authorization by a legal
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owner, lien holder, lessor, lessee, or licensed repossession |
agency authorized by a legal owner, lien holder, lessor or |
lessee to locate or
repossess, involuntarily or voluntarily, |
any collateral, including, but not limited to, collateral
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registered under the Illinois Vehicle Code that is subject to a
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security agreement that contains a repossession clause or is |
the subject of a rental or lease agreement. |
"Assignment" also means a written authorization by an |
employer
to recover any collateral entrusted to an employee or |
former
employee if the possessor is wrongfully in the |
possession of
the collateral. A photocopy, facsimile copy, or |
electronic copy
of an assignment shall have the same force and |
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effect as an
original written assignment.
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"Automobile rental company" means a person or entity whose |
primary business is renting motor vehicles to the public for 30 |
days or less. |
"Branch office" means each additional office and secured |
storage facility location of a repossession agency (i) located |
in and conducting business within the State of Illinois and |
(ii) operating under the same name as the repossession agency |
where business is actively conducted or is engaged in the |
business authorized by the licensure. Each branch office must |
be individually licensed. |
"Collateral" means any vehicle, boat, recreational
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vehicle, motor home, motorcycle, or other property
that is |
subject to a security, lease, or rental agreement.
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"Commission" means the Illinois Commerce Commission. |
"Debtor" means any person or entity obligated under a |
lease, rental, or security
agreement. |
"Financial institution" means a bank, a licensee under the |
Consumer Installment Loan Act, savings bank, savings and loan |
association, or credit union organized and operating under the |
laws of this or any other state or of the United States, and |
any subsidiary or affiliate thereof. |
"Legal owner" means a person holding (i) a security
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interest in any collateral that is subject to a security
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agreement, (ii) a lien against any collateral, or (iii) an
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interest in any collateral that is subject to a lease
or rental |
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agreement. |
"Licensure" means the approval of the required criteria |
that has been submitted for review in accordance with the |
provisions of this Act. |
"Licensed recovery manager" means a person who possesses a
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valid license in accordance with the provisions of this Act and |
is in
control or management of an Illinois repossession agency. |
"Personal effects" means any property contained within
or |
on repossessed collateral, or property that is not permanently |
affixed to the collateral, that is not the property of the |
legal owner.
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"Recovery permit" means a permit issued by the Commission |
to a repossession agency employee who has met all the |
requirements under this Act. |
"Recovery ticket" means a serialized
record obtained from |
the Commission for any
repossessed vehicle or collateral |
evidencing that any person, business, financial
institution, |
automotive dealership, or repossession agency who shows a |
recovery ticket
has paid the recovery ticket fee to the |
Commission. |
"Remote storage location" means a secured storage facility |
of a licensed repossession agency designated for the storage of |
collateral that is a secure building or has a perimeter that is |
secured with a fencing construction that makes the area not |
accessible to the public. A remote storage location shall not |
transact business with the public and shall provide evidence of |
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applicable insurance to the Commission that specifies the |
licensed repossession agency as the primary policy holder. A |
remote storage location shall be located in a commercially |
zoned area physically located in Illinois. |
"Repossession agency" means any person or entity |
conducting business within the State of
Illinois, that, for any |
type of consideration, engages in the business
of, accepts |
employment to furnish, or agrees to provide or provides
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property locating services, property recovery,
recovered |
property transportation, recovered property storage, or all
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services relevant to any of the following:
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(1) The location, disposition, or recovery of property |
as
authorized by the self-help provisions of the Uniform
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Commercial Code. |
(2) The location, disposition, or recovery of lost or
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stolen property. |
(3) Securing evidence concerning repossession and |
recovery
to be used before any court, board, office, or |
investigating committee. |
(4) Inventory of property contained in or on the |
collateral
or recovered property. |
(5) The possession of collateral. |
(6) The prevention of the misappropriation or
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concealment of chattel, vehicles, goods, objects,
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documents, or papers. |
"Repossession agency" does not include any of the |
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following: |
(1) An attorney at law who is performing his or her |
duties
as an attorney at law. |
(2) The legal owner of collateral that is subject to a |
security
agreement. |
(3) An officer or employee of the United States of |
America or
of this State or a political subdivision of this |
State while the
officer or employee is engaged in the |
performance of his or
her official duties. |
(4) A qualified license or recovery permit holder when
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performing services for, or on behalf of, a licensed |
repossession agency.
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(5) A collection agency licensed under the Collection |
Agency Act when its activities are limited to assisting an |
owner in the recovery of property that is not collateral, |
as defined in this Act. |
"Repossession agency employee" means any person or |
self-employed independent contractor who is hired by a |
repossession agency.
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"Salvage auction" means a person or entity whose primary |
business is the sale of motor vehicles for which insurance |
companies have made payment of damages on total loss claims. |
"Secured storage facility" means an area located on the |
same premises as a repossession agency office or branch office |
that is designated for the storage of collateral and is a |
secure building or has a perimeter that is secured with a |
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fencing construction that makes the area not accessible to the |
public. Each repossession agency office or
branch office must |
maintain a secured storage facility.
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"Security agreement" means an obligation, pledge,
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mortgage, chattel mortgage, lease agreement, rental agreement, |
deposit, or lien,
given by a debtor as security for payment or |
performance of his
or her debt by furnishing the creditor with |
a recourse to be
used in case of failure in the principal |
obligation. "Security
agreement" includes a bailment where an |
employer-employee
relationship exists or existed between the |
bailor and the bailee.
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(Source: P.A. 97-576, eff. 7-1-12.)
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(225 ILCS 422/30) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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(Section scheduled to be repealed on January 1, 2022) |
Sec. 30. License or registration required. |
(a) It shall be unlawful for any person or entity to |
repossess a vehicle or collateral in this State, attempt to |
repossess a vehicle or collateral in this State, or to hold |
himself, herself, or itself out to be a repossession agency |
unless licensed under this Act. |
(b) It shall be unlawful for any person to repossess a |
vehicle or collateral in this State, attempt to repossess a |
vehicle or collateral in this State, or to hold himself or |
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herself out to be a licensed recovery manager unless licensed |
under this Act. |
(c) It shall be unlawful for any person to repossess a |
vehicle or collateral in this State, attempt to repossess a |
vehicle or collateral in this State, or hold himself or herself |
out to be a repossession agency employee unless he or she holds |
a valid recovery permit issued by the Commission under this |
Act. |
(d) This Act does not apply to a financial institution or |
the employee of a financial institution when engaged in an |
activity otherwise covered by this Act if the activity is |
conducted by the employee on behalf of that financial |
institution. |
(e) This Act does not apply to a towing company or towing |
operator when an employee or agent of the creditor financial |
institution is present at the site from which the vehicle is |
towed.
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(f) This Act does not apply to an automobile rental company |
or the employee of an automobile rental company when engaged in |
an activity otherwise covered by this Act if the activity is |
conducted by the employee on behalf of that automobile rental |
company. |
(g) This Act does not apply to a towing company or towing |
operator when an employee or agent of an automobile rental |
company is present at the site from which the vehicle is towed. |
(h) This Act does not apply to a retail seller of equipment |
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or an employee of a retail seller of equipment, as equipment is |
defined in Section 9-102 of the Uniform Commercial Code, and |
lawn and grounds care consumer goods when engaged in an |
activity otherwise covered by this Act if the activity is |
limited to the repossession of the type of goods routinely sold |
by that retail seller in the manner authorized by Section 9-609 |
of the Uniform Commercial Code on behalf of the owner of a |
security interest in that collateral. |
(i) This Act does not apply to an entity or the employee of |
an entity that primarily finances wholesale and retail |
transactions related to the purchase or lease of equipment |
manufactured by its affiliate when engaged in an activity |
otherwise covered by this Act if the activity is limited to the |
repossession of the equipment. |
(j) This Act does not apply to a salvage auction or the |
employee of a salvage auction when engaged in an activity |
otherwise covered by this Act if the activity is conducted by |
the employee on behalf of that salvage auction. |
(k) This Act does not apply to a towing company or towing |
operator when the company or operator is acting on behalf of a |
salvage auction. |
(Source: P.A. 97-576, eff. 7-1-12.)
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Section 95. No acceleration or delay. Where this Act makes |
changes in a statute that is represented in this Act by text |
that is not yet or no longer in effect (for example, a Section |