Public Act 097-0708
 
SB3249 EnrolledLRB097 17301 CEL 62502 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Collateral Recovery Act is amended  by 
changing Sections 10 and 30 as follows:
 
    (225 ILCS 422/10)
    (This Section may contain text from a Public Act with a 
delayed effective date)

    (Section scheduled to be repealed on January 1, 2022)
    Sec. 10. Definitions.  In this Act:  
    "Assignment" means a written authorization by a legal

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

registered under the Illinois Vehicle Code that is subject to a

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 
effect as an
original written assignment.

    "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

vehicle, motor home, motorcycle, or other property
that is 
subject to a security, lease, or rental agreement.

    "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

interest in any collateral that is subject to a security

agreement, (ii) a lien against any collateral, or (iii) an

interest in any collateral that is subject to a lease
or rental 
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

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.

    "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 
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

property locating services, property recovery,
recovered 
property transportation, recovered property storage, or all

services relevant to any of the following:

        (1) The location, disposition, or recovery of property 
    as
authorized by the self-help provisions of the Uniform

    Commercial Code.
        (2) The location, disposition, or recovery of lost or

    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

    concealment of chattel, vehicles, goods, objects,

    documents, or papers.
    "Repossession agency" does not include any of the 
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

    performing services for, or on behalf of, a licensed 
    repossession agency.

        (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.

    "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 
fencing construction that makes the area not accessible to the 
public. Each repossession agency office or

branch office must 
maintain a secured storage facility.

    "Security agreement" means an obligation, pledge,

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.

(Source: P.A. 97-576, eff. 7-1-12.)
 
    (225 ILCS 422/30)
    (This Section may contain text from a Public Act with a 
delayed effective date)

    (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 
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.

    (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 
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.)
 
    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 
represented by multiple versions), the use of that text does 
not accelerate or delay the taking effect of (i) the changes 
made by this Act or (ii) provisions derived from any other 
Public Act.
 
 
    Section 99. Effective date. This Act takes effect July 1, 
2012.