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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Credit Union Act is amended by | ||||||||||||||||||||||||
5 | changing Sections 1.1, 2, 21, and 61 as follows:
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6 | (205 ILCS 305/1.1) (from Ch. 17, par. 4402)
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7 | Sec. 1.1. Definitions.
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8 | Credit Union - The term "credit union" means
a cooperative, | ||||||||||||||||||||||||
9 | non-profit association, incorporated under this Act,
under the | ||||||||||||||||||||||||
10 | laws of the United States of America or under the laws
of | ||||||||||||||||||||||||
11 | another state, for the purposes of encouraging thrift among
its | ||||||||||||||||||||||||
12 | members, creating a source of credit at a reasonable rate of
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13 | interest, and providing an opportunity for its members to use
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14 | and control their own money in order to improve their economic | ||||||||||||||||||||||||
15 | and
social conditions. The membership of a credit union shall | ||||||||||||||||||||||||
16 | consist
of a group or groups each having a common
bond as set | ||||||||||||||||||||||||
17 | forth in this Act.
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18 | Common Bond - The term "common bond" refers to groups of | ||||||||||||||||||||||||
19 | people
who meet one of the following qualifications:
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20 | (1) Persons belonging to a specific association, group | ||||||||||||||||||||||||
21 | or organization,
such as a church, labor union, club or | ||||||||||||||||||||||||
22 | society and members of their immediate
families which shall | ||||||||||||||||||||||||
23 | include any relative by blood or marriage or foster
and |
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1 | adopted children.
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2 | (2) Persons who reside in a reasonably compact and well | ||||||
3 | defined
neighborhood or community, and
members of their | ||||||
4 | immediate families which shall include any relative
by | ||||||
5 | blood or marriage or foster and adopted children.
| ||||||
6 | (3) Persons who have a common employer or who are | ||||||
7 | members of an
organized labor union or an organized | ||||||
8 | occupational or professional
group within a defined | ||||||
9 | geographical area, and members of their
immediate families | ||||||
10 | which shall include any relative by blood or
marriage or | ||||||
11 | foster and adopted children.
| ||||||
12 | Shares - The term "shares" or "share accounts" means any | ||||||
13 | form of shares
issued by a credit union and established by a | ||||||
14 | member in accordance with
standards specified by a credit | ||||||
15 | union, including but not limited to common
shares, share draft | ||||||
16 | accounts, classes of shares, share certificates,
special | ||||||
17 | purpose share accounts, shares issued in trust, custodial | ||||||
18 | accounts,
and individual retirement accounts or other plans | ||||||
19 | established pursuant to
Section 401(d) or (f) or Section 408(a) | ||||||
20 | of the Internal Revenue Code, as now
or hereafter amended, or | ||||||
21 | similar provisions of any tax laws of the United
States that | ||||||
22 | may hereafter exist.
| ||||||
23 | Credit Union Organization - The term "credit union | ||||||
24 | organization" means
any organization established to serve the | ||||||
25 | needs of credit unions, the business
of which relates to the | ||||||
26 | daily operations of credit unions.
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1 | Department - The term "Department" means the Illinois | ||||||
2 | Department of Financial and Professional Regulation.
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3 | Secretary - The term "Secretary" means the Secretary
of | ||||||
4 | Financial and Professional Regulation or a person authorized by | ||||||
5 | the Secretary or this Act to act in the Secretary's stead.
| ||||||
6 | Division of Financial Institutions - The term "Division of | ||||||
7 | Financial Institutions" means the Division of Financial | ||||||
8 | Institutions of the Department of Financial and Professional | ||||||
9 | Regulation. | ||||||
10 | Director - The term "Director of Financial Institutions" | ||||||
11 | means the Director of the Division of Financial Institutions of | ||||||
12 | the Department of Financial and Professional Regulation. | ||||||
13 | Office - The term "office" means the Division of Financial | ||||||
14 | Institutions of the Department of Financial and Professional | ||||||
15 | Regulation. | ||||||
16 | NCUA - The term "NCUA" means the National Credit Union | ||||||
17 | Administration, an
agency of the United States Government | ||||||
18 | charged with the supervision of
credit unions chartered under | ||||||
19 | the laws of the United States of America.
| ||||||
20 | Central Credit Union - The term "central credit union" | ||||||
21 | means a credit union
incorporated primarily to receive shares | ||||||
22 | from and make loans to credit unions
and directors, officers, | ||||||
23 | committee members and employees of credit unions.
A central | ||||||
24 | credit union may also accept as members persons who were | ||||||
25 | members
of credit unions which were liquidated and persons from | ||||||
26 | occupational groups
not otherwise served by another credit |
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| |||||||
1 | union.
| ||||||
2 | Corporate Credit Union - The term "corporate credit union" | ||||||
3 | means a credit
union which is a cooperative, non-profit | ||||||
4 | association, the membership of
which is limited primarily to | ||||||
5 | other credit unions.
| ||||||
6 | Insolvent - "Insolvent" means the condition that results | ||||||
7 | when
the total of all liabilities and shares exceeds net assets | ||||||
8 | of the credit union.
| ||||||
9 | Danger of insolvency - For purposes of Section 61, a credit | ||||||
10 | union is in
"danger of insolvency" if its net worth to
asset | ||||||
11 | ratio falls below 2%. In calculating the danger of insolvency | ||||||
12 | ratio,
secondary
capital shall be excluded. For purposes of | ||||||
13 | Section 61, a credit union is also
in "danger of
insolvency" if | ||||||
14 | the Department is unable to
ascertain, upon examination, the | ||||||
15 | true financial
condition of the credit union.
| ||||||
16 | Net Worth - "Net worth" means the retained earnings balance | ||||||
17 | of the credit
union, as determined under generally accepted | ||||||
18 | accounting principles, and forms
of secondary capital approved | ||||||
19 | by the Secretary and the Director pursuant to rulemaking.
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20 | Charitable Donation Account - The term "charitable | ||||||
21 | donation account" means an account owned by a credit union that | ||||||
22 | is held in a segregated custodial account or special purpose | ||||||
23 | entity and specifically identified as a charitable donation | ||||||
24 | account whereby, no less frequently than every 5 years and upon | ||||||
25 | termination of the account, at least 51% of the total return on | ||||||
26 | assets in the account is distributed to one or more charitable |
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1 | organizations or non-profit entities. | ||||||
2 | Email address of record – The term "email address of | ||||||
3 | record" means an accurate and current email address designated | ||||||
4 | by a credit union and recorded by the Division of Financial | ||||||
5 | Institutions in the credit union's file maintained by the | ||||||
6 | Division of Financial Institutions. | ||||||
7 | (Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14.)
| ||||||
8 | (205 ILCS 305/2) (from Ch. 17, par. 4403)
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9 | Sec. 2. Organization procedure. | ||||||
10 | (1) Any 9 or more persons of legal age,
the majority of | ||||||
11 | whom shall be residents of the State of Illinois, who have
a | ||||||
12 | common bond referred to in Section 1.1 may organize a credit | ||||||
13 | union or
a central credit union by complying with this Section.
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14 | (2) The subscribers shall execute in duplicate Articles of | ||||||
15 | Incorporation
and agree to the terms thereof, which Articles | ||||||
16 | shall state:
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17 | (a) The name, which shall include the words "credit | ||||||
18 | union" and which shall
not be the same as that of any other | ||||||
19 | existing credit union in this state,
and the location where | ||||||
20 | the proposed credit union is to have its principal
place of | ||||||
21 | business;
| ||||||
22 | (b) The common bond of the members of the credit union;
| ||||||
23 | (c) The par value of the shares of the credit union, | ||||||
24 | which must be at least $1;
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25 | (d) The names, addresses and Social Security numbers of |
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1 | the subscribers to
the Articles of Incorporation, and the | ||||||
2 | number and the value of shares subscribed
to by each;
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3 | (e) That the credit union may exercise such incidental | ||||||
4 | powers as are necessary
or requisite to enable it to carry | ||||||
5 | on effectively the purposes for which
it is incorporated, | ||||||
6 | and those powers which are inherent in the credit union
as | ||||||
7 | a legal entity;
| ||||||
8 | (f) That the existence of the credit union shall be | ||||||
9 | perpetual.
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10 | (3) The subscribers shall prepare and adopt bylaws for the | ||||||
11 | general government
of the credit union, consistent with this | ||||||
12 | Act, and execute same in duplicate.
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13 | (4) The subscribers shall forward the articles of | ||||||
14 | incorporation and the
bylaws to the Secretary in duplicate, | ||||||
15 | along with the required charter fee.
If they conform to the | ||||||
16 | law, and such rules and regulations as the Secretary and the | ||||||
17 | Director
may prescribe, if the Secretary determines that a | ||||||
18 | common bond exists, and
that it is economically advisable to | ||||||
19 | organize the credit union, he or she shall
within 60 days issue | ||||||
20 | a certificate of approval attached to the articles of | ||||||
21 | incorporation
and return a copy of the bylaws
and the articles | ||||||
22 | of incorporation to the applicants or their representative, | ||||||
23 | which shall
be preserved in the permanent files of the credit | ||||||
24 | union. The subscribers
shall file the certificate of approval, | ||||||
25 | with the articles of incorporation
attached, in the office of | ||||||
26 | the recorder (or, if
there is no recorder, in the office of the |
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| |||||||
1 | county
clerk) of the county in which the
credit union is to | ||||||
2 | locate its principal place of business. The
recorder or the | ||||||
3 | county
clerk, as the case may be, shall accept
and record the | ||||||
4 | documents if they are accompanied by the proper fee. When the | ||||||
5 | documents
are so recorded, the credit union is incorporated | ||||||
6 | under this Act.
| ||||||
7 | (5) The subscribers for a credit union charter shall not | ||||||
8 | transact any
business until the certificate of approval has | ||||||
9 | been received.
| ||||||
10 | (6) At the time of executing the articles of incorporation, | ||||||
11 | subscriber will provide the Department with an email address of | ||||||
12 | record. | ||||||
13 | (Source: P.A. 100-361, eff. 8-25-17.)
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14 | (205 ILCS 305/21) (from Ch. 17, par. 4422)
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15 | Sec. 21. Record of board and committee members. Within 30 | ||||||
16 | days after
election or appointment, the names and addresses of | ||||||
17 | the members of the board of directors, committees and all | ||||||
18 | officers of the credit union shall be filed
with the Department | ||||||
19 | on forms provided by the Department. The form shall also | ||||||
20 | include the email address of record of the credit union.
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21 | (Source: P.A. 97-133, eff. 1-1-12.)
| ||||||
22 | (205 ILCS 305/61) (from Ch. 17, par. 4462)
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23 | Sec. 61. Suspension.
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24 | (1) If the Secretary determines that any credit
union is |
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1 | bankrupt, insolvent, impaired or that it has violated
this Act, | ||||||
2 | or is operating in an unsafe or unsound manner, he shall issue
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3 | an order temporarily suspending the credit union's operations | ||||||
4 | for not more than
60 days. The board of directors shall be | ||||||
5 | given notice of the suspension by first class mail, postage | ||||||
6 | prepaid, or electronic transmission to the credit union's email | ||||||
7 | address of record by
registered or certified mail of such | ||||||
8 | suspension , which notice shall include
the reasons for such | ||||||
9 | suspension and a list of specific violations of the
Act. | ||||||
10 | Service by mail is completed if the notice is deposited in the | ||||||
11 | U.S. Mail. Service to the email address of record is completed | ||||||
12 | when sent. The Secretary shall also notify
the members of the | ||||||
13 | credit union board of advisors of any suspension. The
Director | ||||||
14 | may assess to the credit union a penalty, not to exceed the
| ||||||
15 | regulatory fee as set forth in this Act, to
offset costs | ||||||
16 | incurred in determining the condition of the credit union's
| ||||||
17 | books and records.
| ||||||
18 | (2) Upon receipt of such suspension notice, the credit | ||||||
19 | union shall cease
all operations, except those authorized by | ||||||
20 | the Secretary, or the Secretary may
appoint a manager-trustee | ||||||
21 | to operate the credit union during the suspension
period. The | ||||||
22 | board of directors
shall, within 10 days of the receipt of the | ||||||
23 | suspension notice,
file with the Secretary a
reply to the | ||||||
24 | suspension notice by
submitting a corrective plan of action or | ||||||
25 | a
request for formal hearing on said action pursuant to the | ||||||
26 | Department's
rules and regulations.
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1 | (3) Upon receipt from the suspended credit union of | ||||||
2 | evidence that the
conditions causing the order of suspension | ||||||
3 | have been corrected, and after
determining that the proposed | ||||||
4 | corrective plan of action submitted is
factual, the Secretary | ||||||
5 | shall revoke
the suspension notice, permit the credit union to | ||||||
6 | resume normal operations,
and notify the board of credit union | ||||||
7 | advisors of such action.
| ||||||
8 | (4) If the Secretary determines that the proposed | ||||||
9 | corrective plan of action
will
not correct such conditions,
he | ||||||
10 | may take possession and control of the credit union. The | ||||||
11 | Secretary
may permit the credit union to operate under his | ||||||
12 | direction and
control and may appoint a manager-trustee to | ||||||
13 | manage its affairs until such
time as the condition requiring | ||||||
14 | such action has been remedied, or in the case
of insolvency or | ||||||
15 | danger of insolvency where an emergency requiring expeditious
| ||||||
16 | action exists, the Secretary may involuntarily merge the credit | ||||||
17 | union without
the
vote of the suspended credit union's board of | ||||||
18 | directors or members (hereafter
involuntary merger)
subject
to | ||||||
19 | rules promulgated by the Secretary. No
credit union shall be | ||||||
20 | required to serve as a surviving credit union in any
| ||||||
21 | involuntary merger. Upon the request of the Secretary, a credit | ||||||
22 | union by a vote
of a majority of its board of directors may | ||||||
23 | elect to serve as a surviving
credit union in an involuntary | ||||||
24 | merger. If the Secretary
determines
that
the suspended
credit | ||||||
25 | union should be liquidated, he may appoint a liquidating
agent | ||||||
26 | and require of that person such bond and security as he |
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1 | considers proper.
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2 | (5) Upon receipt of a request for a formal hearing, the | ||||||
3 | Secretary shall
conduct proceedings pursuant to rules and | ||||||
4 | regulations of the Department. The credit union may request the | ||||||
5 | appropriate court
to stay execution of such action. Involuntary | ||||||
6 | liquidation or involuntary
merger may not be ordered
prior to | ||||||
7 | the conclusion of suspension procedures outlined in this | ||||||
8 | Section.
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9 | (6) If, within the suspension period, the credit union | ||||||
10 | fails to answer
the suspension notice or fails to request a | ||||||
11 | formal hearing, or both,
the Secretary may then (i) | ||||||
12 | involuntarily merge the credit union if the credit
union is | ||||||
13 | insolvent or in danger of insolvency and an emergency
requiring | ||||||
14 | expeditious action exists or (ii) revoke
the credit union's | ||||||
15 | charter, appoint a liquidating
agent and liquidate the
credit | ||||||
16 | union.
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17 | (Source: P.A. 97-133, eff. 1-1-12.)
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18 | Section 10. The Currency Exchange Act is amended by | ||||||
19 | changing Sections 1, 4, 10, and 29.5 as follows:
| ||||||
20 | (205 ILCS 405/1) (from Ch. 17, par. 4802)
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21 | Sec. 1. Definitions; application of Act. | ||||||
22 | (a) For the purposes of this Act:
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23 | "Community currency exchange" means
any person, firm, | ||||||
24 | association, partnership, limited liability company, or
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1 | corporation, except an
ambulatory currency exchange as | ||||||
2 | hereinafter defined, banks incorporated
under the laws of this | ||||||
3 | State and National Banks organized pursuant to the
laws of the | ||||||
4 | United States, engaged in the business or service of, and
| ||||||
5 | providing facilities for, cashing checks, drafts, money orders | ||||||
6 | or any other
evidences of money acceptable to such community | ||||||
7 | currency exchange, for a
fee or service charge or other | ||||||
8 | consideration, or engaged in the business of
selling or issuing | ||||||
9 | money orders under his or their or its name, or any
other money | ||||||
10 | orders (other than United States Post Office money orders,
| ||||||
11 | Postal Telegraph Company money orders, or Western Union | ||||||
12 | Telegraph Company
money orders), or engaged in both such | ||||||
13 | businesses, or engaged in performing
any one or more of the | ||||||
14 | foregoing services.
| ||||||
15 | "Controlling person" means an officer, director, or person | ||||||
16 | owning or holding power to vote 10% or more of the outstanding | ||||||
17 | voting securities of a licensee or the power to vote the | ||||||
18 | securities of another controlling person of the licensee. For | ||||||
19 | the purposes of determining the percentage of a licensee | ||||||
20 | controlled by a controlling person, the person's interest shall | ||||||
21 | be combined with the interest of any other person controlled, | ||||||
22 | directly or indirectly, by that person or by a spouse, parent, | ||||||
23 | or child of that person. | ||||||
24 | "Department" means the Department of Financial and | ||||||
25 | Professional Regulation. | ||||||
26 | "Director" means the Director of the Division of Financial |
| |||||||
| |||||||
1 | Institutions of the Department of Financial and Professional | ||||||
2 | Regulation. | ||||||
3 | "Division of Financial Institutions" means the Division of | ||||||
4 | Financial Institutions of the Department of Financial and | ||||||
5 | Professional Regulation. | ||||||
6 | "Email address of record" means the designated email | ||||||
7 | address recorded by the Division in the applicant's applicant | ||||||
8 | file or the licensee's license file maintained by the | ||||||
9 | Division's licensure unit. | ||||||
10 | "Ambulatory Currency Exchange" means any person, firm, | ||||||
11 | association,
partnership, limited liability company, or | ||||||
12 | corporation, except banks organized under the laws of this
| ||||||
13 | State and National Banks organized pursuant to the laws of the | ||||||
14 | United
States, engaged in one or both of the foregoing | ||||||
15 | businesses, or engaged in
performing any one or more of the | ||||||
16 | foregoing services, solely on the
premises of the employer | ||||||
17 | whose employees are being served.
| ||||||
18 | "Licensee" means any person, firm, association, | ||||||
19 | partnership, limited liability company, or corporation issued | ||||||
20 | one or more licenses by the Secretary under this Act. | ||||||
21 | "Licensed location" means the premises at which a licensee | ||||||
22 | is authorized to operate a community currency exchange to offer | ||||||
23 | to the public services, products, or activities under this Act. | ||||||
24 | "Location" when used with reference to an ambulatory | ||||||
25 | currency exchange
means the premises of the employer whose | ||||||
26 | employees are or are to be served
by an ambulatory currency |
| |||||||
| |||||||
1 | exchange.
| ||||||
2 | "Principal office" means the physical business address, | ||||||
3 | which shall not be a post office box, of a licensee at which | ||||||
4 | the (i) Department may contact the licensee and (ii) records | ||||||
5 | required under this Act are maintained. | ||||||
6 | "Secretary" means the Secretary of Financial and | ||||||
7 | Professional Regulation or a person authorized by the Secretary | ||||||
8 | or this Act to act in the Secretary's stead. All references in | ||||||
9 | this Act to the Secretary shall be deemed to include the | ||||||
10 | Director, as a person authorized by the Secretary or this Act | ||||||
11 | to assume responsibility for the oversight of the functions of | ||||||
12 | the Department relative to the regulatory supervision of | ||||||
13 | community currency exchanges and ambulatory currency exchanges | ||||||
14 | under this Act.
| ||||||
15 | (b) Nothing in this Act shall be held to apply to any | ||||||
16 | person, firm,
association, partnership, limited liability | ||||||
17 | company, or corporation who is
engaged primarily in the
| ||||||
18 | business of transporting for hire, bullion, currency, | ||||||
19 | securities,
negotiable or non-negotiable documents, jewels or | ||||||
20 | other property of great
monetary value and who in the course of | ||||||
21 | such business and only as an
incident thereto, cashes checks, | ||||||
22 | drafts, money orders or other evidences of
money directly for, | ||||||
23 | or for the employees of and with the funds of and at a
cost only | ||||||
24 | to, the person, firm, association, partnership, limited | ||||||
25 | liability
company, or corporation for
whom he or it is then | ||||||
26 | actually transporting such bullion, currency,
securities, |
| |||||||
| |||||||
1 | negotiable or non-negotiable documents, jewels, or other
| ||||||
2 | property of great monetary value, pursuant to a written | ||||||
3 | contract for such
transportation and all incidents thereof, nor | ||||||
4 | shall it apply to any person,
firm, association, partnership, | ||||||
5 | limited liability company, or corporation
engaged in the | ||||||
6 | business of
selling tangible personal property at retail who, | ||||||
7 | in the course of such
business and only as an incident thereto, | ||||||
8 | cashes checks, drafts, money
orders or other evidences of | ||||||
9 | money.
| ||||||
10 | (Source: P.A. 99-445, eff. 1-1-16 .)
| ||||||
11 | (205 ILCS 405/4) (from Ch. 17, par. 4808)
| ||||||
12 | Sec. 4. License application; contents; fees. A licensee | ||||||
13 | shall obtain a separate license for each licensed location. | ||||||
14 | Application for such
license shall be in writing under oath and | ||||||
15 | in
the form prescribed and furnished by the Secretary. Each | ||||||
16 | application shall
contain the following:
| ||||||
17 | (a) The applicant's full name and address (both of | ||||||
18 | residence and place of business) if the applicant is a | ||||||
19 | natural person,
and if the applicant is a partnership, | ||||||
20 | limited liability
company, or association, of
every member | ||||||
21 | thereof, and the name and principal office if the applicant | ||||||
22 | is
a corporation;
| ||||||
23 | (b) The county and municipality, with street and | ||||||
24 | number, if any, where
the community currency exchange is to | ||||||
25 | be conducted, if the application is
for a community |
| |||||||
| |||||||
1 | currency exchange license;
| ||||||
2 | (c) If the application is for an ambulatory currency | ||||||
3 | exchange license,
the name and address of the employer at | ||||||
4 | each location to be served by it;
and
| ||||||
5 | (d) In the case of a licensee's initial license | ||||||
6 | application, the applicant's occupation or profession; a | ||||||
7 | detailed statement of the applicant's
business experience | ||||||
8 | for the 10 years immediately preceding the
application; a | ||||||
9 | detailed statement of the applicant's finances; the | ||||||
10 | applicant's present or previous
connection with any other | ||||||
11 | currency exchange; whether the applicant has ever been
| ||||||
12 | involved in any civil or criminal litigation, and the | ||||||
13 | material facts
pertaining thereto; whether the applicant | ||||||
14 | has ever been committed to any penal
institution or | ||||||
15 | admitted to an institution for the care and treatment of
| ||||||
16 | mentally ill persons; and the nature of applicant's | ||||||
17 | occupancy of the
premises to be licensed where the | ||||||
18 | application is for a community currency
exchange license. | ||||||
19 | If the applicant is a partnership, the information
| ||||||
20 | specified herein shall be required of each partner. If the | ||||||
21 | applicant is a
corporation or limited liability company, | ||||||
22 | the said information shall be required of each controlling | ||||||
23 | person thereof along with disclosure of their ownership
| ||||||
24 | interests ; and .
| ||||||
25 | (e) An accurate and up-to-date email address.
| ||||||
26 | A licensee's initial community currency exchange license |
| |||||||
| |||||||
1 | application shall be
accompanied by a fee of $1,000 for the | ||||||
2 | cost of investigating the applicant. A licensee's application | ||||||
3 | for licenses for additional licensed locations shall be | ||||||
4 | accompanied by a fee of $1,000 for each additional license. If | ||||||
5 | the ownership of a
licensee or licensed location changes, in | ||||||
6 | whole or in part, a new application must be filed pursuant
to | ||||||
7 | this Section along with a $500 fee if the licensee's ownership | ||||||
8 | interests
have been transferred
or sold to a new person or | ||||||
9 | entity or a fee of $300 if the licensee's
ownership interests | ||||||
10 | have been transferred or sold to a current holder or
holders of | ||||||
11 | the licensee's ownership interests.
When the application for a
| ||||||
12 | community currency exchange license has been approved by the | ||||||
13 | Secretary and
the applicant so advised, an additional sum of
| ||||||
14 | $400 as an annual license
fee for a period terminating on the | ||||||
15 | last day of the current calendar year
shall be paid to the | ||||||
16 | Secretary by the applicant; provided, that the license
fee for | ||||||
17 | an applicant applying for such a license after July 1st of any | ||||||
18 | year
shall be $200 for the balance of such year. Upon receipt
| ||||||
19 | of a community currency exchange license application, the
| ||||||
20 | Secretary shall examine the application for completeness and
| ||||||
21 | notify the applicant in writing of any defect within 20 days | ||||||
22 | after
receipt. The applicant must remedy the defect within 10 | ||||||
23 | days after the mailing of the notification of the defect by the | ||||||
24 | Secretary. Failure to timely remedy the defect will void the | ||||||
25 | application. Once the Secretary determines that the | ||||||
26 | application is complete, the Secretary shall have 90 business |
| |||||||
| |||||||
1 | days to approve or deny the application.
If
the application is | ||||||
2 | denied, the Secretary shall send by United
States mail or to | ||||||
3 | the applicant's email address of record notice of the denial to | ||||||
4 | the applicant at the
address set forth in the application. If | ||||||
5 | an application is
denied, the applicant may, within 10 days | ||||||
6 | after the date of the
notice of denial, make a written request | ||||||
7 | to the Secretary for a
hearing on the application. The hearing | ||||||
8 | shall be set for a date after the receipt by the Secretary of | ||||||
9 | the request for a hearing, and electronic written notice of the | ||||||
10 | time and place of the hearing shall be sent to the applicant's | ||||||
11 | email address of record mailed to the applicant no later than | ||||||
12 | 15 days before the date of the hearing. The hearing shall be | ||||||
13 | scheduled for a date within 56 days after the date of the | ||||||
14 | receipt of the request for a hearing. The applicant shall pay | ||||||
15 | the actual cost of
making the transcript of the hearing prior | ||||||
16 | to the Secretary's
issuing his or her decision. The Secretary's | ||||||
17 | decision is subject to review as
provided in Section 22.01 of | ||||||
18 | this Act.
| ||||||
19 | An application for an ambulatory currency exchange license | ||||||
20 | shall be
accompanied by a fee of $100, which fee shall be for | ||||||
21 | the cost of
investigating the applicant. An approved applicant | ||||||
22 | shall not be required
to pay the initial investigation fee of | ||||||
23 | $100 more than once.
When the application for an ambulatory | ||||||
24 | currency exchange license has
been approved by the Secretary, | ||||||
25 | and such applicant so advised, such
applicant shall pay an | ||||||
26 | annual license fee of $25 for each and every
location to be |
| |||||||
| |||||||
1 | served by such applicant; provided that such license fee for
an | ||||||
2 | approved applicant applying for such a license after July 1st | ||||||
3 | of any
year shall be $12 for the balance of such year for each | ||||||
4 | and every location
to be served by such applicant. Such an
| ||||||
5 | approved applicant for an ambulatory currency exchange | ||||||
6 | license, when
applying for a license with respect to a | ||||||
7 | particular location, shall file
with the Secretary, at the time | ||||||
8 | of filing an application, a letter of
memorandum, which shall | ||||||
9 | be in writing and under oath, signed by the owner
or authorized | ||||||
10 | representative of the business whose employees are to be
| ||||||
11 | served; such letter or memorandum shall contain a statement | ||||||
12 | that such
service is desired, and that the person signing the | ||||||
13 | same is authorized so
to do. The Secretary shall thereupon | ||||||
14 | verify the authenticity of the letter
or memorandum and the | ||||||
15 | authority of the person who executed it, to do
so. | ||||||
16 | The Department shall have 45 business days to approve or | ||||||
17 | deny a licensee's request to purchase another currency | ||||||
18 | exchange.
| ||||||
19 | (Source: P.A. 99-445, eff. 1-1-16 .)
| ||||||
20 | (205 ILCS 405/10) (from Ch. 17, par. 4817)
| ||||||
21 | Sec. 10. Qualifications of applicant; denial of license; | ||||||
22 | review. The
applicant or its controlling persons shall be | ||||||
23 | vouched for
by 2 reputable citizens of this State setting forth
| ||||||
24 | that the individual mentioned is (a) personally known to them | ||||||
25 | to be
trustworthy and reputable, (b) that he has business |
| |||||||
| |||||||
1 | experience qualifying
him to competently conduct, operate, own | ||||||
2 | or become associated with a
currency exchange, (c) that he has | ||||||
3 | a good business reputation and is worthy
of a license. | ||||||
4 | Thereafter, the Secretary shall, upon approval of the
| ||||||
5 | application filed with him, issue to the applicant, qualifying | ||||||
6 | under this
Act, a license to operate a currency exchange. If it | ||||||
7 | is a license for a
community currency exchange, the same shall | ||||||
8 | be valid only at the place of
business specified in the | ||||||
9 | application. If it is a license for an ambulatory
currency | ||||||
10 | exchange, it shall entitle the applicant to operate only at the
| ||||||
11 | location or locations specified in the application, provided | ||||||
12 | the applicant
shall secure separate and additional licenses for | ||||||
13 | each of such locations.
Such licenses shall remain in full | ||||||
14 | force and effect, until they are
surrendered by the licensee, | ||||||
15 | or revoked, or expire, as herein provided. If
the Secretary | ||||||
16 | shall not so approve, he shall not issue such license or
| ||||||
17 | licenses and shall notify the applicant of such denial, | ||||||
18 | retaining the full
investigation fee to cover the cost of | ||||||
19 | investigating the community
currency exchange applicant. The
| ||||||
20 | Secretary shall approve or deny every application hereunder | ||||||
21 | within 90 days
from the filing of a complete application; | ||||||
22 | except that in respect to an application by an
approved | ||||||
23 | ambulatory currency exchange for a license with regard to a
| ||||||
24 | particular location to be served by it, the same shall be | ||||||
25 | approved or
denied within 20 days from the filing thereof. If | ||||||
26 | the application is
denied, the Secretary shall send by United |
| |||||||
| |||||||
1 | States mail or to the licensee's email address of record notice | ||||||
2 | of such denial
to the applicant at the address set forth in the | ||||||
3 | application.
| ||||||
4 | If an application is denied, the applicant may, within 10 | ||||||
5 | days from the
date of the notice of denial, make written | ||||||
6 | request to the Secretary for a
hearing on the application, and | ||||||
7 | the Secretary shall set a time and place for
the hearing. The | ||||||
8 | hearing shall be set for a date after the receipt by the
| ||||||
9 | Secretary of the request for hearing, and electronic written | ||||||
10 | notice of the time and
place of the hearing shall be emailed | ||||||
11 | mailed to the applicant at least 15 days
before the date of the | ||||||
12 | hearing. The applicant shall pay the actual cost of
making the | ||||||
13 | transcript of the hearing prior to the Secretary's issuing his
| ||||||
14 | decision following the hearing. Service by email is completed | ||||||
15 | when sent. | ||||||
16 | If, following the hearing, the application
is denied, the | ||||||
17 | Secretary shall, within 20 days thereafter prepare and keep
on | ||||||
18 | file in his office a written order of denial thereof, which | ||||||
19 | shall
contain his findings with respect thereto and the reasons | ||||||
20 | supporting the
denial, and shall send by mail United States | ||||||
21 | Mail a copy thereof to the
applicant at the address set forth | ||||||
22 | in the application, within 5 days after
the filing of such | ||||||
23 | order. A review of any such decision may be had as
provided in | ||||||
24 | Section 22.01 of this Act.
| ||||||
25 | (Source: P.A. 99-445, eff. 1-1-16 .)
|
| |||||||
| |||||||
1 | (205 ILCS 405/29.5) | ||||||
2 | Sec. 29.5. Cease and desist. The Secretary may issue a | ||||||
3 | cease and desist order to any currency exchange or other person | ||||||
4 | doing business without the required license, when in the | ||||||
5 | opinion of the Secretary, the currency exchange or other person | ||||||
6 | is violating or is about to violate any provision of this Act | ||||||
7 | or any rule or requirement imposed in writing by the | ||||||
8 | Department. The cease and desist order shall specify the | ||||||
9 | activity or activities that the Department is seeking the | ||||||
10 | currency exchange or other person doing business without the | ||||||
11 | required license to cease and desist. | ||||||
12 | The cease and desist order permitted by this Section may be | ||||||
13 | issued prior to a hearing. | ||||||
14 | The Secretary shall serve notice of his or her action, | ||||||
15 | including, but not limited to, a statement of reasons for the | ||||||
16 | action, either personally , by mail, or to the applicant's email | ||||||
17 | address of record or by certified mail, return receipt | ||||||
18 | requested . Service by certified mail is shall be deemed | ||||||
19 | completed (i) when the notice is deposited in the U.S. mail , | ||||||
20 | received, or delivery is refused, or (ii) one business day | ||||||
21 | after the United States Postal Service has attempted delivery, | ||||||
22 | whichever is earlier . Service by email is completed when sent. | ||||||
23 | Within 10 days after service of a cease and desist order, | ||||||
24 | the licensee or other person may request, in writing, a | ||||||
25 | hearing. The Secretary shall schedule a hearing within 30 days | ||||||
26 | after the request for a hearing unless otherwise agreed to by |
| |||||||
| |||||||
1 | the parties. | ||||||
2 | If it is determined that the Secretary has the authority to | ||||||
3 | issue the cease and desist order, he or she may issue such | ||||||
4 | orders as reasonably necessary to correct, eliminate, or remedy | ||||||
5 | such conduct. | ||||||
6 | The powers vested in the Secretary by this Section are | ||||||
7 | additional to any and all other powers and remedies vested in | ||||||
8 | the Secretary by law, and nothing in this Section shall be | ||||||
9 | construed as requiring that the Secretary shall employ the | ||||||
10 | power conferred in this Section instead of or as a condition | ||||||
11 | precedent to the exercise of any other power or remedy vested | ||||||
12 | in the Secretary. | ||||||
13 | The currency exchange, or other person doing business | ||||||
14 | without the required license, shall pay the actual costs of the | ||||||
15 | hearing.
| ||||||
16 | (Source: P.A. 99-445, eff. 1-1-16 .) | ||||||
17 | Section 15. The Transmitters of Money Act is amended by | ||||||
18 | changing Sections 5, 25, 40, 80, and 90 as follows:
| ||||||
19 | (205 ILCS 657/5)
| ||||||
20 | Sec. 5. Definitions. As used in this Act, unless the | ||||||
21 | context otherwise
requires, the words and phrases defined in | ||||||
22 | this Section have the meanings
set forth in this Section.
| ||||||
23 | "Authorized seller" means a person not an employee of a | ||||||
24 | licensee who
engages in the business regulated by this Act on |
| |||||||
| |||||||
1 | behalf of a licensee under
a contract between that person and | ||||||
2 | the licensee.
| ||||||
3 | "Bill payment service" means the business of transmitting | ||||||
4 | money on behalf
of an Illinois resident for the purpose of | ||||||
5 | paying the resident's bills.
| ||||||
6 | "Controlling person" means a person owning or holding the | ||||||
7 | power to vote
25% or more of the outstanding voting securities | ||||||
8 | of a licensee or the power to
vote the securities of another | ||||||
9 | controlling person of the licensee. For
purposes of determining | ||||||
10 | the percentage of a licensee controlled by a
controlling | ||||||
11 | person,
the person's interest shall be combined with the | ||||||
12 | interest of any other
person controlled, directly or | ||||||
13 | indirectly, by that person
or by a spouse, parent, or child of | ||||||
14 | that person.
| ||||||
15 | "Department" means the Department of Financial | ||||||
16 | Institutions.
| ||||||
17 | "Director" means the Director of Financial Institutions.
| ||||||
18 | "Email address of record" means the designated email | ||||||
19 | address recorded by the Division in the applicant's applicant | ||||||
20 | file or the licensee's license file maintained by the | ||||||
21 | Division's licensure unit. | ||||||
22 | "Licensee" means a person licensed under this Act.
| ||||||
23 | "Location" means a place of business at which activity | ||||||
24 | regulated by this Act
occurs.
| ||||||
25 | "Material litigation" means any litigation that, according | ||||||
26 | to generally
accepted accounting principles, is deemed |
| |||||||
| |||||||
1 | significant to a licensee's financial
health and would be | ||||||
2 | required to be referenced in a licensee's annual audited
| ||||||
3 | financial statements, reports to shareholders, or similar | ||||||
4 | documents.
| ||||||
5 | "Money" means a medium of exchange that is authorized or | ||||||
6 | adopted by a
domestic or foreign government as a part of its | ||||||
7 | currency and that is
customarily used and accepted as a medium | ||||||
8 | of exchange in the country of
issuance.
| ||||||
9 | "Money transmitter" means a person
who is located in or | ||||||
10 | doing business in this State and who directly or through
| ||||||
11 | authorized sellers does any of the
following in this State:
| ||||||
12 | (1) Sells or issues payment instruments.
| ||||||
13 | (2) Engages in the business of receiving money for | ||||||
14 | transmission or
transmitting money.
| ||||||
15 | (3) Engages in the business of exchanging, for | ||||||
16 | compensation, money of the
United States Government or a | ||||||
17 | foreign government to or from money of another
government.
| ||||||
18 | "Outstanding payment instrument" means, unless otherwise | ||||||
19 | treated by or
accounted for under generally accepted accounting | ||||||
20 | principles on the books of
the licensee, a payment instrument | ||||||
21 | issued by the
licensee that has been sold in the United States | ||||||
22 | directly by the licensee
or
has been sold in the United States | ||||||
23 | by an
authorized seller of the licensee and reported
to the | ||||||
24 | licensee as having been sold, but has not been paid by or for
| ||||||
25 | the licensee.
| ||||||
26 | "Payment instrument" means a check, draft, money order, |
| |||||||
| |||||||
1 | traveler's check,
stored value card, or
other instrument or | ||||||
2 | memorandum, written order or written receipt for the
| ||||||
3 | transmission or payment of money sold or issued to one or more | ||||||
4 | persons whether
or not that instrument or order is negotiable. | ||||||
5 | Payment instrument does not
include an instrument that is | ||||||
6 | redeemable by the issuer in merchandise or
service, a credit | ||||||
7 | card voucher, or a letter of credit. A written order for the
| ||||||
8 | transmission or payment of money that results in the issuance | ||||||
9 | of a check,
draft, money order, traveler's check, or other | ||||||
10 | instrument or memorandum is not
a
payment instrument.
| ||||||
11 | "Person" means an individual, partnership, association, | ||||||
12 | joint stock
association, corporation, or any other form of | ||||||
13 | business organization.
| ||||||
14 | "Stored value card" means any magnetic stripe card or other | ||||||
15 | electronic
payment instrument given in exchange for
money and | ||||||
16 | other similar consideration, including but not limited to
| ||||||
17 | checks, debit payments, money orders, drafts, credit payments, | ||||||
18 | and traveler's
checks,
where the card
or other
electronic | ||||||
19 | payment instrument represents a dollar value that the
consumer | ||||||
20 | can either use or give to another
individual.
| ||||||
21 | "Transmitting money" means the transmission of money by any | ||||||
22 | means, including
transmissions to or from locations within the | ||||||
23 | United States or to and from
locations outside of the United | ||||||
24 | States by payment instrument, facsimile or
electronic | ||||||
25 | transfer, or otherwise, and includes bill payment
services.
| ||||||
26 | (Source: P.A. 92-400, eff. 1-1-02; 93-535, eff. 1-1-04.)
|
| |||||||
| |||||||
1 | (205 ILCS 657/25)
| ||||||
2 | Sec. 25. Application for license.
| ||||||
3 | (a) An application for a license must
be
in writing, under | ||||||
4 | oath, and in the form the Director prescribes. The
application | ||||||
5 | must contain or be accompanied by all of the following:
| ||||||
6 | (1) The name of the applicant and the address of the | ||||||
7 | principal place of
business of the applicant and the | ||||||
8 | address of all locations and proposed
locations of the | ||||||
9 | applicant in
this State.
| ||||||
10 | (2) The form of business organization of the applicant, | ||||||
11 | including:
| ||||||
12 | (A) a copy of its articles of incorporation and | ||||||
13 | amendments thereto and a
copy of its bylaws, certified | ||||||
14 | by its
secretary, if the applicant is a corporation;
| ||||||
15 | (B) a copy of its partnership agreement, certified | ||||||
16 | by a partner, if the
applicant is a partnership; or
| ||||||
17 | (C) a copy of the documents that control its | ||||||
18 | organizational structure,
certified by a managing | ||||||
19 | official, if the applicant is organized in some other
| ||||||
20 | form.
| ||||||
21 | (3) The name, business and home address, and a | ||||||
22 | chronological summary of
the business experience, material | ||||||
23 | litigation history, and felony convictions
over the | ||||||
24 | preceding 10 years of:
| ||||||
25 | (A) the proprietor, if the applicant is an |
| |||||||
| |||||||
1 | individual;
| ||||||
2 | (B) every partner, if the applicant is a | ||||||
3 | partnership;
| ||||||
4 | (C) each officer, director, and controlling | ||||||
5 | person, if the
applicant is a corporation; and
| ||||||
6 | (D) each person in a position to exercise control | ||||||
7 | over, or direction of,
the business of the applicant, | ||||||
8 | regardless of the form of organization of the
| ||||||
9 | applicant.
| ||||||
10 | (4) Financial statements, not more than one year old, | ||||||
11 | prepared in
accordance with generally accepted
accounting | ||||||
12 | principles and audited by a licensed public accountant or | ||||||
13 | certified
public accountant showing the financial | ||||||
14 | condition
of the applicant and an unaudited balance sheet | ||||||
15 | and statement of operation as
of the most recent quarterly | ||||||
16 | report before the date of the application,
certified by the | ||||||
17 | applicant or an officer or partner thereof. If the
| ||||||
18 | applicant is a wholly owned subsidiary or is eligible to | ||||||
19 | file consolidated
federal income tax returns with its | ||||||
20 | parent, however, unaudited financial
statements for
the | ||||||
21 | preceding year along with the unaudited financial | ||||||
22 | statements for the most
recent quarter may be submitted if | ||||||
23 | accompanied by the audited financial
statements of the | ||||||
24 | parent company for the preceding year along with the
| ||||||
25 | unaudited financial statement for the most recent quarter.
| ||||||
26 | (5) Filings of the applicant with the Securities and |
| |||||||
| |||||||
1 | Exchange Commission
or
similar foreign governmental entity | ||||||
2 | (English translation), if any.
| ||||||
3 | (6) A list of all other states in which the applicant | ||||||
4 | is licensed as a
money
transmitter and whether the license | ||||||
5 | of the applicant for those purposes has
ever
been | ||||||
6 | withdrawn, refused, canceled, or suspended in any other | ||||||
7 | state, with full
details.
| ||||||
8 | (7) A list of all money transmitter locations and | ||||||
9 | proposed locations in
this State.
| ||||||
10 | (8) A sample of the contract for authorized sellers.
| ||||||
11 | (9) A sample form of the proposed payment instruments | ||||||
12 | to be used in this
State.
| ||||||
13 | (10) The name and business address of the clearing | ||||||
14 | banks through which the
applicant intends to conduct any | ||||||
15 | business regulated under this Act.
| ||||||
16 | (11) A surety bond as required by Section 30 of this
| ||||||
17 | Act.
| ||||||
18 | (12) The applicable fees as required by Section 45 of | ||||||
19 | this Act.
| ||||||
20 | (13) A written consent to service of process as | ||||||
21 | provided by Section 100 of
this Act.
| ||||||
22 | (14) A written statement that the applicant is in full | ||||||
23 | compliance with and
agrees to continue to fully comply with
| ||||||
24 | all state and federal statutes and regulations relating to | ||||||
25 | money laundering. | ||||||
26 | (15) An accurate and up-to-date email address.
|
| |||||||
| |||||||
1 | (16) (15) All additional information the Director | ||||||
2 | considers necessary in order
to determine whether or not to | ||||||
3 | issue the applicant a license under
this Act.
| ||||||
4 | (b) The Director may, for good cause shown, waive, in part, | ||||||
5 | any
of the requirements of this Section.
| ||||||
6 | (Source: P.A. 92-400, eff. 1-1-02.)
| ||||||
7 | (205 ILCS 657/40)
| ||||||
8 | Sec. 40. Renewals of license. As a condition for renewal of | ||||||
9 | a license,
a
licensee must submit to the Director, and the | ||||||
10 | Director must receive, on or
before December 1 of each year, an
| ||||||
11 | application for renewal made in writing and under oath on a | ||||||
12 | form
prescribed by the
Director. A licensee whose application | ||||||
13 | for
renewal is not received by the Department on or
before | ||||||
14 | December 31 shall not have its license renewed and
shall be | ||||||
15 | required to submit to the Director an application for a new | ||||||
16 | license in
accordance with Section 25. Upon a showing of good | ||||||
17 | cause, the Director may
extend the deadline for the filing of | ||||||
18 | an application for renewal. The
application for renewal of a | ||||||
19 | license shall contain or be accompanied by all of
the
| ||||||
20 | following:
| ||||||
21 | (1) The name of the licensee and the address of the | ||||||
22 | principal place of
business of the licensee.
| ||||||
23 | (2) A list of all locations where the licensee is | ||||||
24 | conducting business
under its license and a list of all | ||||||
25 | authorized sellers through whom the
licensee is conducting |
| |||||||
| |||||||
1 | business under its license, including the name and
business | ||||||
2 | address of each authorized seller.
| ||||||
3 | (3) Audited financial statements covering the past | ||||||
4 | year of operations,
prepared in accordance with generally | ||||||
5 | accepted accounting principles, showing
the financial | ||||||
6 | condition of the licensee. The licensee shall submit the | ||||||
7 | audited
financial statement after the application for
| ||||||
8 | renewal has been approved. The audited financial statement | ||||||
9 | must be received
by the Department no later than 120 days | ||||||
10 | after the end of the licensee's fiscal
year. If the | ||||||
11 | licensee is a wholly owned subsidiary or is eligible to
| ||||||
12 | file consolidated federal income tax returns with its | ||||||
13 | parent, the licensee may
submit unaudited financial | ||||||
14 | statements if accompanied by the audited financial
| ||||||
15 | statements of the parent company for its most recently | ||||||
16 | ended year.
| ||||||
17 | (4) A statement of the dollar amount and number of | ||||||
18 | money transmissions and
payment
instruments sold, issued, | ||||||
19 | exchanged, or transmitted in this State by the
licensee and
| ||||||
20 | its authorized sellers for the past year.
| ||||||
21 | (5) A statement of the dollar amount of uncompleted | ||||||
22 | money transmissions
and
payment
instruments outstanding or | ||||||
23 | in transit, in this State, as of the most recent
quarter | ||||||
24 | available.
| ||||||
25 | (6) The annual license renewal fees and any penalty | ||||||
26 | fees as provided by
Section 45 of this Act.
|
| |||||||
| |||||||
1 | (7) Evidence sufficient to prove to the satisfaction of | ||||||
2 | the Director that
the licensee has complied with all | ||||||
3 | requirements under Section 20 relating to
its net worth,
| ||||||
4 | under Section 30 relating to its surety bond or other | ||||||
5 | security,
and under Section 50 relating to permissible | ||||||
6 | investments.
| ||||||
7 | (8) A statement of a change in information provided by | ||||||
8 | the licensee in its
application for a license or its | ||||||
9 | previous applications for renewal including,
but not | ||||||
10 | limited to, new directors, officers, authorized sellers, | ||||||
11 | or clearing
banks and material changes in the operation of | ||||||
12 | the licensee's business.
| ||||||
13 | (9) An accurate and up-to-date email address. | ||||||
14 | (Source: P.A. 92-400, eff. 1-1-02.)
| ||||||
15 | (205 ILCS 657/80)
| ||||||
16 | Sec. 80. Revocation or suspension of licenses.
| ||||||
17 | (a) The Director may suspend or revoke a license
if the | ||||||
18 | Director finds any of the following:
| ||||||
19 | (1) The licensee has knowingly made a material | ||||||
20 | misstatement or suppressed
or
withheld
information on an | ||||||
21 | application for a license or a document required to be
| ||||||
22 | filed with the Director.
| ||||||
23 | (2) A fact or condition exists that, if it had existed | ||||||
24 | or had been known
at the time the licensee applied for its | ||||||
25 | license, would have been grounds for
denying the |
| |||||||
| |||||||
1 | application.
| ||||||
2 | (3) The licensee is insolvent.
| ||||||
3 | (4) The licensee has knowingly violated a material | ||||||
4 | provision of this Act
or rules
adopted under this Act or an | ||||||
5 | order of the Director.
| ||||||
6 | (5) The licensee refuses to permit the Director to make | ||||||
7 | an examination
at reasonable times as authorized by this | ||||||
8 | Act.
| ||||||
9 | (6) The licensee knowingly fails to make a report | ||||||
10 | required by this Act.
| ||||||
11 | (7) The licensee fails to pay a judgment entered in | ||||||
12 | favor of a claimant,
plaintiff, or creditor in an action | ||||||
13 | arising out of the licensee's business
regulated under this | ||||||
14 | Act within 30 days after the judgment becomes final or
| ||||||
15 | within 30 days after expiration or termination of a stay of | ||||||
16 | execution.
| ||||||
17 | (8) The licensee has been convicted under the laws of | ||||||
18 | this State,
another state, or the United States of a felony | ||||||
19 | or of a crime involving a
breach of trust or dishonesty.
| ||||||
20 | (9) The licensee has failed to suspend or terminate its | ||||||
21 | authorized
seller's authority to act on its behalf when the | ||||||
22 | licensee knew
its authorized seller was violating or had | ||||||
23 | violated
a material provision of this Act or rules adopted | ||||||
24 | under this Act
or
an order of the Director.
| ||||||
25 | (b) In every case in which a license is suspended or | ||||||
26 | revoked or an
application
for a license or renewal of a license |
| |||||||
| |||||||
1 | is denied, the Director shall serve
notice
of his action, | ||||||
2 | including a statement of the reasons for his action, either
| ||||||
3 | personally , by mail, or to the licensee's email address of | ||||||
4 | record. Service by mail is completed when the notice is | ||||||
5 | deposited in the U.S. mail. Service to the email address of | ||||||
6 | record is completed when sent or by certified mail, return | ||||||
7 | receipt requested.
Service by mail shall be deemed completed if | ||||||
8 | the notice is deposited in the
post office, postage paid, | ||||||
9 | addressed to the last known address specified in the
| ||||||
10 | application for a license .
| ||||||
11 | (c) In the case of denial of an application for a license | ||||||
12 | or renewal of a
license, the applicant or licensee may request | ||||||
13 | in writing, within 30 days after
the date of service, a | ||||||
14 | hearing. In the case of a denial of an application for
renewal | ||||||
15 | of a license, the expiring license shall be deemed to continue | ||||||
16 | in force
until 30 days after the service of the notice of | ||||||
17 | denial or, if a hearing is
requested during that period, until | ||||||
18 | a final order is entered pursuant to a
hearing.
| ||||||
19 | (d) The order of suspension or revocation of a license | ||||||
20 | shall take effect
upon service of the order. The holder of any | ||||||
21 | suspended or revoked
license may request in writing, within 30 | ||||||
22 | days after the date of service, a
hearing. In
the event a | ||||||
23 | hearing is requested, the order shall remain temporary until a
| ||||||
24 | final order is entered pursuant to the hearing.
| ||||||
25 | (e) The hearing shall be held at the time and place | ||||||
26 | designated by
the Director in either the City of Springfield or |
| |||||||
| |||||||
1 | the City of Chicago. The
Director and any administrative law | ||||||
2 | judge designated by him shall have the
power to administer | ||||||
3 | oaths and affirmations, subpoena witnesses and compel their
| ||||||
4 | attendance, take evidence, authorize the taking of | ||||||
5 | depositions, and require the
production of books, papers, | ||||||
6 | correspondence, and other records or
information that he | ||||||
7 | considers relevant or material to the inquiry.
| ||||||
8 | (f) The Director may issue an order of suspension or | ||||||
9 | revocation of a license
that takes effect upon service of the | ||||||
10 | order and remains in
effect regardless of a request for a | ||||||
11 | hearing when the Director finds that
the public welfare will be | ||||||
12 | endangered if the licensee is permitted to continue
to operate | ||||||
13 | the business regulated by this Act.
| ||||||
14 | (g) The decision of the Director to deny any application | ||||||
15 | for a license or
renewal of a license or to suspend or revoke a | ||||||
16 | license is subject to
judicial review under the Administrative | ||||||
17 | Review Law.
| ||||||
18 | (h) The costs for administrative hearing shall be set by | ||||||
19 | rule.
| ||||||
20 | (i) Appeals from all final orders and judgments entered by | ||||||
21 | the circuit court
under this Section in review of a decision of | ||||||
22 | the Director may be taken as in
other civil actions by any | ||||||
23 | party to the proceeding.
| ||||||
24 | (Source: P.A. 88-643, eff. 1-1-95.)
| ||||||
25 | (205 ILCS 657/90)
|
| |||||||
| |||||||
1 | Sec. 90. Enforcement.
| ||||||
2 | (a) If it appears to the Director that a person
has | ||||||
3 | committed or is about to commit a violation of this Act,
a rule | ||||||
4 | promulgated under this Act, or an order of the Director, the | ||||||
5 | Director
may apply to the circuit court for an order enjoining | ||||||
6 | the person from violating
or continuing to violate this Act, | ||||||
7 | the rule, or order and for
injunctive or other relief that the | ||||||
8 | nature of the case may require and may,
in addition, request | ||||||
9 | the court to assess a civil penalty up to $1,000
along with | ||||||
10 | costs and attorney fees.
| ||||||
11 | (b) If the Director finds, after an investigation that he | ||||||
12 | considers
appropriate, that a licensee or other person is | ||||||
13 | engaged in practices
contrary to this Act or to the rules | ||||||
14 | promulgated under this Act, the Director
may issue an order | ||||||
15 | directing the licensee or person to cease and desist the
| ||||||
16 | violation. The Director may, in addition to or without the | ||||||
17 | issuance of a cease
and desist order, assess an administrative | ||||||
18 | penalty up to
$1,000 against a licensee for each violation of | ||||||
19 | this Act or the rules
promulgated under this Act.
The issuance | ||||||
20 | of an order under this Section shall not be a prerequisite to | ||||||
21 | the
taking of any action by the Director under this or any | ||||||
22 | other Section of this
Act. The Director shall serve notice of | ||||||
23 | his action, including a statement of
the reasons for his | ||||||
24 | actions, either personally , by mail, or to the licensee's email | ||||||
25 | address of record. Service by mail is completed when the notice | ||||||
26 | is deposited in the U.S. mail. Service to the email address of |
| |||||||
| |||||||
1 | record is completed when sent or by certified mail, return
| ||||||
2 | receipt requested . Service by mail shall be deemed completed if | ||||||
3 | the notice is
deposited in the post office, postage paid, | ||||||
4 | addressed to the last known address
for a license.
| ||||||
5 | (c) In the case of the issuance of a cease and desist order | ||||||
6 | or assessment
order, a hearing may be requested in writing | ||||||
7 | within 30 days after the date of
service. The hearing shall be | ||||||
8 | held at the time and place designated
by the Director in either | ||||||
9 | the City of Springfield or the City of Chicago. The
Director | ||||||
10 | and any administrative law judge designated by him shall have | ||||||
11 | the
power to administer oaths and affirmations, subpoena | ||||||
12 | witnesses and compel their
attendance, take evidence, | ||||||
13 | authorize the taking of depositions, and require the
production | ||||||
14 | of books, papers, correspondence, and other records or
| ||||||
15 | information that he considers relevant or material to the | ||||||
16 | inquiry.
| ||||||
17 | (d) After the Director's final determination under a | ||||||
18 | hearing under
this Section, a party to the proceedings whose | ||||||
19 | interests are
affected by the Director's final determination | ||||||
20 | shall be entitled to judicial
review of that final | ||||||
21 | determination under the Administrative Review Law.
| ||||||
22 | (e) The costs for administrative hearings shall be set by | ||||||
23 | rule.
| ||||||
24 | (f) Except as otherwise provided in this Act, a violation | ||||||
25 | of
this Act shall subject the party violating it to a fine of | ||||||
26 | $1,000 for
each offense.
|
| |||||||
| |||||||
1 | (g) Each transaction in violation of this Act or the rules | ||||||
2 | promulgated
under this Act and each day that a violation | ||||||
3 | continues shall be a separate
offense.
| ||||||
4 | (h) A person who engages in conduct requiring a license | ||||||
5 | under this Act and
fails to obtain a license from the Director | ||||||
6 | or knowingly makes a false
statement, misrepresentation, or | ||||||
7 | false certification in an application,
financial statement, | ||||||
8 | account record, report, or other document filed or
required to | ||||||
9 | be maintained or filed under this Act or who knowingly makes a
| ||||||
10 | false entry or omits a material entry in a document is guilty | ||||||
11 | of a Class
3 felony.
| ||||||
12 | (i) The Director is authorized to compromise, settle, and | ||||||
13 | collect civil
penalties and administrative penalties, as set by | ||||||
14 | rule, with any person for
violations of this Act or of any rule | ||||||
15 | or order issued or
promulgated under this Act.
Any person who, | ||||||
16 | without the required license, engages in conduct requiring a
| ||||||
17 | license
under this Act shall be liable to the Department in an
| ||||||
18 | amount equal to
the greater of (i) $5,000 or (ii) an amount of | ||||||
19 | money accepted for transmission
plus an
amount equal to 3 times
| ||||||
20 | the
amount accepted for transmission. The Department shall | ||||||
21 | cause any funds so
recovered to be deposited in the TOMA | ||||||
22 | Consumer Protection Fund.
| ||||||
23 | (j) The Director may enter into consent orders at any time | ||||||
24 | with a person
to resolve a matter arising under this Act. A | ||||||
25 | consent order must be signed
by the person to whom it is issued | ||||||
26 | and must indicate agreement to the terms
contained in it. A |
| |||||||
| |||||||
1 | consent order need not constitute an admission by a
person that | ||||||
2 | this Act or a rule or order issued or
promulgated under this | ||||||
3 | Act has been violated, nor need it constitute a finding
by the | ||||||
4 | Director that the person has violated this Act or a rule
or | ||||||
5 | order promulgated under this Act.
| ||||||
6 | (k) Notwithstanding the issuance of a consent order, the | ||||||
7 | Director may seek
civil or criminal penalties or compromise | ||||||
8 | civil penalties concerning matter
encompassed by the consent | ||||||
9 | order unless the consent order by its terms
expressly precludes | ||||||
10 | the Director from doing so.
| ||||||
11 | (l) Appeals from all final orders and judgments entered by | ||||||
12 | the circuit
court
under this Section in review of a decision of | ||||||
13 | the Director may be taken as in
other civil actions by any | ||||||
14 | party to the proceeding.
| ||||||
15 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
16 | Section 20. The Sales Finance Agency Act is amended by | ||||||
17 | changing Sections 2, 6, 10, and 16.5 as follows:
| ||||||
18 | (205 ILCS 660/2) (from Ch. 17, par. 5202)
| ||||||
19 | Sec. 2. Definitions. In this Act, unless the context | ||||||
20 | otherwise requires:
| ||||||
21 | "Sales finance agency" means a person, irrespective of his | ||||||
22 | or her state of
domicile or place of business, engaged in this | ||||||
23 | State, in
whole or in part, in the business of purchasing, or | ||||||
24 | making loans secured
by, retail installment contracts, retail |
| |||||||
| |||||||
1 | charge agreements or the
outstanding balances under such | ||||||
2 | contracts or agreements entered into in this
State.
| ||||||
3 | "Holder" of a retail installment contract or a retail | ||||||
4 | charge
agreement means the retail seller of the goods or | ||||||
5 | services under the
contract or charge agreement, or if the | ||||||
6 | outstanding balances thereunder are
purchased by or | ||||||
7 | transferred as security to a sales finance agency or other
| ||||||
8 | assignee, the sales finance agency or other assignee.
| ||||||
9 | "Person" means an individual, corporation, partnership, | ||||||
10 | limited liability
company, joint venture, or any other form of | ||||||
11 | business association.
| ||||||
12 | "Department" means the Department of Financial | ||||||
13 | Institutions.
| ||||||
14 | "Director" means the Director of Financial Institutions.
| ||||||
15 | "Email address of record" means the designated email | ||||||
16 | address recorded by the Division in the applicant's applicant | ||||||
17 | file or the licensee's license file maintained by the | ||||||
18 | Division's licensure unit. | ||||||
19 | "Motor Vehicle Retail Installment Sales Act" and "Retail
| ||||||
20 | Installment Sales Act" refer to the Acts having those titles | ||||||
21 | enacted by
the 75th General Assembly.
| ||||||
22 | "Retail installment contract" and "retail charge | ||||||
23 | agreement" have the
meanings ascribed to them in the Motor | ||||||
24 | Vehicle Retail Installment Sales Act
and the Retail Installment | ||||||
25 | Sales Act.
| ||||||
26 | "Special purpose vehicle" means an entity that, in |
| |||||||
| |||||||
1 | connection with a
securitization, private placement, or | ||||||
2 | similar type of investment transaction,
is
administered by a | ||||||
3 | State or national bank under a management agreement for the
| ||||||
4 | purpose of purchasing, making loans against, or in pools of, | ||||||
5 | receivables,
general intangibles, and other financial assets | ||||||
6 | including retail installment
contracts, retail charge | ||||||
7 | agreements, or the outstanding balances or any
portion of the | ||||||
8 | outstanding balances under those
contracts or agreements.
| ||||||
9 | "Net Worth" means total assets minus total liabilities.
| ||||||
10 | (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)
| ||||||
11 | (205 ILCS 660/6) (from Ch. 17, par. 5206)
| ||||||
12 | Sec. 6.
A license fee of $300 for the applicant's principal | ||||||
13 | place of
business and $100 for each additional place of | ||||||
14 | business for which a license is
sought must be submitted with | ||||||
15 | an application for license made before July 1 of
any year. If | ||||||
16 | application for a license is made on July 1 or thereafter, a
| ||||||
17 | license fee of $150 for the principal place of business and of | ||||||
18 | $50 for each
additional place of business must accompany the | ||||||
19 | application. Each license
remains in force until surrendered, | ||||||
20 | suspended, or revoked. If the application
for license is | ||||||
21 | denied, the original license fee shall be retained by the State
| ||||||
22 | in reimbursement of its costs of investigating that | ||||||
23 | application.
| ||||||
24 | Before the license is granted, the applicant shall prove in | ||||||
25 | form satisfactory
to the Director, that the applicant has a |
| |||||||
| |||||||
1 | positive net worth of a minimum of
$30,000. At the time of | ||||||
2 | application, an applicant shall provide the Department with an | ||||||
3 | accurate and up-to-date email address.
| ||||||
4 | A licensee must pay to the Department, and the Department | ||||||
5 | must receive,
by December 1 of each year, the renewal license | ||||||
6 | application on forms
prescribed by the Director and
$300 for | ||||||
7 | the license for his principal place of business and $100 for | ||||||
8 | each
additional license held as a renewal license fee for the | ||||||
9 | succeeding
calendar year.
| ||||||
10 | (Source: P.A. 92-398, eff. 1-1-02.)
| ||||||
11 | (205 ILCS 660/10) (from Ch. 17, par. 5223)
| ||||||
12 | Sec. 10. Denial, revocation, fine, or suspension of | ||||||
13 | license.
| ||||||
14 | (a) The Director may revoke or suspend a license or fine a
| ||||||
15 | licensee if the licensee violates
any provisions of this Act.
| ||||||
16 | (b) In every case in which a license is revoked or | ||||||
17 | suspended, a licensee
is fined, or an
application for a license | ||||||
18 | or renewal of a license is denied, the Director shall
serve | ||||||
19 | notice of his or her action, including a statement of the | ||||||
20 | reasons for the
action
either personally , by mail, or to the | ||||||
21 | licensee's email address of record or by certified mail, return | ||||||
22 | receipt requested . Service by
certified mail is shall be deemed | ||||||
23 | completed when the notice is deposited in the
U.S. mail. | ||||||
24 | Service to the email address of record is completed when sent.
| ||||||
25 | (c) An order revoking or suspending a license or an order |
| |||||||
| |||||||
1 | denying renewal of
a license shall take effect upon service of | ||||||
2 | the order, unless the licensee
requests, in writing, within 10 | ||||||
3 | days after the date of service, a hearing. In
the event a | ||||||
4 | hearing is requested, the order shall be stayed until a final
| ||||||
5 | administrative order is entered.
| ||||||
6 | (d) If the licensee requests a hearing, the Director shall | ||||||
7 | schedule a
hearing within 30 days after the request for a | ||||||
8 | hearing unless otherwise agreed
to by the parties.
| ||||||
9 | (e) The hearing shall be held at the time and place | ||||||
10 | designated by the
Director. The Director and any administrative | ||||||
11 | law judge designated by him or
her shall have the power to | ||||||
12 | administer oaths and affirmations, subpoena
witnesses and | ||||||
13 | compel their attendance, take evidence, and require the
| ||||||
14 | production of books, papers, correspondence, and other records | ||||||
15 | or information
that he or she considers relevant or material to | ||||||
16 | the inquiry.
| ||||||
17 | (f) The costs for the administrative hearing shall be set | ||||||
18 | by rule.
| ||||||
19 | (g) The Director shall have the authority to prescribe | ||||||
20 | rules for the
administration of this Section.
| ||||||
21 | (Source: P.A. 92-398, eff. 1-1-02.)
| ||||||
22 | (205 ILCS 660/16.5)
| ||||||
23 | Sec. 16.5. Cease and desist orders.
| ||||||
24 | (a) The Director may issue a cease and desist order to a | ||||||
25 | sales finance
agency or other person doing business without the |
| |||||||
| |||||||
1 | required license when, in the
opinion of the director, the | ||||||
2 | licensee or other person is violating or is
about to violate | ||||||
3 | any provision of this Act or any law, rule,
or requirement | ||||||
4 | imposed in writing by the Department.
| ||||||
5 | (b) The Director may issue a cease and desist order prior | ||||||
6 | to a hearing.
| ||||||
7 | (c) The Director shall serve notice of his or her action, | ||||||
8 | designated as a
cease and
desist order made pursuant to this | ||||||
9 | Section, including a statement of the
reasons for the action, | ||||||
10 | either personally , by mail, or to the licensee's email address | ||||||
11 | of record or by certified mail, return
receipt requested . | ||||||
12 | Service by certified mail is shall be deemed completed when
the | ||||||
13 | notice is deposited in the U.S. mail. Service by email is | ||||||
14 | completed when sent.
| ||||||
15 | (d) Within 15 days of service of the cease and desist | ||||||
16 | order, the sales
finance agency or other person may request, in | ||||||
17 | writing, a hearing.
| ||||||
18 | (e) The Director shall schedule a hearing within 30 days | ||||||
19 | after the request
for a hearing unless otherwise agreed to by | ||||||
20 | the parties.
| ||||||
21 | (f) The Director shall have the authority to prescribe | ||||||
22 | rules for the
administration of this Section.
| ||||||
23 | (g) If it is determined that the Director had the authority | ||||||
24 | to issue the
cease and desist order, he or she may issue such | ||||||
25 | orders as may be reasonably
necessary to correct, eliminate, or | ||||||
26 | remedy such conduct.
|
| |||||||
| |||||||
1 | (h) The powers vested in the Director by this Section are | ||||||
2 | additional to any
and all other powers and remedies vested in | ||||||
3 | the Director by law, and nothing in
this Section shall be | ||||||
4 | construed as requiring that the Director shall employ the
| ||||||
5 | powers conferred in this Section instead of or as a condition | ||||||
6 | precedent to the
exercise of any other power or remedy vested | ||||||
7 | in the Director.
| ||||||
8 | (i) The cost for the administrative hearing shall be set by | ||||||
9 | rule.
| ||||||
10 | (Source: P.A. 90-437, eff. 1-1-98.)
| ||||||
11 | Section 25. The Debt Management Service Act is amended by | ||||||
12 | changing Sections 2, 4, 6, 10, and 20 as follows:
| ||||||
13 | (205 ILCS 665/2) (from Ch. 17, par. 5302)
| ||||||
14 | Sec. 2. Definitions. As used in this Act:
| ||||||
15 | "Credit counselor" means an individual, corporation, or | ||||||
16 | other entity that is not a debt management service that | ||||||
17 | provides (1) guidance, educational programs, or advice for the | ||||||
18 | purpose of addressing budgeting, personal finance, financial | ||||||
19 | literacy, saving and spending practices, or the sound use of | ||||||
20 | consumer credit; or (2) assistance or offers to assist | ||||||
21 | individuals and families with financial problems by providing | ||||||
22 | counseling; or (3) a combination of the activities described in | ||||||
23 | items (1) and (2) of this definition. | ||||||
24 | "Debt management
service" means
the planning and |
| |||||||
| |||||||
1 | management of the financial affairs of
a debtor for a fee and | ||||||
2 | the receiving
of money
from the debtor for the purpose
of | ||||||
3 | distributing it to the debtor's creditors in payment or partial | ||||||
4 | payment of
the debtor's obligations or soliciting financial | ||||||
5 | contributions from creditors.
The business of debt management | ||||||
6 | is conducted in this State if the debt
management business, its | ||||||
7 | employees, or its agents are located in this State or
if the
| ||||||
8 | debt management business solicits or contracts with debtors | ||||||
9 | located in this
State. "Debt management service" does not | ||||||
10 | include "debt settlement service" as defined in the Debt | ||||||
11 | Settlement Consumer Protection Act.
| ||||||
12 | This term shall not include the following when engaged in
| ||||||
13 | the regular course of their respective businesses and | ||||||
14 | professions:
| ||||||
15 | (a) Attorneys at law licensed, or otherwise authorized | ||||||
16 | to practice, in Illinois who are engaged in the practice of | ||||||
17 | law.
| ||||||
18 | (b) Banks, operating subsidiaries of banks, affiliates | ||||||
19 | of banks, fiduciaries, credit unions, savings and loan | ||||||
20 | associations,
and savings banks as duly
authorized and | ||||||
21 | admitted to transact business in the State of Illinois and
| ||||||
22 | performing credit and financial adjusting service in the | ||||||
23 | regular course of
their principal business.
| ||||||
24 | (c) Title insurers, title agents, independent | ||||||
25 | escrowees, and abstract companies, while doing an escrow
| ||||||
26 | business.
|
| |||||||
| |||||||
1 | (d) Judicial officers or others acting pursuant to | ||||||
2 | court
order.
| ||||||
3 | (e) Employers for their employees, except that no | ||||||
4 | employer shall retain the services of an outside debt | ||||||
5 | management service to perform this service unless the debt | ||||||
6 | management service is licensed pursuant to this Act.
| ||||||
7 | (f) Bill payment services, as defined in the | ||||||
8 | Transmitters of Money Act.
| ||||||
9 | (g) Credit counselors, only when providing services | ||||||
10 | described in the definition of credit counselor in this | ||||||
11 | Section.
| ||||||
12 | "Debtor" means the person or persons for whom the debt
| ||||||
13 | management service is performed.
| ||||||
14 | "Email address of record" means the designated email | ||||||
15 | address recorded by the Division in the applicant's applicant | ||||||
16 | file or the licensee's license file maintained by the | ||||||
17 | Division's licensure unit. | ||||||
18 | "Person" means an individual, firm, partnership,
| ||||||
19 | association, limited liability company,
corporation, or | ||||||
20 | not-for-profit corporation.
| ||||||
21 | "Licensee" means a person licensed under this Act.
| ||||||
22 | "Secretary" means the Secretary of Financial and | ||||||
23 | Professional Regulation. | ||||||
24 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
25 | (205 ILCS 665/4) (from Ch. 17, par. 5304)
|
| |||||||
| |||||||
1 | Sec. 4. Application for license. Application for a license | ||||||
2 | to engage in the debt
management
service
business in this State | ||||||
3 | shall be made to the Secretary and shall
be in writing, under | ||||||
4 | oath, and in the form prescribed by the Secretary. At the time | ||||||
5 | of application, an applicant shall provide the Department with | ||||||
6 | an accurate and up-to-date email address.
| ||||||
7 | Each applicant, at the time of making such application, | ||||||
8 | shall pay to the
Secretary the sum of $30.00 as a fee for | ||||||
9 | investigation of the applicant, and
the additional sum of | ||||||
10 | $100.00 as a license fee.
| ||||||
11 | Every applicant shall submit to the Secretary, at the time | ||||||
12 | of the
application for a license, a bond to be approved by the | ||||||
13 | Secretary in which
the applicant shall be the obligor, in the | ||||||
14 | sum of $25,000 or
such additional amount as required by the | ||||||
15 | Secretary based on the amount of
disbursements made by the
| ||||||
16 | licensee in the
previous year, and in which an
insurance | ||||||
17 | company, which is duly authorized by the State of Illinois, to
| ||||||
18 | transact the business of fidelity and surety insurance shall be | ||||||
19 | a surety.
| ||||||
20 | The bond shall run to the Secretary for the use of
the | ||||||
21 | Department or
of any person or persons who may have a cause of | ||||||
22 | action against the obligor
in said bond arising out
of any | ||||||
23 | violation of this
Act or rules by a license.
Such
bond
shall be | ||||||
24 | conditioned that the obligor will faithfully conform to
and | ||||||
25 | abide
by the provisions of this Act and of all rules, | ||||||
26 | regulations and directions
lawfully made by the Secretary and |
| |||||||
| |||||||
1 | will pay to the Secretary or to
any person or persons any and | ||||||
2 | all money that may become due or owing
to the State or to such | ||||||
3 | person or persons, from said obligor under and by
virtue of the | ||||||
4 | provisions of this Act.
| ||||||
5 | (Source: P.A. 96-1420, eff. 8-3-10.)
| ||||||
6 | (205 ILCS 665/6) (from Ch. 17, par. 5306)
| ||||||
7 | Sec. 6. Renewal of license. Each debt management service | ||||||
8 | provider under the provisions of this Act may
make application | ||||||
9 | to the
Secretary for renewal of its license, which
application | ||||||
10 | for renewal shall be on the form prescribed by the Secretary | ||||||
11 | and
shall be accompanied by a fee of $100.00 together with a | ||||||
12 | bond or other
surety as required, in a minimum amount of | ||||||
13 | $25,000 or such an amount as
required by the Secretary based on | ||||||
14 | the amount of disbursements made by the
licensee in the | ||||||
15 | previous year. The application must be received by the
| ||||||
16 | Department no later than December 1 of the year preceding the | ||||||
17 | year for which
the application applies. At the time of renewal, | ||||||
18 | a licensee shall provide the Department with an accurate and | ||||||
19 | up-to-date email address.
| ||||||
20 | (Source: P.A. 96-1420, eff. 8-3-10.)
| ||||||
21 | (205 ILCS 665/10) (from Ch. 17, par. 5310)
| ||||||
22 | Sec. 10. Revocation, suspension, or refusal to renew | ||||||
23 | license.
| ||||||
24 | (a) The Secretary may revoke or suspend or refuse to renew |
| |||||||
| |||||||
1 | any license if he finds that:
| ||||||
2 | (1) any licensee has failed to pay the annual license | ||||||
3 | fee, or to maintain
in
effect the bond required under the | ||||||
4 | provisions of this Act;
| ||||||
5 | (2) the licensee
has violated any
provisions
of this | ||||||
6 | Act or any rule, lawfully made by the Secretary within
the | ||||||
7 | authority of this Act;
| ||||||
8 | (3) any fact or condition exists
which, if it had | ||||||
9 | existed at the time of the original application for a
| ||||||
10 | license, would have warranted the Secretary in refusing its | ||||||
11 | issuance; or
| ||||||
12 | (4) any applicant has made any false
statement or | ||||||
13 | representation to the Secretary in applying for a license
| ||||||
14 | hereunder.
| ||||||
15 | (b) In every case in which a license is suspended or | ||||||
16 | revoked or an
application for a license or renewal of a license | ||||||
17 | is denied, the Secretary shall
serve notice of his action, | ||||||
18 | including a statement of the reasons for his
actions, either | ||||||
19 | personally , by mail, or to the licensee's email address of | ||||||
20 | record or by certified mail, return receipt requested .
Service | ||||||
21 | by mail is shall be deemed completed if the notice is deposited | ||||||
22 | in the
U.S. Mail. Service to the email address of record is | ||||||
23 | completed when sent.
| ||||||
24 | (c) In the case of a denial of an application or renewal of | ||||||
25 | a license,
the applicant or licensee may request in writing, | ||||||
26 | within
30 days after the date of service, a hearing. In the |
| |||||||
| |||||||
1 | case of a denial of a
renewal of a license, the license shall | ||||||
2 | be deemed to continue in force until 30
days after the service | ||||||
3 | of the notice of denial, or if a hearing is requested
during | ||||||
4 | that period, until a final administrative order is entered.
| ||||||
5 | (d) An order of revocation or suspension of a license shall | ||||||
6 | take effect upon
service of the order unless the licensee | ||||||
7 | requests, in writing, within 10 days
after the date of service, | ||||||
8 | a hearing. In the event a hearing is requested, the
order shall | ||||||
9 | be stayed until a final administrative order is entered.
| ||||||
10 | (e) If the licensee requests a hearing, the Secretary shall | ||||||
11 | schedule either a status date or a
hearing within 30 days after | ||||||
12 | the request for a hearing unless otherwise agreed
to by the | ||||||
13 | parties.
| ||||||
14 | (f) The hearing shall be held at the time and place | ||||||
15 | designated by the
Secretary. The Secretary and any | ||||||
16 | administrative law judge designated by him have
the power to | ||||||
17 | administer oaths and affirmations, subpoena witnesses and | ||||||
18 | compel
their attendance, take evidence, and require the | ||||||
19 | production of books, papers,
correspondence, and other records | ||||||
20 | or information that he considers relevant or
material to the | ||||||
21 | injury.
| ||||||
22 | (g) The costs for the administrative hearing shall be set | ||||||
23 | by rule and shall be borne by the respondent.
| ||||||
24 | (Source: P.A. 96-1420, eff. 8-3-10.)
| ||||||
25 | (205 ILCS 665/20) (from Ch. 17, par. 5323)
|
| |||||||
| |||||||
1 | Sec. 20. Cease and desist orders.
| ||||||
2 | (a) The Secretary may issue a cease and desist order to any
| ||||||
3 | licensee, or other person doing business without the required | ||||||
4 | license, when in
the opinion of the Secretary, the licensee, or | ||||||
5 | other person, is violating or is
about to violate any provision | ||||||
6 | of the Act or any rule or condition imposed in
writing by the | ||||||
7 | Department.
| ||||||
8 | (b) The Secretary may issue a cease and desist order prior | ||||||
9 | to a hearing.
| ||||||
10 | (c) The Secretary shall serve notice of his action, | ||||||
11 | including a statement of
the reasons for his action either | ||||||
12 | personally , by mail, or to the licensee's email address of | ||||||
13 | record or by certified mail, return
receipt requested . Service | ||||||
14 | by mail is shall be deemed completed if the notice is
deposited | ||||||
15 | in the U.S. Mail. Service to the email address of record is | ||||||
16 | completed when sent.
| ||||||
17 | (d) Within 10 days
after
service of the cease and desist | ||||||
18 | order, the licensee or
other person may request, in writing, a | ||||||
19 | hearing.
| ||||||
20 | (e) The Secretary shall schedule either a status date or a | ||||||
21 | hearing within 30 days after the request
for a hearing unless | ||||||
22 | otherwise agreed to by the parties.
| ||||||
23 | (g) If it is determined that the Secretary had the | ||||||
24 | authority to issue the
cease and desist order, he may issue | ||||||
25 | such orders as may be reasonably necessary
to correct, | ||||||
26 | eliminate, or remedy such conduct.
|
| |||||||
| |||||||
1 | (h) The powers vested in the Secretary by this Section are | ||||||
2 | additional
to any and all other powers and remedies vested in | ||||||
3 | the Secretary by law, and
nothing in this Section shall be | ||||||
4 | construed as requiring that the Secretary shall
employ the | ||||||
5 | power conferred in this Section instead of
or
as a condition | ||||||
6 | precedent
to the exercise of any other power or remedy vested | ||||||
7 | in the Secretary.
| ||||||
8 | (i) The cost for the administrative hearing shall be set by | ||||||
9 | rule and shall be borne by the respondent.
| ||||||
10 | (Source: P.A. 96-1420, eff. 8-3-10.)
| ||||||
11 | Section 30. The Consumer Installment Loan Act is amended by | ||||||
12 | adding Section 0.5 and by changing Sections 2, 8, 9, and 20.5 | ||||||
13 | as follows: | ||||||
14 | (205 ILCS 670/0.5 new) | ||||||
15 | Sec. 0.5. Email address of record. In this Act, "email | ||||||
16 | address of record" means the designated email address recorded | ||||||
17 | by the Division in the applicant's applicant file or the | ||||||
18 | licensee's license file maintained by the Division's licensure | ||||||
19 | unit.
| ||||||
20 | (205 ILCS 670/2) (from Ch. 17, par. 5402)
| ||||||
21 | Sec. 2. Application; fees; positive net worth. | ||||||
22 | Application for such license shall be in writing, and in | ||||||
23 | the
form prescribed by the Director. Such
applicant at the time |
| |||||||
| |||||||
1 | of making such application shall pay to the
Director the sum of | ||||||
2 | $300 as an application fee and the additional
sum of $450
as an | ||||||
3 | annual license
fee, for a period terminating on the last day of | ||||||
4 | the current
calendar year; provided that if the application is | ||||||
5 | filed after June 30th
in any year, such license fee shall be | ||||||
6 | 1/2 of the annual license fee
for such year. At the time of | ||||||
7 | application, an applicant shall provide the Department with an | ||||||
8 | accurate and up-to-date email address.
| ||||||
9 | Before the license is granted, every applicant shall prove | ||||||
10 | in form
satisfactory to the Director that the applicant has and | ||||||
11 | will maintain a
positive net
worth of a minimum of $30,000. | ||||||
12 | Every applicant and licensee shall maintain
a surety bond in
| ||||||
13 | the
principal sum of $25,000 issued by a bonding company | ||||||
14 | authorized
to do
business in this State and which shall be | ||||||
15 | approved by the Director. Such
bond shall run to the Director | ||||||
16 | and shall be for the benefit of any consumer
who incurs damages | ||||||
17 | as a result of any violation of the Act or rules by a
licensee. | ||||||
18 | If
the Director finds at any time that a bond is of | ||||||
19 | insufficient size, is
insecure, exhausted, or otherwise | ||||||
20 | doubtful, an additional bond in such
amount as determined by | ||||||
21 | the Director shall be filed by the licensee within
30 days | ||||||
22 | after written demand therefor by the Director.
"Net worth" | ||||||
23 | means total assets minus total liabilities.
| ||||||
24 | (Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)
| ||||||
25 | (205 ILCS 670/8) (from Ch. 17, par. 5408)
|
| |||||||
| |||||||
1 | Sec. 8. Annual license fee - Expenses. Before the 15th day | ||||||
2 | of each December, a
licensee must pay to
the Director, and the | ||||||
3 | Department must receive, the annual license fee
required by | ||||||
4 | Section 2 for the next
succeeding calendar year. The license | ||||||
5 | shall expire on the first of January
unless the license fee has | ||||||
6 | been paid prior thereto. At the time of renewal, a licensee | ||||||
7 | shall provide the Department with an accurate and up-to-date | ||||||
8 | email address.
| ||||||
9 | In addition to such license fee, the reasonable expense of | ||||||
10 | any
examination, investigation or custody by the Director under | ||||||
11 | any
provisions of this Act shall be borne by the licensee.
| ||||||
12 | If a licensee fails to renew his or her license by the 31st | ||||||
13 | day of
December, it shall automatically expire and the licensee | ||||||
14 | is not entitled to a
hearing; however, the Director, in his or | ||||||
15 | her discretion, may reinstate an
expired
license upon payment | ||||||
16 | of the annual renewal fee and proof of good cause for
failure | ||||||
17 | to renew.
| ||||||
18 | (Source: P.A. 92-398, eff. 1-1-02.)
| ||||||
19 | (205 ILCS 670/9) (from Ch. 17, par. 5409)
| ||||||
20 | Sec. 9. Fines, Suspension or Revocation of license.
| ||||||
21 | (a) The Director may, after 10 days notice by registered | ||||||
22 | mail to the
licensee at the address set forth in the license, | ||||||
23 | stating the contemplated
action and in general the grounds | ||||||
24 | therefor, fine such licensee an
amount not exceeding $10,000 | ||||||
25 | per violation, or revoke or suspend any
license issued |
| |||||||
| |||||||
1 | hereunder if he or she finds that:
| ||||||
2 | (1) The licensee has failed to comply with any | ||||||
3 | provision of this Act or
any order, decision, finding, | ||||||
4 | rule, regulation or direction of the
Director lawfully made | ||||||
5 | pursuant to the authority of this Act; or
| ||||||
6 | (2) Any fact or condition exists which, if it had | ||||||
7 | existed at the time of
the original application for the | ||||||
8 | license, clearly would have warranted the
Director in | ||||||
9 | refusing to issue the license.
| ||||||
10 | (b) The Director may fine, suspend, or revoke only the | ||||||
11 | particular
license with respect to which grounds for the fine, | ||||||
12 | revocation or
suspension occur or exist, but if the Director | ||||||
13 | shall find that grounds for
revocation are of general | ||||||
14 | application to all offices or to more than one
office of the | ||||||
15 | licensee, the Director shall fine, suspend, or revoke every
| ||||||
16 | license to which such grounds apply.
| ||||||
17 | (c) (Blank).
| ||||||
18 | (d) No revocation, suspension, or surrender of any license | ||||||
19 | shall
impair or affect the obligation of any pre-existing | ||||||
20 | lawful contract between
the licensee and any obligor.
| ||||||
21 | (e) The Director may issue a new license to a licensee | ||||||
22 | whose license
has been revoked when facts or conditions which | ||||||
23 | clearly would have warranted
the Director in refusing | ||||||
24 | originally to issue the license no longer exist.
| ||||||
25 | (f) (Blank).
| ||||||
26 | (g) In every case in which a license is suspended or |
| |||||||
| |||||||
1 | revoked or an
application for a license or renewal of a license | ||||||
2 | is denied, the Director shall
serve the licensee with notice of | ||||||
3 | his or her action, including a statement of
the reasons for his | ||||||
4 | or her actions, either personally, or by certified mail, or to | ||||||
5 | the licensee's email address of record
return receipt | ||||||
6 | requested . Service by certified mail is shall be deemed | ||||||
7 | completed
when the notice is deposited in the U.S. Mail. | ||||||
8 | Service to the email address of record is completed when sent.
| ||||||
9 | (h) An order assessing a fine, an order revoking or | ||||||
10 | suspending a license or,
an order denying renewal of a license | ||||||
11 | shall take effect upon service of the
order unless the licensee | ||||||
12 | requests, in writing, within 10 days after the date
of service, | ||||||
13 | a hearing. In the event a hearing is requested, the order shall | ||||||
14 | be
stayed until a final administrative order is entered.
| ||||||
15 | (i) If the licensee requests a hearing, the Director shall | ||||||
16 | schedule a
hearing within 30 days after the request for a | ||||||
17 | hearing unless otherwise agreed
to by the parties.
| ||||||
18 | (j) The hearing shall be held at the time and place | ||||||
19 | designated by the
Director. The Director and any administrative | ||||||
20 | law judge designated by him or
her shall have the power to | ||||||
21 | administer oaths and affirmations, subpoena
witnesses
and | ||||||
22 | compel their attendance, take evidence, and require the | ||||||
23 | production of
books, papers, correspondence, and other records | ||||||
24 | or information that he or she
considers relevant or material to | ||||||
25 | the inquiry.
| ||||||
26 | (k) The costs for the administrative hearing shall be set |
| |||||||
| |||||||
1 | by rule.
| ||||||
2 | (l) The Director shall have the authority to prescribe | ||||||
3 | rules for the
administration of this Section.
| ||||||
4 | (m) The Department shall establish by rule and publish a | ||||||
5 | schedule of fines that are reasonably tailored to ensure | ||||||
6 | compliance with the provisions of this Act and which include | ||||||
7 | remedial measures intended to improve licensee compliance. | ||||||
8 | Such rules shall set forth the standards and procedures to be | ||||||
9 | used in imposing any such fines and remedies. | ||||||
10 | (Source: P.A. 98-209, eff. 1-1-14.)
| ||||||
11 | (205 ILCS 670/20.5)
| ||||||
12 | Sec. 20.5. Cease and desist.
| ||||||
13 | (a) The Director may issue a cease and desist order to any | ||||||
14 | licensee, or
other person doing business without the required | ||||||
15 | license, when in the opinion
of the Director, the licensee, or | ||||||
16 | other person, is violating or is about to
violate any provision | ||||||
17 | of this Act or any rule or requirement imposed in writing
by | ||||||
18 | the Department as a condition of granting any authorization | ||||||
19 | permitted by
this Act.
| ||||||
20 | (b) The Director may issue a cease and desist order prior | ||||||
21 | to a hearing.
| ||||||
22 | (c) The Director shall serve notice of his or her action, | ||||||
23 | designated as a
cease and
desist order made pursuant to this | ||||||
24 | Section, including a statement of the
reasons
for the action, | ||||||
25 | either personally , or by certified mail , or to the licensee's |
| |||||||
| |||||||
1 | email address of record , return receipt
requested . Service by | ||||||
2 | certified mail is shall be deemed completed when the
notice is | ||||||
3 | deposited in the U.S. mail. Service to the email address of | ||||||
4 | record is completed when sent.
| ||||||
5 | (d) Within 15 days of service of the cease and desist | ||||||
6 | order, the licensee or
other person may request, in writing, a | ||||||
7 | hearing.
| ||||||
8 | (e) The Director shall schedule a hearing within 30 days | ||||||
9 | after the request
for a hearing unless otherwise agreed to by | ||||||
10 | the parties.
| ||||||
11 | (f) The Director shall have the authority to prescribe | ||||||
12 | rules for the
administration of this Section.
| ||||||
13 | (g) If it is determined that the Director had the authority | ||||||
14 | to issue the
cease and desist order, he or she may issue such | ||||||
15 | orders as may be reasonably
necessary to correct, eliminate, or | ||||||
16 | remedy such conduct.
| ||||||
17 | (h) The powers vested in the Director by this Section are | ||||||
18 | additional to any
and all other powers and remedies vested in | ||||||
19 | the Director by law, and nothing in
this Section shall be | ||||||
20 | construed as requiring that the Director shall employ the
power | ||||||
21 | conferred in this Section instead of or as a condition | ||||||
22 | precedent to the
exercise of any other power or remedy vested | ||||||
23 | in the Director.
| ||||||
24 | (i) The cost for the administrative hearing shall be set by | ||||||
25 | rule.
| ||||||
26 | (Source: P.A. 90-437, eff. 1-1-98.)
|
| |||||||
| |||||||
1 | Section 35. The Title Insurance Act is amended by changing | ||||||
2 | Sections 3, 21, 21.1, and 21.2 as follows:
| ||||||
3 | (215 ILCS 155/3) (from Ch. 73, par. 1403)
| ||||||
4 | Sec. 3. As used in this Act, the words and phrases | ||||||
5 | following shall
have the following meanings unless the context | ||||||
6 | requires otherwise:
| ||||||
7 | (1) "Title insurance business" or "business of title | ||||||
8 | insurance" means:
| ||||||
9 | (A) Issuing as insurer or offering to issue as insurer | ||||||
10 | title insurance;
and
| ||||||
11 | (B) Transacting or proposing to transact one or more of | ||||||
12 | the following
activities when
conducted or performed in | ||||||
13 | contemplation of or in conjunction with the issuance
of | ||||||
14 | title insurance;
| ||||||
15 | (i) soliciting or negotiating the issuance of | ||||||
16 | title insurance;
| ||||||
17 | (ii) guaranteeing, warranting, or otherwise | ||||||
18 | insuring the correctness of
title
searches for all | ||||||
19 | instruments affecting titles to real property, any | ||||||
20 | interest in
real property, cooperative units and | ||||||
21 | proprietary leases, and for all liens or
charges | ||||||
22 | affecting the same;
| ||||||
23 | (iii) handling of escrows, settlements, or | ||||||
24 | closings;
|
| |||||||
| |||||||
1 | (iv) executing title insurance policies;
| ||||||
2 | (v) effecting contracts of reinsurance;
| ||||||
3 | (vi) abstracting, searching, or examining titles; | ||||||
4 | or
| ||||||
5 | (vii) issuing insured closing letters or closing | ||||||
6 | protection letters;
| ||||||
7 | (C) Guaranteeing, warranting, or insuring searches or | ||||||
8 | examinations of
title to real property or any interest in | ||||||
9 | real property, with the exception of
preparing an | ||||||
10 | attorney's opinion of title; or
| ||||||
11 | (D) Guaranteeing or warranting the status of title as | ||||||
12 | to ownership of or
liens on real property and personal | ||||||
13 | property by any person other than the
principals to the | ||||||
14 | transaction; or
| ||||||
15 | (E) Doing or proposing to do any business substantially | ||||||
16 | equivalent to any
of the activities listed in this | ||||||
17 | subsection,
provided that the preparation of an attorney's | ||||||
18 | opinion
of title pursuant to paragraph (1)(C) is not | ||||||
19 | intended to be within the
definition of "title insurance | ||||||
20 | business" or "business of title insurance".
| ||||||
21 | (1.5) "Title insurance" means insuring, guaranteeing, | ||||||
22 | warranting, or
indemnifying owners of real or personal property | ||||||
23 | or the holders of liens or
encumbrances thereon or others | ||||||
24 | interested therein against loss or damage
suffered by reason of | ||||||
25 | liens, encumbrances upon, defects in, or the
unmarketability of | ||||||
26 | the title to the property; the invalidity or
unenforceability |
| |||||||
| |||||||
1 | of any liens or encumbrances thereon; or doing any business in
| ||||||
2 | substance equivalent to any of the foregoing.
"Warranting" for | ||||||
3 | purpose of this provision shall not
include any warranty | ||||||
4 | contained in instruments of encumbrance or conveyance.
Title | ||||||
5 | insurance is a single line form of insurance, also known as | ||||||
6 | monoline. An attorney's opinion of title pursuant to paragraph | ||||||
7 | (1)(C) is not intended to
be within the definition of "title | ||||||
8 | insurance".
| ||||||
9 | (2) "Title insurance company" means any domestic company | ||||||
10 | organized under
the laws of this State for the purpose of | ||||||
11 | conducting the business of
title insurance and any title | ||||||
12 | insurance
company organized under the laws of another State, | ||||||
13 | the District of Columbia
or foreign government and authorized | ||||||
14 | to transact the business of
title insurance in this State.
| ||||||
15 | (3) "Title insurance agent" means a person, firm, | ||||||
16 | partnership,
association, corporation or other legal entity | ||||||
17 | registered by a title
insurance company and authorized by such | ||||||
18 | company to determine insurability
of title in accordance with | ||||||
19 | generally acceptable underwriting rules and
standards in | ||||||
20 | reliance on either the public records or a search package
| ||||||
21 | prepared from a title plant, or both, and authorized by such | ||||||
22 | title insurance company in addition to do any
of the following: | ||||||
23 | act as an escrow agent pursuant to subsections (f), (g), and | ||||||
24 | (h) of Section 16 of this Act, solicit title insurance, collect
| ||||||
25 | premiums, or issue title insurance commitments,
policies, and | ||||||
26 | endorsements of the title insurance company; provided, |
| |||||||
| |||||||
1 | however, the term "title insurance agent"
shall not include | ||||||
2 | officers and salaried employees of any title insurance
company.
| ||||||
3 | (4) "Producer of title business" is any person, firm, | ||||||
4 | partnership,
association, corporation or other legal entity | ||||||
5 | engaged in this State in the
trade, business, occupation or | ||||||
6 | profession of (i) buying or selling
interests in real property, | ||||||
7 | (ii) making loans secured by interests in real
property, or | ||||||
8 | (iii) acting as broker, agent, attorney, or representative of
| ||||||
9 | natural persons or other legal entities that buy or sell | ||||||
10 | interests in real
property or that lend money with such | ||||||
11 | interests as security.
| ||||||
12 | (5) "Associate" is any firm, association, partnership, | ||||||
13 | corporation or
other legal entity organized for profit in which | ||||||
14 | a producer of title
business is a director, officer, or partner | ||||||
15 | thereof, or owner of a
financial interest, as defined herein, | ||||||
16 | in such entity; any legal entity
that controls, is controlled | ||||||
17 | by, or is under common control with a producer
of title | ||||||
18 | business; and any natural person or legal entity with whom a
| ||||||
19 | producer of title business has any agreement, arrangement, or | ||||||
20 | understanding
or pursues any course of conduct the purpose of | ||||||
21 | which is to evade the
provisions of this Act.
| ||||||
22 | (6) "Financial interest" is any ownership interest, legal | ||||||
23 | or beneficial,
except ownership of publicly traded stock.
| ||||||
24 | (7) "Refer" means to place or cause to be placed, or to | ||||||
25 | exercise any
power or influence over the placing of title | ||||||
26 | business, whether or not the
consent or approval of any other |
| |||||||
| |||||||
1 | person is sought or obtained with respect
to the referral.
| ||||||
2 | (8) "Escrow Agent" means any title insurance company or any | ||||||
3 | title
insurance agent, including independent contractors of | ||||||
4 | either, acting on behalf of a title insurance company, which
| ||||||
5 | receives deposits, in trust, of funds or documents, or both, | ||||||
6 | for the purpose
of effecting the sale, transfer, encumbrance or | ||||||
7 | lease of real property to
be held by such escrow agent until | ||||||
8 | title to the real property that is the
subject of the escrow is | ||||||
9 | in a prescribed condition. An escrow agent conducting closings | ||||||
10 | shall be subject to the provisions of paragraphs (1) through | ||||||
11 | (4) of subsection (e) of Section 16 of this Act.
| ||||||
12 | (9) "Independent Escrowee" means any firm, person, | ||||||
13 | partnership,
association, corporation or other
legal entity, | ||||||
14 | other than a title insurance company or a title insurance
| ||||||
15 | agent, which receives deposits, in trust, of funds or | ||||||
16 | documents, or both, for
the purpose of effecting the sale, | ||||||
17 | transfer, encumbrance or lease of real
property to be held by | ||||||
18 | such escrowee until title to the real property that
is the | ||||||
19 | subject of the escrow is in a prescribed condition. Federal and
| ||||||
20 | State chartered banks, savings and loan associations, credit | ||||||
21 | unions,
mortgage bankers, banks or trust companies authorized | ||||||
22 | to do business under
the Illinois Corporate Fiduciary Act, | ||||||
23 | licensees under the Consumer
Installment Loan Act, real estate | ||||||
24 | brokers licensed pursuant to the Real
Estate License Act of | ||||||
25 | 2000, as such Acts are now or hereafter amended, and
licensed | ||||||
26 | attorneys when engaged in the attorney-client relationship are
|
| |||||||
| |||||||
1 | exempt from the escrow provisions of this Act. "Independent | ||||||
2 | Escrowee" does not include employees or independent | ||||||
3 | contractors of a title insurance company or title insurance | ||||||
4 | agent authorized by a title insurance company to perform | ||||||
5 | closing, escrow, or settlement services.
| ||||||
6 | (10) "Single risk" means the insured amount of any title | ||||||
7 | insurance
policy, except that where 2 or more title insurance | ||||||
8 | policies are issued
simultaneously covering different estates | ||||||
9 | in the same real property, "single
risk" means the sum of the | ||||||
10 | insured amounts of all such title insurance
policies. Any title | ||||||
11 | insurance policy insuring a mortgage interest, a claim
payment | ||||||
12 | under which reduces the insured amount of a fee or leasehold | ||||||
13 | title
insurance policy, shall be excluded in computing the | ||||||
14 | amount of a single
risk to the extent that the insured amount | ||||||
15 | of the mortgage title insurance
policy does not exceed the | ||||||
16 | insured amount of the fee or leasehold title
insurance policy.
| ||||||
17 | (11) "Department" means the Department of Financial and | ||||||
18 | Professional Regulation.
| ||||||
19 | (12) "Secretary" means the Secretary
of Financial and | ||||||
20 | Professional Regulation.
| ||||||
21 | (13) "Insured closing letter" or "closing protection | ||||||
22 | letter" means
an indemnification or undertaking to a party to a | ||||||
23 | real property transaction, from
a principal such as a title | ||||||
24 | insurance company, setting forth
in writing the extent of the | ||||||
25 | principal's responsibility for intentional
misconduct or | ||||||
26 | errors in closing the real property transaction on the part of |
| |||||||
| |||||||
1 | a
settlement agent, such as a title insurance agent or other | ||||||
2 | settlement service
provider, or an indemnification or | ||||||
3 | undertaking given by a title insurance company or an | ||||||
4 | independent escrowee setting forth in writing the extent of the | ||||||
5 | title insurance company's or independent escrowee's | ||||||
6 | responsibility to a party to a real property transaction which | ||||||
7 | indemnifies the party against the intentional misconduct or | ||||||
8 | errors in closing the real property transaction on the part of | ||||||
9 | the title insurance company or independent escrowee and | ||||||
10 | includes protection afforded pursuant to subsections (f), (g), | ||||||
11 | and (h) of Section 16, Section 16.1, subsection (h) of Section | ||||||
12 | 17, and Section 17.1 of this Act even if such protection is | ||||||
13 | afforded by contract.
| ||||||
14 | (14) "Residential real property" means a building or | ||||||
15 | buildings consisting of one to 4 residential units or a | ||||||
16 | residential condominium unit where at least one of the | ||||||
17 | residential units or condominium units is occupied or intended | ||||||
18 | to be occupied as a residence by the purchaser or borrower, or | ||||||
19 | in the event that the purchaser or borrower is the trustee of a | ||||||
20 | trust, by a beneficiary of that trust.
| ||||||
21 | (15) "Financial institution" means any bank subject to the | ||||||
22 | Illinois Banking Act, any savings and loan association subject | ||||||
23 | to the Illinois Savings and Loan Act of 1985, any savings bank | ||||||
24 | subject to the Savings Bank Act, any credit union subject to | ||||||
25 | the Illinois Credit Union Act, and any federally chartered | ||||||
26 | commercial bank, savings and loan association, savings bank, or |
| |||||||
| |||||||
1 | credit union organized and operated in this State pursuant to | ||||||
2 | the laws of the United States. | ||||||
3 | (16) "Email address of record" means the designated email | ||||||
4 | address recorded by the Division in the applicant's applicant | ||||||
5 | file or the licensee's license file maintained by the | ||||||
6 | Division's licensure unit. | ||||||
7 | (Source: P.A. 100-485, eff. 9-8-17.)
| ||||||
8 | (215 ILCS 155/21) (from Ch. 73, par. 1421)
| ||||||
9 | Sec. 21. Regulatory action.
| ||||||
10 | (a) The Secretary may refuse to grant, and may suspend or
| ||||||
11 | revoke, any certificate of authority, registration,
or license | ||||||
12 | issued
pursuant to this Act or may impose a fine for a | ||||||
13 | violation of this Act if he determines that the holder of or | ||||||
14 | applicant for
such certificate, registration or license:
| ||||||
15 | (1) has intentionally made a material misstatement or | ||||||
16 | fraudulent
misrepresentation in relation to a matter | ||||||
17 | covered by this Act;
| ||||||
18 | (2) has misappropriated or tortiously converted to its | ||||||
19 | own use, or
illegally withheld, monies held in a fiduciary | ||||||
20 | capacity;
| ||||||
21 | (3) has demonstrated untrustworthiness or incompetency | ||||||
22 | in transacting
the business of guaranteeing titles to real | ||||||
23 | estate in such a manner as to
endanger the public;
| ||||||
24 | (4) has materially misrepresented the terms or | ||||||
25 | conditions of contracts
or agreements to which it is a |
| |||||||
| |||||||
1 | party;
| ||||||
2 | (5) has paid any commissions, discounts or any part of | ||||||
3 | its premiums,
fees or other charges to any person in | ||||||
4 | violation of any State or federal
law or regulations or | ||||||
5 | opinion letters issued under the federal Real Estate
| ||||||
6 | Settlement Procedures Act of 1974;
| ||||||
7 | (6) has failed to comply with the deposit and reserve | ||||||
8 | requirements of
this Act or any other requirements of this | ||||||
9 | Act; | ||||||
10 | (7) has committed fraud or misrepresentation in | ||||||
11 | applying for or procuring any certificate of authority, | ||||||
12 | registration, or license issued pursuant to this Act; | ||||||
13 | (8) has a conviction or plea of guilty or plea of nolo | ||||||
14 | contendere in this State or any other jurisdiction to (i) | ||||||
15 | any felony or (ii) a misdemeanor, an essential element of | ||||||
16 | which is dishonesty or fraud or larceny, embezzlement, or | ||||||
17 | obtaining money, property, or credit by false pretenses or | ||||||
18 | by means of a confidence game; | ||||||
19 | (9) has been disciplined by another state, the District | ||||||
20 | of Columbia, a territory, foreign nation, a governmental | ||||||
21 | agency, or any entity authorized to impose discipline if at | ||||||
22 | least one of the grounds for that discipline is the same as | ||||||
23 | or equivalent to one of the grounds for which a title | ||||||
24 | insurance company, title insurance agent, or independent | ||||||
25 | escrowee may be disciplined under this Act or if at least | ||||||
26 | one of the grounds for that discipline involves dishonesty; |
| |||||||
| |||||||
1 | a certified copy of the record of the action by the other | ||||||
2 | state or jurisdiction shall be prima facie evidence | ||||||
3 | thereof; | ||||||
4 | (10) has advertising that is inaccurate, misleading, | ||||||
5 | or contrary to the provisions of this Act; | ||||||
6 | (11) has knowingly and willfully made any substantial | ||||||
7 | misrepresentation or untruthful advertising; | ||||||
8 | (12) has made any false promises of a character likely | ||||||
9 | to influence, persuade, or induce; | ||||||
10 | (13) has knowingly failed to account for or remit any | ||||||
11 | money or documents coming into the possession of a title | ||||||
12 | insurance company, title insurance agent, or independent | ||||||
13 | escrowee that belong to others; | ||||||
14 | (14) has engaged in dishonorable, unethical, or | ||||||
15 | unprofessional conduct of a character likely to deceive, | ||||||
16 | defraud, or harm the public; | ||||||
17 | (15) has violated the terms of a disciplinary order | ||||||
18 | issued by the Department; | ||||||
19 | (16) has disregarded or violated any provision of this | ||||||
20 | Act or the published rules adopted by the Department to | ||||||
21 | enforce this Act or has aided or abetted any individual, | ||||||
22 | partnership, registered limited liability partnership, | ||||||
23 | limited liability company, or corporation in disregarding | ||||||
24 | any provision of this Act or the published rules; or | ||||||
25 | (17) has acted as a title insurance company, title | ||||||
26 | insurance agent, or independent escrowee without a |
| |||||||
| |||||||
1 | certificate of authority, registration, or license after | ||||||
2 | the title insurance company, title insurance agent, or | ||||||
3 | independent escrowee's certificate of authority, | ||||||
4 | registration, or license was inoperative.
| ||||||
5 | (b) In every case where a registration or certificate is | ||||||
6 | suspended or
revoked, or an application for a registration or | ||||||
7 | certificate or renewal
thereof is refused, the Secretary shall | ||||||
8 | serve notice of his action, by mail or to the title insurance | ||||||
9 | company's email address of record,
including a statement of the | ||||||
10 | reasons for his action, as provided by this Act. When a notice | ||||||
11 | of suspension or revocation of a certificate of authority is | ||||||
12 | given to a title insurance company, the Secretary shall also | ||||||
13 | notify all the registered agents of that title insurance | ||||||
14 | company of the Secretary's action. Service by mail is completed | ||||||
15 | if the notice is deposited in the U.S. Mail. Service by email | ||||||
16 | is completed when sent.
| ||||||
17 | (c) In the case of a refusal to issue or renew a | ||||||
18 | certificate or accept a
registration, the applicant or | ||||||
19 | registrant may request in writing, within 30
days after the | ||||||
20 | date of service, a hearing. In the case of a
refusal to renew, | ||||||
21 | the expiring registration or certificate shall be deemed
to | ||||||
22 | continue in force until 30 days after the service of the notice | ||||||
23 | of
refusal to renew, or if a hearing is requested during that | ||||||
24 | period, until a
final order is entered pursuant to such | ||||||
25 | hearing.
| ||||||
26 | (d) The suspension or revocation of a registration or |
| |||||||
| |||||||
1 | certificate shall
take effect upon service of notice thereof. | ||||||
2 | The holder of any such
suspended registration or certificate | ||||||
3 | may request in writing, within 30
days of such service, a | ||||||
4 | hearing.
| ||||||
5 | (e) In cases of suspension or revocation of registration | ||||||
6 | pursuant to
subsection (a), the Secretary may, in the public | ||||||
7 | interest, issue an order of
suspension or revocation which | ||||||
8 | shall take effect upon service of
notification thereof. Such | ||||||
9 | order shall become final 60 days from the date
of service | ||||||
10 | unless the registrant requests in writing, within such 60 days,
| ||||||
11 | a formal hearing thereon. In the event a hearing is requested, | ||||||
12 | the order
shall remain temporary until a final order is entered | ||||||
13 | pursuant to such hearing.
| ||||||
14 | (f) Hearing shall be held at such time and place as may be | ||||||
15 | designated by
the Secretary either in the City of Springfield, | ||||||
16 | the City of Chicago, or in
the county in which the principal | ||||||
17 | business office of the affected
registrant or certificate | ||||||
18 | holder is located.
| ||||||
19 | (g) The suspension or revocation of a registration or | ||||||
20 | certificate or the
refusal to issue or renew a registration or | ||||||
21 | certificate shall not in any
way limit or terminate the | ||||||
22 | responsibilities of any registrant or
certificate holder | ||||||
23 | arising under any policy or contract of title insurance
to | ||||||
24 | which it is a party. No new contract or policy of title | ||||||
25 | insurance may
be issued, nor may any existing policy or | ||||||
26 | contract to title insurance be
renewed by any registrant or |
| |||||||
| |||||||
1 | certificate holder during any period of
suspension or | ||||||
2 | revocation of a registration or certificate.
| ||||||
3 | (h) The Secretary may issue a cease and desist order to a | ||||||
4 | title insurance
company, agent, or other entity doing business | ||||||
5 | without the required license or
registration, when in the | ||||||
6 | opinion of the Secretary, the company, agent, or other
entity | ||||||
7 | is violating or is about to violate any provision of this Act | ||||||
8 | or any
law or of
any
rule or condition imposed in writing by | ||||||
9 | the Department.
| ||||||
10 | The Secretary may issue the cease and desist order without | ||||||
11 | notice and before a
hearing.
| ||||||
12 | The Secretary shall have the authority to prescribe rules | ||||||
13 | for the
administration of this Section.
| ||||||
14 | If it is determined that the Secretary had the authority to | ||||||
15 | issue the cease
and desist order, he may issue such orders as | ||||||
16 | may be reasonably necessary to
correct, eliminate or remedy | ||||||
17 | such conduct.
| ||||||
18 | Any person or company subject to an order pursuant to this | ||||||
19 | Section is
entitled to judicial review of the order in | ||||||
20 | accordance with the provisions of
the Administrative Review | ||||||
21 | Law.
| ||||||
22 | The powers vested in the Secretary by this Section are | ||||||
23 | additional to any and
all other powers and remedies vested in | ||||||
24 | the Secretary by law, and nothing in
this Section shall be | ||||||
25 | construed as requiring that the Secretary
shall employ the
| ||||||
26 | powers conferred in this Section instead of or as a condition |
| |||||||
| |||||||
1 | precedent to the
exercise of any other power or remedy vested | ||||||
2 | in the Secretary.
| ||||||
3 | (Source: P.A. 98-398, eff. 1-1-14.)
| ||||||
4 | (215 ILCS 155/21.1) | ||||||
5 | Sec. 21.1. Receiver and involuntary liquidation. | ||||||
6 | (a) The Secretary's proceedings under this Section shall be | ||||||
7 | the exclusive remedy and the only proceedings commenced in any | ||||||
8 | court for the dissolution of, the winding up of the affairs of, | ||||||
9 | or the appointment of a receiver for a title insurance company. | ||||||
10 | (b) If the Secretary, with respect to a title insurance | ||||||
11 | company, finds that (i) its capital is impaired or it is | ||||||
12 | otherwise in an unsound condition, (ii) its business is being | ||||||
13 | conducted in an unlawful, fraudulent, or unsafe manner, (iii) | ||||||
14 | it is unable to continue operations, or (iv) its examination | ||||||
15 | has been obstructed or impeded, the Secretary may give notice | ||||||
16 | to the board of directors of the title insurance company of his | ||||||
17 | or her finding by mail or to the title insurance company's | ||||||
18 | email address of record or findings . If the Secretary's | ||||||
19 | findings are not corrected to his or her satisfaction within 60 | ||||||
20 | days after the company receives the notice, the Secretary shall | ||||||
21 | take possession and control of the title insurance company, its | ||||||
22 | assets, and assets held by it for any person for the purpose of | ||||||
23 | examination, reorganization, or liquidation through | ||||||
24 | receivership. | ||||||
25 | If, in addition to making a finding as provided in this |
| |||||||
| |||||||
1 | subsection (b), the Secretary is of the opinion and finds that | ||||||
2 | an emergency that may result in serious losses to any person | ||||||
3 | exists, the Secretary may, in his or her discretion, without | ||||||
4 | having given the notice provided for in this subsection, and | ||||||
5 | whether or not proceedings under subsection (a) of this Section | ||||||
6 | have been instituted or are then pending, take possession and | ||||||
7 | control of the title insurance company and its assets for the | ||||||
8 | purpose of examination, reorganization, or liquidation through | ||||||
9 | receivership. | ||||||
10 | (c) The Secretary may take possession and control of a | ||||||
11 | title insurance company, its assets, and assets held by it for | ||||||
12 | any person by posting upon the premises of each office located | ||||||
13 | in the State of Illinois at which it transacts its business as | ||||||
14 | a title insurance company a notice reciting that the Secretary | ||||||
15 | is assuming possession pursuant to this Act and the time when | ||||||
16 | the possession shall be deemed to commence. | ||||||
17 | (d) Promptly after taking possession and control of a title | ||||||
18 | insurance company the Secretary, represented by the Attorney | ||||||
19 | General, shall file a copy of the notice posted upon the | ||||||
20 | premises in the Circuit Court of either Cook County or Sangamon | ||||||
21 | County, which cause shall be entered as a court action upon the | ||||||
22 | dockets of the court under the name and style of "In the matter | ||||||
23 | of the possession and control by the Secretary of the | ||||||
24 | Department of Financial and Professional Regulation of (insert | ||||||
25 | the name of the title insurance company)". If the Secretary | ||||||
26 | determines (which determination may be made at the time of, or |
| |||||||
| |||||||
1 | at any time subsequent to, taking possession and control of a | ||||||
2 | title insurance company) that no practical possibility exists | ||||||
3 | to reorganize the title insurance company after reasonable | ||||||
4 | efforts have been made, the Secretary, represented by the | ||||||
5 | Attorney General, shall also file a complaint, if it has not | ||||||
6 | already been done, for the appointment of a receiver or other | ||||||
7 | proceeding as is appropriate under the circumstances. The court | ||||||
8 | where the cause is docketed shall be vested with the exclusive | ||||||
9 | jurisdiction to hear and determine all issues and matters | ||||||
10 | pertaining to or connected with the Secretary's possession and | ||||||
11 | control of the title insurance company as provided in this Act, | ||||||
12 | and any further issues and matters pertaining to or connected | ||||||
13 | with the Secretary's possession and control as may be submitted | ||||||
14 | to the court for its adjudication. | ||||||
15 | The Secretary, upon taking possession and control of a | ||||||
16 | title insurance company, may, and if not previously done shall, | ||||||
17 | immediately upon filing a complaint for dissolution make an | ||||||
18 | examination of the affairs of the title insurance company or | ||||||
19 | appoint a suitable person to make the examination as the | ||||||
20 | Secretary's agent. The examination shall be conducted in | ||||||
21 | accordance with and pursuant to the authority granted under | ||||||
22 | Section 12 of this Act. The person conducting the examination | ||||||
23 | shall have and may exercise on behalf of the Secretary all of | ||||||
24 | the powers and authority granted to the Secretary under Section | ||||||
25 | 12. A copy of the report shall be filed in any dissolution | ||||||
26 | proceeding filed by the Secretary. The reasonable fees and |
| |||||||
| |||||||
1 | necessary expenses of the examining person, as approved by the | ||||||
2 | Secretary or as recommended by the Secretary and approved by | ||||||
3 | the court if a dissolution proceeding has been filed, shall be | ||||||
4 | borne by the subject title insurance company and shall have the | ||||||
5 | same priority for payment as the reasonable and necessary | ||||||
6 | expenses of the Secretary in conducting an examination. The | ||||||
7 | person appointed to make the examination shall make a proper | ||||||
8 | accounting, in the manner and scope as determined by the | ||||||
9 | Secretary to be practical and advisable under the | ||||||
10 | circumstances, on behalf of the title insurance company and no | ||||||
11 | guardian ad litem need be appointed to review the accounting. | ||||||
12 | (e) The Secretary, upon taking possession and control of a | ||||||
13 | title insurance company and its assets, shall be vested with | ||||||
14 | the full powers of management and control including, but not | ||||||
15 | limited to, the following: | ||||||
16 | (1) the power to continue or to discontinue the | ||||||
17 | business; | ||||||
18 | (2) the power to stop or to limit the payment of its | ||||||
19 | obligations; | ||||||
20 | (3) the power to collect and to use its assets and to | ||||||
21 | give valid receipts and acquittances therefor; | ||||||
22 | (4) the power to transfer title and liquidate any bond | ||||||
23 | or deposit made under Section 4 of this Act; | ||||||
24 | (5) the power to employ and to pay any necessary | ||||||
25 | assistants; | ||||||
26 | (6) the power to execute any instrument in the name of |
| |||||||
| |||||||
1 | the title insurance company; | ||||||
2 | (7) the power to commence, defend, and conduct in the | ||||||
3 | title insurance company's name any action or proceeding in | ||||||
4 | which it may be a party; | ||||||
5 | (8) the power, upon the order of the court, to sell and | ||||||
6 | convey the title insurance company's assets, in whole or in | ||||||
7 | part, and to sell or compound bad or doubtful debts upon | ||||||
8 | such terms and conditions as may be fixed in that order; | ||||||
9 | (9) the power, upon the order of the court, to make and | ||||||
10 | to carry out agreements with other title insurance | ||||||
11 | companies, financial institutions, or with the United | ||||||
12 | States or any agency of the United States for the payment | ||||||
13 | or assumption of the title insurance company's | ||||||
14 | liabilities, in whole or in part, and to transfer assets | ||||||
15 | and to make guaranties, in whole or in part, in connection | ||||||
16 | therewith; | ||||||
17 | (10) the power, upon the order of the court, to borrow | ||||||
18 | money in the name of the title insurance company and to | ||||||
19 | pledge its assets as security for the loan; | ||||||
20 | (11) the power to terminate his or her possession and | ||||||
21 | control by restoring the title insurance company to its | ||||||
22 | board of directors; | ||||||
23 | (12) the power to appoint a receiver which may be the | ||||||
24 | Secretary of the Department of Financial and Professional | ||||||
25 | Regulation, another title insurance company, or another | ||||||
26 | suitable person and to order liquidation of the title |
| |||||||
| |||||||
1 | insurance company as provided in this Act; and | ||||||
2 | (13) the power, upon the order of the court and without | ||||||
3 | the appointment of a receiver, to determine that the title | ||||||
4 | insurance company has been closed for the purpose of | ||||||
5 | liquidation without adequate provision being made for | ||||||
6 | payment of its obligations, and thereupon the title | ||||||
7 | insurance company shall be deemed to have been closed on | ||||||
8 | account of inability to meet its obligations to its | ||||||
9 | insureds or escrow depositors. | ||||||
10 | (f) Upon taking possession, the Secretary shall make an | ||||||
11 | examination of the condition of the title insurance company, an | ||||||
12 | inventory of the assets and, unless the time shall be extended | ||||||
13 | by order of the court or unless the Secretary shall have | ||||||
14 | otherwise settled the affairs of the title insurance company | ||||||
15 | pursuant to the provisions of this Act, within 90 days after | ||||||
16 | the time of taking possession and control of the title | ||||||
17 | insurance company, the Secretary shall either terminate his or | ||||||
18 | her possession and control by restoring the title insurance | ||||||
19 | company to its board of directors or appoint a receiver, which | ||||||
20 | may be the Secretary of the Department of Financial and | ||||||
21 | Professional Regulation, another title insurance company, or | ||||||
22 | another suitable person and order the liquidation of the title | ||||||
23 | insurance company as provided in this Act. All necessary and | ||||||
24 | reasonable expenses of the Secretary's possession and control | ||||||
25 | shall be a priority claim and shall be borne by the title | ||||||
26 | insurance company and may be paid by the Secretary from the |
| |||||||
| |||||||
1 | title insurance company's own assets as distinguished from | ||||||
2 | assets held for any other person. | ||||||
3 | (g) If the Secretary takes possession and control of a | ||||||
4 | title insurance company and its assets, any period of | ||||||
5 | limitation fixed by a statute or agreement that would otherwise | ||||||
6 | expire on a claim or right of action of the title insurance | ||||||
7 | company, on its own behalf or on behalf of its insureds or | ||||||
8 | escrow depositors, or upon which an appeal must be taken or a | ||||||
9 | pleading or other document filed by the title insurance company | ||||||
10 | in any pending action or proceeding, shall be tolled until 6 | ||||||
11 | months after the commencement of the possession, and no | ||||||
12 | judgment, lien, levy, attachment, or other similar legal | ||||||
13 | process may be enforced upon or satisfied, in whole or in part, | ||||||
14 | from any asset of the title insurance company or from any asset | ||||||
15 | of an insured or escrow depositor while it is in the possession | ||||||
16 | of the Secretary. | ||||||
17 | (h) If the Secretary appoints a receiver to take possession | ||||||
18 | and control of the assets of insureds or escrow depositors for | ||||||
19 | the purpose of holding those assets as fiduciary for the | ||||||
20 | benefit of the insureds or escrow depositors pending the | ||||||
21 | winding up of the affairs of the title insurance company being | ||||||
22 | liquidated and the appointment of a successor escrowee for | ||||||
23 | those assets, any period of limitation fixed by statute, rule | ||||||
24 | of court, or agreement that would otherwise expire on a claim | ||||||
25 | or right of action in favor of or against the insureds or | ||||||
26 | escrow depositors of those assets or upon which an appeal must |
| |||||||
| |||||||
1 | be taken or a pleading or other document filed by a title | ||||||
2 | insurance company on behalf of an insured or escrow depositor | ||||||
3 | in any pending action or proceeding shall be tolled for a | ||||||
4 | period of 6 months after the appointment of a receiver, and no | ||||||
5 | judgment, lien, levy, attachment, or other similar legal | ||||||
6 | process shall be enforced upon or satisfied, in whole or in | ||||||
7 | part, from any asset of the insured or escrow depositor while | ||||||
8 | it is in the possession of the receiver. | ||||||
9 | (i) If the Secretary determines at any time that no | ||||||
10 | reasonable possibility exists for the title insurance company | ||||||
11 | to be operated by its board of directors in accordance with the | ||||||
12 | provisions of this Act after reasonable efforts have been made | ||||||
13 | and that it should be liquidated through receivership, he or | ||||||
14 | she shall appoint a receiver. The Secretary may require of the | ||||||
15 | receiver such bond and security as the Secretary deems proper. | ||||||
16 | The Secretary, represented by the Attorney General, shall file | ||||||
17 | a complaint for the dissolution or winding up of the affairs of | ||||||
18 | the title insurance company in a court of the county in which | ||||||
19 | the principal office of the title insurance company is located | ||||||
20 | and shall cause notice to be given in a newspaper of general | ||||||
21 | circulation once each week for 4 consecutive weeks so that | ||||||
22 | persons who may have claims against the title insurance company | ||||||
23 | may present them to the receiver and make legal proof thereof | ||||||
24 | and notifying those persons and all to whom it may concern of | ||||||
25 | the filing of a complaint for the dissolution or winding up of | ||||||
26 | the affairs of the title insurance company and stating the name |
| |||||||
| |||||||
1 | and location of the court. All persons who may have claims | ||||||
2 | against the assets of the title insurance company, as | ||||||
3 | distinguished from the assets of insureds and escrow depositors | ||||||
4 | held by the title insurance company, and the receiver to whom | ||||||
5 | those persons have presented their claims may present the | ||||||
6 | claims to the clerk of the court, and the allowance or | ||||||
7 | disallowance of the claims by the court in connection with the | ||||||
8 | proceedings shall be deemed an adjudication in a court of | ||||||
9 | competent jurisdiction. Within a reasonable time after | ||||||
10 | completion of publication, the receiver shall file with the | ||||||
11 | court a correct list of all creditors of the title insurance | ||||||
12 | company as shown by its books, who have not presented their | ||||||
13 | claims and the amount of their respective claims after allowing | ||||||
14 | adjusted credit, deductions, and set-offs as shown by the books | ||||||
15 | of the title insurance company. The claims so filed shall be | ||||||
16 | deemed proven unless objections are filed thereto by a party or | ||||||
17 | parties interested therein within the time fixed by the court. | ||||||
18 | (j) The receiver for a title insurance company has the | ||||||
19 | power and authority and is charged with the duties and | ||||||
20 | responsibilities as follows: | ||||||
21 | (1) To take possession of and, for the purpose of the | ||||||
22 | receivership, title to the books, records, and assets of | ||||||
23 | every description of the title insurance company. | ||||||
24 | (2) To proceed to collect all debts, dues, and claims | ||||||
25 | belonging to the title insurance company. | ||||||
26 | (3) To sell and compound all bad and doubtful debts on |
| |||||||
| |||||||
1 | such terms as the court shall direct. | ||||||
2 | (4) To sell the real and personal property of the title | ||||||
3 | insurance company, as distinguished from the real and | ||||||
4 | personal property of the insureds or escrow depositors, on | ||||||
5 | such terms as the court shall direct. | ||||||
6 | (5) To file with the Secretary a copy of each report | ||||||
7 | that he or she makes to the court, together with such other | ||||||
8 | reports and records as the Secretary may require. | ||||||
9 | (6) To sue and defend in his or her own name and with | ||||||
10 | respect to the affairs, assets, claims, debts, and choses | ||||||
11 | in action of the title insurance company. | ||||||
12 | (7) To surrender to the insureds and escrow depositors | ||||||
13 | of the title insurance company, when requested in writing | ||||||
14 | directed to the receiver by them, the escrowed funds (on a | ||||||
15 | pro rata basis), and escrowed documents in the receiver's | ||||||
16 | possession upon satisfactory proof of ownership and | ||||||
17 | determination by the receiver of available escrow funds. | ||||||
18 | (8) To redeem or take down collateral hypothecated by | ||||||
19 | the title insurance company to secure its notes and other | ||||||
20 | evidence of indebtedness whenever the court deems it to be | ||||||
21 | in the best interest of the creditors of the title | ||||||
22 | insurance company and directs the receiver so to do. | ||||||
23 | (k) Whenever the receiver finds it necessary in his or her | ||||||
24 | opinion to use and employ money of the title insurance company | ||||||
25 | in order to protect fully and benefit the title insurance | ||||||
26 | company by the purchase or redemption of property, real or |
| |||||||
| |||||||
1 | personal, in which the title insurance company may have any | ||||||
2 | rights by reason of any bond, mortgage, assignment, or other | ||||||
3 | claim thereto, the receiver may certify the facts together with | ||||||
4 | the receiver's opinions as to the value of the property | ||||||
5 | involved and the value of the equity the title insurance | ||||||
6 | company may have in the property to the court, together with a | ||||||
7 | request for the right and authority to use and employ so much | ||||||
8 | of the money of the title insurance company as may be necessary | ||||||
9 | to purchase the property, or to redeem the property from a sale | ||||||
10 | if there was a sale, and if the request is granted, the | ||||||
11 | receiver may use so much of the money of the title insurance | ||||||
12 | company as the court may have authorized to purchase the | ||||||
13 | property at the sale. | ||||||
14 | The receiver shall deposit daily all moneys collected by | ||||||
15 | him or her in any State or national bank approved by the court. | ||||||
16 | The deposits shall be made in the name of the Secretary, in | ||||||
17 | trust for the receiver, and be subject to withdrawal upon the | ||||||
18 | receiver's order or upon the order of those persons the | ||||||
19 | Secretary may designate. The moneys may be deposited without | ||||||
20 | interest, unless otherwise agreed. The receiver shall do the | ||||||
21 | things and take the steps from time to time under the direction | ||||||
22 | and approval of the court that may reasonably appear to be | ||||||
23 | necessary to conserve the title insurance company's assets and | ||||||
24 | secure the best interests of the creditors, insureds, and | ||||||
25 | escrow depositors of the title insurance company. The receiver | ||||||
26 | shall record any judgment of dissolution entered in a |
| |||||||
| |||||||
1 | dissolution proceeding and thereupon turn over to the Secretary | ||||||
2 | a certified copy of the judgment. | ||||||
3 | The receiver may cause all assets of the insureds and | ||||||
4 | escrow depositors of the title insurance company to be | ||||||
5 | registered in the name of the receiver or in the name of the | ||||||
6 | receiver's nominee. | ||||||
7 | For its services in administering the escrows held by the | ||||||
8 | title insurance company during the period of winding up the | ||||||
9 | affairs of the title insurance company, the receiver is | ||||||
10 | entitled to be reimbursed for all costs and expenses incurred | ||||||
11 | by the receiver and shall also be entitled to receive out of | ||||||
12 | the assets of the individual escrows being administered by the | ||||||
13 | receiver during the period of winding up the affairs of the | ||||||
14 | title insurance company and prior to the appointment of a | ||||||
15 | successor escrowee the usual and customary fees charged by an | ||||||
16 | escrowee for escrows or reasonable fees approved by the court. | ||||||
17 | The receiver, during its administration of the escrows of | ||||||
18 | the title insurance company during the winding up of the | ||||||
19 | affairs of the title insurance company, shall have all of the | ||||||
20 | powers that are vested in trustees under the terms and | ||||||
21 | provisions of the Trusts and Trustees Act. | ||||||
22 | Upon the appointment of a successor escrowee, the receiver | ||||||
23 | shall deliver to the successor escrowee all of the assets | ||||||
24 | belonging to each individual escrow to which the successor | ||||||
25 | escrowee succeeds, and the receiver shall thereupon be relieved | ||||||
26 | of any further duties or obligations with respect thereto. |
| |||||||
| |||||||
1 | (l) The receiver shall, upon approval by the court, pay all | ||||||
2 | claims against the assets of the title insurance company | ||||||
3 | allowed by the court pursuant to subsection (i) of this | ||||||
4 | Section, as well as claims against the assets of insureds and | ||||||
5 | escrow depositors of the title insurance company in accordance | ||||||
6 | with the following priority: | ||||||
7 | (1) All necessary and reasonable expenses of the | ||||||
8 | Secretary's possession and control and of its receivership | ||||||
9 | shall be paid from the assets of the title insurance | ||||||
10 | company. | ||||||
11 | (2) All usual and customary fees charged for services | ||||||
12 | in administering escrows shall be paid from the assets of | ||||||
13 | the individual escrows being administered. If the assets of | ||||||
14 | the individual escrows being administered are | ||||||
15 | insufficient, the fees shall be paid from the assets of the | ||||||
16 | title insurance company. | ||||||
17 | (3) Secured claims, including claims for taxes and | ||||||
18 | debts due the federal or any state or local government, | ||||||
19 | that are secured by liens perfected prior to the date of | ||||||
20 | filing of the complaint for dissolution, shall be paid from | ||||||
21 | the assets of the title insurance company. | ||||||
22 | (4) Claims by policyholders, beneficiaries, insureds, | ||||||
23 | and escrow depositors of the title insurance company shall | ||||||
24 | be paid from the assets of the insureds and escrow | ||||||
25 | depositors. If there are insufficient assets of the | ||||||
26 | insureds and escrow depositors, claims shall be paid from |
| |||||||
| |||||||
1 | the assets of the title insurance company. | ||||||
2 | (5) Any other claims due the federal government shall | ||||||
3 | be paid from the assets of the title insurance company. | ||||||
4 | (6) Claims for wages or salaries, excluding vacation, | ||||||
5 | severance, and sick leave pay earned by employees for | ||||||
6 | services rendered within 90 days prior to the date of | ||||||
7 | filing of the complaint for dissolution, shall be paid from | ||||||
8 | the assets of the title insurance company. | ||||||
9 | (7) All other claims of general creditors not falling | ||||||
10 | within any priority under this subsection (l) including | ||||||
11 | claims for taxes and debts due any state or local | ||||||
12 | government which are not secured claims and claims for | ||||||
13 | attorney's fees incurred by the title insurance company in | ||||||
14 | contesting the dissolution shall be paid from the assets of | ||||||
15 | the title insurance company. | ||||||
16 | (8) Proprietary claims asserted by an owner, member, or | ||||||
17 | stockholder of the title insurance company in receivership | ||||||
18 | shall be paid from the assets of the title insurance | ||||||
19 | company. | ||||||
20 | The receiver shall pay all claims of equal priority | ||||||
21 | according to the schedule set out in this subsection, and shall | ||||||
22 | not pay claims of lower priority until all higher priority | ||||||
23 | claims are satisfied. If insufficient assets are available to | ||||||
24 | meet all claims of equal priority, those assets shall be | ||||||
25 | distributed pro rata among those claims. All unclaimed assets | ||||||
26 | of the title insurance company shall be deposited with the |
| |||||||
| |||||||
1 | receiver to be paid out by him or her when such claims are | ||||||
2 | submitted and allowed by the court. | ||||||
3 | (m) At the termination of the receiver's administration, | ||||||
4 | the receiver shall petition the court for the entry of a | ||||||
5 | judgment of dissolution. After a hearing upon the notice as the | ||||||
6 | court may prescribe, the court may enter a judgment of | ||||||
7 | dissolution whereupon the title insurance company's corporate | ||||||
8 | existence shall be terminated and the receivership concluded. | ||||||
9 | (n) The receiver shall serve at the pleasure of the | ||||||
10 | Secretary and upon the death, inability to act, resignation, or | ||||||
11 | removal by the Secretary of a receiver, the Secretary may | ||||||
12 | appoint a successor, and upon the appointment, all rights and | ||||||
13 | duties of the predecessor shall at once devolve upon the | ||||||
14 | appointee. | ||||||
15 | (o) Whenever the Secretary shall have taken possession and | ||||||
16 | control of a title insurance company or a title insurance agent | ||||||
17 | and its assets for the purpose of examination, reorganization | ||||||
18 | or liquidation through receivership, or whenever the Secretary | ||||||
19 | shall have appointed a receiver for a title insurance company | ||||||
20 | or title insurance agent and filed a complaint for the | ||||||
21 | dissolution or winding up of its affairs, and the title | ||||||
22 | insurance company or title insurance agent denies the grounds | ||||||
23 | for such actions, it may at any time within 10 days apply to | ||||||
24 | the Circuit Court of Cook or Sangamon County to enjoin further | ||||||
25 | proceedings in the premises; and the Court shall cite the | ||||||
26 | Secretary to show cause why further proceedings should not be |
| |||||||
| |||||||
1 | enjoined, and if the Court shall find that grounds do not | ||||||
2 | exist, the Court shall make an order enjoining the Secretary or | ||||||
3 | any receiver acting under his direction from all further | ||||||
4 | proceedings on account of the alleged grounds.
| ||||||
5 | (Source: P.A. 94-893, eff. 6-20-06.) | ||||||
6 | (215 ILCS 155/21.2) | ||||||
7 | Sec. 21.2. Notice. | ||||||
8 | (a) Notice of any action by the Secretary under this Act or | ||||||
9 | regulations or orders promulgated under it shall be made either | ||||||
10 | personally , or by registered or certified mail, to the | ||||||
11 | licensee's email address of record, or return receipt | ||||||
12 | requested, and by sending a copy of the notice by telephone | ||||||
13 | facsimile or electronic mail, if known and operating, and if | ||||||
14 | unknown or not operating, then by regular mail. Service by mail | ||||||
15 | shall be deemed completed if the notice is deposited as | ||||||
16 | registered or certified mail in the post office, postage paid, | ||||||
17 | addressed to the last known address specified in the | ||||||
18 | application for the certificate of authority to do business or | ||||||
19 | certificate of registration of the holder or registrant. | ||||||
20 | Service by mail is completed if the notice is deposited in the | ||||||
21 | U.S. Mail. Service by email is completed when sent. | ||||||
22 | (b) The Secretary shall notify all registered agents of a | ||||||
23 | title insurance company when that title insurance company's | ||||||
24 | certificate of authority is suspended or revoked.
| ||||||
25 | (Source: P.A. 94-893, eff. 6-20-06.) |
| |||||||
| |||||||
1 | Section 40. The Debt Settlement Consumer Protection Act is | ||||||
2 | amended by changing Sections 10, 20, 30, 50, and 95 as follows: | ||||||
3 | (225 ILCS 429/10)
| ||||||
4 | Sec. 10. Definitions. As used in this Act: | ||||||
5 | "Consumer" means any person who purchases or contracts for | ||||||
6 | the purchase of debt settlement services. | ||||||
7 | "Consumer settlement account" means any account or other | ||||||
8 | means or device in which payments, deposits, or other transfers | ||||||
9 | from a consumer are arranged, held, or transferred by or to a | ||||||
10 | debt settlement provider for the accumulation of the consumer's | ||||||
11 | funds in anticipation of proffering an adjustment or settlement | ||||||
12 | of a debt or obligation of the consumer to a creditor on behalf | ||||||
13 | of the consumer. | ||||||
14 | "Debt settlement provider" means any person or entity | ||||||
15 | engaging in, or holding itself out as engaging in, the business | ||||||
16 | of providing debt settlement service in exchange for any fee or | ||||||
17 | compensation, or any person who solicits for or acts on behalf | ||||||
18 | of any person or entity engaging in, or holding itself out as | ||||||
19 | engaging in, the business of providing debt settlement service | ||||||
20 | in exchange for any fee or compensation. "Debt settlement | ||||||
21 | provider" does not include: | ||||||
22 | (1) attorneys licensed, or otherwise authorized, to | ||||||
23 | practice in Illinois who are engaged in the practice of | ||||||
24 | law;
|
| |||||||
| |||||||
1 | (2) escrow agents, accountants, broker dealers in | ||||||
2 | securities, or investment advisors in securities, when | ||||||
3 | acting in the ordinary practice of their professions and | ||||||
4 | through the entity used in the ordinary practice of their | ||||||
5 | profession;
| ||||||
6 | (3) any bank, agent of a bank, operating subsidiary of | ||||||
7 | a bank, affiliate of a bank, trust company, savings and | ||||||
8 | loan association, savings bank, credit union, crop credit | ||||||
9 | association, development credit corporation, industrial | ||||||
10 | development corporation, title insurance company, title | ||||||
11 | insurance agent, independent escrowee or insurance company | ||||||
12 | operating or organized under the laws of a state or the | ||||||
13 | United States, or any other person authorized to make loans | ||||||
14 | under State law while acting in the ordinary practice of | ||||||
15 | that business;
| ||||||
16 | (4) any person who performs credit services for his or | ||||||
17 | her employer while receiving a regular salary or wage when | ||||||
18 | the employer is not engaged in the business of offering or | ||||||
19 | providing debt settlement service;
| ||||||
20 | (5) a collection agency licensed pursuant to the | ||||||
21 | Collection Agency Act that is collecting a debt on its own | ||||||
22 | behalf or on behalf of a third party; | ||||||
23 | (6) an organization that is described in Section | ||||||
24 | 501(c)(3) and subject to Section 501(q) of Title 26 of the | ||||||
25 | United States Code and exempt from tax under Section 501(a) | ||||||
26 | of Title 26 of the United States Code and governed by the |
| |||||||
| |||||||
1 | Debt Management Service Act;
| ||||||
2 | (7) public officers while acting in their official | ||||||
3 | capacities and persons acting under court order;
| ||||||
4 | (8) any person while performing services incidental to | ||||||
5 | the dissolution, winding up, or liquidating of a | ||||||
6 | partnership, corporation, or other business enterprise; or | ||||||
7 | (9) persons licensed under the Real Estate License Act | ||||||
8 | of 2000 when acting in the ordinary practice of their | ||||||
9 | profession and not holding themselves out as debt | ||||||
10 | settlement providers. | ||||||
11 | "Debt settlement service" means:
| ||||||
12 | (1) offering to provide advice or service, or acting as | ||||||
13 | an intermediary between or on behalf of a consumer and one | ||||||
14 | or more of a consumer's creditors, where the primary | ||||||
15 | purpose of the advice, service, or action is to obtain a | ||||||
16 | settlement, adjustment, or satisfaction of the consumer's | ||||||
17 | unsecured debt to a creditor in an amount less than the | ||||||
18 | full amount of the principal amount of the debt or in an | ||||||
19 | amount less than the current outstanding balance of the | ||||||
20 | debt; or
| ||||||
21 | (2) offering to provide services related to or | ||||||
22 | providing services advising, encouraging, assisting, or | ||||||
23 | counseling a consumer to accumulate funds for the primary | ||||||
24 | purpose of proposing or obtaining or seeking to obtain a | ||||||
25 | settlement, adjustment, or satisfaction of the consumer's | ||||||
26 | unsecured debt to a creditor in an amount less than the |
| |||||||
| |||||||
1 | full amount of the principal amount of the debt or in an | ||||||
2 | amount less than the current outstanding balance of the | ||||||
3 | debt. | ||||||
4 | "Debt settlement service" does not include (A) the services | ||||||
5 | of attorneys licensed, or otherwise authorized, to practice in | ||||||
6 | Illinois who are engaged in the practice of law or (B) debt | ||||||
7 | management service as defined in the Debt Management Service | ||||||
8 | Act. | ||||||
9 | "Email address of record" means the designated email | ||||||
10 | address recorded by the Division in the applicant's applicant | ||||||
11 | file or the licensee's license file maintained by the | ||||||
12 | Division's licensure unit. | ||||||
13 | "Enrollment or set up fee" means any fee, obligation, or | ||||||
14 | compensation paid or to be paid by the consumer to a debt | ||||||
15 | settlement provider in consideration of or in connection with | ||||||
16 | establishing a contract or other agreement with a consumer | ||||||
17 | related to the provision of debt settlement service. | ||||||
18 | "Maintenance fee" means any fee, obligation, or | ||||||
19 | compensation paid or to be paid by the consumer on a periodic | ||||||
20 | basis to a debt settlement provider in consideration of | ||||||
21 | maintaining the relationship and services to be provided by a | ||||||
22 | debt settlement provider in accordance with a contract with a | ||||||
23 | consumer related to the provision of debt settlement service. | ||||||
24 | "Principal amount of the debt" means the total amount or | ||||||
25 | outstanding balance owed by a consumer to one or more creditors | ||||||
26 | for a debt that is included in a contract for debt settlement |
| |||||||
| |||||||
1 | service at the time when the consumer enters into a contract | ||||||
2 | for debt settlement service. | ||||||
3 | "Savings" means the difference between the principal | ||||||
4 | amount of the debt and the amount paid by the debt settlement | ||||||
5 | provider to the creditor or negotiated by the debt settlement | ||||||
6 | provider and paid by the consumer to the creditor pursuant to a | ||||||
7 | settlement negotiated by the debt settlement provider on behalf | ||||||
8 | of the consumer as full and complete satisfaction of the | ||||||
9 | creditor's claim with regard to that debt. | ||||||
10 | "Secretary" means the Secretary of Financial and | ||||||
11 | Professional Regulation. | ||||||
12 | "Settlement fee" means any fee, obligation, or | ||||||
13 | compensation paid or to be paid by the consumer to a debt | ||||||
14 | settlement provider in consideration of or in connection with a | ||||||
15 | completed agreement or other arrangement on the part of a | ||||||
16 | creditor to accept less than the principal amount of the debt | ||||||
17 | as satisfaction of the creditor's claim against the consumer.
| ||||||
18 | (Source: P.A. 96-1420, eff. 8-3-10.) | ||||||
19 | (225 ILCS 429/20)
| ||||||
20 | Sec. 20. Application for license. An application for a | ||||||
21 | license to operate as a debt settlement provider in this State | ||||||
22 | shall be made to the Secretary and shall be in writing, under | ||||||
23 | oath, and in the form prescribed by the Secretary. | ||||||
24 | Each applicant, at the time of making such application, | ||||||
25 | shall pay to the Secretary the required fee as set by rule.
At |
| |||||||
| |||||||
1 | the time of application, an applicant shall provide the | ||||||
2 | Department with an accurate and up-to-date email address. | ||||||
3 | Every applicant shall submit to the Secretary, at the time | ||||||
4 | of the application for a license, a
bond to be approved by the | ||||||
5 | Secretary in which the applicant shall be the obligor, in the | ||||||
6 | sum of $100,000 or an additional amount as required by the | ||||||
7 | Secretary, and in which an insurance company, which is duly | ||||||
8 | authorized by the State of Illinois to transact the business of | ||||||
9 | fidelity and surety insurance, shall be a surety.
| ||||||
10 | The bond shall run to the Secretary for the use of the | ||||||
11 | Department or of any person or persons
who may have a cause of | ||||||
12 | action against the obligor in said bond arising out of any | ||||||
13 | violation of this Act or rules by a debt settlement provider. | ||||||
14 | Such bond shall be conditioned that the obligor must faithfully | ||||||
15 | conform to and abide by the provisions of this Act and of all | ||||||
16 | rules, regulations, and directions lawfully made by the | ||||||
17 | Secretary and pay to the Secretary or to any person or persons | ||||||
18 | any and all money that may become due or owing to the State or | ||||||
19 | to such person or persons, from the obligor under and by virtue | ||||||
20 | of the provisions of this Act.
| ||||||
21 | (Source: P.A. 96-1420, eff. 8-3-10.) | ||||||
22 | (225 ILCS 429/30)
| ||||||
23 | Sec. 30. Renewal of license. Each debt settlement provider | ||||||
24 | under the provisions of this Act may make application to the | ||||||
25 | Secretary for renewal of its license, which application for |
| |||||||
| |||||||
1 | renewal shall be on the form prescribed by the Secretary and | ||||||
2 | shall be accompanied by a fee of $1,000 together with a bond or | ||||||
3 | other surety as required, in a minimum amount of $100,000 or an | ||||||
4 | amount as required by the Secretary based on the amount of | ||||||
5 | disbursements made by the licensee in the previous year. At the | ||||||
6 | time of renewal, a licensee shall provide the Department with | ||||||
7 | an accurate and up-to-date email address. The application must | ||||||
8 | be received by the Department no later than December 1 of the | ||||||
9 | year preceding the year for which the application applies.
| ||||||
10 | (Source: P.A. 96-1420, eff. 8-3-10; 97-333, eff. 8-12-11.) | ||||||
11 | (225 ILCS 429/50)
| ||||||
12 | Sec. 50. Revocation or suspension of license.
| ||||||
13 | (a) The Secretary may revoke or suspend any license if he | ||||||
14 | or she finds that:
| ||||||
15 | (1) any debt settlement provider has failed to pay the | ||||||
16 | annual
license fee or to maintain in effect the bond | ||||||
17 | required under the provisions of this Act;
| ||||||
18 | (2) the debt settlement provider has violated any | ||||||
19 | provisions of this
Act or any rule lawfully made by the | ||||||
20 | Secretary under the authority of this Act;
| ||||||
21 | (3) any fact or condition exists that, if it had | ||||||
22 | existed at the time of the original application for a | ||||||
23 | license, would have warranted the Secretary in refusing its | ||||||
24 | issuance; or
| ||||||
25 | (4) any applicant has made any false statement or |
| |||||||
| |||||||
1 | representation to the Secretary in applying for a license | ||||||
2 | under this Act.
| ||||||
3 | (b) In every case in which a license is suspended or | ||||||
4 | revoked or an application for a license or renewal of a license | ||||||
5 | is denied, the Secretary shall serve notice of his or her | ||||||
6 | action, including a statement of the reasons for his or her | ||||||
7 | actions, either personally , by mail, or to the licensee's email | ||||||
8 | address of record or by certified mail, return receipt | ||||||
9 | requested . Service by mail is shall be deemed completed if the | ||||||
10 | notice is deposited in the U.S. Mail.
Service to the email | ||||||
11 | address of record is completed when sent. | ||||||
12 | (c) In the case of a denial of an application or renewal of | ||||||
13 | a license, the applicant or
debt settlement provider may | ||||||
14 | request, in writing, a hearing within 30 days after the date of | ||||||
15 | service. In the case of a denial of a renewal of a license, the | ||||||
16 | license shall be deemed to continue in force until 30 days | ||||||
17 | after the service of the notice of denial, or if a hearing is | ||||||
18 | requested during that period, until a final administrative | ||||||
19 | order is entered.
| ||||||
20 | (d) An order of revocation or suspension of a license shall | ||||||
21 | take effect upon service of the
order unless the debt | ||||||
22 | settlement provider requests, in writing, a hearing within 10 | ||||||
23 | days after the date of service. In the event a hearing is | ||||||
24 | requested, the order shall be stayed until a final | ||||||
25 | administrative order is entered.
| ||||||
26 | (e) If the debt settlement provider requests a hearing, |
| |||||||
| |||||||
1 | then the Secretary shall schedule the hearing within 30
days | ||||||
2 | after the request for a hearing unless otherwise agreed to by | ||||||
3 | the parties.
| ||||||
4 | (f) The hearing shall be held at the time and place | ||||||
5 | designated by the Secretary. The
Secretary and any | ||||||
6 | administrative law judge designated by the Secretary have the | ||||||
7 | power to administer oaths and affirmations, subpoena witnesses | ||||||
8 | and compel their attendance, take evidence, and require the | ||||||
9 | production of books, papers, correspondence, and other records | ||||||
10 | or information that the Secretary considers relevant or | ||||||
11 | material to the injury.
| ||||||
12 | (g) The costs for the administrative hearing shall be set | ||||||
13 | by rule.
| ||||||
14 | (Source: P.A. 96-1420, eff. 8-3-10.) | ||||||
15 | (225 ILCS 429/95)
| ||||||
16 | Sec. 95. Cease and desist orders.
| ||||||
17 | (a) The Secretary may issue a cease and desist order to any | ||||||
18 | debt settlement provider or other person doing
business without | ||||||
19 | the required license when, in the opinion of the Secretary, the | ||||||
20 | debt settlement provider or other person is violating or is | ||||||
21 | about to violate any provision of the Act or any rule or | ||||||
22 | condition imposed in writing by the Department.
| ||||||
23 | (b) The Secretary may issue a cease and desist order prior | ||||||
24 | to a hearing.
| ||||||
25 | (c) The Secretary shall serve notice of his or her action, |
| |||||||
| |||||||
1 | including a statement of the reasons for
his or her action | ||||||
2 | either personally , by mail, or to the licensee's email address | ||||||
3 | of record or by certified mail, return receipt requested . | ||||||
4 | Service by mail is shall be deemed completed if the notice is | ||||||
5 | deposited in the U.S. Mail.
Service to the email address of | ||||||
6 | record is completed when sent. | ||||||
7 | (d) Within 10 days after service of the cease and desist | ||||||
8 | order, the licensee or other person
may request, in writing, a | ||||||
9 | hearing.
| ||||||
10 | (e) The Secretary shall schedule a hearing within 30 days | ||||||
11 | after the request for a hearing
unless otherwise agreed to by | ||||||
12 | the parties.
| ||||||
13 | (f) If it is determined that the Secretary had the | ||||||
14 | authority to issue the cease and desist
order, then he or she | ||||||
15 | may issue such orders as may be reasonably necessary to | ||||||
16 | correct, eliminate, or remedy that conduct.
| ||||||
17 | (g) The powers vested in the Secretary by this Section are | ||||||
18 | additional to any and all other
powers and remedies vested in | ||||||
19 | the Secretary by law, and nothing in this Section shall be | ||||||
20 | construed as requiring that the Secretary shall employ the | ||||||
21 | power conferred in this Section instead of or as a condition | ||||||
22 | precedent to the exercise of any other power or remedy vested | ||||||
23 | in the Secretary.
| ||||||
24 | (h) The cost for the administrative hearing shall be set by | ||||||
25 | rule.
| ||||||
26 | (Source: P.A. 96-1420, eff. 8-3-10.) |
| |||||||
| |||||||
1 | Section 45. The Payday Loan Reform Act is amended by | ||||||
2 | changing Sections 1-10, 3-5, and 4-10 as follows: | ||||||
3 | (815 ILCS 122/1-10)
| ||||||
4 | Sec. 1-10. Definitions. As used in this Act: | ||||||
5 | "Check" means a "negotiable instrument", as defined in | ||||||
6 | Article 3 of the Uniform Commercial Code, that is drawn on a | ||||||
7 | financial institution. | ||||||
8 | "Commercially reasonable method of verification" or | ||||||
9 | "certified database" means a consumer reporting service | ||||||
10 | database certified by the Department as effective in verifying | ||||||
11 | that a proposed loan agreement is permissible under this Act, | ||||||
12 | or, in the absence of the Department's certification, any | ||||||
13 | reasonably reliable written verification by the consumer | ||||||
14 | concerning (i) whether the consumer has any outstanding payday | ||||||
15 | loans, (ii) the principal amount of those outstanding payday | ||||||
16 | loans, and (iii) whether any payday loans have been paid in | ||||||
17 | full by the consumer in the preceding 7 days. | ||||||
18 | "Consumer" means any natural person who, singly or jointly | ||||||
19 | with another consumer, enters into a loan. | ||||||
20 | "Consumer reporting service" means an entity that provides | ||||||
21 | a database certified by the Department. | ||||||
22 | "Department" means the Department of Financial and | ||||||
23 | Professional Regulation. | ||||||
24 | "Email address of record" means the designated email |
| |||||||
| |||||||
1 | address recorded by the Division in the credit union's file | ||||||
2 | maintained by the Division's licensure unit. | ||||||
3 | "Secretary" means the Secretary of Financial and | ||||||
4 | Professional Regulation. | ||||||
5 | "Gross monthly income" means monthly income as | ||||||
6 | demonstrated by official documentation of the income, | ||||||
7 | including, but not limited to, a pay stub or a receipt | ||||||
8 | reflecting payment of government benefits, for the period 30 | ||||||
9 | days prior to the date on which the loan is made. | ||||||
10 | "Lender" and "licensee" mean any person or entity, | ||||||
11 | including any affiliate or subsidiary of a lender or licensee, | ||||||
12 | that offers or makes a payday loan, buys a whole or partial | ||||||
13 | interest in a payday loan, arranges a payday loan for a third | ||||||
14 | party, or acts as an agent for a third party in making a payday | ||||||
15 | loan, regardless of whether approval, acceptance, or | ||||||
16 | ratification by the third party is necessary to create a legal | ||||||
17 | obligation for the third party, and includes any other person | ||||||
18 | or entity if the Department determines that the person or | ||||||
19 | entity is engaged in a transaction that is in substance a | ||||||
20 | disguised payday loan or a subterfuge for the purpose of | ||||||
21 | avoiding this Act. | ||||||
22 | "Loan agreement" means a written agreement between a lender | ||||||
23 | and consumer to make a loan to the consumer, regardless of | ||||||
24 | whether any loan proceeds are actually paid to the consumer on | ||||||
25 | the date on which the loan agreement is made. | ||||||
26 | "Member of the military" means a person serving in the |
| |||||||
| |||||||
1 | armed forces of the United States, the Illinois National Guard, | ||||||
2 | or any reserve component of the armed forces of the United | ||||||
3 | States. "Member of the military" includes those persons engaged | ||||||
4 | in (i) active duty, (ii) training or education under the | ||||||
5 | supervision of the United States preliminary to induction into | ||||||
6 | military service, or (iii) a period of active duty with the | ||||||
7 | State of Illinois under Title 10 or Title 32 of the United | ||||||
8 | States Code pursuant to order of the President or the Governor | ||||||
9 | of the State of Illinois. | ||||||
10 | "Outstanding balance" means the total amount owed by the | ||||||
11 | consumer on a loan to a lender, including all principal, | ||||||
12 | finance charges, fees, and charges of every kind. | ||||||
13 | "Payday loan" or "loan" means a loan with a finance charge | ||||||
14 | exceeding an annual percentage rate of 36% and with a term that | ||||||
15 | does not exceed 120 days, including any transaction conducted | ||||||
16 | via any medium whatsoever, including, but not limited to, | ||||||
17 | paper, facsimile, Internet, or telephone, in which: | ||||||
18 | (1) A lender accepts one or more checks dated on the | ||||||
19 | date written and agrees to hold them for a period of days | ||||||
20 | before deposit or presentment, or accepts one or more | ||||||
21 | checks dated subsequent to the date written and agrees to | ||||||
22 | hold them for deposit; or | ||||||
23 | (2) A lender accepts one or more authorizations to | ||||||
24 | debit a consumer's bank account; or | ||||||
25 | (3) A lender accepts an interest in a consumer's wages, | ||||||
26 | including, but not limited to, a wage assignment. |
| |||||||
| |||||||
1 | The term "payday loan" includes "installment payday loan", | ||||||
2 | unless otherwise specified in
this Act. | ||||||
3 | "Principal amount" means the amount received by the | ||||||
4 | consumer from the lender due and owing on a loan, excluding any | ||||||
5 | finance charges, interest, fees, or other loan-related | ||||||
6 | charges. | ||||||
7 | "Rollover" means to refinance, renew, amend, or extend a | ||||||
8 | loan beyond its original term.
| ||||||
9 | (Source: P.A. 96-936, eff. 3-21-11 .) | ||||||
10 | (815 ILCS 122/3-5)
| ||||||
11 | Sec. 3-5. Licensure. | ||||||
12 | (a) A license to make a payday loan shall state the | ||||||
13 | address,
including city and state, at which
the business is to | ||||||
14 | be conducted and shall state fully the name of the licensee.
At | ||||||
15 | the time of application and renewal, an applicant shall provide | ||||||
16 | the Department with an accurate and up-to-date email address. | ||||||
17 | The license shall be conspicuously posted in the place of | ||||||
18 | business of the
licensee and shall not be transferable or | ||||||
19 | assignable.
| ||||||
20 | (b) An application for a license shall be in writing and in | ||||||
21 | a form
prescribed by the Secretary. The Secretary may not issue | ||||||
22 | a payday loan
license unless and until the following findings | ||||||
23 | are made:
| ||||||
24 | (1) that the financial responsibility, experience, | ||||||
25 | character, and general
fitness of the applicant are such as |
| |||||||
| |||||||
1 | to command the confidence of the public
and to warrant the | ||||||
2 | belief that the business will be operated lawfully and
| ||||||
3 | fairly and within the provisions and purposes of this Act; | ||||||
4 | and
| ||||||
5 | (2) that the applicant has submitted such other | ||||||
6 | information as the
Secretary may deem necessary.
| ||||||
7 | (c) A license shall be issued for no longer than one year, | ||||||
8 | and no renewal
of a license may be provided if a licensee has | ||||||
9 | substantially violated this
Act and has not cured the violation | ||||||
10 | to the satisfaction of the Department.
| ||||||
11 | (d) A licensee shall appoint, in writing, the Secretary as | ||||||
12 | attorney-in-fact
upon whom all lawful process against the | ||||||
13 | licensee may be served with the
same legal force and validity | ||||||
14 | as if served on the licensee. A copy of the
written | ||||||
15 | appointment, duly certified, shall be filed in the office of | ||||||
16 | the
Secretary, and a copy thereof certified by the Secretary | ||||||
17 | shall be sufficient
evidence to subject a licensee to | ||||||
18 | jurisdiction in a court of law. This appointment shall remain | ||||||
19 | in effect while any liability remains
outstanding in this State | ||||||
20 | against the licensee. When summons is served upon
the Secretary | ||||||
21 | as attorney-in-fact for a licensee, the Secretary shall | ||||||
22 | immediately
notify the licensee by registered mail, enclosing | ||||||
23 | the summons and specifying
the hour and day of service.
| ||||||
24 | (e) A licensee must pay an annual fee of $1,000. In | ||||||
25 | addition to the
license fee, the reasonable expense of any | ||||||
26 | examination or hearing
by the Secretary under any provisions of |
| |||||||
| |||||||
1 | this Act shall be borne by
the licensee. If a licensee fails to | ||||||
2 | renew its license by December 31,
its license
shall | ||||||
3 | automatically expire; however, the Secretary, in his or her | ||||||
4 | discretion,
may reinstate an expired license upon:
| ||||||
5 | (1) payment of the annual fee within 30 days of the | ||||||
6 | date of
expiration; and
| ||||||
7 | (2) proof of good cause for failure to renew.
| ||||||
8 | (f) Not more than one place of business shall be maintained | ||||||
9 | under the
same license, but the Secretary may issue more than | ||||||
10 | one license to the same
licensee upon compliance with all the | ||||||
11 | provisions of this Act governing
issuance of a single license. | ||||||
12 | The location, except those locations already in
existence as of | ||||||
13 | June 1, 2005, may not be within one mile of a
horse race track | ||||||
14 | subject to the Illinois Horse Racing Act of 1975,
within one | ||||||
15 | mile of a facility at which gambling is conducted under the
| ||||||
16 | Riverboat Gambling Act, within one mile of the location at | ||||||
17 | which a
riverboat subject to the Riverboat Gambling Act docks, | ||||||
18 | or within one mile of
any State of Illinois or United States | ||||||
19 | military base or naval installation.
| ||||||
20 | (g) No licensee shall conduct the business of making loans | ||||||
21 | under this
Act within any office, suite, room, or place of | ||||||
22 | business in which (1) any loans are offered or made under the | ||||||
23 | Consumer Installment Loan Act other than title secured loans as | ||||||
24 | defined in subsection (a) of Section 15 of the Consumer | ||||||
25 | Installment Loan Act and governed by Title 38, Section 110.330 | ||||||
26 | of the Illinois Administrative Code or (2) any other
business |
| |||||||
| |||||||
1 | is solicited or engaged in unless the other business is | ||||||
2 | licensed by the Department or, in the opinion of the Secretary, | ||||||
3 | the
other business would not be contrary to the best interests | ||||||
4 | of consumers and
is authorized by the Secretary in writing.
| ||||||
5 | (g-5) Notwithstanding subsection (g) of this Section, a | ||||||
6 | licensee may obtain a license under the Consumer Installment | ||||||
7 | Loan Act (CILA) for the exclusive purpose and use of making | ||||||
8 | title secured loans, as defined in subsection (a) of Section 15 | ||||||
9 | of CILA and governed by Title 38, Section 110.300 of the | ||||||
10 | Illinois Administrative Code. A licensee may continue to | ||||||
11 | service Consumer Installment Loan Act loans that were | ||||||
12 | outstanding as of the effective date of this amendatory Act of | ||||||
13 | the 96th General Assembly. | ||||||
14 | (h) The Secretary shall maintain a list of licensees that | ||||||
15 | shall be
available to interested consumers and lenders and the | ||||||
16 | public. The Secretary
shall maintain a toll-free number whereby | ||||||
17 | consumers may obtain
information about licensees. The | ||||||
18 | Secretary shall also establish a complaint
process under which | ||||||
19 | an aggrieved consumer
may file a complaint against a licensee | ||||||
20 | or non-licensee who violates any
provision of this Act.
| ||||||
21 | (Source: P.A. 96-936, eff. 3-21-11 .) | ||||||
22 | (815 ILCS 122/4-10)
| ||||||
23 | Sec. 4-10. Enforcement and remedies. | ||||||
24 | (a) The remedies provided in this Act are cumulative and | ||||||
25 | apply to persons
or entities subject to this Act.
|
| |||||||
| |||||||
1 | (b) Any material violation of this Act, including the | ||||||
2 | commission of an act prohibited under Section 4-5, constitutes | ||||||
3 | a violation of the Consumer Fraud
and Deceptive Business | ||||||
4 | Practices Act.
| ||||||
5 | (c) If any provision of the written agreement described in | ||||||
6 | subsection (b) of
Section 2-20 violates this Act, then that | ||||||
7 | provision is unenforceable against the consumer. | ||||||
8 | (d) Subject to the Illinois Administrative Procedure Act, | ||||||
9 | the Secretary may hold hearings, make findings of fact, | ||||||
10 | conclusions of law, issue cease
and desist orders, have the | ||||||
11 | power to issue fines of up to $10,000 per violation, refer the | ||||||
12 | matter to the appropriate law enforcement agency
for | ||||||
13 | prosecution under this Act, and suspend or revoke a license | ||||||
14 | granted
under this Act. All proceedings shall be open to the | ||||||
15 | public. | ||||||
16 | (e) The Secretary may issue a cease and desist order to any | ||||||
17 | licensee or other person doing business without the required | ||||||
18 | license, when in the opinion of the Secretary the licensee or | ||||||
19 | other person is violating or is about to violate any provision | ||||||
20 | of this Act or any rule or requirement imposed in writing by | ||||||
21 | the Department as a condition of granting any authorization | ||||||
22 | permitted by this Act. The cease and desist order permitted by | ||||||
23 | this subsection (e) may be issued prior to a hearing. | ||||||
24 | The Secretary shall serve notice of his or her action, | ||||||
25 | including, but not limited to, a statement of the reasons for | ||||||
26 | the action, either personally , by mail, or to the licensee's |
| |||||||
| |||||||
1 | email address of record or by certified mail, return receipt | ||||||
2 | requested . Service by certified mail is shall be deemed | ||||||
3 | completed when the notice is deposited in the U.S. Mail. | ||||||
4 | Service to the email address of record is completed when sent. | ||||||
5 | Within 10 days of service of the cease and desist order, | ||||||
6 | the licensee or other person may request a hearing in writing.
| ||||||
7 | The Secretary shall schedule a hearing within 30 days after the | ||||||
8 | request for a hearing unless otherwise agreed to by the | ||||||
9 | parties. | ||||||
10 | If it is determined that the Secretary had the authority to | ||||||
11 | issue the cease and desist order, he or she may issue such | ||||||
12 | orders as may be reasonably necessary to correct, eliminate, or | ||||||
13 | remedy the conduct. | ||||||
14 | The powers vested in the Secretary by this subsection (e) | ||||||
15 | are additional to any and all other powers and remedies vested | ||||||
16 | in the Secretary by law, and nothing in this subsection (e) | ||||||
17 | shall be construed as requiring that the Secretary shall employ | ||||||
18 | the power conferred in this subsection instead of or as a | ||||||
19 | condition precedent to the exercise of any other power or | ||||||
20 | remedy vested in the Secretary. | ||||||
21 | (f) The Secretary may, after 10 days notice by registered | ||||||
22 | mail to the licensee at the address set forth in the license | ||||||
23 | stating the contemplated action and in general the grounds | ||||||
24 | therefore, fine the licensee an amount not exceeding $10,000 | ||||||
25 | per violation, or revoke or suspend any license issued | ||||||
26 | hereunder if he or she finds that: |
| |||||||
| |||||||
1 | (1) the licensee has failed to comply with any | ||||||
2 | provision of this Act or any order, decision, finding, | ||||||
3 | rule, regulation, or direction of the Secretary lawfully | ||||||
4 | made pursuant to the authority of this Act; or | ||||||
5 | (2) any fact or condition exists which, if it had | ||||||
6 | existed at the time of the original application for the | ||||||
7 | license, clearly would have warranted the Secretary in | ||||||
8 | refusing to issue the license. | ||||||
9 | The Secretary may fine, suspend, or revoke only the | ||||||
10 | particular license with respect to which grounds for the fine, | ||||||
11 | revocation, or suspension occur or exist, but if the Secretary | ||||||
12 | finds that grounds for revocation are of general application to | ||||||
13 | all offices or to more than one office of the licensee, the | ||||||
14 | Secretary shall fine, suspend, or revoke every license to which | ||||||
15 | the grounds apply. | ||||||
16 | The Department shall establish by rule and publish a | ||||||
17 | schedule of fines that are reasonably tailored to ensure | ||||||
18 | compliance with the provisions of this Act and which include | ||||||
19 | remedial measures intended to improve licensee compliance. | ||||||
20 | Such rules shall set forth the standards and procedures to be | ||||||
21 | used in imposing any such fines and remedies. | ||||||
22 | No revocation, suspension, or surrender of any license | ||||||
23 | shall impair or affect the obligation of any pre-existing | ||||||
24 | lawful contract between the licensee and any obligor. | ||||||
25 | The Secretary may issue a new license to a licensee whose | ||||||
26 | license has been revoked when facts or conditions which clearly |
| |||||||
| |||||||
1 | would have warranted the Secretary in refusing originally to | ||||||
2 | issue the license no longer exist. | ||||||
3 | In every case in which a license is suspended or revoked or | ||||||
4 | an application for a license or renewal of a license is denied, | ||||||
5 | the Secretary shall serve the licensee with notice of his or | ||||||
6 | her action, including a statement of the reasons for his or her | ||||||
7 | actions, either personally, by mail, or to the licensee's email | ||||||
8 | address of record by certified mail, return receipt requested . | ||||||
9 | Service by certified mail is shall be deemed completed when the | ||||||
10 | notice is deposited in the U.S. Mail. Service to the email | ||||||
11 | address of record is completed when sent. | ||||||
12 | An order assessing a fine, an order revoking or suspending | ||||||
13 | a license, or an order denying renewal of a license shall take | ||||||
14 | effect upon service of the order unless the licensee requests a | ||||||
15 | hearing, in writing, within 10 days after the date of service. | ||||||
16 | In the event a hearing is requested, the order shall be stayed | ||||||
17 | until a final administrative order is entered. | ||||||
18 | If the licensee requests a hearing, the Secretary shall | ||||||
19 | schedule a hearing within 30 days after the request for a | ||||||
20 | hearing unless otherwise agreed to by the parties. | ||||||
21 | The hearing shall be held at the time and place designated | ||||||
22 | by the Secretary. The Secretary and any administrative law | ||||||
23 | judge designated by him or her shall have the power to | ||||||
24 | administer oaths and affirmations, subpoena witnesses and | ||||||
25 | compel their attendance, take evidence, and require the | ||||||
26 | production of books, papers, correspondence, and other records |
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1 | or information that he or she considers relevant or material to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | the inquiry. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | (g) The costs of administrative hearings conducted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | pursuant to this Section shall be paid by the licensee.
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5 | (h) Notwithstanding any other provision of this Section, if | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | a lender who does not have a license issued under this Act | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | makes a loan pursuant to this Act to an Illinois consumer, then | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | the loan shall be null and void and the lender who made the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | loan shall have no right to collect, receive, or retain any | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | principal, interest, or charges related to the loan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | (Source: P.A. 97-1039, eff. 1-1-13; 98-209, eff. 1-1-14.)
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12 | Section 99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | becoming law.
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