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91_SB0842 LRB9105877JSpcA 1 AN ACT to amend the Consumer Installment Loan Act by 2 changing Section 1. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Consumer Installment Loan Act is amended 6 by changing Section 1 as follows: 7 (205 ILCS 670/1) (from Ch. 17, par. 5401) 8 Sec. 1. License required to engage in business. 9 (a) No person, partnership, association, limited 10 liability company, or corporation shall engage in the 11 business of making loans of money in a principal amount not 12 exceeding $25,000, and charge, contract for, or receive on 13 any such loan a greater rate of interest, discount, or 14 consideration therefor than the lender would be permitted by 15 law to charge if he were not a licensee hereunder, except as 16 authorized by this Act after first obtaining a license from 17 the Director of Financial Institutions (hereinafter called 18 the Director). 19 (b) In addition to the license required under subsection 20 (a), a person, partnership, association, limited liability 21 company, or corporation must obtain a short-term lender 22 license from the Director if engaged in making loans of $500 23 or less and having a term not exceeding 60 days to a natural 24 person in a transaction in which (1) the lender receives a 25 check, draft, or similar instrument that is postdated to the 26 maturity date of the loan in an amount that fully satisfies 27 the borrower's obligation under the loan agreement or (2) a 28 motor vehicle owned by the borrower is pledged as collateral 29 for the loan. Before the license is granted, the Director 30 shall require the applicant to publish notice of the 31 application for a license as a short-term lender in a -2- LRB9105877JSpcA 1 newspaper of general circulation in the vicinity of the site 2 where the business of the applicant will be conducted. 3 (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)