State of Illinois
91st General Assembly
Legislation

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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.)

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