100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3060

 

Introduced 2/15/2018, by Sen. Michael Connelly

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Credit Union Act, the Currency Exchange Act, the Transmitters of Money Act, the Sales Finance Agency Act, the Debt Management Service Act, the Title Insurance Act, the Debt Settlement Consumer Protection Act, the Payday Loan Reform Act, and the Consumer Installment Loan Act. Defines "email address of record". Eliminates references to "certified mail". Provides that a chartered institution, licensee, or applicant shall provide the Department of Financial and Professional Regulation with an accurate and up-to-date email address. Permits the Department to send official notices to the chartered institution, licensee, or applicant's email address of record. Provides that service to the email address of record is completed when sent. Provides that service by mail is completed when the notice is deposited in the U.S. Mail. Makes other changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3060LRB100 18641 XWW 33868 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Credit Union Act is amended by
5changing Sections 1.1, 2, 21, and 61 as follows:
 
6    (205 ILCS 305/1.1)  (from Ch. 17, par. 4402)
7    Sec. 1.1. Definitions.
8    Credit Union - The term "credit union" means a cooperative,
9non-profit association, incorporated under this Act, under the
10laws of the United States of America or under the laws of
11another state, for the purposes of encouraging thrift among its
12members, creating a source of credit at a reasonable rate of
13interest, and providing an opportunity for its members to use
14and control their own money in order to improve their economic
15and social conditions. The membership of a credit union shall
16consist of a group or groups each having a common bond as set
17forth in this Act.
18    Common Bond - The term "common bond" refers to groups of
19people who meet one of the following qualifications:
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.
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
13form of shares issued by a credit union and established by a
14member in accordance with standards specified by a credit
15union, including but not limited to common shares, share draft
16accounts, classes of shares, share certificates, special
17purpose share accounts, shares issued in trust, custodial
18accounts, and individual retirement accounts or other plans
19established pursuant to Section 401(d) or (f) or Section 408(a)
20of the Internal Revenue Code, as now or hereafter amended, or
21similar provisions of any tax laws of the United States that
22may hereafter exist.
23    Credit Union Organization - The term "credit union
24organization" means any organization established to serve the
25needs of credit unions, the business of which relates to the
26daily operations of credit unions.

 

 

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1    Department - The term "Department" means the Illinois
2Department of Financial and Professional Regulation.
3    Secretary - The term "Secretary" means the Secretary of
4Financial and Professional Regulation or a person authorized by
5the Secretary or this Act to act in the Secretary's stead.
6    Division of Financial Institutions - The term "Division of
7Financial Institutions" means the Division of Financial
8Institutions of the Department of Financial and Professional
9Regulation.
10    Director - The term "Director of Financial Institutions"
11means the Director of the Division of Financial Institutions of
12the Department of Financial and Professional Regulation.
13    Office - The term "office" means the Division of Financial
14Institutions of the Department of Financial and Professional
15Regulation.
16    NCUA - The term "NCUA" means the National Credit Union
17Administration, an agency of the United States Government
18charged with the supervision of credit unions chartered under
19the laws of the United States of America.
20    Central Credit Union - The term "central credit union"
21means a credit union incorporated primarily to receive shares
22from and make loans to credit unions and directors, officers,
23committee members and employees of credit unions. A central
24credit union may also accept as members persons who were
25members of credit unions which were liquidated and persons from
26occupational groups not otherwise served by another credit

 

 

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1union.
2    Corporate Credit Union - The term "corporate credit union"
3means a credit union which is a cooperative, non-profit
4association, the membership of which is limited primarily to
5other credit unions.
6    Insolvent - "Insolvent" means the condition that results
7when the total of all liabilities and shares exceeds net assets
8of the credit union.
9    Danger of insolvency - For purposes of Section 61, a credit
10union is in "danger of insolvency" if its net worth to asset
11ratio falls below 2%. In calculating the danger of insolvency
12ratio, secondary capital shall be excluded. For purposes of
13Section 61, a credit union is also in "danger of insolvency" if
14the Department is unable to ascertain, upon examination, the
15true financial condition of the credit union.
16    Net Worth - "Net worth" means the retained earnings balance
17of the credit union, as determined under generally accepted
18accounting principles, and forms of secondary capital approved
19by the Secretary and the Director pursuant to rulemaking.
20    Charitable Donation Account - The term "charitable
21donation account" means an account owned by a credit union that
22is held in a segregated custodial account or special purpose
23entity and specifically identified as a charitable donation
24account whereby, no less frequently than every 5 years and upon
25termination of the account, at least 51% of the total return on
26assets in the account is distributed to one or more charitable

 

 

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1organizations or non-profit entities.
2    Email address of record The term "email address of
3record" means an accurate and current email address designated
4by a credit union and recorded by the Division of Financial
5Institutions in the credit union's file maintained by the
6Division 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)
9    Sec. 2. Organization procedure.
10    (1) Any 9 or more persons of legal age, the majority of
11whom shall be residents of the State of Illinois, who have a
12common bond referred to in Section 1.1 may organize a credit
13union or a central credit union by complying with this Section.
14    (2) The subscribers shall execute in duplicate Articles of
15Incorporation and agree to the terms thereof, which Articles
16shall state:
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;
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;
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.
10    (3) The subscribers shall prepare and adopt bylaws for the
11general government of the credit union, consistent with this
12Act, and execute same in duplicate.
13    (4) The subscribers shall forward the articles of
14incorporation and the bylaws to the Secretary in duplicate,
15along with the required charter fee. If they conform to the
16law, and such rules and regulations as the Secretary and the
17Director may prescribe, if the Secretary determines that a
18common bond exists, and that it is economically advisable to
19organize the credit union, he or she shall within 60 days issue
20a certificate of approval attached to the articles of
21incorporation and return a copy of the bylaws and the articles
22of incorporation to the applicants or their representative,
23which shall be preserved in the permanent files of the credit
24union. The subscribers shall file the certificate of approval,
25with the articles of incorporation attached, in the office of
26the recorder (or, if there is no recorder, in the office of the

 

 

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1county clerk) of the county in which the credit union is to
2locate its principal place of business. The recorder or the
3county clerk, as the case may be, shall accept and record the
4documents if they are accompanied by the proper fee. When the
5documents are so recorded, the credit union is incorporated
6under this Act.
7    (5) The subscribers for a credit union charter shall not
8transact any business until the certificate of approval has
9been received.
10    (6) At the time of executing the articles of incorporation,
11subscriber will provide the Department with an email address of
12record.
13(Source: P.A. 100-361, eff. 8-25-17.)
 
14    (205 ILCS 305/21)  (from Ch. 17, par. 4422)
15    Sec. 21. Record of board and committee members. Within 30
16days after election or appointment, the names and addresses of
17the members of the board of directors, committees and all
18officers of the credit union shall be filed with the Department
19on forms provided by the Department. The form shall also
20include the email address of record of the credit union.
21(Source: P.A. 97-133, eff. 1-1-12.)
 
22    (205 ILCS 305/61)  (from Ch. 17, par. 4462)
23    Sec. 61. Suspension.
24    (1) If the Secretary determines that any credit union is

 

 

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1bankrupt, insolvent, impaired or that it has violated this Act,
2or is operating in an unsafe or unsound manner, he shall issue
3an order temporarily suspending the credit union's operations
4for not more than 60 days. The board of directors shall be
5given notice of the suspension by first class mail, postage
6prepaid, or electronic transmission to the credit union's email
7address of record by registered or certified mail of such
8suspension, which notice shall include the reasons for such
9suspension and a list of specific violations of the Act.
10Service by mail is completed if the notice is deposited in the
11U.S. Mail. Service to the email address of record is completed
12when sent. The Secretary shall also notify the members of the
13credit union board of advisors of any suspension. The Director
14may assess to the credit union a penalty, not to exceed the
15regulatory fee as set forth in this Act, to offset costs
16incurred in determining the condition of the credit union's
17books and records.
18    (2) Upon receipt of such suspension notice, the credit
19union shall cease all operations, except those authorized by
20the Secretary, or the Secretary may appoint a manager-trustee
21to operate the credit union during the suspension period. The
22board of directors shall, within 10 days of the receipt of the
23suspension notice, file with the Secretary a reply to the
24suspension notice by submitting a corrective plan of action or
25a request for formal hearing on said action pursuant to the
26Department's rules and regulations.

 

 

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1    (3) Upon receipt from the suspended credit union of
2evidence that the conditions causing the order of suspension
3have been corrected, and after determining that the proposed
4corrective plan of action submitted is factual, the Secretary
5shall revoke the suspension notice, permit the credit union to
6resume normal operations, and notify the board of credit union
7advisors of such action.
8    (4) If the Secretary determines that the proposed
9corrective plan of action will not correct such conditions, he
10may take possession and control of the credit union. The
11Secretary may permit the credit union to operate under his
12direction and control and may appoint a manager-trustee to
13manage its affairs until such time as the condition requiring
14such action has been remedied, or in the case of insolvency or
15danger of insolvency where an emergency requiring expeditious
16action exists, the Secretary may involuntarily merge the credit
17union without the vote of the suspended credit union's board of
18directors or members (hereafter involuntary merger) subject to
19rules promulgated by the Secretary. No credit union shall be
20required to serve as a surviving credit union in any
21involuntary merger. Upon the request of the Secretary, a credit
22union by a vote of a majority of its board of directors may
23elect to serve as a surviving credit union in an involuntary
24merger. If the Secretary determines that the suspended credit
25union should be liquidated, he may appoint a liquidating agent
26and require of that person such bond and security as he

 

 

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1considers proper.
2    (5) Upon receipt of a request for a formal hearing, the
3Secretary shall conduct proceedings pursuant to rules and
4regulations of the Department. The credit union may request the
5appropriate court to stay execution of such action. Involuntary
6liquidation or involuntary merger may not be ordered prior to
7the conclusion of suspension procedures outlined in this
8Section.
9    (6) If, within the suspension period, the credit union
10fails to answer the suspension notice or fails to request a
11formal hearing, or both, the Secretary may then (i)
12involuntarily merge the credit union if the credit union is
13insolvent or in danger of insolvency and an emergency requiring
14expeditious action exists or (ii) revoke the credit union's
15charter, appoint a liquidating agent and liquidate the credit
16union.
17(Source: P.A. 97-133, eff. 1-1-12.)
 
18    Section 10. The Currency Exchange Act is amended by
19changing Sections 1, 4, 10, and 29.5 as follows:
 
20    (205 ILCS 405/1)  (from Ch. 17, par. 4802)
21    Sec. 1. Definitions; application of Act.
22    (a) For the purposes of this Act:
23    "Community currency exchange" means any person, firm,
24association, partnership, limited liability company, or

 

 

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1corporation, except an ambulatory currency exchange as
2hereinafter defined, banks incorporated under the laws of this
3State and National Banks organized pursuant to the laws of the
4United States, engaged in the business or service of, and
5providing facilities for, cashing checks, drafts, money orders
6or any other evidences of money acceptable to such community
7currency exchange, for a fee or service charge or other
8consideration, or engaged in the business of selling or issuing
9money orders under his or their or its name, or any other money
10orders (other than United States Post Office money orders,
11Postal Telegraph Company money orders, or Western Union
12Telegraph Company money orders), or engaged in both such
13businesses, or engaged in performing any one or more of the
14foregoing services.
15    "Controlling person" means an officer, director, or person
16owning or holding power to vote 10% or more of the outstanding
17voting securities of a licensee or the power to vote the
18securities of another controlling person of the licensee. For
19the purposes of determining the percentage of a licensee
20controlled by a controlling person, the person's interest shall
21be combined with the interest of any other person controlled,
22directly or indirectly, by that person or by a spouse, parent,
23or child of that person.
24    "Department" means the Department of Financial and
25Professional Regulation.
26    "Director" means the Director of the Division of Financial

 

 

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1Institutions of the Department of Financial and Professional
2Regulation.
3    "Division of Financial Institutions" means the Division of
4Financial Institutions of the Department of Financial and
5Professional Regulation.
6    "Email address of record" means the designated email
7address recorded by the Division in the applicant's applicant
8file or the licensee's license file maintained by the
9Division's licensure unit.
10    "Ambulatory Currency Exchange" means any person, firm,
11association, partnership, limited liability company, or
12corporation, except banks organized under the laws of this
13State and National Banks organized pursuant to the laws of the
14United States, engaged in one or both of the foregoing
15businesses, or engaged in performing any one or more of the
16foregoing services, solely on the premises of the employer
17whose employees are being served.
18    "Licensee" means any person, firm, association,
19partnership, limited liability company, or corporation issued
20one or more licenses by the Secretary under this Act.
21    "Licensed location" means the premises at which a licensee
22is authorized to operate a community currency exchange to offer
23to the public services, products, or activities under this Act.
24    "Location" when used with reference to an ambulatory
25currency exchange means the premises of the employer whose
26employees are or are to be served by an ambulatory currency

 

 

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1exchange.
2    "Principal office" means the physical business address,
3which shall not be a post office box, of a licensee at which
4the (i) Department may contact the licensee and (ii) records
5required under this Act are maintained.
6    "Secretary" means the Secretary of Financial and
7Professional Regulation or a person authorized by the Secretary
8or this Act to act in the Secretary's stead. All references in
9this Act to the Secretary shall be deemed to include the
10Director, as a person authorized by the Secretary or this Act
11to assume responsibility for the oversight of the functions of
12the Department relative to the regulatory supervision of
13community currency exchanges and ambulatory currency exchanges
14under this Act.
15    (b) Nothing in this Act shall be held to apply to any
16person, firm, association, partnership, limited liability
17company, or corporation who is engaged primarily in the
18business of transporting for hire, bullion, currency,
19securities, negotiable or non-negotiable documents, jewels or
20other property of great monetary value and who in the course of
21such business and only as an incident thereto, cashes checks,
22drafts, money orders or other evidences of money directly for,
23or for the employees of and with the funds of and at a cost only
24to, the person, firm, association, partnership, limited
25liability company, or corporation for whom he or it is then
26actually transporting such bullion, currency, securities,

 

 

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1negotiable or non-negotiable documents, jewels, or other
2property of great monetary value, pursuant to a written
3contract for such transportation and all incidents thereof, nor
4shall it apply to any person, firm, association, partnership,
5limited liability company, or corporation engaged in the
6business of selling tangible personal property at retail who,
7in the course of such business and only as an incident thereto,
8cashes checks, drafts, money orders or other evidences of
9money.
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
13shall obtain a separate license for each licensed location.
14Application for such license shall be in writing under oath and
15in the form prescribed and furnished by the Secretary. Each
16application 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

 

 

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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

 

 

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1application shall be accompanied by a fee of $1,000 for the
2cost of investigating the applicant. A licensee's application
3for licenses for additional licensed locations shall be
4accompanied by a fee of $1,000 for each additional license. If
5the ownership of a licensee or licensed location changes, in
6whole or in part, a new application must be filed pursuant to
7this Section along with a $500 fee if the licensee's ownership
8interests have been transferred or sold to a new person or
9entity or a fee of $300 if the licensee's ownership interests
10have been transferred or sold to a current holder or holders of
11the licensee's ownership interests. When the application for a
12community currency exchange license has been approved by the
13Secretary and the applicant so advised, an additional sum of
14$400 as an annual license fee for a period terminating on the
15last day of the current calendar year shall be paid to the
16Secretary by the applicant; provided, that the license fee for
17an applicant applying for such a license after July 1st of any
18year shall be $200 for the balance of such year. Upon receipt
19of a community currency exchange license application, the
20Secretary shall examine the application for completeness and
21notify the applicant in writing of any defect within 20 days
22after receipt. The applicant must remedy the defect within 10
23days after the mailing of the notification of the defect by the
24Secretary. Failure to timely remedy the defect will void the
25application. Once the Secretary determines that the
26application is complete, the Secretary shall have 90 business

 

 

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1days to approve or deny the application. If the application is
2denied, the Secretary shall send by United States mail or to
3the applicant's email address of record notice of the denial to
4the applicant at the address set forth in the application. If
5an application is denied, the applicant may, within 10 days
6after the date of the notice of denial, make a written request
7to the Secretary for a hearing on the application. The hearing
8shall be set for a date after the receipt by the Secretary of
9the request for a hearing, and electronic written notice of the
10time and place of the hearing shall be sent to the applicant's
11email address of record mailed to the applicant no later than
1215 days before the date of the hearing. The hearing shall be
13scheduled for a date within 56 days after the date of the
14receipt of the request for a hearing. The applicant shall pay
15the actual cost of making the transcript of the hearing prior
16to the Secretary's issuing his or her decision. The Secretary's
17decision is subject to review as provided in Section 22.01 of
18this Act.
19    An application for an ambulatory currency exchange license
20shall be accompanied by a fee of $100, which fee shall be for
21the cost of investigating the applicant. An approved applicant
22shall not be required to pay the initial investigation fee of
23$100 more than once. When the application for an ambulatory
24currency exchange license has been approved by the Secretary,
25and such applicant so advised, such applicant shall pay an
26annual license fee of $25 for each and every location to be

 

 

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1served by such applicant; provided that such license fee for an
2approved applicant applying for such a license after July 1st
3of any year shall be $12 for the balance of such year for each
4and every location to be served by such applicant. Such an
5approved applicant for an ambulatory currency exchange
6license, when applying for a license with respect to a
7particular location, shall file with the Secretary, at the time
8of filing an application, a letter of memorandum, which shall
9be in writing and under oath, signed by the owner or authorized
10representative of the business whose employees are to be
11served; such letter or memorandum shall contain a statement
12that such service is desired, and that the person signing the
13same is authorized so to do. The Secretary shall thereupon
14verify the authenticity of the letter or memorandum and the
15authority of the person who executed it, to do so.
16    The Department shall have 45 business days to approve or
17deny a licensee's request to purchase another currency
18exchange.
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;
22review. The applicant or its controlling persons shall be
23vouched for by 2 reputable citizens of this State setting forth
24that the individual mentioned is (a) personally known to them
25to be trustworthy and reputable, (b) that he has business

 

 

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1experience qualifying him to competently conduct, operate, own
2or become associated with a currency exchange, (c) that he has
3a good business reputation and is worthy of a license.
4Thereafter, the Secretary shall, upon approval of the
5application filed with him, issue to the applicant, qualifying
6under this Act, a license to operate a currency exchange. If it
7is a license for a community currency exchange, the same shall
8be valid only at the place of business specified in the
9application. If it is a license for an ambulatory currency
10exchange, it shall entitle the applicant to operate only at the
11location or locations specified in the application, provided
12the applicant shall secure separate and additional licenses for
13each of such locations. Such licenses shall remain in full
14force and effect, until they are surrendered by the licensee,
15or revoked, or expire, as herein provided. If the Secretary
16shall not so approve, he shall not issue such license or
17licenses and shall notify the applicant of such denial,
18retaining the full investigation fee to cover the cost of
19investigating the community currency exchange applicant. The
20Secretary shall approve or deny every application hereunder
21within 90 days from the filing of a complete application;
22except that in respect to an application by an approved
23ambulatory currency exchange for a license with regard to a
24particular location to be served by it, the same shall be
25approved or denied within 20 days from the filing thereof. If
26the application is denied, the Secretary shall send by United

 

 

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1States mail or to the licensee's email address of record notice
2of such denial to the applicant at the address set forth in the
3application.
4    If an application is denied, the applicant may, within 10
5days from the date of the notice of denial, make written
6request to the Secretary for a hearing on the application, and
7the Secretary shall set a time and place for the hearing. The
8hearing shall be set for a date after the receipt by the
9Secretary of the request for hearing, and electronic written
10notice of the time and place of the hearing shall be emailed
11mailed to the applicant at least 15 days before the date of the
12hearing. The applicant shall pay the actual cost of making the
13transcript of the hearing prior to the Secretary's issuing his
14decision following the hearing. Service by email is completed
15when sent.
16    If, following the hearing, the application is denied, the
17Secretary shall, within 20 days thereafter prepare and keep on
18file in his office a written order of denial thereof, which
19shall contain his findings with respect thereto and the reasons
20supporting the denial, and shall send by mail United States
21Mail a copy thereof to the applicant at the address set forth
22in the application, within 5 days after the filing of such
23order. A review of any such decision may be had as provided in
24Section 22.01 of this Act.
25(Source: P.A. 99-445, eff. 1-1-16.)
 

 

 

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1    (205 ILCS 405/29.5)
2    Sec. 29.5. Cease and desist. The Secretary may issue a
3cease and desist order to any currency exchange or other person
4doing business without the required license, when in the
5opinion of the Secretary, the currency exchange or other person
6is violating or is about to violate any provision of this Act
7or any rule or requirement imposed in writing by the
8Department. The cease and desist order shall specify the
9activity or activities that the Department is seeking the
10currency exchange or other person doing business without the
11required license to cease and desist.
12    The cease and desist order permitted by this Section may be
13issued prior to a hearing.
14    The Secretary shall serve notice of his or her action,
15including, but not limited to, a statement of reasons for the
16action, either personally, by mail, or to the applicant's email
17address of record or by certified mail, return receipt
18requested. Service by certified mail is shall be deemed
19completed (i) when the notice is deposited in the U.S. mail,
20received, or delivery is refused, or (ii) one business day
21after the United States Postal Service has attempted delivery,
22whichever is earlier. Service by email is completed when sent.
23    Within 10 days after service of a cease and desist order,
24the licensee or other person may request, in writing, a
25hearing. The Secretary shall schedule a hearing within 30 days
26after the request for a hearing unless otherwise agreed to by

 

 

SB3060- 22 -LRB100 18641 XWW 33868 b

1the parties.
2    If it is determined that the Secretary has the authority to
3issue the cease and desist order, he or she may issue such
4orders as reasonably necessary to correct, eliminate, or remedy
5such conduct.
6    The powers vested in the Secretary by this Section are
7additional to any and all other powers and remedies vested in
8the Secretary by law, and nothing in this Section shall be
9construed as requiring that the Secretary shall employ the
10power conferred in this Section instead of or as a condition
11precedent to the exercise of any other power or remedy vested
12in the Secretary.
13    The currency exchange, or other person doing business
14without the required license, shall pay the actual costs of the
15hearing.
16(Source: P.A. 99-445, eff. 1-1-16.)
 
17    Section 15. The Transmitters of Money Act is amended by
18changing 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
21context otherwise requires, the words and phrases defined in
22this Section have the meanings set forth in this Section.
23    "Authorized seller" means a person not an employee of a
24licensee who engages in the business regulated by this Act on

 

 

SB3060- 23 -LRB100 18641 XWW 33868 b

1behalf of a licensee under a contract between that person and
2the licensee.
3    "Bill payment service" means the business of transmitting
4money on behalf of an Illinois resident for the purpose of
5paying the resident's bills.
6    "Controlling person" means a person owning or holding the
7power to vote 25% or more of the outstanding voting securities
8of a licensee or the power to vote the securities of another
9controlling person of the licensee. For purposes of determining
10the percentage of a licensee controlled by a controlling
11person, the person's interest shall be combined with the
12interest of any other person controlled, directly or
13indirectly, by that person or by a spouse, parent, or child of
14that person.
15    "Department" means the Department of Financial
16Institutions.
17    "Director" means the Director of Financial Institutions.
18    "Email address of record" means the designated email
19address recorded by the Division in the applicant's applicant
20file or the licensee's license file maintained by the
21Division's licensure unit.
22    "Licensee" means a person licensed under this Act.
23    "Location" means a place of business at which activity
24regulated by this Act occurs.
25    "Material litigation" means any litigation that, according
26to generally accepted accounting principles, is deemed

 

 

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1significant to a licensee's financial health and would be
2required to be referenced in a licensee's annual audited
3financial statements, reports to shareholders, or similar
4documents.
5    "Money" means a medium of exchange that is authorized or
6adopted by a domestic or foreign government as a part of its
7currency and that is customarily used and accepted as a medium
8of exchange in the country of issuance.
9    "Money transmitter" means a person who is located in or
10doing business in this State and who directly or through
11authorized 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
19treated by or accounted for under generally accepted accounting
20principles on the books of the licensee, a payment instrument
21issued by the licensee that has been sold in the United States
22directly by the licensee or has been sold in the United States
23by an authorized seller of the licensee and reported to the
24licensee as having been sold, but has not been paid by or for
25the licensee.
26    "Payment instrument" means a check, draft, money order,

 

 

SB3060- 25 -LRB100 18641 XWW 33868 b

1traveler's check, stored value card, or other instrument or
2memorandum, written order or written receipt for the
3transmission or payment of money sold or issued to one or more
4persons whether or not that instrument or order is negotiable.
5Payment instrument does not include an instrument that is
6redeemable by the issuer in merchandise or service, a credit
7card voucher, or a letter of credit. A written order for the
8transmission or payment of money that results in the issuance
9of a check, draft, money order, traveler's check, or other
10instrument or memorandum is not a payment instrument.
11    "Person" means an individual, partnership, association,
12joint stock association, corporation, or any other form of
13business organization.
14    "Stored value card" means any magnetic stripe card or other
15electronic payment instrument given in exchange for money and
16other similar consideration, including but not limited to
17checks, debit payments, money orders, drafts, credit payments,
18and traveler's checks, where the card or other electronic
19payment instrument represents a dollar value that the consumer
20can either use or give to another individual.
21    "Transmitting money" means the transmission of money by any
22means, including transmissions to or from locations within the
23United States or to and from locations outside of the United
24States by payment instrument, facsimile or electronic
25transfer, or otherwise, and includes bill payment services.
26(Source: P.A. 92-400, eff. 1-1-02; 93-535, eff. 1-1-04.)
 

 

 

SB3060- 26 -LRB100 18641 XWW 33868 b

1    (205 ILCS 657/25)
2    Sec. 25. Application for license.
3    (a) An application for a license must be in writing, under
4oath, and in the form the Director prescribes. The application
5must 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

 

 

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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

 

 

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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.

 

 

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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,
5any 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
9a license, a licensee must submit to the Director, and the
10Director must receive, on or before December 1 of each year, an
11application for renewal made in writing and under oath on a
12form prescribed by the Director. A licensee whose application
13for renewal is not received by the Department on or before
14December 31 shall not have its license renewed and shall be
15required to submit to the Director an application for a new
16license in accordance with Section 25. Upon a showing of good
17cause, the Director may extend the deadline for the filing of
18an application for renewal. The application for renewal of a
19license shall contain or be accompanied by all of the
20following:
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

 

 

SB3060- 30 -LRB100 18641 XWW 33868 b

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.

 

 

SB3060- 31 -LRB100 18641 XWW 33868 b

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
18Director 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

 

 

SB3060- 32 -LRB100 18641 XWW 33868 b

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
26revoked or an application for a license or renewal of a license

 

 

SB3060- 33 -LRB100 18641 XWW 33868 b

1is denied, the Director shall serve notice of his action,
2including a statement of the reasons for his action, either
3personally, by mail, or to the licensee's email address of
4record. Service by mail is completed when the notice is
5deposited in the U.S. mail. Service to the email address of
6record is completed when sent or by certified mail, return
7receipt requested. Service by mail shall be deemed completed if
8the notice is deposited in the post office, postage paid,
9addressed to the last known address specified in the
10application for a license.
11    (c) In the case of denial of an application for a license
12or renewal of a license, the applicant or licensee may request
13in writing, within 30 days after the date of service, a
14hearing. In the case of a denial of an application for renewal
15of a license, the expiring license shall be deemed to continue
16in force until 30 days after the service of the notice of
17denial or, if a hearing is requested during that period, until
18a final order is entered pursuant to a hearing.
19    (d) The order of suspension or revocation of a license
20shall take effect upon service of the order. The holder of any
21suspended or revoked license may request in writing, within 30
22days after the date of service, a hearing. In the event a
23hearing is requested, the order shall remain temporary until a
24final order is entered pursuant to the hearing.
25    (e) The hearing shall be held at the time and place
26designated by the Director in either the City of Springfield or

 

 

SB3060- 34 -LRB100 18641 XWW 33868 b

1the City of Chicago. The Director and any administrative law
2judge designated by him shall have the power to administer
3oaths and affirmations, subpoena witnesses and compel their
4attendance, take evidence, authorize the taking of
5depositions, and require the production of books, papers,
6correspondence, and other records or information that he
7considers relevant or material to the inquiry.
8    (f) The Director may issue an order of suspension or
9revocation of a license that takes effect upon service of the
10order and remains in effect regardless of a request for a
11hearing when the Director finds that the public welfare will be
12endangered if the licensee is permitted to continue to operate
13the business regulated by this Act.
14    (g) The decision of the Director to deny any application
15for a license or renewal of a license or to suspend or revoke a
16license is subject to judicial review under the Administrative
17Review Law.
18    (h) The costs for administrative hearing shall be set by
19rule.
20    (i) Appeals from all final orders and judgments entered by
21the circuit court under this Section in review of a decision of
22the Director may be taken as in other civil actions by any
23party to the proceeding.
24(Source: P.A. 88-643, eff. 1-1-95.)
 
25    (205 ILCS 657/90)

 

 

SB3060- 35 -LRB100 18641 XWW 33868 b

1    Sec. 90. Enforcement.
2    (a) If it appears to the Director that a person has
3committed or is about to commit a violation of this Act, a rule
4promulgated under this Act, or an order of the Director, the
5Director may apply to the circuit court for an order enjoining
6the person from violating or continuing to violate this Act,
7the rule, or order and for injunctive or other relief that the
8nature of the case may require and may, in addition, request
9the court to assess a civil penalty up to $1,000 along with
10costs and attorney fees.
11    (b) If the Director finds, after an investigation that he
12considers appropriate, that a licensee or other person is
13engaged in practices contrary to this Act or to the rules
14promulgated under this Act, the Director may issue an order
15directing the licensee or person to cease and desist the
16violation. The Director may, in addition to or without the
17issuance of a cease and desist order, assess an administrative
18penalty up to $1,000 against a licensee for each violation of
19this Act or the rules promulgated under this Act. The issuance
20of an order under this Section shall not be a prerequisite to
21the taking of any action by the Director under this or any
22other Section of this Act. The Director shall serve notice of
23his action, including a statement of the reasons for his
24actions, either personally, by mail, or to the licensee's email
25address of record. Service by mail is completed when the notice
26is deposited in the U.S. mail. Service to the email address of

 

 

SB3060- 36 -LRB100 18641 XWW 33868 b

1record is completed when sent or by certified mail, return
2receipt requested. Service by mail shall be deemed completed if
3the notice is deposited in the post office, postage paid,
4addressed to the last known address for a license.
5    (c) In the case of the issuance of a cease and desist order
6or assessment order, a hearing may be requested in writing
7within 30 days after the date of service. The hearing shall be
8held at the time and place designated by the Director in either
9the City of Springfield or the City of Chicago. The Director
10and any administrative law judge designated by him shall have
11the power to administer oaths and affirmations, subpoena
12witnesses and compel their attendance, take evidence,
13authorize the taking of depositions, and require the production
14of books, papers, correspondence, and other records or
15information that he considers relevant or material to the
16inquiry.
17    (d) After the Director's final determination under a
18hearing under this Section, a party to the proceedings whose
19interests are affected by the Director's final determination
20shall be entitled to judicial review of that final
21determination under the Administrative Review Law.
22    (e) The costs for administrative hearings shall be set by
23rule.
24    (f) Except as otherwise provided in this Act, a violation
25of this Act shall subject the party violating it to a fine of
26$1,000 for each offense.

 

 

SB3060- 37 -LRB100 18641 XWW 33868 b

1    (g) Each transaction in violation of this Act or the rules
2promulgated under this Act and each day that a violation
3continues shall be a separate offense.
4    (h) A person who engages in conduct requiring a license
5under this Act and fails to obtain a license from the Director
6or knowingly makes a false statement, misrepresentation, or
7false certification in an application, financial statement,
8account record, report, or other document filed or required to
9be maintained or filed under this Act or who knowingly makes a
10false entry or omits a material entry in a document is guilty
11of a Class 3 felony.
12    (i) The Director is authorized to compromise, settle, and
13collect civil penalties and administrative penalties, as set by
14rule, with any person for violations of this Act or of any rule
15or order issued or promulgated under this Act. Any person who,
16without the required license, engages in conduct requiring a
17license under this Act shall be liable to the Department in an
18amount equal to the greater of (i) $5,000 or (ii) an amount of
19money accepted for transmission plus an amount equal to 3 times
20the amount accepted for transmission. The Department shall
21cause any funds so recovered to be deposited in the TOMA
22Consumer Protection Fund.
23    (j) The Director may enter into consent orders at any time
24with a person to resolve a matter arising under this Act. A
25consent order must be signed by the person to whom it is issued
26and must indicate agreement to the terms contained in it. A

 

 

SB3060- 38 -LRB100 18641 XWW 33868 b

1consent order need not constitute an admission by a person that
2this Act or a rule or order issued or promulgated under this
3Act has been violated, nor need it constitute a finding by the
4Director that the person has violated this Act or a rule or
5order promulgated under this Act.
6    (k) Notwithstanding the issuance of a consent order, the
7Director may seek civil or criminal penalties or compromise
8civil penalties concerning matter encompassed by the consent
9order unless the consent order by its terms expressly precludes
10the Director from doing so.
11    (l) Appeals from all final orders and judgments entered by
12the circuit court under this Section in review of a decision of
13the Director may be taken as in other civil actions by any
14party to the proceeding.
15(Source: P.A. 100-201, eff. 8-18-17.)
 
16    Section 20. The Sales Finance Agency Act is amended by
17changing 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
20otherwise requires:
21    "Sales finance agency" means a person, irrespective of his
22or her state of domicile or place of business, engaged in this
23State, in whole or in part, in the business of purchasing, or
24making loans secured by, retail installment contracts, retail

 

 

SB3060- 39 -LRB100 18641 XWW 33868 b

1charge agreements or the outstanding balances under such
2contracts or agreements entered into in this State.
3    "Holder" of a retail installment contract or a retail
4charge agreement means the retail seller of the goods or
5services under the contract or charge agreement, or if the
6outstanding balances thereunder are purchased by or
7transferred as security to a sales finance agency or other
8assignee, the sales finance agency or other assignee.
9    "Person" means an individual, corporation, partnership,
10limited liability company, joint venture, or any other form of
11business association.
12    "Department" means the Department of Financial
13Institutions.
14    "Director" means the Director of Financial Institutions.
15    "Email address of record" means the designated email
16address recorded by the Division in the applicant's applicant
17file or the licensee's license file maintained by the
18Division's licensure unit.
19    "Motor Vehicle Retail Installment Sales Act" and "Retail
20Installment Sales Act" refer to the Acts having those titles
21enacted by the 75th General Assembly.
22    "Retail installment contract" and "retail charge
23agreement" have the meanings ascribed to them in the Motor
24Vehicle Retail Installment Sales Act and the Retail Installment
25Sales Act.
26    "Special purpose vehicle" means an entity that, in

 

 

SB3060- 40 -LRB100 18641 XWW 33868 b

1connection with a securitization, private placement, or
2similar type of investment transaction, is administered by a
3State or national bank under a management agreement for the
4purpose of purchasing, making loans against, or in pools of,
5receivables, general intangibles, and other financial assets
6including retail installment contracts, retail charge
7agreements, or the outstanding balances or any portion of the
8outstanding 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
13place of business and $100 for each additional place of
14business for which a license is sought must be submitted with
15an application for license made before July 1 of any year. If
16application for a license is made on July 1 or thereafter, a
17license fee of $150 for the principal place of business and of
18$50 for each additional place of business must accompany the
19application. Each license remains in force until surrendered,
20suspended, or revoked. If the application for license is
21denied, the original license fee shall be retained by the State
22in reimbursement of its costs of investigating that
23application.
24    Before the license is granted, the applicant shall prove in
25form satisfactory to the Director, that the applicant has a

 

 

SB3060- 41 -LRB100 18641 XWW 33868 b

1positive net worth of a minimum of $30,000. At the time of
2application, an applicant shall provide the Department with an
3accurate and up-to-date email address.
4    A licensee must pay to the Department, and the Department
5must receive, by December 1 of each year, the renewal license
6application on forms prescribed by the Director and $300 for
7the license for his principal place of business and $100 for
8each additional license held as a renewal license fee for the
9succeeding 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
13license.
14    (a) The Director may revoke or suspend a license or fine a
15licensee if the licensee violates any provisions of this Act.
16    (b) In every case in which a license is revoked or
17suspended, a licensee is fined, or an application for a license
18or renewal of a license is denied, the Director shall serve
19notice of his or her action, including a statement of the
20reasons for the action either personally, by mail, or to the
21licensee's email address of record or by certified mail, return
22receipt requested. Service by certified mail is shall be deemed
23completed when the notice is deposited in the U.S. mail.
24Service to the email address of record is completed when sent.
25    (c) An order revoking or suspending a license or an order

 

 

SB3060- 42 -LRB100 18641 XWW 33868 b

1denying renewal of a license shall take effect upon service of
2the order, unless the licensee requests, in writing, within 10
3days after the date of service, a hearing. In the event a
4hearing is requested, the order shall be stayed until a final
5administrative order is entered.
6    (d) If the licensee requests a hearing, the Director shall
7schedule a hearing within 30 days after the request for a
8hearing unless otherwise agreed to by the parties.
9    (e) The hearing shall be held at the time and place
10designated by the Director. The Director and any administrative
11law judge designated by him or her shall have the power to
12administer oaths and affirmations, subpoena witnesses and
13compel their attendance, take evidence, and require the
14production of books, papers, correspondence, and other records
15or information that he or she considers relevant or material to
16the inquiry.
17    (f) The costs for the administrative hearing shall be set
18by rule.
19    (g) The Director shall have the authority to prescribe
20rules 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
25sales finance agency or other person doing business without the

 

 

SB3060- 43 -LRB100 18641 XWW 33868 b

1required license when, in the opinion of the director, the
2licensee or other person is violating or is about to violate
3any provision of this Act or any law, rule, or requirement
4imposed in writing by the Department.
5    (b) The Director may issue a cease and desist order prior
6to a hearing.
7    (c) The Director shall serve notice of his or her action,
8designated as a cease and desist order made pursuant to this
9Section, including a statement of the reasons for the action,
10either personally, by mail, or to the licensee's email address
11of record or by certified mail, return receipt requested.
12Service by certified mail is shall be deemed completed when the
13notice is deposited in the U.S. mail. Service by email is
14completed when sent.
15    (d) Within 15 days of service of the cease and desist
16order, the sales finance agency or other person may request, in
17writing, a hearing.
18    (e) The Director shall schedule a hearing within 30 days
19after the request for a hearing unless otherwise agreed to by
20the parties.
21    (f) The Director shall have the authority to prescribe
22rules for the administration of this Section.
23    (g) If it is determined that the Director had the authority
24to issue the cease and desist order, he or she may issue such
25orders as may be reasonably necessary to correct, eliminate, or
26remedy such conduct.

 

 

SB3060- 44 -LRB100 18641 XWW 33868 b

1    (h) The powers vested in the Director by this Section are
2additional to any and all other powers and remedies vested in
3the Director by law, and nothing in this Section shall be
4construed as requiring that the Director shall employ the
5powers conferred in this Section instead of or as a condition
6precedent to the exercise of any other power or remedy vested
7in the Director.
8    (i) The cost for the administrative hearing shall be set by
9rule.
10(Source: P.A. 90-437, eff. 1-1-98.)
 
11    Section 25. The Debt Management Service Act is amended by
12changing 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
16other entity that is not a debt management service that
17provides (1) guidance, educational programs, or advice for the
18purpose of addressing budgeting, personal finance, financial
19literacy, saving and spending practices, or the sound use of
20consumer credit; or (2) assistance or offers to assist
21individuals and families with financial problems by providing
22counseling; or (3) a combination of the activities described in
23items (1) and (2) of this definition.
24    "Debt management service" means the planning and

 

 

SB3060- 45 -LRB100 18641 XWW 33868 b

1management of the financial affairs of a debtor for a fee and
2the receiving of money from the debtor for the purpose of
3distributing it to the debtor's creditors in payment or partial
4payment of the debtor's obligations or soliciting financial
5contributions from creditors. The business of debt management
6is conducted in this State if the debt management business, its
7employees, or its agents are located in this State or if the
8debt management business solicits or contracts with debtors
9located in this State. "Debt management service" does not
10include "debt settlement service" as defined in the Debt
11Settlement Consumer Protection Act.
12    This term shall not include the following when engaged in
13the regular course of their respective businesses and
14professions:
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.

 

 

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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
13management service is performed.
14    "Email address of record" means the designated email
15address recorded by the Division in the applicant's applicant
16file or the licensee's license file maintained by the
17Division's licensure unit.
18    "Person" means an individual, firm, partnership,
19association, limited liability company, corporation, or
20not-for-profit corporation.
21    "Licensee" means a person licensed under this Act.
22    "Secretary" means the Secretary of Financial and
23Professional Regulation.
24(Source: P.A. 100-201, eff. 8-18-17.)
 
25    (205 ILCS 665/4)  (from Ch. 17, par. 5304)

 

 

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1    Sec. 4. Application for license. Application for a license
2to engage in the debt management service business in this State
3shall be made to the Secretary and shall be in writing, under
4oath, and in the form prescribed by the Secretary. At the time
5of application, an applicant shall provide the Department with
6an accurate and up-to-date email address.
7    Each applicant, at the time of making such application,
8shall pay to the Secretary the sum of $30.00 as a fee for
9investigation 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
12of the application for a license, a bond to be approved by the
13Secretary in which the applicant shall be the obligor, in the
14sum of $25,000 or such additional amount as required by the
15Secretary based on the amount of disbursements made by the
16licensee in the previous year, and in which an insurance
17company, which is duly authorized by the State of Illinois, to
18transact the business of fidelity and surety insurance shall be
19a surety.
20    The bond shall run to the Secretary for the use of the
21Department or of any person or persons who may have a cause of
22action against the obligor in said bond arising out of any
23violation of this Act or rules by a license. Such bond shall be
24conditioned that the obligor will faithfully conform to and
25abide by the provisions of this Act and of all rules,
26regulations and directions lawfully made by the Secretary and

 

 

SB3060- 48 -LRB100 18641 XWW 33868 b

1will pay to the Secretary or to any person or persons any and
2all money that may become due or owing to the State or to such
3person or persons, from said obligor under and by virtue of the
4provisions 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
8provider under the provisions of this Act may make application
9to the Secretary for renewal of its license, which application
10for renewal shall be on the form prescribed by the Secretary
11and shall be accompanied by a fee of $100.00 together with a
12bond or other surety as required, in a minimum amount of
13$25,000 or such an amount as required by the Secretary based on
14the amount of disbursements made by the licensee in the
15previous year. The application must be received by the
16Department no later than December 1 of the year preceding the
17year for which the application applies. At the time of renewal,
18a licensee shall provide the Department with an accurate and
19up-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
23license.
24    (a) The Secretary may revoke or suspend or refuse to renew

 

 

SB3060- 49 -LRB100 18641 XWW 33868 b

1any 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
16revoked or an application for a license or renewal of a license
17is denied, the Secretary shall serve notice of his action,
18including a statement of the reasons for his actions, either
19personally, by mail, or to the licensee's email address of
20record or by certified mail, return receipt requested. Service
21by mail is shall be deemed completed if the notice is deposited
22in the U.S. Mail. Service to the email address of record is
23completed when sent.
24    (c) In the case of a denial of an application or renewal of
25a license, the applicant or licensee may request in writing,
26within 30 days after the date of service, a hearing. In the

 

 

SB3060- 50 -LRB100 18641 XWW 33868 b

1case of a denial of a renewal of a license, the license shall
2be deemed to continue in force until 30 days after the service
3of the notice of denial, or if a hearing is requested during
4that period, until a final administrative order is entered.
5    (d) An order of revocation or suspension of a license shall
6take effect upon service of the order unless the licensee
7requests, in writing, within 10 days after the date of service,
8a hearing. In the event a hearing is requested, the order shall
9be stayed until a final administrative order is entered.
10    (e) If the licensee requests a hearing, the Secretary shall
11schedule either a status date or a hearing within 30 days after
12the request for a hearing unless otherwise agreed to by the
13parties.
14    (f) The hearing shall be held at the time and place
15designated by the Secretary. The Secretary and any
16administrative law judge designated by him have the power to
17administer oaths and affirmations, subpoena witnesses and
18compel their attendance, take evidence, and require the
19production of books, papers, correspondence, and other records
20or information that he considers relevant or material to the
21injury.
22    (g) The costs for the administrative hearing shall be set
23by 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)

 

 

SB3060- 51 -LRB100 18641 XWW 33868 b

1    Sec. 20. Cease and desist orders.
2    (a) The Secretary may issue a cease and desist order to any
3licensee, or other person doing business without the required
4license, when in the opinion of the Secretary, the licensee, or
5other person, is violating or is about to violate any provision
6of the Act or any rule or condition imposed in writing by the
7Department.
8    (b) The Secretary may issue a cease and desist order prior
9to a hearing.
10    (c) The Secretary shall serve notice of his action,
11including a statement of the reasons for his action either
12personally, by mail, or to the licensee's email address of
13record or by certified mail, return receipt requested. Service
14by mail is shall be deemed completed if the notice is deposited
15in the U.S. Mail. Service to the email address of record is
16completed when sent.
17    (d) Within 10 days after service of the cease and desist
18order, the licensee or other person may request, in writing, a
19hearing.
20    (e) The Secretary shall schedule either a status date or a
21hearing within 30 days after the request for a hearing unless
22otherwise agreed to by the parties.
23    (g) If it is determined that the Secretary had the
24authority to issue the cease and desist order, he may issue
25such orders as may be reasonably necessary to correct,
26eliminate, or remedy such conduct.

 

 

SB3060- 52 -LRB100 18641 XWW 33868 b

1    (h) The powers vested in the Secretary by this Section are
2additional to any and all other powers and remedies vested in
3the Secretary by law, and nothing in this Section shall be
4construed as requiring that the Secretary shall employ the
5power conferred in this Section instead of or as a condition
6precedent to the exercise of any other power or remedy vested
7in the Secretary.
8    (i) The cost for the administrative hearing shall be set by
9rule 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
12adding Section 0.5 and by changing Sections 2, 8, 9, and 20.5
13as follows:
 
14    (205 ILCS 670/0.5 new)
15    Sec. 0.5. Email address of record. In this Act, "email
16address of record" means the designated email address recorded
17by the Division in the applicant's applicant file or the
18licensee's license file maintained by the Division's licensure
19unit.
 
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
23the form prescribed by the Director. Such applicant at the time

 

 

SB3060- 53 -LRB100 18641 XWW 33868 b

1of 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
3annual license fee, for a period terminating on the last day of
4the current calendar year; provided that if the application is
5filed after June 30th in any year, such license fee shall be
61/2 of the annual license fee for such year. At the time of
7application, an applicant shall provide the Department with an
8accurate and up-to-date email address.
9    Before the license is granted, every applicant shall prove
10in form satisfactory to the Director that the applicant has and
11will maintain a positive net worth of a minimum of $30,000.
12Every applicant and licensee shall maintain a surety bond in
13the principal sum of $25,000 issued by a bonding company
14authorized to do business in this State and which shall be
15approved by the Director. Such bond shall run to the Director
16and shall be for the benefit of any consumer who incurs damages
17as a result of any violation of the Act or rules by a licensee.
18If the Director finds at any time that a bond is of
19insufficient size, is insecure, exhausted, or otherwise
20doubtful, an additional bond in such amount as determined by
21the Director shall be filed by the licensee within 30 days
22after written demand therefor by the Director. "Net worth"
23means 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)

 

 

SB3060- 54 -LRB100 18641 XWW 33868 b

1    Sec. 8. Annual license fee - Expenses. Before the 15th day
2of each December, a licensee must pay to the Director, and the
3Department must receive, the annual license fee required by
4Section 2 for the next succeeding calendar year. The license
5shall expire on the first of January unless the license fee has
6been paid prior thereto. At the time of renewal, a licensee
7shall provide the Department with an accurate and up-to-date
8email address.
9    In addition to such license fee, the reasonable expense of
10any examination, investigation or custody by the Director under
11any provisions of this Act shall be borne by the licensee.
12    If a licensee fails to renew his or her license by the 31st
13day of December, it shall automatically expire and the licensee
14is not entitled to a hearing; however, the Director, in his or
15her discretion, may reinstate an expired license upon payment
16of the annual renewal fee and proof of good cause for failure
17to 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
22mail to the licensee at the address set forth in the license,
23stating the contemplated action and in general the grounds
24therefor, fine such licensee an amount not exceeding $10,000
25per violation, or revoke or suspend any license issued

 

 

SB3060- 55 -LRB100 18641 XWW 33868 b

1hereunder 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
11particular license with respect to which grounds for the fine,
12revocation or suspension occur or exist, but if the Director
13shall find that grounds for revocation are of general
14application to all offices or to more than one office of the
15licensee, the Director shall fine, suspend, or revoke every
16license to which such grounds apply.
17    (c) (Blank).
18    (d) No revocation, suspension, or surrender of any license
19shall impair or affect the obligation of any pre-existing
20lawful contract between the licensee and any obligor.
21    (e) The Director may issue a new license to a licensee
22whose license has been revoked when facts or conditions which
23clearly would have warranted the Director in refusing
24originally to issue the license no longer exist.
25    (f) (Blank).
26    (g) In every case in which a license is suspended or

 

 

SB3060- 56 -LRB100 18641 XWW 33868 b

1revoked or an application for a license or renewal of a license
2is denied, the Director shall serve the licensee with notice of
3his or her action, including a statement of the reasons for his
4or her actions, either personally, or by certified mail, or to
5the licensee's email address of record return receipt
6requested. Service by certified mail is shall be deemed
7completed when the notice is deposited in the U.S. Mail.
8Service to the email address of record is completed when sent.
9    (h) An order assessing a fine, an order revoking or
10suspending a license or, an order denying renewal of a license
11shall take effect upon service of the order unless the licensee
12requests, in writing, within 10 days after the date of service,
13a hearing. In the event a hearing is requested, the order shall
14be stayed until a final administrative order is entered.
15    (i) If the licensee requests a hearing, the Director shall
16schedule a hearing within 30 days after the request for a
17hearing unless otherwise agreed to by the parties.
18    (j) The hearing shall be held at the time and place
19designated by the Director. The Director and any administrative
20law judge designated by him or her shall have the power to
21administer oaths and affirmations, subpoena witnesses and
22compel their attendance, take evidence, and require the
23production of books, papers, correspondence, and other records
24or information that he or she considers relevant or material to
25the inquiry.
26    (k) The costs for the administrative hearing shall be set

 

 

SB3060- 57 -LRB100 18641 XWW 33868 b

1by rule.
2    (l) The Director shall have the authority to prescribe
3rules for the administration of this Section.
4    (m) The Department shall establish by rule and publish a
5schedule of fines that are reasonably tailored to ensure
6compliance with the provisions of this Act and which include
7remedial measures intended to improve licensee compliance.
8Such rules shall set forth the standards and procedures to be
9used 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
14licensee, or other person doing business without the required
15license, when in the opinion of the Director, the licensee, or
16other person, is violating or is about to violate any provision
17of this Act or any rule or requirement imposed in writing by
18the Department as a condition of granting any authorization
19permitted by this Act.
20    (b) The Director may issue a cease and desist order prior
21to a hearing.
22    (c) The Director shall serve notice of his or her action,
23designated as a cease and desist order made pursuant to this
24Section, including a statement of the reasons for the action,
25either personally, or by certified mail, or to the licensee's

 

 

SB3060- 58 -LRB100 18641 XWW 33868 b

1email address of record , return receipt requested. Service by
2certified mail is shall be deemed completed when the notice is
3deposited in the U.S. mail. Service to the email address of
4record is completed when sent.
5    (d) Within 15 days of service of the cease and desist
6order, the licensee or other person may request, in writing, a
7hearing.
8    (e) The Director shall schedule a hearing within 30 days
9after the request for a hearing unless otherwise agreed to by
10the parties.
11    (f) The Director shall have the authority to prescribe
12rules for the administration of this Section.
13    (g) If it is determined that the Director had the authority
14to issue the cease and desist order, he or she may issue such
15orders as may be reasonably necessary to correct, eliminate, or
16remedy such conduct.
17    (h) The powers vested in the Director by this Section are
18additional to any and all other powers and remedies vested in
19the Director by law, and nothing in this Section shall be
20construed as requiring that the Director shall employ the power
21conferred in this Section instead of or as a condition
22precedent to the exercise of any other power or remedy vested
23in the Director.
24    (i) The cost for the administrative hearing shall be set by
25rule.
26(Source: P.A. 90-437, eff. 1-1-98.)
 

 

 

SB3060- 59 -LRB100 18641 XWW 33868 b

1    Section 35. The Title Insurance Act is amended by changing
2Sections 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
5following shall have the following meanings unless the context
6requires otherwise:
7    (1) "Title insurance business" or "business of title
8insurance" 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;

 

 

SB3060- 60 -LRB100 18641 XWW 33868 b

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,
22warranting, or indemnifying owners of real or personal property
23or the holders of liens or encumbrances thereon or others
24interested therein against loss or damage suffered by reason of
25liens, encumbrances upon, defects in, or the unmarketability of
26the title to the property; the invalidity or unenforceability

 

 

SB3060- 61 -LRB100 18641 XWW 33868 b

1of any liens or encumbrances thereon; or doing any business in
2substance equivalent to any of the foregoing. "Warranting" for
3purpose of this provision shall not include any warranty
4contained in instruments of encumbrance or conveyance. Title
5insurance is a single line form of insurance, also known as
6monoline. An attorney's opinion of title pursuant to paragraph
7(1)(C) is not intended to be within the definition of "title
8insurance".
9    (2) "Title insurance company" means any domestic company
10organized under the laws of this State for the purpose of
11conducting the business of title insurance and any title
12insurance company organized under the laws of another State,
13the District of Columbia or foreign government and authorized
14to transact the business of title insurance in this State.
15    (3) "Title insurance agent" means a person, firm,
16partnership, association, corporation or other legal entity
17registered by a title insurance company and authorized by such
18company to determine insurability of title in accordance with
19generally acceptable underwriting rules and standards in
20reliance on either the public records or a search package
21prepared from a title plant, or both, and authorized by such
22title insurance company in addition to do any of the following:
23act as an escrow agent pursuant to subsections (f), (g), and
24(h) of Section 16 of this Act, solicit title insurance, collect
25premiums, or issue title insurance commitments, policies, and
26endorsements of the title insurance company; provided,

 

 

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1however, the term "title insurance agent" shall not include
2officers and salaried employees of any title insurance company.
3    (4) "Producer of title business" is any person, firm,
4partnership, association, corporation or other legal entity
5engaged in this State in the trade, business, occupation or
6profession 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
9natural persons or other legal entities that buy or sell
10interests in real property or that lend money with such
11interests as security.
12    (5) "Associate" is any firm, association, partnership,
13corporation or other legal entity organized for profit in which
14a producer of title business is a director, officer, or partner
15thereof, or owner of a financial interest, as defined herein,
16in such entity; any legal entity that controls, is controlled
17by, or is under common control with a producer of title
18business; and any natural person or legal entity with whom a
19producer of title business has any agreement, arrangement, or
20understanding or pursues any course of conduct the purpose of
21which is to evade the provisions of this Act.
22    (6) "Financial interest" is any ownership interest, legal
23or beneficial, except ownership of publicly traded stock.
24    (7) "Refer" means to place or cause to be placed, or to
25exercise any power or influence over the placing of title
26business, whether or not the consent or approval of any other

 

 

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1person is sought or obtained with respect to the referral.
2    (8) "Escrow Agent" means any title insurance company or any
3title insurance agent, including independent contractors of
4either, acting on behalf of a title insurance company, which
5receives deposits, in trust, of funds or documents, or both,
6for the purpose of effecting the sale, transfer, encumbrance or
7lease of real property to be held by such escrow agent until
8title to the real property that is the subject of the escrow is
9in a prescribed condition. An escrow agent conducting closings
10shall 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,
13partnership, association, corporation or other legal entity,
14other than a title insurance company or a title insurance
15agent, which receives deposits, in trust, of funds or
16documents, or both, for the purpose of effecting the sale,
17transfer, encumbrance or lease of real property to be held by
18such escrowee until title to the real property that is the
19subject of the escrow is in a prescribed condition. Federal and
20State chartered banks, savings and loan associations, credit
21unions, mortgage bankers, banks or trust companies authorized
22to do business under the Illinois Corporate Fiduciary Act,
23licensees under the Consumer Installment Loan Act, real estate
24brokers licensed pursuant to the Real Estate License Act of
252000, as such Acts are now or hereafter amended, and licensed
26attorneys when engaged in the attorney-client relationship are

 

 

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1exempt from the escrow provisions of this Act. "Independent
2Escrowee" does not include employees or independent
3contractors of a title insurance company or title insurance
4agent authorized by a title insurance company to perform
5closing, escrow, or settlement services.
6    (10) "Single risk" means the insured amount of any title
7insurance policy, except that where 2 or more title insurance
8policies are issued simultaneously covering different estates
9in the same real property, "single risk" means the sum of the
10insured amounts of all such title insurance policies. Any title
11insurance policy insuring a mortgage interest, a claim payment
12under which reduces the insured amount of a fee or leasehold
13title insurance policy, shall be excluded in computing the
14amount of a single risk to the extent that the insured amount
15of the mortgage title insurance policy does not exceed the
16insured amount of the fee or leasehold title insurance policy.
17    (11) "Department" means the Department of Financial and
18Professional Regulation.
19    (12) "Secretary" means the Secretary of Financial and
20Professional Regulation.
21    (13) "Insured closing letter" or "closing protection
22letter" means an indemnification or undertaking to a party to a
23real property transaction, from a principal such as a title
24insurance company, setting forth in writing the extent of the
25principal's responsibility for intentional misconduct or
26errors in closing the real property transaction on the part of

 

 

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1a settlement agent, such as a title insurance agent or other
2settlement service provider, or an indemnification or
3undertaking given by a title insurance company or an
4independent escrowee setting forth in writing the extent of the
5title insurance company's or independent escrowee's
6responsibility to a party to a real property transaction which
7indemnifies the party against the intentional misconduct or
8errors in closing the real property transaction on the part of
9the title insurance company or independent escrowee and
10includes protection afforded pursuant to subsections (f), (g),
11and (h) of Section 16, Section 16.1, subsection (h) of Section
1217, and Section 17.1 of this Act even if such protection is
13afforded by contract.
14    (14) "Residential real property" means a building or
15buildings consisting of one to 4 residential units or a
16residential condominium unit where at least one of the
17residential units or condominium units is occupied or intended
18to be occupied as a residence by the purchaser or borrower, or
19in the event that the purchaser or borrower is the trustee of a
20trust, by a beneficiary of that trust.
21    (15) "Financial institution" means any bank subject to the
22Illinois Banking Act, any savings and loan association subject
23to the Illinois Savings and Loan Act of 1985, any savings bank
24subject to the Savings Bank Act, any credit union subject to
25the Illinois Credit Union Act, and any federally chartered
26commercial bank, savings and loan association, savings bank, or

 

 

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1credit union organized and operated in this State pursuant to
2the laws of the United States.
3    (16) "Email address of record" means the designated email
4address recorded by the Division in the applicant's applicant
5file or the licensee's license file maintained by the
6Division'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
11revoke, any certificate of authority, registration, or license
12issued pursuant to this Act or may impose a fine for a
13violation of this Act if he determines that the holder of or
14applicant 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

 

 

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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;

 

 

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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

 

 

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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
6suspended or revoked, or an application for a registration or
7certificate or renewal thereof is refused, the Secretary shall
8serve notice of his action, by mail or to the title insurance
9company's email address of record, including a statement of the
10reasons for his action, as provided by this Act. When a notice
11of suspension or revocation of a certificate of authority is
12given to a title insurance company, the Secretary shall also
13notify all the registered agents of that title insurance
14company of the Secretary's action. Service by mail is completed
15if the notice is deposited in the U.S. Mail. Service by email
16is completed when sent.
17    (c) In the case of a refusal to issue or renew a
18certificate or accept a registration, the applicant or
19registrant may request in writing, within 30 days after the
20date of service, a hearing. In the case of a refusal to renew,
21the expiring registration or certificate shall be deemed to
22continue in force until 30 days after the service of the notice
23of refusal to renew, or if a hearing is requested during that
24period, until a final order is entered pursuant to such
25hearing.
26    (d) The suspension or revocation of a registration or

 

 

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1certificate shall take effect upon service of notice thereof.
2The holder of any such suspended registration or certificate
3may request in writing, within 30 days of such service, a
4hearing.
5    (e) In cases of suspension or revocation of registration
6pursuant to subsection (a), the Secretary may, in the public
7interest, issue an order of suspension or revocation which
8shall take effect upon service of notification thereof. Such
9order shall become final 60 days from the date of service
10unless the registrant requests in writing, within such 60 days,
11a formal hearing thereon. In the event a hearing is requested,
12the order shall remain temporary until a final order is entered
13pursuant to such hearing.
14    (f) Hearing shall be held at such time and place as may be
15designated by the Secretary either in the City of Springfield,
16the City of Chicago, or in the county in which the principal
17business office of the affected registrant or certificate
18holder is located.
19    (g) The suspension or revocation of a registration or
20certificate or the refusal to issue or renew a registration or
21certificate shall not in any way limit or terminate the
22responsibilities of any registrant or certificate holder
23arising under any policy or contract of title insurance to
24which it is a party. No new contract or policy of title
25insurance may be issued, nor may any existing policy or
26contract to title insurance be renewed by any registrant or

 

 

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1certificate holder during any period of suspension or
2revocation of a registration or certificate.
3    (h) The Secretary may issue a cease and desist order to a
4title insurance company, agent, or other entity doing business
5without the required license or registration, when in the
6opinion of the Secretary, the company, agent, or other entity
7is violating or is about to violate any provision of this Act
8or any law or of any rule or condition imposed in writing by
9the Department.
10    The Secretary may issue the cease and desist order without
11notice and before a hearing.
12    The Secretary shall have the authority to prescribe rules
13for the administration of this Section.
14    If it is determined that the Secretary had the authority to
15issue the cease and desist order, he may issue such orders as
16may be reasonably necessary to correct, eliminate or remedy
17such conduct.
18    Any person or company subject to an order pursuant to this
19Section is entitled to judicial review of the order in
20accordance with the provisions of the Administrative Review
21Law.
22    The powers vested in the Secretary by this Section are
23additional to any and all other powers and remedies vested in
24the Secretary by law, and nothing in this Section shall be
25construed as requiring that the Secretary shall employ the
26powers conferred in this Section instead of or as a condition

 

 

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1precedent to the exercise of any other power or remedy vested
2in 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
7the exclusive remedy and the only proceedings commenced in any
8court for the dissolution of, the winding up of the affairs of,
9or the appointment of a receiver for a title insurance company.
10    (b) If the Secretary, with respect to a title insurance
11company, finds that (i) its capital is impaired or it is
12otherwise in an unsound condition, (ii) its business is being
13conducted in an unlawful, fraudulent, or unsafe manner, (iii)
14it is unable to continue operations, or (iv) its examination
15has been obstructed or impeded, the Secretary may give notice
16to the board of directors of the title insurance company of his
17or her finding by mail or to the title insurance company's
18email address of record or findings. If the Secretary's
19findings are not corrected to his or her satisfaction within 60
20days after the company receives the notice, the Secretary shall
21take possession and control of the title insurance company, its
22assets, and assets held by it for any person for the purpose of
23examination, reorganization, or liquidation through
24receivership.
25    If, in addition to making a finding as provided in this

 

 

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1subsection (b), the Secretary is of the opinion and finds that
2an emergency that may result in serious losses to any person
3exists, the Secretary may, in his or her discretion, without
4having given the notice provided for in this subsection, and
5whether or not proceedings under subsection (a) of this Section
6have been instituted or are then pending, take possession and
7control of the title insurance company and its assets for the
8purpose of examination, reorganization, or liquidation through
9receivership.
10    (c) The Secretary may take possession and control of a
11title insurance company, its assets, and assets held by it for
12any person by posting upon the premises of each office located
13in the State of Illinois at which it transacts its business as
14a title insurance company a notice reciting that the Secretary
15is assuming possession pursuant to this Act and the time when
16the possession shall be deemed to commence.
17    (d) Promptly after taking possession and control of a title
18insurance company the Secretary, represented by the Attorney
19General, shall file a copy of the notice posted upon the
20premises in the Circuit Court of either Cook County or Sangamon
21County, which cause shall be entered as a court action upon the
22dockets of the court under the name and style of "In the matter
23of the possession and control by the Secretary of the
24Department of Financial and Professional Regulation of (insert
25the name of the title insurance company)". If the Secretary
26determines (which determination may be made at the time of, or

 

 

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1at any time subsequent to, taking possession and control of a
2title insurance company) that no practical possibility exists
3to reorganize the title insurance company after reasonable
4efforts have been made, the Secretary, represented by the
5Attorney General, shall also file a complaint, if it has not
6already been done, for the appointment of a receiver or other
7proceeding as is appropriate under the circumstances. The court
8where the cause is docketed shall be vested with the exclusive
9jurisdiction to hear and determine all issues and matters
10pertaining to or connected with the Secretary's possession and
11control of the title insurance company as provided in this Act,
12and any further issues and matters pertaining to or connected
13with the Secretary's possession and control as may be submitted
14to the court for its adjudication.
15    The Secretary, upon taking possession and control of a
16title insurance company, may, and if not previously done shall,
17immediately upon filing a complaint for dissolution make an
18examination of the affairs of the title insurance company or
19appoint a suitable person to make the examination as the
20Secretary's agent. The examination shall be conducted in
21accordance with and pursuant to the authority granted under
22Section 12 of this Act. The person conducting the examination
23shall have and may exercise on behalf of the Secretary all of
24the powers and authority granted to the Secretary under Section
2512. A copy of the report shall be filed in any dissolution
26proceeding filed by the Secretary. The reasonable fees and

 

 

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1necessary expenses of the examining person, as approved by the
2Secretary or as recommended by the Secretary and approved by
3the court if a dissolution proceeding has been filed, shall be
4borne by the subject title insurance company and shall have the
5same priority for payment as the reasonable and necessary
6expenses of the Secretary in conducting an examination. The
7person appointed to make the examination shall make a proper
8accounting, in the manner and scope as determined by the
9Secretary to be practical and advisable under the
10circumstances, on behalf of the title insurance company and no
11guardian ad litem need be appointed to review the accounting.
12    (e) The Secretary, upon taking possession and control of a
13title insurance company and its assets, shall be vested with
14the full powers of management and control including, but not
15limited 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

 

 

SB3060- 76 -LRB100 18641 XWW 33868 b

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

 

 

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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
11examination of the condition of the title insurance company, an
12inventory of the assets and, unless the time shall be extended
13by order of the court or unless the Secretary shall have
14otherwise settled the affairs of the title insurance company
15pursuant to the provisions of this Act, within 90 days after
16the time of taking possession and control of the title
17insurance company, the Secretary shall either terminate his or
18her possession and control by restoring the title insurance
19company to its board of directors or appoint a receiver, which
20may be the Secretary of the Department of Financial and
21Professional Regulation, another title insurance company, or
22another suitable person and order the liquidation of the title
23insurance company as provided in this Act. All necessary and
24reasonable expenses of the Secretary's possession and control
25shall be a priority claim and shall be borne by the title
26insurance company and may be paid by the Secretary from the

 

 

SB3060- 78 -LRB100 18641 XWW 33868 b

1title insurance company's own assets as distinguished from
2assets held for any other person.
3    (g) If the Secretary takes possession and control of a
4title insurance company and its assets, any period of
5limitation fixed by a statute or agreement that would otherwise
6expire on a claim or right of action of the title insurance
7company, on its own behalf or on behalf of its insureds or
8escrow depositors, or upon which an appeal must be taken or a
9pleading or other document filed by the title insurance company
10in any pending action or proceeding, shall be tolled until 6
11months after the commencement of the possession, and no
12judgment, lien, levy, attachment, or other similar legal
13process may be enforced upon or satisfied, in whole or in part,
14from any asset of the title insurance company or from any asset
15of an insured or escrow depositor while it is in the possession
16of the Secretary.
17    (h) If the Secretary appoints a receiver to take possession
18and control of the assets of insureds or escrow depositors for
19the purpose of holding those assets as fiduciary for the
20benefit of the insureds or escrow depositors pending the
21winding up of the affairs of the title insurance company being
22liquidated and the appointment of a successor escrowee for
23those assets, any period of limitation fixed by statute, rule
24of court, or agreement that would otherwise expire on a claim
25or right of action in favor of or against the insureds or
26escrow depositors of those assets or upon which an appeal must

 

 

SB3060- 79 -LRB100 18641 XWW 33868 b

1be taken or a pleading or other document filed by a title
2insurance company on behalf of an insured or escrow depositor
3in any pending action or proceeding shall be tolled for a
4period of 6 months after the appointment of a receiver, and no
5judgment, lien, levy, attachment, or other similar legal
6process shall be enforced upon or satisfied, in whole or in
7part, from any asset of the insured or escrow depositor while
8it is in the possession of the receiver.
9    (i) If the Secretary determines at any time that no
10reasonable possibility exists for the title insurance company
11to be operated by its board of directors in accordance with the
12provisions of this Act after reasonable efforts have been made
13and that it should be liquidated through receivership, he or
14she shall appoint a receiver. The Secretary may require of the
15receiver such bond and security as the Secretary deems proper.
16The Secretary, represented by the Attorney General, shall file
17a complaint for the dissolution or winding up of the affairs of
18the title insurance company in a court of the county in which
19the principal office of the title insurance company is located
20and shall cause notice to be given in a newspaper of general
21circulation once each week for 4 consecutive weeks so that
22persons who may have claims against the title insurance company
23may present them to the receiver and make legal proof thereof
24and notifying those persons and all to whom it may concern of
25the filing of a complaint for the dissolution or winding up of
26the affairs of the title insurance company and stating the name

 

 

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1and location of the court. All persons who may have claims
2against the assets of the title insurance company, as
3distinguished from the assets of insureds and escrow depositors
4held by the title insurance company, and the receiver to whom
5those persons have presented their claims may present the
6claims to the clerk of the court, and the allowance or
7disallowance of the claims by the court in connection with the
8proceedings shall be deemed an adjudication in a court of
9competent jurisdiction. Within a reasonable time after
10completion of publication, the receiver shall file with the
11court a correct list of all creditors of the title insurance
12company as shown by its books, who have not presented their
13claims and the amount of their respective claims after allowing
14adjusted credit, deductions, and set-offs as shown by the books
15of the title insurance company. The claims so filed shall be
16deemed proven unless objections are filed thereto by a party or
17parties interested therein within the time fixed by the court.
18    (j) The receiver for a title insurance company has the
19power and authority and is charged with the duties and
20responsibilities 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

 

 

SB3060- 81 -LRB100 18641 XWW 33868 b

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
24opinion to use and employ money of the title insurance company
25in order to protect fully and benefit the title insurance
26company by the purchase or redemption of property, real or

 

 

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1personal, in which the title insurance company may have any
2rights by reason of any bond, mortgage, assignment, or other
3claim thereto, the receiver may certify the facts together with
4the receiver's opinions as to the value of the property
5involved and the value of the equity the title insurance
6company may have in the property to the court, together with a
7request for the right and authority to use and employ so much
8of the money of the title insurance company as may be necessary
9to purchase the property, or to redeem the property from a sale
10if there was a sale, and if the request is granted, the
11receiver may use so much of the money of the title insurance
12company as the court may have authorized to purchase the
13property at the sale.
14    The receiver shall deposit daily all moneys collected by
15him or her in any State or national bank approved by the court.
16The deposits shall be made in the name of the Secretary, in
17trust for the receiver, and be subject to withdrawal upon the
18receiver's order or upon the order of those persons the
19Secretary may designate. The moneys may be deposited without
20interest, unless otherwise agreed. The receiver shall do the
21things and take the steps from time to time under the direction
22and approval of the court that may reasonably appear to be
23necessary to conserve the title insurance company's assets and
24secure the best interests of the creditors, insureds, and
25escrow depositors of the title insurance company. The receiver
26shall record any judgment of dissolution entered in a

 

 

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1dissolution proceeding and thereupon turn over to the Secretary
2a certified copy of the judgment.
3    The receiver may cause all assets of the insureds and
4escrow depositors of the title insurance company to be
5registered in the name of the receiver or in the name of the
6receiver's nominee.
7    For its services in administering the escrows held by the
8title insurance company during the period of winding up the
9affairs of the title insurance company, the receiver is
10entitled to be reimbursed for all costs and expenses incurred
11by the receiver and shall also be entitled to receive out of
12the assets of the individual escrows being administered by the
13receiver during the period of winding up the affairs of the
14title insurance company and prior to the appointment of a
15successor escrowee the usual and customary fees charged by an
16escrowee for escrows or reasonable fees approved by the court.
17    The receiver, during its administration of the escrows of
18the title insurance company during the winding up of the
19affairs of the title insurance company, shall have all of the
20powers that are vested in trustees under the terms and
21provisions of the Trusts and Trustees Act.
22    Upon the appointment of a successor escrowee, the receiver
23shall deliver to the successor escrowee all of the assets
24belonging to each individual escrow to which the successor
25escrowee succeeds, and the receiver shall thereupon be relieved
26of any further duties or obligations with respect thereto.

 

 

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1    (l) The receiver shall, upon approval by the court, pay all
2claims against the assets of the title insurance company
3allowed by the court pursuant to subsection (i) of this
4Section, as well as claims against the assets of insureds and
5escrow depositors of the title insurance company in accordance
6with 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

 

 

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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
21according to the schedule set out in this subsection, and shall
22not pay claims of lower priority until all higher priority
23claims are satisfied. If insufficient assets are available to
24meet all claims of equal priority, those assets shall be
25distributed pro rata among those claims. All unclaimed assets
26of the title insurance company shall be deposited with the

 

 

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1receiver to be paid out by him or her when such claims are
2submitted and allowed by the court.
3    (m) At the termination of the receiver's administration,
4the receiver shall petition the court for the entry of a
5judgment of dissolution. After a hearing upon the notice as the
6court may prescribe, the court may enter a judgment of
7dissolution whereupon the title insurance company's corporate
8existence shall be terminated and the receivership concluded.
9    (n) The receiver shall serve at the pleasure of the
10Secretary and upon the death, inability to act, resignation, or
11removal by the Secretary of a receiver, the Secretary may
12appoint a successor, and upon the appointment, all rights and
13duties of the predecessor shall at once devolve upon the
14appointee.
15    (o) Whenever the Secretary shall have taken possession and
16control of a title insurance company or a title insurance agent
17and its assets for the purpose of examination, reorganization
18or liquidation through receivership, or whenever the Secretary
19shall have appointed a receiver for a title insurance company
20or title insurance agent and filed a complaint for the
21dissolution or winding up of its affairs, and the title
22insurance company or title insurance agent denies the grounds
23for such actions, it may at any time within 10 days apply to
24the Circuit Court of Cook or Sangamon County to enjoin further
25proceedings in the premises; and the Court shall cite the
26Secretary to show cause why further proceedings should not be

 

 

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1enjoined, and if the Court shall find that grounds do not
2exist, the Court shall make an order enjoining the Secretary or
3any receiver acting under his direction from all further
4proceedings 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
9regulations or orders promulgated under it shall be made either
10personally, or by registered or certified mail, to the
11licensee's email address of record, or return receipt
12requested, and by sending a copy of the notice by telephone
13facsimile or electronic mail, if known and operating, and if
14unknown or not operating, then by regular mail. Service by mail
15shall be deemed completed if the notice is deposited as
16registered or certified mail in the post office, postage paid,
17addressed to the last known address specified in the
18application for the certificate of authority to do business or
19certificate of registration of the holder or registrant.
20Service by mail is completed if the notice is deposited in the
21U.S. Mail. Service by email is completed when sent.
22    (b) The Secretary shall notify all registered agents of a
23title insurance company when that title insurance company's
24certificate of authority is suspended or revoked.
25(Source: P.A. 94-893, eff. 6-20-06.)
 

 

 

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1    Section 40. The Debt Settlement Consumer Protection Act is
2amended 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
6the purchase of debt settlement services.
7    "Consumer settlement account" means any account or other
8means or device in which payments, deposits, or other transfers
9from a consumer are arranged, held, or transferred by or to a
10debt settlement provider for the accumulation of the consumer's
11funds in anticipation of proffering an adjustment or settlement
12of a debt or obligation of the consumer to a creditor on behalf
13of the consumer.
14    "Debt settlement provider" means any person or entity
15engaging in, or holding itself out as engaging in, the business
16of providing debt settlement service in exchange for any fee or
17compensation, or any person who solicits for or acts on behalf
18of any person or entity engaging in, or holding itself out as
19engaging in, the business of providing debt settlement service
20in exchange for any fee or compensation. "Debt settlement
21provider" does not include:
22        (1) attorneys licensed, or otherwise authorized, to
23    practice in Illinois who are engaged in the practice of
24    law;

 

 

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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

 

 

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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

 

 

SB3060- 91 -LRB100 18641 XWW 33868 b

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
5of attorneys licensed, or otherwise authorized, to practice in
6Illinois who are engaged in the practice of law or (B) debt
7management service as defined in the Debt Management Service
8Act.
9    "Email address of record" means the designated email
10address recorded by the Division in the applicant's applicant
11file or the licensee's license file maintained by the
12Division's licensure unit.
13    "Enrollment or set up fee" means any fee, obligation, or
14compensation paid or to be paid by the consumer to a debt
15settlement provider in consideration of or in connection with
16establishing a contract or other agreement with a consumer
17related to the provision of debt settlement service.
18    "Maintenance fee" means any fee, obligation, or
19compensation paid or to be paid by the consumer on a periodic
20basis to a debt settlement provider in consideration of
21maintaining the relationship and services to be provided by a
22debt settlement provider in accordance with a contract with a
23consumer related to the provision of debt settlement service.
24    "Principal amount of the debt" means the total amount or
25outstanding balance owed by a consumer to one or more creditors
26for a debt that is included in a contract for debt settlement

 

 

SB3060- 92 -LRB100 18641 XWW 33868 b

1service at the time when the consumer enters into a contract
2for debt settlement service.
3    "Savings" means the difference between the principal
4amount of the debt and the amount paid by the debt settlement
5provider to the creditor or negotiated by the debt settlement
6provider and paid by the consumer to the creditor pursuant to a
7settlement negotiated by the debt settlement provider on behalf
8of the consumer as full and complete satisfaction of the
9creditor's claim with regard to that debt.
10    "Secretary" means the Secretary of Financial and
11Professional Regulation.
12    "Settlement fee" means any fee, obligation, or
13compensation paid or to be paid by the consumer to a debt
14settlement provider in consideration of or in connection with a
15completed agreement or other arrangement on the part of a
16creditor to accept less than the principal amount of the debt
17as 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
21license to operate as a debt settlement provider in this State
22shall be made to the Secretary and shall be in writing, under
23oath, and in the form prescribed by the Secretary.
24    Each applicant, at the time of making such application,
25shall pay to the Secretary the required fee as set by rule. At

 

 

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1the time of application, an applicant shall provide the
2Department with an accurate and up-to-date email address.
3    Every applicant shall submit to the Secretary, at the time
4of the application for a license, a bond to be approved by the
5Secretary in which the applicant shall be the obligor, in the
6sum of $100,000 or an additional amount as required by the
7Secretary, and in which an insurance company, which is duly
8authorized by the State of Illinois to transact the business of
9fidelity and surety insurance, shall be a surety.
10    The bond shall run to the Secretary for the use of the
11Department or of any person or persons who may have a cause of
12action against the obligor in said bond arising out of any
13violation of this Act or rules by a debt settlement provider.
14Such bond shall be conditioned that the obligor must faithfully
15conform to and abide by the provisions of this Act and of all
16rules, regulations, and directions lawfully made by the
17Secretary and pay to the Secretary or to any person or persons
18any and all money that may become due or owing to the State or
19to such person or persons, from the obligor under and by virtue
20of 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
24under the provisions of this Act may make application to the
25Secretary for renewal of its license, which application for

 

 

SB3060- 94 -LRB100 18641 XWW 33868 b

1renewal shall be on the form prescribed by the Secretary and
2shall be accompanied by a fee of $1,000 together with a bond or
3other surety as required, in a minimum amount of $100,000 or an
4amount as required by the Secretary based on the amount of
5disbursements made by the licensee in the previous year. At the
6time of renewal, a licensee shall provide the Department with
7an accurate and up-to-date email address. The application must
8be received by the Department no later than December 1 of the
9year 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
14or 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

 

 

SB3060- 95 -LRB100 18641 XWW 33868 b

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
4revoked or an application for a license or renewal of a license
5is denied, the Secretary shall serve notice of his or her
6action, including a statement of the reasons for his or her
7actions, either personally, by mail, or to the licensee's email
8address of record or by certified mail, return receipt
9requested. Service by mail is shall be deemed completed if the
10notice is deposited in the U.S. Mail. Service to the email
11address of record is completed when sent.
12    (c) In the case of a denial of an application or renewal of
13a license, the applicant or debt settlement provider may
14request, in writing, a hearing within 30 days after the date of
15service. In the case of a denial of a renewal of a license, the
16license shall be deemed to continue in force until 30 days
17after the service of the notice of denial, or if a hearing is
18requested during that period, until a final administrative
19order is entered.
20    (d) An order of revocation or suspension of a license shall
21take effect upon service of the order unless the debt
22settlement provider requests, in writing, a hearing within 10
23days after the date of service. In the event a hearing is
24requested, the order shall be stayed until a final
25administrative order is entered.
26    (e) If the debt settlement provider requests a hearing,

 

 

SB3060- 96 -LRB100 18641 XWW 33868 b

1then the Secretary shall schedule the hearing within 30 days
2after the request for a hearing unless otherwise agreed to by
3the parties.
4    (f) The hearing shall be held at the time and place
5designated by the Secretary. The Secretary and any
6administrative law judge designated by the Secretary have the
7power to administer oaths and affirmations, subpoena witnesses
8and compel their attendance, take evidence, and require the
9production of books, papers, correspondence, and other records
10or information that the Secretary considers relevant or
11material to the injury.
12    (g) The costs for the administrative hearing shall be set
13by 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
18debt settlement provider or other person doing business without
19the required license when, in the opinion of the Secretary, the
20debt settlement provider or other person is violating or is
21about to violate any provision of the Act or any rule or
22condition imposed in writing by the Department.
23    (b) The Secretary may issue a cease and desist order prior
24to a hearing.
25    (c) The Secretary shall serve notice of his or her action,

 

 

SB3060- 97 -LRB100 18641 XWW 33868 b

1including a statement of the reasons for his or her action
2either personally, by mail, or to the licensee's email address
3of record or by certified mail, return receipt requested.
4Service by mail is shall be deemed completed if the notice is
5deposited in the U.S. Mail. Service to the email address of
6record is completed when sent.
7    (d) Within 10 days after service of the cease and desist
8order, the licensee or other person may request, in writing, a
9hearing.
10    (e) The Secretary shall schedule a hearing within 30 days
11after the request for a hearing unless otherwise agreed to by
12the parties.
13    (f) If it is determined that the Secretary had the
14authority to issue the cease and desist order, then he or she
15may issue such orders as may be reasonably necessary to
16correct, eliminate, or remedy that conduct.
17    (g) The powers vested in the Secretary by this Section are
18additional to any and all other powers and remedies vested in
19the Secretary by law, and nothing in this Section shall be
20construed as requiring that the Secretary shall employ the
21power conferred in this Section instead of or as a condition
22precedent to the exercise of any other power or remedy vested
23in the Secretary.
24    (h) The cost for the administrative hearing shall be set by
25rule.
26(Source: P.A. 96-1420, eff. 8-3-10.)
 

 

 

SB3060- 98 -LRB100 18641 XWW 33868 b

1    Section 45. The Payday Loan Reform Act is amended by
2changing 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
6Article 3 of the Uniform Commercial Code, that is drawn on a
7financial institution.
8    "Commercially reasonable method of verification" or
9"certified database" means a consumer reporting service
10database certified by the Department as effective in verifying
11that a proposed loan agreement is permissible under this Act,
12or, in the absence of the Department's certification, any
13reasonably reliable written verification by the consumer
14concerning (i) whether the consumer has any outstanding payday
15loans, (ii) the principal amount of those outstanding payday
16loans, and (iii) whether any payday loans have been paid in
17full by the consumer in the preceding 7 days.
18    "Consumer" means any natural person who, singly or jointly
19with another consumer, enters into a loan.
20    "Consumer reporting service" means an entity that provides
21a database certified by the Department.
22    "Department" means the Department of Financial and
23Professional Regulation.
24    "Email address of record" means the designated email

 

 

SB3060- 99 -LRB100 18641 XWW 33868 b

1address recorded by the Division in the credit union's file
2maintained by the Division's licensure unit.
3    "Secretary" means the Secretary of Financial and
4Professional Regulation.
5    "Gross monthly income" means monthly income as
6demonstrated by official documentation of the income,
7including, but not limited to, a pay stub or a receipt
8reflecting payment of government benefits, for the period 30
9days prior to the date on which the loan is made.
10    "Lender" and "licensee" mean any person or entity,
11including any affiliate or subsidiary of a lender or licensee,
12that offers or makes a payday loan, buys a whole or partial
13interest in a payday loan, arranges a payday loan for a third
14party, or acts as an agent for a third party in making a payday
15loan, regardless of whether approval, acceptance, or
16ratification by the third party is necessary to create a legal
17obligation for the third party, and includes any other person
18or entity if the Department determines that the person or
19entity is engaged in a transaction that is in substance a
20disguised payday loan or a subterfuge for the purpose of
21avoiding this Act.
22    "Loan agreement" means a written agreement between a lender
23and consumer to make a loan to the consumer, regardless of
24whether any loan proceeds are actually paid to the consumer on
25the date on which the loan agreement is made.
26    "Member of the military" means a person serving in the

 

 

SB3060- 100 -LRB100 18641 XWW 33868 b

1armed forces of the United States, the Illinois National Guard,
2or any reserve component of the armed forces of the United
3States. "Member of the military" includes those persons engaged
4in (i) active duty, (ii) training or education under the
5supervision of the United States preliminary to induction into
6military service, or (iii) a period of active duty with the
7State of Illinois under Title 10 or Title 32 of the United
8States Code pursuant to order of the President or the Governor
9of the State of Illinois.
10    "Outstanding balance" means the total amount owed by the
11consumer on a loan to a lender, including all principal,
12finance charges, fees, and charges of every kind.
13    "Payday loan" or "loan" means a loan with a finance charge
14exceeding an annual percentage rate of 36% and with a term that
15does not exceed 120 days, including any transaction conducted
16via any medium whatsoever, including, but not limited to,
17paper, 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.

 

 

SB3060- 101 -LRB100 18641 XWW 33868 b

1    The term "payday loan" includes "installment payday loan",
2unless otherwise specified in this Act.
3    "Principal amount" means the amount received by the
4consumer from the lender due and owing on a loan, excluding any
5finance charges, interest, fees, or other loan-related
6charges.
7    "Rollover" means to refinance, renew, amend, or extend a
8loan 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
13address, including city and state, at which the business is to
14be conducted and shall state fully the name of the licensee. At
15the time of application and renewal, an applicant shall provide
16the Department with an accurate and up-to-date email address.
17The license shall be conspicuously posted in the place of
18business of the licensee and shall not be transferable or
19assignable.
20    (b) An application for a license shall be in writing and in
21a form prescribed by the Secretary. The Secretary may not issue
22a payday loan license unless and until the following findings
23are made:
24        (1) that the financial responsibility, experience,
25    character, and general fitness of the applicant are such as

 

 

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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,
8and no renewal of a license may be provided if a licensee has
9substantially violated this Act and has not cured the violation
10to the satisfaction of the Department.
11    (d) A licensee shall appoint, in writing, the Secretary as
12attorney-in-fact upon whom all lawful process against the
13licensee may be served with the same legal force and validity
14as if served on the licensee. A copy of the written
15appointment, duly certified, shall be filed in the office of
16the Secretary, and a copy thereof certified by the Secretary
17shall be sufficient evidence to subject a licensee to
18jurisdiction in a court of law. This appointment shall remain
19in effect while any liability remains outstanding in this State
20against the licensee. When summons is served upon the Secretary
21as attorney-in-fact for a licensee, the Secretary shall
22immediately notify the licensee by registered mail, enclosing
23the summons and specifying the hour and day of service.
24    (e) A licensee must pay an annual fee of $1,000. In
25addition to the license fee, the reasonable expense of any
26examination or hearing by the Secretary under any provisions of

 

 

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1this Act shall be borne by the licensee. If a licensee fails to
2renew its license by December 31, its license shall
3automatically expire; however, the Secretary, in his or her
4discretion, 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
9under the same license, but the Secretary may issue more than
10one license to the same licensee upon compliance with all the
11provisions of this Act governing issuance of a single license.
12The location, except those locations already in existence as of
13June 1, 2005, may not be within one mile of a horse race track
14subject to the Illinois Horse Racing Act of 1975, within one
15mile of a facility at which gambling is conducted under the
16Riverboat Gambling Act, within one mile of the location at
17which a riverboat subject to the Riverboat Gambling Act docks,
18or within one mile of any State of Illinois or United States
19military base or naval installation.
20    (g) No licensee shall conduct the business of making loans
21under this Act within any office, suite, room, or place of
22business in which (1) any loans are offered or made under the
23Consumer Installment Loan Act other than title secured loans as
24defined in subsection (a) of Section 15 of the Consumer
25Installment Loan Act and governed by Title 38, Section 110.330
26of the Illinois Administrative Code or (2) any other business

 

 

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1is solicited or engaged in unless the other business is
2licensed by the Department or, in the opinion of the Secretary,
3the other business would not be contrary to the best interests
4of consumers and is authorized by the Secretary in writing.
5    (g-5) Notwithstanding subsection (g) of this Section, a
6licensee may obtain a license under the Consumer Installment
7Loan Act (CILA) for the exclusive purpose and use of making
8title secured loans, as defined in subsection (a) of Section 15
9of CILA and governed by Title 38, Section 110.300 of the
10Illinois Administrative Code. A licensee may continue to
11service Consumer Installment Loan Act loans that were
12outstanding as of the effective date of this amendatory Act of
13the 96th General Assembly.
14    (h) The Secretary shall maintain a list of licensees that
15shall be available to interested consumers and lenders and the
16public. The Secretary shall maintain a toll-free number whereby
17consumers may obtain information about licensees. The
18Secretary shall also establish a complaint process under which
19an aggrieved consumer may file a complaint against a licensee
20or 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
25apply to persons or entities subject to this Act.

 

 

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1    (b) Any material violation of this Act, including the
2commission of an act prohibited under Section 4-5, constitutes
3a violation of the Consumer Fraud and Deceptive Business
4Practices Act.
5    (c) If any provision of the written agreement described in
6subsection (b) of Section 2-20 violates this Act, then that
7provision is unenforceable against the consumer.
8    (d) Subject to the Illinois Administrative Procedure Act,
9the Secretary may hold hearings, make findings of fact,
10conclusions of law, issue cease and desist orders, have the
11power to issue fines of up to $10,000 per violation, refer the
12matter to the appropriate law enforcement agency for
13prosecution under this Act, and suspend or revoke a license
14granted under this Act. All proceedings shall be open to the
15public.
16    (e) The Secretary may issue a cease and desist order to any
17licensee or other person doing business without the required
18license, when in the opinion of the Secretary the licensee or
19other person is violating or is about to violate any provision
20of this Act or any rule or requirement imposed in writing by
21the Department as a condition of granting any authorization
22permitted by this Act. The cease and desist order permitted by
23this subsection (e) may be issued prior to a hearing.
24    The Secretary shall serve notice of his or her action,
25including, but not limited to, a statement of the reasons for
26the action, either personally, by mail, or to the licensee's

 

 

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1email address of record or by certified mail, return receipt
2requested. Service by certified mail is shall be deemed
3completed when the notice is deposited in the U.S. Mail.
4Service to the email address of record is completed when sent.
5    Within 10 days of service of the cease and desist order,
6the licensee or other person may request a hearing in writing.
7The Secretary shall schedule a hearing within 30 days after the
8request for a hearing unless otherwise agreed to by the
9parties.
10    If it is determined that the Secretary had the authority to
11issue the cease and desist order, he or she may issue such
12orders as may be reasonably necessary to correct, eliminate, or
13remedy the conduct.
14    The powers vested in the Secretary by this subsection (e)
15are additional to any and all other powers and remedies vested
16in the Secretary by law, and nothing in this subsection (e)
17shall be construed as requiring that the Secretary shall employ
18the power conferred in this subsection instead of or as a
19condition precedent to the exercise of any other power or
20remedy vested in the Secretary.
21    (f) The Secretary may, after 10 days notice by registered
22mail to the licensee at the address set forth in the license
23stating the contemplated action and in general the grounds
24therefore, fine the licensee an amount not exceeding $10,000
25per violation, or revoke or suspend any license issued
26hereunder if he or she finds that:

 

 

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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
10particular license with respect to which grounds for the fine,
11revocation, or suspension occur or exist, but if the Secretary
12finds that grounds for revocation are of general application to
13all offices or to more than one office of the licensee, the
14Secretary shall fine, suspend, or revoke every license to which
15the grounds apply.
16    The Department shall establish by rule and publish a
17schedule of fines that are reasonably tailored to ensure
18compliance with the provisions of this Act and which include
19remedial measures intended to improve licensee compliance.
20Such rules shall set forth the standards and procedures to be
21used in imposing any such fines and remedies.
22    No revocation, suspension, or surrender of any license
23shall impair or affect the obligation of any pre-existing
24lawful contract between the licensee and any obligor.
25    The Secretary may issue a new license to a licensee whose
26license has been revoked when facts or conditions which clearly

 

 

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1would have warranted the Secretary in refusing originally to
2issue the license no longer exist.
3    In every case in which a license is suspended or revoked or
4an application for a license or renewal of a license is denied,
5the Secretary shall serve the licensee with notice of his or
6her action, including a statement of the reasons for his or her
7actions, either personally, by mail, or to the licensee's email
8address of record by certified mail, return receipt requested.
9Service by certified mail is shall be deemed completed when the
10notice is deposited in the U.S. Mail. Service to the email
11address of record is completed when sent.
12    An order assessing a fine, an order revoking or suspending
13a license, or an order denying renewal of a license shall take
14effect upon service of the order unless the licensee requests a
15hearing, in writing, within 10 days after the date of service.
16In the event a hearing is requested, the order shall be stayed
17until a final administrative order is entered.
18    If the licensee requests a hearing, the Secretary shall
19schedule a hearing within 30 days after the request for a
20hearing unless otherwise agreed to by the parties.
21    The hearing shall be held at the time and place designated
22by the Secretary. The Secretary and any administrative law
23judge designated by him or her shall have the power to
24administer oaths and affirmations, subpoena witnesses and
25compel their attendance, take evidence, and require the
26production of books, papers, correspondence, and other records

 

 

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1or information that he or she considers relevant or material to
2the inquiry.
3    (g) The costs of administrative hearings conducted
4pursuant to this Section shall be paid by the licensee.
5    (h) Notwithstanding any other provision of this Section, if
6a lender who does not have a license issued under this Act
7makes a loan pursuant to this Act to an Illinois consumer, then
8the loan shall be null and void and the lender who made the
9loan shall have no right to collect, receive, or retain any
10principal, interest, or charges related to the loan.
11(Source: P.A. 97-1039, eff. 1-1-13; 98-209, eff. 1-1-14.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    205 ILCS 305/1.1from Ch. 17, par. 4402
4    205 ILCS 305/2from Ch. 17, par. 4403
5    205 ILCS 305/21from Ch. 17, par. 4422
6    205 ILCS 305/61from Ch. 17, par. 4462
7    205 ILCS 405/1from Ch. 17, par. 4802
8    205 ILCS 405/4from Ch. 17, par. 4808
9    205 ILCS 405/10from Ch. 17, par. 4817
10    205 ILCS 405/29.5
11    205 ILCS 657/5
12    205 ILCS 657/25
13    205 ILCS 657/40
14    205 ILCS 657/80
15    205 ILCS 657/90
16    205 ILCS 660/2from Ch. 17, par. 5202
17    205 ILCS 660/6from Ch. 17, par. 5206
18    205 ILCS 660/10from Ch. 17, par. 5223
19    205 ILCS 660/16.5
20    205 ILCS 665/2from Ch. 17, par. 5302
21    205 ILCS 665/4from Ch. 17, par. 5304
22    205 ILCS 665/6from Ch. 17, par. 5306
23    205 ILCS 665/10from Ch. 17, par. 5310
24    205 ILCS 665/20from Ch. 17, par. 5323
25    205 ILCS 670/0.5 new

 

 

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1    205 ILCS 670/2from Ch. 17, par. 5402
2    205 ILCS 670/8from Ch. 17, par. 5408
3    205 ILCS 670/9from Ch. 17, par. 5409
4    205 ILCS 670/20.5
5    215 ILCS 155/3from Ch. 73, par. 1403
6    215 ILCS 155/21from Ch. 73, par. 1421
7    215 ILCS 155/21.1
8    215 ILCS 155/21.2
9    225 ILCS 429/10
10    225 ILCS 429/20
11    225 ILCS 429/30
12    225 ILCS 429/50
13    225 ILCS 429/95
14    815 ILCS 122/1-10
15    815 ILCS 122/3-5
16    815 ILCS 122/4-10