SB3249 EngrossedLRB097 17301 CEL 62502 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 Collateral Recovery Act is amended by
5changing Sections 10 and 30 as follows:
 
6    (225 ILCS 422/10)
7    (This Section may contain text from a Public Act with a
8delayed effective date)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 10. Definitions. In this Act:
11    "Assignment" means a written authorization by a legal
12owner, lien holder, lessor, lessee, or licensed repossession
13agency authorized by a legal owner, lien holder, lessor or
14lessee to locate or repossess, involuntarily or voluntarily,
15any collateral, including, but not limited to, collateral
16registered under the Illinois Vehicle Code that is subject to a
17security agreement that contains a repossession clause or is
18the subject of a rental or lease agreement.
19    "Assignment" also means a written authorization by an
20employer to recover any collateral entrusted to an employee or
21former employee if the possessor is wrongfully in the
22possession of the collateral. A photocopy, facsimile copy, or
23electronic copy of an assignment shall have the same force and

 

 

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1effect as an original written assignment.
2    "Automobile rental company" means a person or entity whose
3primary business is renting motor vehicles to the public for 30
4days or less.
5    "Branch office" means each additional office and secured
6storage facility location of a repossession agency (i) located
7in and conducting business within the State of Illinois and
8(ii) operating under the same name as the repossession agency
9where business is actively conducted or is engaged in the
10business authorized by the licensure. Each branch office must
11be individually licensed.
12    "Collateral" means any vehicle, boat, recreational
13vehicle, motor home, motorcycle, or other property that is
14subject to a security, lease, or rental agreement.
15    "Commission" means the Illinois Commerce Commission.
16    "Debtor" means any person or entity obligated under a
17lease, rental, or security agreement.
18    "Financial institution" means a bank, a licensee under the
19Consumer Installment Loan Act, savings bank, savings and loan
20association, or credit union organized and operating under the
21laws of this or any other state or of the United States, and
22any subsidiary or affiliate thereof.
23    "Legal owner" means a person holding (i) a security
24interest in any collateral that is subject to a security
25agreement, (ii) a lien against any collateral, or (iii) an
26interest in any collateral that is subject to a lease or rental

 

 

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1agreement.
2    "Licensure" means the approval of the required criteria
3that has been submitted for review in accordance with the
4provisions of this Act.
5    "Licensed recovery manager" means a person who possesses a
6valid license in accordance with the provisions of this Act and
7is in control or management of an Illinois repossession agency.
8    "Personal effects" means any property contained within or
9on repossessed collateral, or property that is not permanently
10affixed to the collateral, that is not the property of the
11legal owner.
12    "Recovery permit" means a permit issued by the Commission
13to a repossession agency employee who has met all the
14requirements under this Act.
15    "Recovery ticket" means a serialized record obtained from
16the Commission for any repossessed vehicle or collateral
17evidencing that any person, business, financial institution,
18automotive dealership, or repossession agency who shows a
19recovery ticket has paid the recovery ticket fee to the
20Commission.
21    "Remote storage location" means a secured storage facility
22of a licensed repossession agency designated for the storage of
23collateral that is a secure building or has a perimeter that is
24secured with a fencing construction that makes the area not
25accessible to the public. A remote storage location shall not
26transact business with the public and shall provide evidence of

 

 

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1applicable insurance to the Commission that specifies the
2licensed repossession agency as the primary policy holder. A
3remote storage location shall be located in a commercially
4zoned area physically located in Illinois.
5    "Repossession agency" means any person or entity
6conducting business within the State of Illinois, that, for any
7type of consideration, engages in the business of, accepts
8employment to furnish, or agrees to provide or provides
9property locating services, property recovery, recovered
10property transportation, recovered property storage, or all
11services relevant to any of the following:
12        (1) The location, disposition, or recovery of property
13    as authorized by the self-help provisions of the Uniform
14    Commercial Code.
15        (2) The location, disposition, or recovery of lost or
16    stolen property.
17        (3) Securing evidence concerning repossession and
18    recovery to be used before any court, board, office, or
19    investigating committee.
20        (4) Inventory of property contained in or on the
21    collateral or recovered property.
22        (5) The possession of collateral.
23        (6) The prevention of the misappropriation or
24    concealment of chattel, vehicles, goods, objects,
25    documents, or papers.
26    "Repossession agency" does not include any of the

 

 

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1following:
2        (1) An attorney at law who is performing his or her
3    duties as an attorney at law.
4        (2) The legal owner of collateral that is subject to a
5    security agreement.
6        (3) An officer or employee of the United States of
7    America or of this State or a political subdivision of this
8    State while the officer or employee is engaged in the
9    performance of his or her official duties.
10        (4) A qualified license or recovery permit holder when
11    performing services for, or on behalf of, a licensed
12    repossession agency.
13        (5) A collection agency licensed under the Collection
14    Agency Act when its activities are limited to assisting an
15    owner in the recovery of property that is not collateral,
16    as defined in this Act.
17    "Repossession agency employee" means any person or
18self-employed independent contractor who is hired by a
19repossession agency.
20    "Secured storage facility" means an area located on the
21same premises as a repossession agency office or branch office
22that is designated for the storage of collateral and is a
23secure building or has a perimeter that is secured with a
24fencing construction that makes the area not accessible to the
25public. Each repossession agency office or branch office must
26maintain a secured storage facility.

 

 

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1    "Security agreement" means an obligation, pledge,
2mortgage, chattel mortgage, lease agreement, rental agreement,
3deposit, or lien, given by a debtor as security for payment or
4performance of his or her debt by furnishing the creditor with
5a recourse to be used in case of failure in the principal
6obligation. "Security agreement" includes a bailment where an
7employer-employee relationship exists or existed between the
8bailor and the bailee.
9(Source: P.A. 97-576, eff. 7-1-12.)
 
10    (225 ILCS 422/30)
11    (This Section may contain text from a Public Act with a
12delayed effective date)
13    (Section scheduled to be repealed on January 1, 2022)
14    Sec. 30. License or registration required.
15    (a) It shall be unlawful for any person or entity to
16repossess a vehicle or collateral in this State, attempt to
17repossess a vehicle or collateral in this State, or to hold
18himself, herself, or itself out to be a repossession agency
19unless licensed under this Act.
20    (b) It shall be unlawful for any person to repossess a
21vehicle or collateral in this State, attempt to repossess a
22vehicle or collateral in this State, or to hold himself or
23herself out to be a licensed recovery manager unless licensed
24under this Act.
25    (c) It shall be unlawful for any person to repossess a

 

 

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1vehicle or collateral in this State, attempt to repossess a
2vehicle or collateral in this State, or hold himself or herself
3out to be a repossession agency employee unless he or she holds
4a valid recovery permit issued by the Commission under this
5Act.
6    (d) This Act does not apply to a financial institution or
7the employee of a financial institution when engaged in an
8activity otherwise covered by this Act if the activity is
9conducted by the employee on behalf of that financial
10institution.
11    (e) This Act does not apply to a towing company or towing
12operator when an employee or agent of the creditor financial
13institution is present at the site from which the vehicle is
14towed.
15    (f) This Act does not apply to an automobile rental company
16or the employee of an automobile rental company when engaged in
17an activity otherwise covered by this Act if the activity is
18conducted by the employee on behalf of that automobile rental
19company.
20    (g) This Act does not apply to a towing company or towing
21operator when an employee or agent of an automobile rental
22company is present at the site from which the vehicle is towed.
23    (h) This Act does not apply to a retail seller of equipment
24or an employee of a retail seller of equipment, as equipment is
25defined in Section 9-102 of the Uniform Commercial Code, and
26lawn and grounds care consumer goods when engaged in an

 

 

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1activity otherwise covered by this Act if the activity is
2limited to the repossession of the type of goods routinely sold
3by that retail seller in the manner authorized by Section 9-609
4of the Uniform Commercial Code on behalf of the owner of a
5security interest in that collateral.
6    (i) This Act does not apply to an entity or the employee of
7an entity that primarily finances wholesale and retail
8transactions related to the purchase or lease of equipment
9manufactured by its affiliate when engaged in an activity
10otherwise covered by this Act if the activity is limited to the
11repossession of the equipment.
12(Source: P.A. 97-576, eff. 7-1-12.)
 
13    Section 95. No acceleration or delay. Where this Act makes
14changes in a statute that is represented in this Act by text
15that is not yet or no longer in effect (for example, a Section
16represented by multiple versions), the use of that text does
17not accelerate or delay the taking effect of (i) the changes
18made by this Act or (ii) provisions derived from any other
19Public Act.
 
20    Section 99. Effective date. This Act takes effect July 1,
212012.