Illinois Compiled Statutes
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VEHICLES625 ILCS 5/Ch. 7 Art. V
(625 ILCS 5/) Illinois Vehicle Code.
(625 ILCS 5/Ch. 7 Art. V heading)
RELATING TO FINANCIAL RESPONSIBILITY
625 ILCS 5/7-501
(625 ILCS 5/7-501)
(from Ch. 95 1/2, par. 7-501)
Assigned Risk Plans.
If, on or before January 1, 1946, every
insurance carrier authorized to write automobile bodily injury liability
insurance in this State shall not subscribe to an assigned risk plan approved
by the Director of Insurance, providing that no carrier may withdraw therefrom
after approval of the Director, the Director of Insurance shall, when he finds
that an application for bodily injury or property damage insurance by a risk,
which may become subject to this Act or is a local public entity subject to
the Local Governmental and Governmental Employees Tort Immunity Act, and
in good faith is entitled to such insurance, has been rejected by 3 insurance
carriers, designate an insurance carrier which shall be obligated to issue
forthwith its usual form of policy providing such insurance for such risk.
The Director shall make equitable distribution of such assignments among
insurance carriers proportionate, so far as practicable, by
premiums to the respective net direct automobile bodily injury premium
writings of the carriers authorized to do business in this State. The
Director of Insurance shall establish rules and regulations for the
administration of the provisions of this Section.
If any carrier refuses or neglects to comply with the provisions of
this Section or with any lawful order or ruling made by the Director of
Insurance pursuant to this Section, the Director may, after notice and
hearing, suspend the license of such carrier to transact any insurance
business in this State until such carrier shall have complied with such
order. The provisions of the Administrative Review Law, and all amendments
and modifications thereof, and the rules adopted pursuant thereto, shall apply
to and govern all proceedings for the judicial review of final administrative
decisions of the Director of Insurance hereunder.
(Source: P.A. 92-651, eff. 7-11-02.)
625 ILCS 5/7-502
(625 ILCS 5/7-502)
(from Ch. 95 1/2, par. 7-502)
Any person in whose name more than 25 motor vehicles are registered may
qualify as a self-insurer by obtaining a certificate of self-insurance
issued by the Director of the Department of Insurance as provided in this Section.
The Director may, in his discretion, upon the application of
such a person, issue a certificate of self-insurance when he is satisfied
that such person is possessed and will continue to be possessed of ability
to pay judgment obtained against such person.
Upon not less than 5 days' notice, and a hearing pursuant to such
notice, the Director may upon reasonable grounds cancel a
certificate of self-insurance. Failure to pay any judgment against any
person covered by such certificate of self-insurance and arising out of any
accident in which a motor vehicle covered by such certificate of
self-insurance has been involved within 30 days after such judgment shall
have become final shall constitute a reasonable ground for the cancellation
of a certificate of self-insurance.
(Source: P.A. 82-138.)
625 ILCS 5/7-503
(625 ILCS 5/7-503)
(from Ch. 95 1/2, par. 7-503)
Unclaimed Security Deposits.
During July, annually, the Secretary shall compile a list of all
securities on deposit, pursuant to this Article, for more than 3 years and
concerning which he has received no notice as to the pendency of any
judicial proceeding that could affect the disposition thereof. Thereupon,
he shall promptly send a notice to the last known address
of each depositor advising him that his deposit will be subject to escheat
to the State of Illinois if not claimed within 30 days after the mailing
date of such notice. At the expiration of such time, the Secretary of State
shall file with the State Treasurer an order directing the transfer of such
deposit to the general revenue fund in the State Treasury. Upon receipt of
such order, the State Treasurer shall make such transfer, after converting
to cash any other type of security. Thereafter any person having a legal
claim against such deposit may enforce it by appropriate proceedings in the
Court of Claims subject to the limitations prescribed for such Court. At
the expiration of such limitation period such deposit shall escheat to the
State of Illinois.
(Source: P.A. 94-239, eff. 1-1-06.)
625 ILCS 5/7-504
(625 ILCS 5/7-504)
Emergency telephone system outages; reimbursement.
who negligently causes a motor vehicle accident that causes an emergency
telephone system outage must reimburse the public safety agency that provides
personnel to answer calls or to maintain or operate an emergency telephone
system during the outage for the agency's costs associated with answering calls
or maintaining or operating the system during the outage. For the purposes of
this Section, "public safety agency" means the same as in Section 2.02 of the
Emergency Telephone System Act.
(Source: P.A. 92-149, eff. 1-1-02.)
625 ILCS 5/Ch. 7 Art. VI
(625 ILCS 5/Ch. 7 Art. VI heading)
625 ILCS 5/7-601
(625 ILCS 5/7-601)
(from Ch. 95 1/2, par. 7-601)
Required liability insurance policy.
(a) No person shall operate, register or maintain registration of, and no
owner shall permit another person to operate, register or maintain registration
of, a motor vehicle designed to be used on a public highway in this State unless the motor
vehicle is covered by a liability insurance policy.
The insurance policy shall be issued in amounts no less than the minimum
amounts set for bodily injury or death and for destruction of property under
Section 7-203 of this Code, and shall be issued in accordance with the
requirements of Sections 143a and 143a-2 of the Illinois Insurance Code, as
amended. No insurer other than an insurer authorized to do business in this
State shall issue a policy pursuant to this Section for any vehicle subject to
registration under this Code. Nothing herein shall deprive an insurer of any
policy defense available at common law.
(b) The following vehicles are exempt from the requirements of this Section:
(1) vehicles subject to the provisions of Chapters 8
or 18a, Article III or Section 7-609 of Chapter 7, or Sections 12-606 or 12-707.01 of Chapter 12 of this Code;
(2) vehicles required to file proof of liability
insurance with the Illinois Commerce Commission;
(3) vehicles covered by a certificate of
self-insurance under Section 7-502 of this Code;
(4) vehicles owned by the United States, the State of
Illinois, or any political subdivision, municipality or local mass transit district;
(5) implements of husbandry;
(6) other vehicles complying with laws which require
them to be insured in amounts meeting or exceeding the minimum amounts required under this Section; and
(7) inoperable or stored vehicles that are not
operated, as defined by rules and regulations of the Secretary.
(c) Every employee of a State agency, as that term is defined in the
Illinois State Auditing Act,
who is assigned a
specific vehicle owned or leased by the State on an ongoing basis shall provide
the certification described in this Section annually to the director or chief
executive officer of his or her agency.
The certification shall affirm that the employee is duly licensed to
drive the assigned vehicle and that (i) the employee has liability insurance
coverage extending to the employee when the assigned vehicle is used for other
than official State business, or (ii) the employee has filed
a bond with the Secretary of State as proof of financial responsibility, in an
amount equal to, or in excess of the requirements stated within this Section.
Upon request of the agency director or chief executive officer, the employee
shall present evidence to
The certification shall be provided during the period July 1 through July
31 of each calendar year, or within 30 days of any new assignment of a vehicle
an ongoing basis, whichever is later.
The employee's authorization to use the assigned vehicle shall
be rescinded upon:
(1) the revocation or suspension of the license
required to drive the assigned vehicle;
(2) the cancellation or termination for any reason of
the automobile liability insurance coverage as required in item (c)(i); or
(3) the termination of the bond filed with the
All State employees providing the required certification shall immediately
notify the agency director or chief executive officer in the event any of these
officers employed by a State agency who are primarily responsible for
prevention and detection of crime and the enforcement of the criminal, traffic,
highway laws of this State, and prohibited by agency rule or policy to use an
assigned vehicle owned or leased by the State for regular personal or off-duty
use, are exempt from the requirements of this Section.
(d) No person shall operate a motor vehicle registered in another state upon the highways of this State unless the vehicle is covered by a liability insurance policy. The operator of the vehicle shall carry within the vehicle evidence of the insurance.
(Source: P.A. 100-202, eff. 1-1-18; 100-828, eff. 1-1-19
625 ILCS 5/7-602
(625 ILCS 5/7-602)
(from Ch. 95 1/2, par. 7-602)
Every operator of a motor vehicle subject
to Section 7-601 of this Code shall carry within the vehicle evidence of
insurance. The evidence shall be legible and sufficient to demonstrate
that the motor vehicle currently is covered by a liability insurance policy
as required under Section 7-601 of this Code and may include, but is not
limited to, the following:
(a) an insurance card provided by the insurer under
(b) the combination of proof of purchase of the motor
vehicle within the previous 60 days and a current insurance card issued for the motor vehicle replaced by such purchase;
(c) the current declarations page of a liability
(d) a liability insurance binder, certificate of
liability insurance or receipt for payment to an insurer or its authorized representative for a liability insurance premium, provided such document contains all information the Secretary of State by rule and regulation may require;
(e) a current rental agreement;
(f) registration plates, registration sticker or
other evidence of registration issued by the Secretary only upon submission of proof of liability insurance pursuant to this Code;
(g) a certificate, decal, or other document or device
issued by a governmental agency for a motor vehicle indicating the vehicle is insured for liability pursuant to law;
(h) the display of electronic images on a cellular
phone or other type of portable electronic device. The use of a cellular phone or other type of portable electronic device to display proof of insurance does not constitute consent for a law enforcement officer, court, or other officer of the court to access other contents of the electronic device. Any law enforcement officer, court, or officer of the court presented with the device shall be immune from any liability resulting from damage to the mobile electronic device.
An insurance card shall be provided for each motor
vehicle insured by the insurer issuing the liability insurance policy and may be issued in either paper or electronic format. Acceptable electronic formats shall permit display on a cellular phone or other portable electronic device and satisfy all other requirements of law and rule, including this Section, regarding form and content.
The form, contents and manner of issuance of the insurance card shall be
prescribed by rules and regulations of the Secretary of State. The Secretary shall adopt rules requiring that reasonable measures be taken to prevent the fraudulent production of insurance cards. The
insurance card shall display an effective date and an expiration date
covering a period of time not to exceed 12 months. The insurance card
shall contain the following disclaimer: "Examine policy exclusions
carefully. This form does not constitute any part of your insurance policy."
If the insurance policy represented by the insurance card does
not cover any driver operating the motor vehicle with the owner's
permission, or the owner when operating a motor vehicle other than the
vehicle for which the policy is issued, the insurance card shall
contain a warning of such limitations in the coverage provided by the
No insurer shall issue a card, similar in appearance, form and content
to the insurance card required under this Section, in connection with an
insurance policy that does not provide the liability insurance coverage
required under Section 7-601 of this Code.
The evidence of insurance shall be displayed upon request made by any law
enforcement officer wearing a uniform or displaying a badge or other sign
of authority. Any person who fails or refuses to comply with such request
is in violation of Section 3-707 of this Code. Any person who displays
evidence of insurance, knowing there is no valid liability insurance in
effect on the motor vehicle as required under Section 7-601 of this Code or
knowing the evidence of insurance is illegally altered, counterfeit or
otherwise invalid, is in violation of Section 3-710 of this Code.
"Display" means the manual surrender of the evidence of insurance into
the hands of the law enforcement officer, court, or officer of the court
making the request for the
officer's, court's, or officer of the court's inspection thereof.
(Source: P.A. 98-521, eff. 8-23-13.)
625 ILCS 5/7-603
(625 ILCS 5/7-603)
(from Ch. 95 1/2, par. 7-603)
Illegal insurance cards - penalty.
No person shall alter
an invalid insurance card to make it appear valid. No person knowingly
shall make, sell or otherwise make available an invalid or counterfeit insurance card.
Any person convicted of a violation of this Section is guilty of a Class
(Source: P.A. 85-1201.)
625 ILCS 5/7-603.5
(625 ILCS 5/7-603.5)
Electronic verification of a liability insurance policy.
(a) The Secretary may implement a program of electronic motor vehicle liability insurance policy verification for motor vehicles subject to Section 7-601 of this Code for the purpose of verifying whether or not the motor vehicle is insured. The development and implementation of the program shall be consistent with the standards and procedures of a nationwide organization whose primary membership consists of individual insurance companies and insurance trade associations. The program shall include, but is not limited to:
(1) a requirement that an insurance company
authorized to sell motor vehicle liability insurance in this State shall make available, in a format designated by the Secretary that is consistent with a nationwide organization whose primary membership consists of individual insurance companies and insurance trade organizations, to the Secretary for each motor vehicle liability insurance policy issued by the company the following information:
(A) the name of the policy holder;
(B) the make, model, year, and vehicle
identification number of the covered motor vehicle;
(C) the policy number;
(D) the policy effective date;
(E) the insurance company's National Association
of Insurance Commissioner's number; and
(F) any other information the Secretary deems
necessary to match an eligible vehicle with an insurance policy;
(2) a method for searching motor vehicle liability
insurance policies issued and in effect in this State by using the information under paragraph (1) of this subsection (a);
(3) a requirement that at least twice per calendar
year, the Secretary shall verify the existence of a liability insurance policy for every registered motor vehicle subject to Section 7-601 of this Code; and if the Secretary is unable to verify the existence of a liability insurance policy, the Secretary shall, by U.S. mail or electronic mail, send the vehicle owner a written notice allowing the vehicle owner 30 calendar days to provide proof of insurance on the date of attempted verification, or to provide proof that the vehicle is no longer operable;
(4) a requirement that a vehicle owner who does not
provide proof of insurance or proof of an inoperable vehicle under paragraph (3) of this subsection (a) shall be in violation of Section 7-601 of this Code and the Secretary shall suspend the vehicle's registration and the owner shall pay any applicable reinstatement fees and shall provide proof of insurance before the Secretary may reinstate the vehicle's registration under Section 7-606 of this Code;
(5) a requirement that if a vehicle owner provides
proof of insurance on the date of the attempted verification under paragraph (3) of this subsection (1), the Secretary may verify the vehicle owner's response by furnishing necessary information to the insurance company. Within 7 calendar days of receiving the information, the insurance company shall confirm and notify the Secretary the dates of the motor vehicle's insurance coverage. If the insurance company does not confirm coverage for the date of attempted verification, the Secretary shall suspend the vehicle's registration and the owner of the vehicle shall pay any applicable reinstatement fees and shall provide proof of insurance before the Secretary may reinstate the vehicle's registration under Section 7-606 of this Code;
(6) a requirement that the Secretary may consult with
members of the insurance industry during the implementation of the program, including, but not limited to, during the drafting process for adopting any rules that may be necessary to implement or manage an electronic motor vehicle liability insurance policy verification program;
(7) a requirement that commercial lines of automobile
insurance are excluded from the program, but may voluntarily report insurance coverage to the State.
(b) In addition to the semi-annual verification of liability insurance under subsection (a) of this Section, the Secretary may select monthly verification for a motor vehicle owned or registered by a person:
(1) whose motor vehicle registration during the
preceding 4 years has been suspended under Section 7-606 or 7-607 of this Code;
(2) who, during the preceding 4 years, has been
convicted of violating Section 3-707, 3-708, or 3-710 of this Code while operating a vehicle owned by another person;
(3) whose driving privileges have been suspended
during the preceding 4 years;
(4) who, during the preceding 4 years, acquired
ownership of a motor vehicle while the registration of the vehicle under the previous owner was suspended under Section 7-606 or 7-607 of this Code; or
(5) who, during the preceding 4 years, has received a
disposition of court supervision under subsection (c) of Section 5-6-1 of the Unified Code of Corrections for a violation of Section 3-707, 3-708, or 3-710 of this Code.
(c) Nothing in this Section provides the Secretary with regulatory authority over insurance companies.
(d) The Secretary may contract with a private contractor to carry out the Secretary's duties under this Section.
(e) Any information collected, stored, maintained, or referred to under this Section shall be used solely for the purpose of verifying whether a registered motor vehicle meets the requirements of Section 7-601 of this Code and shall be exempt from a records request or from inspection and copying under the Freedom of Information Act. A request for release of verification of liability insurance policy information from the Secretary shall require a court order, subpoena, or the motor vehicle owner's approval.
(f) An insurer identified by an electronic motor vehicle liability insurance policy program as insuring less than 1,000 vehicles per year shall be exempt from the reporting requirements under subsection (a) of this Section.
(g) The Secretary may adopt any rules necessary to implement this Section.
(Source: P.A. 100-373, eff. 1-1-18
625 ILCS 5/7-604
(625 ILCS 5/7-604)
(from Ch. 95 1/2, par. 7-604)
Verification of liability insurance policy.
(a) The Secretary of State may select random samples
of registrations of motor vehicles subject to Section 7-601 of this Code,
or owners thereof, for the purpose of verifying whether or not the motor
vehicles are insured.
In addition to such general random samples of motor vehicle
registrations, the Secretary may select for
verification other random samples, including, but not limited to
registrations of motor vehicles owned by persons:
(1) whose motor vehicle registrations during the
preceding 4 years have been suspended pursuant to Section 7-606 or 7-607 of this Code;
(2) who during the preceding 4 years have been
convicted of violating Section 3-707, 3-708, or 3-710 of this Code while operating vehicles owned by other persons;
(3) whose driving privileges have been suspended
during the preceding 4 years;
(4) who during the preceding 4 years acquired
ownership of motor vehicles while the registrations of such vehicles under the previous owners were suspended pursuant to Section 7-606 or 7-607 of this Code; or
(5) who during the preceding 4 years have received a
disposition of supervision under subsection (c) of Section 5-6-1 of the Unified Code of Corrections for a violation of Section 3-707, 3-708, or 3-710 of this Code.
(b) Upon receiving certification from the Department of Transportation
under Section 7-201.2 of this Code of the name of an owner or operator of any
motor vehicle involved in an accident, the Secretary may verify whether or
not at the time of the accident such motor vehicle was covered by a
liability insurance policy in accordance with Section 7-601 of this Code.
(c) In preparation for selection of random samples and their
verification, the Secretary may send to owners of randomly selected motor
vehicles, or to randomly selected motor vehicle owners, requests for
information about their motor vehicles and liability
insurance coverage electronically or, if electronic means are unavailable, via U.S. mail. The request shall require the owner to state whether
or not the motor vehicle was insured on the verification date stated in the
Secretary's request and the request may require, but is not limited to,
a statement by the owner of the names and addresses of insurers, policy
numbers, and expiration dates of insurance coverage.
(d) Within 30 days after the Secretary sends a request under subsection (c) of this Section, the owner to
whom it is sent shall furnish the requested information to the Secretary
above the owner's signed affirmation that such information is true and
correct. Proof of insurance in effect on the verification date, as
prescribed by the Secretary, may be considered by the Secretary to be a
satisfactory response to the request for information.
Any owner whose response indicates that his or her vehicle was
not covered by a liability insurance policy in accordance with
Section 7-601 of this Code shall be deemed to have registered or maintained
registration of a motor vehicle in violation of that Section. Any owner who
fails to respond to such a request shall be deemed to have registered or
maintained registration of a motor vehicle in violation of Section
7-601 of this Code.
(e) If the owner responds to the request for information by asserting
that his or her vehicle was covered by a liability insurance policy on the
verification date stated in the Secretary's request, the Secretary may
conduct a verification of the response by furnishing necessary information
to the insurer named in the response. The insurer shall within
inform the Secretary whether or not on the verification date stated the
motor vehicle was insured by the insurer in accordance with Section 7-601
of this Code. The Secretary may by rule and regulation prescribe the
procedures for verification.
(f) No random sample selected under this Section shall be categorized on
the basis of race, color, religion, sex, national origin, ancestry, age,
marital status, physical or mental disability, economic status,
(h) This Section shall be inoperative upon the effective date of the rules adopted by the Secretary to implement Section 7-603.5 of this Code.
(Source: P.A. 99-333, eff. 12-30-15 (see Section 15 of P.A. 99-483 for the effective date of changes made by P.A. 99-333); 99-737, eff. 8-5-16; 100-145, eff. 1-1-18; 100-373, eff. 1-1-18; 100-863, eff. 8-14-18.)
625 ILCS 5/7-605
(625 ILCS 5/7-605)
(from Ch. 95 1/2, par. 7-605)
Uninsured motor vehicles - notice.
If the Secretary
determines that an owner has registered or maintained the registration of a
motor vehicle without a liability insurance policy in accordance
with Section 7-601 of this Code, the Secretary shall notify the owner that
such owner's vehicle registration shall be suspended 45 days after the date
of the mailing of the notice unless the owner within 30 days furnishes proof
of insurance in effect on the verification date, as prescribed by the Secretary.
(Source: P.A. 86-149.)
625 ILCS 5/7-606
(625 ILCS 5/7-606)
(from Ch. 95 1/2, par. 7-606)
Uninsured motor vehicles - suspension and reinstatement.
The Secretary shall suspend the vehicle registration of
any motor vehicle determined by the Secretary to be in
violation of Section 7-601 of this Code, including any motor
vehicle operated in violation of Section
3-707, 3-708 or 3-710 of this Code by an operator other than the
owner of the vehicle. Neither the fact that,
subsequent to the date of verification or conviction, the owner acquired
the required liability insurance policy nor the fact that the owner
terminated ownership of the motor vehicle shall have any
bearing upon the Secretary's decision to suspend.
The Secretary is authorized to suspend the registration of any motor
vehicle registered in this State upon receiving notice of the conviction of
the operator of the motor vehicle in another State of an offense which, if
committed in this State, would constitute a violation of Section 7-601 of this Code.
Until it is terminated, the suspension shall remain in force after the
registration is renewed or a new registration is acquired for the motor
vehicle. The suspension also shall apply to any motor
vehicle to which the owner transfers the registration.
In the case of a first violation, the Secretary shall terminate the
suspension upon payment
by the owner of a reinstatement fee of $100 and submission of proof
insurance as prescribed by the Secretary.
In the case of a second or subsequent violation by a person having
ownership interest in a motor vehicle or vehicles within
the preceding 4 years, or a violation of Section 3-708 of this Code, the
Secretary shall terminate the suspension 4 months after its effective date
upon payment by the owner of a reinstatement fee of $100 and submission of
proof of insurance as prescribed by the Secretary.
All fees collected under this Section shall be disbursed under subsection (g) of Section 2-119 of this Code.
(Source: P.A. 99-127, eff. 1-1-16
625 ILCS 5/7-607
(625 ILCS 5/7-607)
(from Ch. 95 1/2, par. 7-607)
Submission of false proof - penalty.
If the Secretary
determines that the proof of insurance submitted by a motor vehicle owner
under Section 7-603.5, 7-604, 7-605 or 7-606 of this Code is false, the
Secretary shall suspend the owner's vehicle registration. The Secretary
shall terminate the suspension 6 months after its effective date upon
payment by the owner of a reinstatement fee of $200 and submission of proof
of insurance as prescribed by the Secretary.
All fees collected under this Section shall be disbursed under subsection (g) of Section 2-119 of this Code.
(Source: P.A. 99-127, eff. 1-1-16; 100-373, eff. 1-1-18
625 ILCS 5/7-608
(625 ILCS 5/7-608)
(from Ch. 95 1/2, par. 7-608)
No verification procedure
established under this Code shall include individual inspections of
vehicles on a highway solely for the purpose of verifying the existence of
an insurance policy. No law enforcement officer shall stop a vehicle
solely for the purpose of verifying the existence of a valid insurance policy.
(Source: P.A. 86-149.)
625 ILCS 5/7-609
(625 ILCS 5/7-609)
(from Ch. 95 1/2, par. 7-609)
Exemption for certain religious organizations.
to the following minimum criteria, the Secretary may exempt from the
provisions of Section 7-601 of this Code motor vehicles owned by a
religious organization or its members:
(1) The religious organization and its members hold a bona fide conviction that the
acquisition of insurance is contrary to their religious beliefs.
(2) The religious organization and its members submit to the Secretary
evidence that historically, over a period of time not less than two years,
they have paid or, by agreement with the other party or parties involved,
are paying in a timely manner for all damages for which they were or are liable.
(3) The religious organization has filed with the Secretary a current,
irrevocable letter of credit, valid for a period of 12 months and issued in
accordance with this Section and Article 5 of the Uniform Commercial Code,
approved July 31, 1961, as amended, by a financial institution chartered by
an agency of State or federal government. The Secretary of State by rule
and regulation shall establish the minimum amount of credit required.
(4) The religious organization and its members meet other requirement
which the Secretary by rule and regulation may prescribe.
(b) Upon accepting a letter of credit from a religious organization, the
Secretary shall issue a certificate of exemption for each motor vehicle
covered. The certificate of exemption shall serve as evidence of insurance
in accordance with Section 7-602 of this Code.
Not less than 30 days before a current letter of credit expires, or by
agreement between the issuer and customer is revoked, the religious
organization shall file with the Secretary a new letter of credit. If a new
letter of credit is not on file with the Secretary at the time the current
letter of credit expires or is revoked, the exemption of the religious
organization and its members shall expire and their certificates of
exemption shall become invalid.
(c) If credit is used to the extent that the remaining amount of credit
does not meet the minimum requirements of this Section, and the issuer
declines to reinstate the used portion of the credit or issue a new letter
of credit, the issuer immediately shall send written notice to the customer
and the Secretary that the current letter of credit on file with the
Secretary no longer meets the minimum requirements of the law.
If, within 30 days of receiving the notice, the Secretary has not
received and accepted a new letter of credit from the customer, the
exemption of that religious organization and its members shall expire and
their certificates of exemption shall become invalid.
(d) Upon the request of the plaintiff, if a person, known by the court
to be covered by a current letter of credit issued pursuant to this
Section fails to pay a judgment for damages within 30 days after the
judgment has become final, the clerk of the court within 10 days shall
forward to the Secretary a report of the person's failure to pay. The
report shall indicate that the person is covered by a letter of credit and,
if known by the court, the names of the issuer and the customer.
Upon receiving the report from the court, the Secretary shall notify the
religious organization that, unless the payment is made, 30 days after the
date of the mailing of the notice the exemption of the religious
organization and its members shall be terminated and their certificates of
exemption shall become invalid. If within the 30 days the religious
organization does not submit evidence that the payment has been made, or
furnish valid reasons why the payment has been delayed or not made, the
Secretary shall terminate the exemptions.
(e) The Secretary is authorized to promulgate rules and regulations
necessary for the administration of the provisions of this Section.
(Source: P.A. 86-149.)