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90_HB0597enr
205 ILCS 670/7.5 new
Amends the Consumer Installment Loan Act. Provides that
upon written notice to the Director of Financial
Institutions, a licensee may make loans by electronic or
other means at off-site lending locations.
LRB9002691JScc
HB0597 Enrolled LRB9002691JScc
1 AN ACT concerning certain regulatory matters, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Financial Institutions Digital Signature Act.
7 Section 5. Definitions. As used in this Act:
8 "Digital signature" means an encrypted electronic
9 identifier, created by computer, intended by the party using
10 it to have the same force and effect as the use of a manual
11 signature.
12 "Financial institution" means a bank, a savings and loan
13 association or savings bank, or a credit union, established
14 under the laws of this or any other state or established
15 under the laws of the United States the deposits of which are
16 insured by the Federal Deposit Insurance Corporation or other
17 agency of the federal government.
18 Section 10. Electronic documents; digital signatures.
19 (a) If in the regular course of business, a financial
20 institution possesses, records, or generates any document,
21 representation, image, reproduction, or combination thereof,
22 of any agreement, transaction, act, occurrence, or event by
23 any electronic or computer-generated process that accurately
24 reproduces, comprises, or records the agreement, transaction,
25 act, occurrence, or event, the recording, comprising, or
26 reproduction shall have the same force and effect as one
27 comprised, recorded, or created on paper or other tangible
28 form by writing, typing, printing, or similar means.
29 (b) In any communication, acknowledgement, agreement, or
30 contract between a financial institution and its customer, in
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1 which a signature is required or used, any party to the
2 communication, acknowledgement, agreement, or contract may
3 affix a signature by use of a digital signature, and the
4 digital signature, when lawfully used by the person whose
5 signature it purports to be, shall have the same force and
6 effect as the use of a manual signature if it is unique to
7 the person using it, is capable of verification, is under the
8 sole control of the person using it, and is linked to data in
9 such a manner that if the data are changed, the digital
10 signature is invalidated. Nothing in this Section shall
11 require any financial institution or customer to use or
12 permit the use of a digital signature.
13 Section 15. Civil remedy. A cause of action, including
14 attorneys fees and costs, shall lie in favor of any person
15 for the unauthorized use of his or her digital signature.
16 Section 80. The Property Tax Code is amended by changing
17 Section 21-15 as follows:
18 (35 ILCS 200/21-15)
19 Sec. 21-15. General tax due dates; default by mortgage
20 lender. Except as otherwise provided in this Section or
21 Section 21-40, all property upon which the first installment
22 of taxes remains unpaid on June 1 annually shall be deemed
23 delinquent and shall bear interest after June 1 at the rate
24 of 1 1/2% per month or portion thereof. Except as otherwise
25 provided in this Section or Section 21-40, all property upon
26 which the second installment of taxes remains due and unpaid
27 on September 1, annually, shall be deemed delinquent and
28 shall bear interest after September 1 at the same interest
29 rate. All interest collected shall be paid into the general
30 fund of the county.
31 Property not subject to the interest charge in Section
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1 9-265 shall also not be subject to the interest charge
2 imposed by this Section until such time as the owner of the
3 property receives actual notice of and is billed for the
4 principal amount of back taxes due and owing.
5 Notwithstanding any other provision of law, when any
6 unpaid taxes become delinquent under this Section through the
7 fault of the mortgage lender, (i) the interest assessed under
8 this Section for delinquent taxes shall be charged against
9 the mortgage lender and not the mortgagor and (ii) the
10 mortgage lender shall pay the taxes, redeem the property and
11 take all necessary steps to remove any liens accruing against
12 the property because of the delinquency. In the event that
13 more than one entity meets the definition of mortgage lender
14 with respect to any mortgage, the interest shall be assessed
15 against the mortgage lender responsible for servicing the
16 mortgage. Unpaid taxes shall be deemed delinquent through
17 the fault of the mortgage lender only if: (a) the mortgage
18 lender has received all payments due the mortgage lender for
19 the property being taxed under the written terms of the
20 mortgage or promissory note secured by the mortgage, (b) the
21 mortgage lender holds funds in escrow to pay the taxes, and
22 (c) the funds are sufficient to pay the taxes after deducting
23 all amounts reasonably anticipated to become due for all
24 hazard insurance premiums and mortgage insurance premiums and
25 any other assessments to be paid from the escrow under the
26 terms of the mortgage. For purposes of this Section, an
27 amount is reasonably anticipated to become due if it is
28 payable within 12 months from the time of determining the
29 sufficiency of funds held in escrow. Unpaid taxes shall not
30 be deemed delinquent through the fault of the mortgage lender
31 if the mortgage lender was directed in writing by the
32 mortgagor not to pay the property taxes, or if the failure to
33 pay the taxes when due resulted from inadequate or inaccurate
34 parcel information provided by the mortgagor, a title or
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1 abstract company, or by the agency or unit of government
2 assessing the tax.
3 (Source: P.A. 90-336, eff. 1-1-98.)
4 Section 82. The Sales Finance Agency Act is amended by
5 changing Section 10.2 as follows:
6 (205 ILCS 660/10.2) (from Ch. 17, par. 5225)
7 Sec. 10.2. Closing of business; surrender of license. At
8 least 10 days prior to a licensee ceasing operations, closing
9 business, or filing for bankruptcy, the licensee shall:
10 (a) Notify the Department of its action in writing.
11 (b) With the exception of filing for bankruptcy,
12 surrender its license to the Director for cancellation. The
13 surrender of the license shall not affect the licensee's
14 civil or criminal liability for acts committed prior to
15 surrender or entitle the licensee to a return of any part of
16 the annual license fee.
17 (c) The licensee shall notify the department of the
18 location where the books, accounts, contracts, and records
19 will be maintained and the procedure to ensure prompt return
20 of contracts, titles, and releases to the customers.
21 (d) The accounts, books, records, and contracts shall be
22 maintained and serviced by the licensee or another licensee
23 under this Act, or an entity exempt from licensure under this
24 Act.
25 (e) The Department shall have the authority to conduct
26 examinations of the books, records, and loan documents at any
27 time after surrender of the license, filing of bankruptcy, or
28 the cessation of operations.
29 (Source: P.A. 90-437, eff. 1-1-98.)
30 Section 84. The Consumer Installment Loan Act is amended
31 by changing Sections 2, 4, and 9.1 as follows:
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1 (205 ILCS 670/2) (from Ch. 17, par. 5402)
2 Sec. 2. Application; fees; positive net worth.
3 Application for such license shall be in writing, and in the
4 form prescribed by the Director. Such applicant at the time
5 of making such application shall pay to the Director the sum
6 of $300 as an application fee a fee for investigating the
7 applicant and the additional sum of $300 as an annual license
8 fee, for a period terminating on the last day of the current
9 calendar year; provided that if the application is filed
10 after June 30th in any year, such license fee shall be 1/2 of
11 the annual license fee for such year.
12 Before the license is granted, every applicant shall
13 prove in form satisfactory to the Director that the applicant
14 has a positive net worth of a minimum of $30,000. Every
15 applicant shall maintain a surety bond in the principal sum
16 of $1,000 issued by a bonding company authorized to do
17 business in this State and which shall be approved by the
18 Director. Such bond shall run to the Director and shall be
19 for the benefit of any person who incurs damages as a result
20 of the actions of a licensee and who is lawfully awarded such
21 damages pursuant to an appropriate court order. If the
22 Director finds at any time that a bond is of insufficient
23 size, is insecure, exhausted, or otherwise doubtful, an
24 additional bond in such amount as determined by the Director
25 shall be filed by the licensee within 30 days after written
26 demand therefor by the Director. "Net worth" means total
27 assets minus total liabilities.
28 (Source: P.A. 90-437, eff. 1-1-98.)
29 (205 ILCS 670/4) (from Ch. 17, par. 5404)
30 Sec. 4. Investigation to determine whether license shall
31 be issued. Upon the filing of an application and the payment
32 of the fee, the Director shall investigate to determine (1)
33 that the reputation of the applicant, including managers of a
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1 limited liability company, partners, owners, officers or
2 directors thereof is such as to warrant belief that the
3 business will be operated honestly and fairly within the
4 purposes of this Act and (2) that the applicant meets the
5 positive net worth requirement set forth in Section 2 of this
6 Act. Unless the Director makes findings hereinabove
7 enumerated, he or she shall not issue a license and shall
8 notify the applicant of the denial and return to the
9 applicant the sum paid by the applicant as a license fee, but
10 shall retain the $300 application investigation fee. The
11 Director shall approve or deny every application for license
12 hereunder within 60 days from the filing thereof with the
13 fee.
14 (Source: P.A. 90-437, eff. 1-1-98.)
15 (205 ILCS 670/9.1)
16 Sec. 9.1. Closing of business; surrender of license. At
17 least 10 days prior to a licensee ceasing operations, closing
18 business, or filing for bankruptcy, the licensee shall:
19 (a) Notify the Department of its action in writing.
20 (b) With the exception of filing for bankruptcy,
21 surrender its license to the Director for cancellation. The
22 surrender of the license shall not affect the licensee's
23 civil or criminal liability for acts committed prior to
24 surrender or entitle the licensee to a return of any part of
25 the annual license fee.
26 (c) The licensee shall notify the Department of the
27 location where the books, accounts, contracts, and records
28 will be maintained and the procedure to ensure prompt return
29 of contracts, titles, and releases to the customers.
30 (d) The accounts, books, records, and contracts shall be
31 maintained and serviced by the licensee or another licensee
32 under this Act, or an entity exempt from licensure under this
33 Act.
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1 (e) The Department shall have the authority to conduct
2 examinations of the books, records, and loan documents at any
3 time after surrender of the license, filing of bankruptcy, or
4 the cessation of operations.
5 (Source: P.A. 90-437, eff. 1-1-98.)
6 Section 86. The Check Printer and Check Number Act is
7 amended by changing Sections 15, 25, 30, and 37 and adding
8 Section 17 as follows:
9 (205 ILCS 690/15)
10 Sec. 15. Verification of check purchasers.
11 (a) A person, other than a financial institution, who
12 sells or distributes checks that may be drawn against funds
13 held by financial institutions in a consumer-deposit account
14 shall before delivery of the checks to the person ordering
15 them, verify the accuracy of that person's name, street
16 address, city, state, and account telephone number, and
17 social security number. If the information is not first
18 verified, the seller or distributor shall not sell or
19 distribute the ordered checks. Acceptable forms of
20 documentation under this subsection may include a copy of the
21 account agreement with the financial institution, a recent
22 account statement issued by the financial institution, a
23 letter or verbal response from the financial institution
24 verifying the account information, or a copy of the Magnetic
25 Ink Character Recognition specification sheet from the
26 financial institution. The Commissioner may, by rule, allow
27 for additional or other forms of verification. The sale or
28 distribution of checks to any person as to whom verification,
29 as provided for herein, has not first been made shall
30 constitute a business offense for which the fine shall be
31 $1,000 for each offense.
32 (b) This Section shall not apply to any check orders:
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1 (1) drawn on an existing consumer-deposit account
2 for which a check order has been previously fulfilled by
3 the person selling or distributing checks and for which
4 there are no changes to the original account holder's
5 name, street address, city, state, or account number;
6 (2) originating from a financial institution and
7 made on behalf of a new or existing consumer-deposit
8 account held at the financial institution; or
9 (3) any order for checks to be drawn on an existing
10 consumer-deposit account for which the only changes
11 involve (i) a change of zip code with no change to the
12 street address, city, or state or (ii) street address or
13 state convenience changes to or from an abbreviated word
14 (e.g. St. to Street, Apt. to Apartment, IL. to Illinois).
15 (Source: P.A. 90-184, eff. 7-23-97.)
16 (205 ILCS 690/17 new)
17 Sec. 17. Exemptions. Nothing in this Act shall be
18 construed to apply to a personal computer user who generates
19 checks for personal use or who distributes checks to
20 immediate family members at no charge.
21 (205 ILCS 690/25)
22 Sec. 25. Bond; conditions; amount. A registrant shall
23 maintain at all times a surety bond procured by the
24 registrant and issued by a bonding company authorized to do
25 business in this State in a principal sum of no less than
26 $10,000. The bond shall be for any liability incurred by the
27 registrant resulting from a judgment entered for any
28 violation of this Act, including damages awarded in actions
29 brought pursuant to Section 35. At the time of each
30 registration, the registrant shall file with the Commissioner
31 proof of such surety bond. At the time of each registration,
32 the registrant shall file with, and have approved by, the
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1 Commissioner a surety bond issued by a bonding company
2 authorized to do business in this State in the principal sum
3 of $10,000. The bond shall run to the Commissioner and shall
4 be for any liability incurred by the registrant for any
5 violation of this Act, including damages awarded in actions
6 brought pursuant to Section 35.
7 From time to time, the Commissioner may determine the
8 amount of liabilities as described herein and may require the
9 registrant to file a bond in an additional sum if it is
10 determined to be necessary in accordance with the
11 requirements of this Section. In no case shall the bond be
12 less than the initial $10,000, nor more than the outstanding
13 liabilities if in excess of $10,000.
14 (Source: P.A. 90-184, eff. 7-23-97.)
15 (205 ILCS 690/30)
16 Sec. 30. Civil action.
17 (a) When the Commissioner believes a person has
18 violated, is violating, or will violate this Act or a rule
19 prescribed under this Act, the Commissioner may request the
20 Attorney General to bring a civil action in circuit court to
21 enjoin the violation or enforce compliance with this Act or a
22 rule prescribed under this Act. A person not complying with
23 an injunction issued under this Section is liable to the
24 State of Illinois in a civil suit for an amount of not more
25 than $10,000.
26 (b) If the Commissioner finds that any person has
27 violated Sections 10, 20, 21, or 25 of this Act, or any rules
28 adopted by the Commissioner under this Act, the Commissioner
29 may, in addition to seeking an injunction as provided in
30 subsection (a) of this Section, impose a civil monetary
31 penalty in an amount of not more than $10,000 for each
32 violation.
33 (Source: P.A. 90-184, eff. 7-23-97.)
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1 (205 ILCS 690/37)
2 Sec. 37. Record retention. Records pertaining to or
3 constituting the procedures for and results of the
4 verification required under this Act shall be retained for a
5 period of 18 months 5 years from the date of receipt of the
6 information.
7 (Source: P.A. 90-184, eff. 7-23-97.)
8 Section 88. The State Housing Act is amended by changing
9 Section 8 as follows:
10 (310 ILCS 5/8) (from Ch. 67 1/2, par. 158)
11 Sec. 8. The name of every housing corporation organized
12 pursuant to the provisions of this Act shall include the word
13 words "housing", and no business corporation organized under
14 the "Business Corporation Act of 1983", as amended, shall,
15 after the date of enactment of this Act, include the word
16 "Housing" as part of its corporate name.
17 (Source: P.A. 83-1362.)
18 Section 90. The Criminal Code of 1961 is amended by
19 changing Section 17-3 as follows:
20 (720 ILCS 5/17-3) (from Ch. 38, par. 17-3)
21 Sec. 17-3. Forgery.
22 (a) A person commits forgery when, with intent to
23 defraud, he knowingly:
24 (1) Makes or alters any document apparently capable
25 of defrauding another in such manner that it purports to
26 have been made by another or at another time, or with
27 different provisions, or by authority of one who did not
28 give such authority; or
29 (2) Issues or delivers such document knowing it to
30 have been thus made or altered; or
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1 (3) Possesses, with intent to issue or deliver, any
2 such document knowing it to have been thus made or
3 altered; or.
4 (4) Unlawfully uses the digital signature, as
5 defined in the Financial Institutions Digital Signature
6 Act, of another.
7 (b) An intent to defraud means an intention to cause
8 another to assume, create, transfer, alter or terminate any
9 right, obligation or power with reference to any person or
10 property. As used in this Section, "document" includes, but
11 is not limited to, any document, representation, or image
12 produced manually, electronically, or by computer.
13 (c) A document apparently capable of defrauding another
14 includes, but is not limited to, one by which any right,
15 obligation or power with reference to any person or property
16 may be created, transferred, altered or terminated.
17 (d) Sentence.
18 Forgery is a Class 3 felony.
19 (Source: P.A. 77-2638.)
20 Section 92. The Business Corporation Act of 1983 is
21 amended by changing Section 4.05 as follows:
22 (805 ILCS 5/4.05) (from Ch. 32, par. 4.05)
23 Sec. 4.05. Corporate name of domestic or foreign
24 corporation.
25 (a) The corporate name of a domestic corporation or of a
26 foreign corporation organized, existing or subject to the
27 provisions of this Act:
28 (1) Shall contain, separate and apart from any
29 other word or abbreviation in such name, the word
30 "corporation", "company", "incorporated", or "limited",
31 or an abbreviation of one of such words, and if the name
32 of a foreign corporation does not contain, separate and
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1 apart from any other word or abbreviation, one of such
2 words or abbreviations, the corporation shall add at the
3 end of its name, as a separate word or abbreviation, one
4 of such words or an abbreviation of one of such words.
5 (2) Shall not contain any word or phrase which
6 indicates or implies that the corporation (i) is
7 authorized or empowered to conduct the business of
8 insurance, assurance, indemnity, or the acceptance of
9 savings deposits; (ii) is authorized or empowered to
10 conduct the business of banking unless otherwise
11 permitted by the Commissioner of Banks and Real Estate
12 pursuant to Section 46 of the Illinois Banking Act; or
13 (iii) is authorized or empowered to be in the business of
14 a corporate fiduciary unless otherwise permitted by the
15 Commissioner of Banks and Real Estate under Section 1-9
16 of the Corporate Fiduciary Act. The word "trust",
17 "trustee", or "fiduciary" may be used by a corporation
18 only if it has first complied with Section 1-9 of the
19 Corporate Fiduciary Act. The word "bank", "banker" or
20 "banking" may only be used by a corporation if it has
21 first complied with Section 46 of the Illinois Banking
22 Act.
23 (3) Shall be distinguishable upon the records in
24 the office of the Secretary of State from the corporate
25 name or assumed corporate name of any domestic
26 corporation, whether profit or not for profit, existing
27 under any Act of this State or of any foreign
28 corporation, whether profit or not for profit, authorized
29 to transact business in this State, or a name the
30 exclusive right to which is, at the time, reserved or
31 registered in the manner provided in this Act, except
32 that, subject to the discretion of the Secretary of
33 State, a foreign corporation that has a name prohibited
34 by this paragraph may be issued a certificate of
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1 authority to transact business in this State, if the
2 foreign corporation:
3 (i) Elects to adopt an assumed corporate name
4 or names in accordance with Section 4.15 of this
5 Act; and
6 (ii) Agrees in its application for a
7 certificate of authority to transact business in
8 this State only under such assumed corporate name or
9 names.
10 (4) Shall contain the word "trust", if it be a
11 domestic corporation organized for the purpose of
12 accepting and executing trusts, shall contain the word
13 "pawners", if it be a domestic corporation organized as a
14 pawners' society, and shall contain the word
15 "cooperative", if it be a domestic corporation organized
16 as a cooperative association for pecuniary profit.
17 (5) Shall not contain a word or phrase, or an
18 abbreviation or derivation thereof, the use of which is
19 prohibited or restricted by any other statute of this
20 State unless such restriction has been complied with.
21 (6) Shall consist of letters of the English
22 alphabet, Arabic or Roman numerals, or symbols capable of
23 being readily reproduced by the office of the Secretary
24 of State.
25 (7) Shall be the name under which the corporation
26 shall transact business in this State unless the
27 corporation shall also elect to adopt an assumed
28 corporate name or names as provided in this Act;
29 provided, however, that the corporation may use any
30 divisional designation or trade name without complying
31 with the requirements of this Act, provided the
32 corporation also clearly discloses its corporate name.
33 (8) (Blank) Shall not contain the word "housing" as
34 part of its corporate name.
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1 (b) The Secretary of State shall determine whether a
2 name is "distinguishable" from another name for purposes of
3 this Act. Without excluding other names which may not
4 constitute distinguishable names in this State, a name is not
5 considered distinguishable, for purposes of this Act, solely
6 because it contains one or more of the following:
7 (1) the word "corporation", "company",
8 "incorporated", or "limited" or an abbreviation of one of
9 such words;
10 (2) articles, conjunctions, contractions,
11 abbreviations, different tenses or number of the same
12 word;
13 (c) Nothing in this Section or Sections 4.15 or 4.20
14 shall:
15 (1) Require any domestic corporation existing or
16 any foreign corporation having a certificate of authority
17 on the effective date of this Act, to modify or otherwise
18 change its corporate name or assumed corporate name, if
19 any.
20 (2) Abrogate or limit the common law or statutory
21 law of unfair competition or unfair trade practices, nor
22 derogate from the common law or principles of equity or
23 the statutes of this State or of the United States with
24 respect to the right to acquire and protect copyrights,
25 trade names, trade marks, service names, service marks,
26 or any other right to the exclusive use of names or
27 symbols.
28 (Source: P.A. 88-151; 88-408; 88-670, eff. 12-2-94; 89-508,
29 eff. 7-3-96.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.