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91_SB0842
LRB9105877JSpcA
1 AN ACT to amend the Consumer Installment Loan Act by
2 changing Section 1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Consumer Installment Loan Act is amended
6 by changing Section 1 as follows:
7 (205 ILCS 670/1) (from Ch. 17, par. 5401)
8 Sec. 1. License required to engage in business.
9 (a) No person, partnership, association, limited
10 liability company, or corporation shall engage in the
11 business of making loans of money in a principal amount not
12 exceeding $25,000, and charge, contract for, or receive on
13 any such loan a greater rate of interest, discount, or
14 consideration therefor than the lender would be permitted by
15 law to charge if he were not a licensee hereunder, except as
16 authorized by this Act after first obtaining a license from
17 the Director of Financial Institutions (hereinafter called
18 the Director).
19 (b) In addition to the license required under subsection
20 (a), a person, partnership, association, limited liability
21 company, or corporation must obtain a short-term lender
22 license from the Director if engaged in making loans of $500
23 or less and having a term not exceeding 60 days to a natural
24 person in a transaction in which (1) the lender receives a
25 check, draft, or similar instrument that is postdated to the
26 maturity date of the loan in an amount that fully satisfies
27 the borrower's obligation under the loan agreement or (2) a
28 motor vehicle owned by the borrower is pledged as collateral
29 for the loan. Before the license is granted, the Director
30 shall require the applicant to publish notice of the
31 application for a license as a short-term lender in a
-2- LRB9105877JSpcA
1 newspaper of general circulation in the vicinity of the site
2 where the business of the applicant will be conducted.
3 (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)