TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 160 SALES FINANCE AGENCY ACT
SECTION 160.280 LOAN SALES


 

Section 160.280  Loan Sales

 

a)         For purposes of this Section:

 

1)         "Act" means the Sales Finance Agency Act [205 ILCS 660]; and

 

2)         "Licensee" means licensees under the Act and the Consumer Installment Loan Act [205 ILCS 670].

 

b)         A licensee may not pledge, hypothecate, sell, or otherwise convey contracts purchased, or loans made, under the provisions of the Act, except as provided in this Section.

 

c)         A licensee may not pledge, hypothecate, sell, or otherwise convey contracts purchased, or loans made, under the Act, except to:

 

1)         another licensee under the Act;

 

2)         a Consumer Installment Loan Act licensee;

 

3)         a special purpose vehicle as defined by the Act;

 

4)         a person or entity that lends against or purchases retail installment contracts, retail charge agreements, or the outstanding balances or any portion of the outstanding balances under those contracts or agreements from an Illinois licensed sales finance agency or Consumer Installment Loan Act licensee in connection with a securitization, private placement, or similar type of investment transaction.  A licensee may pledge, hypothecate, sell, or otherwise convey contracts purchased, or loans made, under the Act to a person or entity described in this subsection (c)(4) only if the conveyor licensee retains servicing of the loan agreements or contracts and maintains the records for those loan agreements or contracts (see Section 17(b) of the Act);

 

5)         the retail seller from which the conveyor licensee originally purchased the retail installment contracts or retail charge agreements; or

 

6)         a credit union, bank, banking association, trust company, savings bank, or savings and loan association authorized to do business under the laws of this State or of the United States.

 

d)         The conveyor licensee shall notify the Department in writing, no more than 10 days after the transaction, indicating the name of the purchaser/pledgee/recipient.

 

(Source:  Amended at 46 Ill. Reg. 2635, effective January 28, 2022)