State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]



90_SB1096

      SEE INDEX
          Amends the Currency Exchange Act.  Provides that the  Act
      applies to limited liability companies and authorizes limited
      liability   companies  to  conduct  business  as  a  currency
      exchange.   Amends  the  Financial  Planning  and  Management
      Service  Act.   Changes  the  title  of the Act.  Changes the
      short title to the Debt Management  Service  Act.    Provides
      that the Act applies to the business of planning and managing
      the  financial  affairs of a debtor including receiving money
      from the debtor to pay debts.    Establishes  procedures  for
      revocation  and  suspension of licenses.  Provides for annual
      examinations of licensees.  Limits fees that may be  charged.
      Requires  client  funds  to  be  maintained  in  trust funds.
      Effective January 1, 1998.
                                                     LRB9002126JSgc
                                               LRB9002126JSgc
 1        AN ACT concerning certain  financial  services,  amending
 2    named Acts.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The State Finance Act is amended by  changing
 6    Section 6z-26 as follows:
 7        (30 ILCS 105/6z-26)
 8        Sec.  6z-26.  The Financial Institution Fund.  All moneys
 9    received by the Department of  Financial  Institutions  under
10    the  Safety Deposit License Act, the Foreign Exchange License
11    Act, the Pawners Societies Act, the Sale of Exchange Act, the
12    Currency Exchange Act, the Sales Finance Agency Act, the Debt
13    Financial Planning and Management Service Act,  the  Consumer
14    Installment   Loan   Act,   the  Consumer  Credit  Counseling
15    Corporation Act, the Illinois Development Credit  Corporation
16    Act,  the Title Insurance Act, and any other Act administered
17    by the Department of Financial Institutions  now  or  in  the
18    future  (unless an Act specifically provides otherwise) shall
19    be deposited in the Financial Institution  Fund  (hereinafter
20    "Fund"),  a  special fund that is hereby created in the State
21    Treasury.
22        Moneys in the Fund  shall  be  used  by  the  Department,
23    subject   to   appropriation,   for   expenses   incurred  in
24    administering the above named and referenced Acts.
25        The Comptroller and the State  Treasurer  shall  transfer
26    from the General Revenue Fund to the Fund any monies received
27    by the Department after June 30, 1993, under any of the above
28    named  and  referenced  Acts  that have been deposited in the
29    General Revenue Fund.
30        As soon as possible after the end of each calendar  year,
31    the  Comptroller shall compare the balance in the Fund at the
                            -2-                LRB9002126JSgc
 1    end of the calendar year with the  amount  appropriated  from
 2    the  Fund  for  the  fiscal  year beginning on July 1 of that
 3    calendar year.  If the balance in the Fund exceeds the amount
 4    appropriated, the Comptroller and the State  Treasurer  shall
 5    transfer  from the Fund to the General Revenue Fund an amount
 6    equal to the difference between the balance in the  Fund  and
 7    the amount appropriated.
 8        Nothing  in  this  Section shall be construed to prohibit
 9    appropriations from the General  Revenue  Fund  for  expenses
10    incurred  in  the  administration  of  the  above  named  and
11    referenced Acts.
12    (Source: P.A. 88-13; 88-670, eff. 12-2-94.)
13        Section  10.  The  Currency  Exchange  Act  is amended by
14    changing Sections 1, 2, 3, 4, 7, 10, 13.1, 15.1b, 15.1c,  16,
15    and 24 as follows:
16        (205 ILCS 405/1) (from Ch. 17, par. 4802)
17        Sec.   1.  Definitions;  application  of  Act.   For  the
18    purposes of this Act: "Community currency exchange" means any
19    person, firm,  association,  partnership,  limited  liability
20    company,   or  corporation,  except  an  ambulatory  currency
21    exchange as hereinafter defined, banks incorporated under the
22    laws of this State and National Banks organized  pursuant  to
23    the  laws  of  the  United States, engaged in the business or
24    service of, and providing  facilities  for,  cashing  checks,
25    drafts,   money  orders  or  any  other  evidences  of  money
26    acceptable to such community currency exchange, for a fee  or
27    service  charge  or  other  consideration,  or engaged in the
28    business of selling or issuing  money  orders  under  his  or
29    their  or  its  name,  or  any other money orders (other than
30    United States Post  Office  money  orders,  Postal  Telegraph
31    Company  money  orders,  or  Western  Union Telegraph Company
32    money orders), or engaged in both such businesses, or engaged
                            -3-                LRB9002126JSgc
 1    in performing any one or more of the foregoing services.
 2        "Ambulatory Currency Exchange" means  any  person,  firm,
 3    association,   partnership,  limited  liability  company,  or
 4    corporation, except banks organized under the  laws  of  this
 5    State  and  National  Banks organized pursuant to the laws of
 6    the United States, engaged in one or both  of  the  foregoing
 7    businesses,  or  engaged in performing any one or more of the
 8    foregoing services, solely on the premises  of  the  employer
 9    whose employees are being served.
10        "Location"  when  used  with  reference  to an ambulatory
11    currency exchange means the premises of  the  employer  whose
12    employees  are  or are to be served by an ambulatory currency
13    exchange.
14        "Director" means the Director of Financial Institutions.
15        Nothing in this Act shall be held to apply to any person,
16    firm, association, partnership, limited liability company, or
17    corporation who is  engaged  primarily  in  the  business  of
18    transporting   for   hire,   bullion,  currency,  securities,
19    negotiable  or  non-negotiable  documents,  jewels  or  other
20    property of great monetary value and who  in  the  course  of
21    such business and only as an incident thereto, cashes checks,
22    drafts,  money  orders  or  other evidences of money directly
23    for, or for the employees of and with the funds of and  at  a
24    cost  only  to,  the  person, firm, association, partnership,
25    limited liability company, or corporation for whom he  or  it
26    is   then   actually  transporting  such  bullion,  currency,
27    securities, negotiable or non-negotiable  documents,  jewels,
28    or  other  property  of  great  monetary value, pursuant to a
29    written contract for such transportation  and  all  incidents
30    thereof, nor shall it apply to any person, firm, association,
31    partnership,   limited   liability  company,  or  corporation
32    engaged in the business of selling tangible personal property
33    at retail who, in the course of such business and only as  an
34    incident  thereto,  cashes  checks,  drafts,  money orders or
                            -4-                LRB9002126JSgc
 1    other evidences of money.
 2    (Source: Laws 1959, p. 2264.)
 3        (205 ILCS 405/2) (from Ch. 17, par. 4803)
 4        Sec.  2.  License  required;  violation;  injunction.  No
 5    person, firm,  association,  partnership,  limited  liability
 6    company,  or  corporation  shall  engage in the business of a
 7    community  currency  exchange  or  in  the  business  of   an
 8    ambulatory currency exchange without first securing a license
 9    to do so from the Director.
10        Any   person,  firm,  association,  partnership,  limited
11    liability company, or corporation issued a license to  do  so
12    by  the  Director shall have authority to operate a community
13    currency exchange or  an  ambulatory  currency  exchange,  as
14    defined in Section 1 hereof.
15        Any   person,  firm,  association,  partnership,  limited
16    liability company, or corporation licensed as and engaged  in
17    the  business  of  a  community  currency exchange shall at a
18    minimum offer the service of cashing checks,  or  drafts,  or
19    money  orders,  or any other evidences of money acceptable to
20    such currency exchange.
21        No ambulatory currency exchange and no community currency
22    exchange shall  be  conducted  on  any  street,  sidewalk  or
23    highway  used  by  the public, and no license shall be issued
24    therefor. An ambulatory currency exchange shall  be  required
25    to  and shall secure a license or licenses for the conduct of
26    its business at each and every  location  served  by  it,  as
27    provided  in  Section  4  hereof, whether the services at any
28    such location are rendered for  or  without  a  fee,  service
29    charge or other consideration. Each plant or establishment is
30    deemed a separate location. No license issued for the conduct
31    of  its  business at one location shall authorize the conduct
32    of its business at any other location, nor shall any  license
33    authorize the rendering of services by an ambulatory currency
                            -5-                LRB9002126JSgc
 1    exchange  to persons other than the employees of the employer
 2    named therein. If the employer named in  such  license  shall
 3    move  his  business  from the address therein set forth, such
 4    license shall  thereupon  expire,  unless  the  Director  has
 5    approved  a  change of address for such location, as provided
 6    in Section 13.
 7        Any  person,  firm,  association,  partnership,   limited
 8    liability  company, or corporation that violates this Section
 9    shall be guilty of a Class A misdemeanor,  and  the  Attorney
10    General  or  the  State's Attorney of the county in which the
11    violation occurs shall file a complaint in the Circuit  Court
12    of the county to restrain the violation.
13    (Source: P.A. 84-504.)
14        (205 ILCS 405/3) (from Ch. 17, par. 4804)
15        Sec.  3.  Powers  of  community  currency  exchanges.  No
16    community or ambulatory currency exchange shall be  permitted
17    to  accept  money  or  evidences  of money as a deposit to be
18    returned to the depositor or upon the depositor's order;  and
19    no   community  or  ambulatory  currency  exchange  shall  be
20    permitted to act as  bailee  or  agent  for  persons,  firms,
21    partnerships,  limited  liability  companies, associations or
22    corporations to  hold  money  or  evidences  thereof  or  the
23    proceeds  therefrom  for  the  use  and benefit of the owners
24    thereof, and deliver such money or proceeds  of  evidence  of
25    money  upon  request  and  direction of such owner or owners;
26    provided, that  nothing  contained  herein  shall  prevent  a
27    community  or  an ambulatory currency exchange from obtaining
28    state automobile and city  vehicle  licenses  for  a  fee  or
29    service  charge,  or  from  rendering a photostat service, or
30    from rendering a notary service either by the  proprietor  of
31    the currency exchange or any one of its employees, authorized
32    by  the  State of Illinois to act as a notary public, or from
33    selling travelers cheques obtained by the  currency  exchange
                            -6-                LRB9002126JSgc
 1    from  a  banking  institution  under a trust receipt, or from
 2    issuing money orders or from accepting  for  payment  utility
 3    bills.  Any  community  or  ambulatory  currency exchange may
 4    enter into an agreement with any utility and other  companies
 5    to  act as its agent for the acceptance of payment of utility
 6    and other companies' bills  without  charge  to  the  utility
 7    customer  and,  acting  under such agreement, may receipt for
 8    payments in the names of the  utility  and  other  companies.
 9    Any  community  or  ambulatory  currency  exchange  may  also
10    receive  payment  of  utility  and other companies' bills for
11    remittance to companies with which  it  has  no  such  agency
12    agreement  and may charge a fee for such service but may not,
13    in such cases, receipt for such payment in the names  of  the
14    utility  and  other  companies.  However,  funds  received by
15    currency  exchanges  for  remittance  to  utility  and  other
16    companies with which the  currency  exchange  has  no  agency
17    agreement  shall  be forwarded to the appropriate utility and
18    other companies by the currency exchange before  the  end  of
19    the next business day.
20    (Source: P.A. 80-445.)
21        (205 ILCS 405/4) (from Ch. 17, par. 4808)
22        Sec. 4. License application; contents; fees.  Application
23    for  such  license  shall be in writing under oath and in the
24    form  prescribed  and  furnished  by   the   Director.   Each
25    application shall contain the following:
26        (a)  The  full  name  and  address (both of residence and
27    place of business) of the applicant, and if the applicant  is
28    a  partnership, limited liability company, or association, of
29    every member thereof, and the name and  business  address  if
30    the applicant is a corporation;
31        (b)  The county and municipality, with street and number,
32    if  any,  where  the  community  currency  exchange  is to be
33    conducted, if the application is  for  a  community  currency
                            -7-                LRB9002126JSgc
 1    exchange license;
 2        (c)  If  the  application  is  for an ambulatory currency
 3    exchange license, the name and address  of  the  employer  at
 4    each location to be served by it; and
 5        (d)  The applicant's occupation or profession; a detailed
 6    statement  of  his  business  experience  for  the  10  years
 7    immediately  preceding  his application; a detailed statement
 8    of his finances; his present or previous connection with  any
 9    other currency exchange; whether he has ever been involved in
10    any  civil  or  criminal  litigation,  and the material facts
11    pertaining thereto; whether he has ever been committed to any
12    penal institution or admitted to an institution for the  care
13    and  treatment  of  mentally  ill  persons; and the nature of
14    applicant's occupancy of the premises to  be  licensed  where
15    the application is for a community currency exchange license.
16    If  the applicant is a partnership, the information specified
17    herein shall be required of each partner. If the applicant is
18    a corporation, the said information shall be required of each
19    officer, director and stockholder thereof. If  the  applicant
20    is  a  limited liability company, the information required by
21    this Section shall be provided with respect  to  each  member
22    and manager.
23        A  community  currency exchange license application shall
24    be accompanied by a fee of $150 on the effective date of this
25    amendatory Act of 1987 and until January 1, 1989, and $180 on
26    January 1, 1989 and until January 1, 1990, and  $500  on  and
27    after  January  1,  1990  which  fee shall be for the cost of
28    investigating the  applicant.  When  the  application  for  a
29    community  currency exchange license has been approved by the
30    Director and the applicant so advised, an additional  sum  of
31    $150 on the effective date of this amendatory Act of 1987 and
32    until  January 1, 1989, and $180 on January 1, 1989 and until
33    January 1, 1990, and $200 on and after January 1, 1990 as  an
34    annual  license  fee for a period terminating on the last day
                            -8-                LRB9002126JSgc
 1    of the current calendar year shall be paid to the Director by
 2    the  applicant;  provided,  that  the  license  fee  for   an
 3    applicant  applying  for such a license after July 1st of any
 4    year shall be $75 on the effective date  of  this  amendatory
 5    Act  of  1987 and until July 1, 1988, and $90 on July 1, 1988
 6    and until July 1, 1989, and $100 on and after  July  1,  1989
 7    for the balance of such year.
 8        An   application  for  an  ambulatory  currency  exchange
 9    license shall be accompanied by a  fee  of  $100,  which  fee
10    shall  be  for  the  cost of investigating the applicant.  An
11    approved applicant shall not be required to pay  the  initial
12    investigation  fee  of  $100  more  than  once.     When  the
13    application  for  an ambulatory currency exchange license has
14    been approved by the Director, and such applicant so advised,
15    such applicant shall pay an annual license  fee  of  $25  for
16    each  and  every  location  to  be  served by such applicant;
17    provided that such license  fee  for  an  approved  applicant
18    applying  for such a license after July 1st of any year shall
19    be $12 for the balance  of  such  year  for  each  and  every
20    location  to  be  served  by such applicant. Such an approved
21    applicant for an ambulatory currency exchange  license,  when
22    applying for a license with respect to a particular location,
23    shall  file  with  the  Director,  at  the  time of filing an
24    application, a  letter  of  memorandum,  which  shall  be  in
25    writing  and  under  oath,  signed by the owner or authorized
26    representative of the business  whose  employees  are  to  be
27    served;  such  letter or memorandum shall contain a statement
28    that such service is desired, and that the person signing the
29    same is authorized so to do.  The  Director  shall  thereupon
30    verify  the  authenticity of the letter or memorandum and the
31    authority of the person who executed it, to do so.
32    (Source: P.A. 86-432.)
33        (205 ILCS 405/7) (from Ch. 17, par. 4814)
                            -9-                LRB9002126JSgc
 1        Sec. 7. Available funds; minimum amount.  Each  community
 2    currency  exchange shall have, at all times, a minimum sum of
 3    its own cash funds available for the uses and purposes of its
 4    business and said minimum sum shall be exclusive  of  and  in
 5    addition  to  funds received for exchange or transfer; and in
 6    addition thereto each such licensee shall at all  times  have
 7    on hand an amount of liquid funds sufficient to pay on demand
 8    all  outstanding  money orders issued by it. Prior to January
 9    1, 1979, this minimum sum shall be $4,000.  After January  1,
10    1979, this minimum sum shall be $5,000.
11        In  the  event a receiver is appointed in accordance with
12    Section 15.1 of this Act, and the  Director  determines  that
13    the  business  of the currency exchange should be liquidated,
14    and if it shall appear that the said minimum sum was  not  on
15    hand  or  available  at  the  time  of the appointment of the
16    receiver, then the receiver shall have the right  to  recover
17    in  any  court  of  competent  jurisdiction from the owner or
18    owners of such currency exchange, or  from  the  stockholders
19    and  directors thereof if such currency exchange was operated
20    by a  corporation,  or  from  the  members  if  the  currency
21    exchange  was  operated  as a limited liability company, said
22    sum or that part thereof which was not on hand  or  available
23    at  the  time  of  the  appointment of such receiver. Nothing
24    contained in this Section shall limit or impair the liability
25    of any bonding or insurance company on any bond or  insurance
26    policy  relating  to  such community currency exchange issued
27    pursuant to the requirements of this Act, nor shall  anything
28    contained  herein  limit  or  impair  such  other  rights  or
29    remedies as the receiver may otherwise have.
30    (Source: P.A. 83-345.)
31        (205 ILCS 405/10) (from Ch. 17, par. 4817)
32        Sec.  10. Qualifications of applicant; denial of license;
33    review.  The  applicant,  and  its  officers,  directors  and
                            -10-               LRB9002126JSgc
 1    stockholders, if a corporation, and its managers and members,
 2    if  a  liability company, shall be vouched for by 2 reputable
 3    citizens of this State  setting  forth  that  the  individual
 4    mentioned  is  (a) personally known to them to be trustworthy
 5    and reputable, (b) that he has business experience qualifying
 6    him to competently conduct, operate, own or become associated
 7    with a currency exchange, (c) that he  has  a  good  business
 8    reputation  and  is  worthy  of  a  license.  Thereafter, the
 9    Director shall, upon approval of the application  filed  with
10    him,  issue  to  the  applicant, qualifying under this Act, a
11    license to operate a currency exchange. If it  is  a  license
12    for  a  community  currency exchange, the same shall be valid
13    only at the place of business specified in  the  application.
14    If  it  is  a license for an ambulatory currency exchange, it
15    shall entitle the applicant to operate only at  the  location
16    or  locations  specified  in  the  application,  provided the
17    applicant shall secure separate and additional  licenses  for
18    each  of  such  locations. Such licenses shall remain in full
19    force and effect, until they are surrendered by the licensee,
20    or revoked, or expire, as herein provided.  If  the  Director
21    shall  not  so  approve,  he  shall not issue such license or
22    licenses and shall  notify  the  applicant  of  such  denial,
23    retaining  the  full  investigation  fee to cover the cost of
24    investigating the community currency exchange applicant.  The
25    Director  shall  approve  or deny every application hereunder
26    within 90 days  from  the  filing  thereof;  except  that  in
27    respect  to an application by an approved ambulatory currency
28    exchange for a license with regard to a  particular  location
29    to  be  served  by  it,  the same shall be approved or denied
30    within 20 days from the filing thereof. If the application is
31    denied, the Director shall send by United States mail  notice
32    of  such  denial to the applicant at the address set forth in
33    the application.
34        If an application is denied, the applicant may, within 10
                            -11-               LRB9002126JSgc
 1    days from the date of the  notice  of  denial,  make  written
 2    request to the Director for a hearing on the application, and
 3    the  Director shall set a time and place for the hearing. The
 4    hearing shall be set for a date  after  the  receipt  by  the
 5    Director  of  the  request for hearing, and written notice of
 6    the time and place of the hearing  shall  be  mailed  to  the
 7    applicant  at  least  15 days before the date of the hearing.
 8    The applicant  shall  pay  the  actual  cost  of  making  the
 9    transcript of the hearing prior to the Director's issuing his
10    decision  following  the  hearing. If, following the hearing,
11    the application is denied, the Director shall, within 20 days
12    thereafter prepare and keep on file in his office  a  written
13    order  of  denial  thereof,  which shall contain his findings
14    with respect thereto and the reasons supporting  the  denial,
15    and  shall  send  by United States Mail a copy thereof to the
16    applicant at the address set forth in the application, within
17    5 days after the filing of such order. A review of  any  such
18    decision may be had as provided in Section 22.01 of this Act.
19    (Source: P.A. 85-1356.)
20        (205 ILCS 405/13.1) (from Ch. 17, par. 4822)
21        Sec. 13.1. Consolidation of business locations.  Whenever
22    2  or  more  licensees  desire to consolidate their places of
23    business, they shall make application for such  consolidation
24    to the Director upon a form provided by him. This application
25    shall  state:  (a) the name to be adopted and the location at
26    which the business is to be located, which name and  location
27    shall  be the same as one of the consolidating licensees; (b)
28    that the owners or all partners or all  stockholders  or  all
29    members, as the case may be, of the licensees involved in the
30    contemplated  consolidation,  have  approved the application;
31    (c) a certification by the secretary, if any of the licensees
32    be corporations, that the contemplated consolidation has been
33    approved by all of the stockholders at  a  properly  convened
                            -12-               LRB9002126JSgc
 1    stockholders  meeting;  (d)  other  relevant  information the
 2    Director may require. Simultaneously with the approval of the
 3    application by the Director, the licensee  or  licensees  who
 4    will  cease doing business shall: (a) surrender their license
 5    or licenses to the Director; (b) transfer all of their assets
 6    and liabilities to the  licensee  continuing  to  operate  by
 7    virtue  of  the  application;  (c)  apply to the Secretary of
 8    State, if  they  be  corporations,  for  surrender  of  their
 9    corporate  charter  in  accordance with the provisions of the
10    the "Business Corporation Act of 1983", as amended.
11        An application for consolidation  shall  be  approved  or
12    rejected  by the Director within 30 days after receipt by him
13    of  such  application  and  supporting   documents   required
14    thereunder.
15        Such  consolidation  shall  not  affect  suits pending in
16    which the surrendering licensees are parties; nor shall  such
17    consolidation  affect  causes  of  action  nor  the rights of
18    persons in particular; nor shall suits brought  against  such
19    licensees in their former names be abated for that cause.
20        Nothing  contained  herein  shall  limit  or prohibit any
21    action or remedy available to a licensee or to  the  Director
22    under Sections 15, 15.1 to 15.1e or 15.2 of this Act.
23    (Source: P.A. 83-1362.)
24        (205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
25        Sec.  15.1b.   Liquidation;  distribution; priority.  The
26    General Assembly finds and declares that  community  currency
27    exchanges  provide  important  and vital services to Illinois
28    citizens.  The General Assembly also finds that in  providing
29    such   services,   community   currency   exchanges  transact
30    extensive business involving check cashing and the writing of
31    money orders in communities in  which  banking  services  are
32    generally  unavailable.  It  is  therefore declared to be the
33    policy  of  this  State  that  customers  who  receive  these
                            -13-               LRB9002126JSgc
 1    services must be  protected  from  insolvencies  of  currency
 2    exchanges  and  interruptions of services.  To carry out this
 3    policy and to insure that  customers  of  community  currency
 4    exchanges  are protected in the event it is determined that a
 5    community  currency  exchange  in  receivership   should   be
 6    liquidated  in accordance with Section 15.1a of this Act, the
 7    Director shall make a distribution of moneys collected by the
 8    receiver in the following order of priority:  First,  allowed
 9    claims  for the actual necessary expenses of the receivership
10    of  the  community  currency   exchange   being   liquidated,
11    including   (a)   reasonable  receiver  fees  and  receiver's
12    attorney's fees approved by the Director, (b) all expenses of
13    any preliminary or other examinations into the  condition  of
14    the  community  currency  exchange  or  receivership, (c) all
15    expenses incurred by  the  Director  which  are  incident  to
16    possession  and  control  of  any  property or records of the
17    community currency  exchange,  and  (d)  reasonable  expenses
18    incurred by the Director as the result of business agreements
19    or  contractual  arrangements  necessary  to  insure that the
20    services of the community currency exchanges are delivered to
21    the community without interruption.  Said business agreements
22    or contractual arrangements may include, but are not  limited
23    to,  agreements made by the Director, or by the Receiver with
24    the  approval  of  the  Director,  with  banks,  money  order
25    companies, bonding companies and  other  types  of  financial
26    institutions;  Second, allowed claims by a purchaser of money
27    orders issued on demand of the  community  currency  exchange
28    being  liquidated; Third, allowed claims arising by virtue of
29    and to the extent of the amount a utility  customer  deposits
30    with  the  community currency exchange being liquidated which
31    are not remitted to  the  utility  company;  Fourth,  allowed
32    claims  arising  by virtue of and to the extent of the amount
33    paid by a  purchaser  of  Illinois  license  plates,  vehicle
34    stickers   sold   for  State  and  municipal  governments  in
                            -14-               LRB9002126JSgc
 1    Illinois,  and  temporary   Illinois   registration   permits
 2    purchased  at  the currency exchange being liquidated; Fifth,
 3    allowed unsecured claims for  wages  or  salaries,  excluding
 4    vacation,  severance  and  sick  leave pay earned by employee
 5    earned within 90 days prior to the appointment of a Receiver;
 6    Sixth, allowed unsecured claims of any tax, and interest  and
 7    penalty  on  the tax; Seventh, allowed unsecured claims other
 8    than a kind specified in paragraph one, two and three of this
 9    Section, filed with the Director within the time the Director
10    fixes for filing claims; Eighth,  allowed  unsecured  claims,
11    other  than a kind specified in paragraphs one, two and three
12    of this Section filed with the Director after the time  fixed
13    for  filing  claims  by the Director; Ninth, allowed creditor
14    claims asserted by an owner, member, or  stockholder  of  the
15    community  currency exchange in liquidation; Tenth, after one
16    year from the final dissolution of the currency exchange, all
17    assets  not  used  to  satisfy  allowed   claims   shall   be
18    distributed  pro  rata  to  the  owner,  owners,  members, or
19    stockholders of the currency exchange.
20        The Director shall  pay  all  claims  of  equal  priority
21    according  to  the  schedule set out above, and shall not pay
22    claims of lower priority until all higher priority claims are
23    satisfied.  If insufficient assets are available to meet  all
24    claims  of  equal priority, those assets shall be distributed
25    pro rata among those  claims.   All  unclaimed  assets  of  a
26    currency  exchange shall be deposited with the Director to be
27    paid out by him when proper claims therefor are presented  to
28    the Director.
29    (Source: P.A. 83-1293.)
30        (205 ILCS 405/15.1c) (from Ch. 17, par. 4828)
31        Sec.  15.1c.   Powers of receiver.  Upon the order of the
32    circuit court of the county wherein  the  community  currency
33    exchange  being  liquidated is located, the receiver may sell
                            -15-               LRB9002126JSgc
 1    or compound any bad or doubtful debt, and on like  order  may
 2    sell the personal property of the community currency exchange
 3    on  such  terms  as  the  court approves.  The receiver shall
 4    succeed  to  whatever  rights  or  remedies   the   unsecured
 5    creditors of the currency exchange may have against the owner
 6    or   owners,  operators,  stockholders,  directors,  members,
 7    managers, or officers thereof, arising out  of  their  claims
 8    against  the  currency exchange, but nothing herein contained
 9    shall prevent such creditors from filing their claims in  the
10    liquidation proceeding.  The receiver may enforce such rights
11    or remedies in any court of competent jurisdiction.
12    (Source: P.A. 79-1361.)
13        (205 ILCS 405/16) (from Ch. 17, par. 4832)
14        Sec.  16.  Annual  report;  investigation;  costs.   Each
15    licensee  shall  annually, on or before the 1st day of March,
16    file a report with the Director for the calendar year  period
17    from  January  1st  through  December  31st,  except that the
18    report filed on or before March  15,  1990  shall  cover  the
19    period from October 1, 1988 through December 31, 1989, (which
20    shall be used only for the official purposes of the Director)
21    giving   such   relevant  information  as  the  Director  may
22    reasonably  require  concerning,  and  for  the  purpose   of
23    examining,  the  business and operations during the preceding
24    fiscal  year  period  of  each  licensed  currency   exchange
25    conducted  by  such  licensee  within  the State. Such report
26    shall be made under oath and shall be in the form  prescribed
27    by the Director and the Director may at any time and shall at
28    least  once  in  each  year investigate the currency exchange
29    business of any licensee and of  every  person,  partnership,
30    association,  limited  liability company, and corporation who
31    or which shall be engaged in  the  business  of  operating  a
32    currency  exchange. For that purpose, the Director shall have
33    free access to the offices and places of business and to such
                            -16-               LRB9002126JSgc
 1    records   of   all   such   persons,   firms,   partnerships,
 2    associations,  limited  liability   companies   and   members
 3    thereof,  and  corporations and to the officers and directors
 4    thereof that shall relate to such currency exchange business.
 5    The Director may at any time inspect the locations served  by
 6    an   ambulatory   currency   exchange,  for  the  purpose  of
 7    determining whether such currency exchange is complying  with
 8    the  provisions  of  this  Act  at  each location served. The
 9    Director may  require  by  subpoena  the  attendance  of  and
10    examine under oath all persons whose testimony he may require
11    relative to such business, and in such cases the Director, or
12    any   qualified  representative  of  the  Director  whom  the
13    Director may designate, may  administer  oaths  to  all  such
14    persons  called  as  witnesses, and the Director, or any such
15    qualified representative of the Director,  may  conduct  such
16    examinations,  and  there  shall  be paid to the Director for
17    each such examination a fee of $150  for  each  day  or  part
18    thereof  for  each  qualified  representative  designated and
19    required to conduct the examination; provided, however,  that
20    in  the  case  of  an  ambulatory currency exchange, such fee
21    shall be $75 for each day or part thereof and  shall  not  be
22    increased by reason of the number of locations served by it.
23    (Source: P.A. 86-432.)
24        (205 ILCS 405/24) (from Ch. 17, par. 4847)
25        Sec.  24.  Violations.  Any  person,  firm,  association,
26    partnership, limited liability company, or corporation who or
27    which  shall  violate  any provision of this Act for which no
28    other penalty is herein prescribed shall be guilty of a petty
29    offense, and  each  violation  shall  constitute  a  separate
30    offense.
31    (Source: P.A. 77-2320.)
32        Section   15.  The   Financial  Planning  and  Management
                            -17-               LRB9002126JSgc
 1    Service Act is amended by changing Sections 1, 2, 3, 4, 5, 6,
 2    7, 9, 10, 11, 12, 13,  14, 15.1, 15.3, 16, 17, 18, 20, and 22
 3    and the title and adding Sections  8.5,  11.5,  and  13.5  as
 4    follows:
 5        (205 ILCS 665/Act title)
 6        An  Act  in  relation  to  the regulation, licensing, and
 7    bonding  of  persons  engaged  in  rendering  debt  financial
 8    planning and management services to individuals  by  managing
 9    the financial affairs of individuals and receiving funds from
10    individuals  and  managing  and  distributing the same to the
11    creditors thereof.
12        (205 ILCS 665/1) (from Ch. 17, par. 5301)
13        Sec.  1.  Declaration  of  policy.     The  business   of
14    providing  rendering  debt  financial planning and management
15    services to individuals is a matter of  public  interest  and
16    concern  and  is  subject  to  regulation  and control in the
17    public interest.
18    (Source: Laws 1957, p. 2164.)
19        (205 ILCS 665/2) (from Ch. 17, par. 5302)
20        Sec. 2. Definitions. As used in this Act:
21        "Debt Financial Planning and  management  service"  means
22    the  planning  and  management  of the financial affairs of a
23    debtor for a fee and the receiving of money from  the  debtor
24    for  the purpose of distributing it to the debtor's creditors
25    in payment or partial payment of the debtor's obligations  or
26    soliciting   financial   contributions  from  creditors.  The
27    business of debt management is conducted in this State if the
28    debt management business, its employees, or  its  agents  are
29    located  in  this  State  or  if the debt management business
30    solicits or contracts with debtors located in this State.  an
31    individual,  and  distribution  of  money  to  the  creditors
32    thereof,  or  acting  as  the  agent  of an individual in the
                            -18-               LRB9002126JSgc
 1    distribution of his income to his creditors, whether  or  not
 2    the  person  so  acting  receives  a  fee  or charge for such
 3    services. Any person, partnership, association or corporation
 4    so  engaged  shall  be  deemed  to  be  rendering  "financial
 5    planning and management service".
 6        This term shall not be deemed to  include  the  following
 7    when  engaged  in  the  regular  course  of  their respective
 8    businesses and professions:
 9        (a)  Attorneys at law.;
10        (b)  Banks, fiduciaries, credit unions, savings and  loan
11    associations,  savings  banks,  and Consumer Installment Loan
12    Act licensees, financing and  lending  institutions  as  duly
13    authorized  and admitted to transact business in the State of
14    Illinois  and  performing  credit  and  financial   adjusting
15    service in the regular course of their principal business.:
16        (c)  Title  insurers  and abstract companies, while doing
17    an escrow business.:
18        (d)  Employees of licensees under this Act:
19        (d) (e)  Judicial officers or others acting  pursuant  to
20    court order.:
21        (f)  Non-profit   organizations  giving  debt  management
22    service:
23        (e) (g)  Employers for their employees.:
24        (h)  Associations for their members.
25        "Director" means Director of Financial Institutions.
26        "Debtor Individual" means the person or persons for  whom
27    the  debt  management  the  credit  and  financial  adjusting
28    service is performed.
29        "Person"  means  an  any  individual,  firm, partnership,
30    association, limited liability company,  or  corporation,  or
31    not for profit corporation.
32        "Licensee" means person licensed under this Act.
33        "Director"  means Director or the Department of Financial
34    Institutions.
                            -19-               LRB9002126JSgc
 1    (Source: Laws 1959, p. 1287.)
 2        (205 ILCS 665/3) (from Ch. 17, par. 5303)
 3        Sec. 3. Requirement of license. On or  after  January  1,
 4    1958  It  shall  be unlawful for any person to operate a debt
 5    Financial Planning and management service or engage  in  that
 6    said  business as herein defined except as authorized by this
 7    Act  and  without  first  having  obtained   a   license   as
 8    hereinafter provided.
 9    (Source: Laws 1957, p. 2164.)
10        (205 ILCS 665/4) (from Ch. 17, par. 5304)
11        Sec.  4.  Application  for  license.  Application  for  a
12    license   to  engage  in  the  debt  Financial  Planning  and
13    management service business in this State shall  be  made  to
14    the  Director and shall be in writing, under oath, and in the
15    form prescribed by the Director, and shall contain  the  full
16    name  and address of the applicant and, if the applicant is a
17    co-partnership or association, of every member  thereof  and,
18    if  a  corporation, of each officer and director thereof; the
19    application shall also contain the  county  and  municipality
20    with  street  and number, if any, where the business is to be
21    conducted,  and  such  other  pertinent  information  as  the
22    Director may require.
23        Each applicant, at the time of making  such  application,
24    shall  pay  to  the  Director  the sum of $30.00 as a fee for
25    investigation of the applicant, and  the  additional  sum  of
26    $100.00 as a license fee.
27        Every applicant shall submit to the Director, at the time
28    of  the  application  for a license, a bond to be approved by
29    the Director in which the applicant shall be the obligor,  in
30    the  sum  of $25,000 or such additional amount as required by
31    the Director based on the amount of disbursements made by the
32    licensee in the previous year,  $7,500.00  and  in  which  an
                            -20-               LRB9002126JSgc
 1    insurance  company,  which is duly authorized by the State of
 2    Illinois, to transact the business  of  fidelity  and  surety
 3    insurance  shall be a surety; provided, however, the Director
 4    may accept in lieu of the surety bond, a deposit in  cash,  a
 5    certified   check   payable  to  the  Director  of  Financial
 6    Institutions, or United States Government Bonds in the amount
 7    of at least $25,000.
 8        The bond shall run to the Director State of Illinois  for
 9    the  use  of  the  Department  or  State and of any person or
10    persons who may have a cause of action against the obligor in
11    said bond. under and by virtue of the provisions of this Act.
12    Such bond shall be conditioned that  the  said  obligor  will
13    faithfully conform to and abide by the provisions of this Act
14    and of all rules, regulations and directions lawfully made by
15    the  Director hereunder and will pay to the Director or State
16    and to any such person or persons any and all money that  may
17    become  due  or  owing  to  the  State  or  to such person or
18    persons, from  said  obligor  under  and  by  virtue  of  the
19    provisions of this Act.
20    (Source: Laws 1963, p. 3507.)
21        (205 ILCS 665/5) (from Ch. 17, par. 5305)
22        Sec.  5.  Qualifications  for license. Upon the filing of
23    the application and the approval of the  such  bond  and  the
24    payment of the specified fees, if the Director shall, issue a
25    license, if he finds upon investigation, find:
26        (1)  That   the   financial  responsibility,  experience,
27    character and general fitness of the applicant,  and  of  the
28    managers  members  thereof,  if  the  applicant  is a limited
29    liability company, the partners thereof, (if the applicant is
30    be a partnership, or association) and  of  the  officers  and
31    directors thereof, (if the applicant is be a corporation or a
32    not  for  profit  corporation)  are  such  as  to command the
33    confidence of the community and to warrant  belief  that  the
                            -21-               LRB9002126JSgc
 1    business  will  be  operated fairly, honestly and efficiently
 2    within the purposes of this Act, and
 3        (2)  That  the  applicant,  if  an  individual,  and  the
 4    managers members thereof, if the applicant is  be  a  limited
 5    liability company, the partners thereof if the applicant is a
 6    partnership  or  association,  and the officers and directors
 7    thereof, if the applicant is be a corporation, have  has  not
 8    been  convicted  of  a  felony  or  a  misdemeanor  involving
 9    dishonesty  or  untrustworthiness,  and  any  crime involving
10    moral turpitude, or
11        (3)  That the  if such person or persons have not  had  a
12    record  of having defaulted in the payment of money collected
13    for others, including the discharge  of  such  debts  through
14    bankruptcy proceedings, and;
15        (4)  The  applicant, or any officers, directors, partners
16    or managers, have not previously violated  any  provision  of
17    this Act, or any rule, lawfully made by the Director, and
18        (5)  The  applicant  has  not made any false statement or
19    representation to the Director  in  applying  for  a  license
20    hereunder.
21        The  Director shall thereupon issue and deliver a license
22    to the applicant to engage in the debt Financial Planning and
23    management service business in accordance with the provisions
24    of  this  Act  at  the  location  specified   in   the   said
25    application,  which  license  shall  remain in full force and
26    effect until it is surrendered by the licensee or revoked  by
27    the   Director  as  herein  hereinafter  provided;  provided,
28    however, that each license shall expire by the terms  thereof
29    on  January  1 next following the issuance thereof unless the
30    same be renewed as hereinafter provided.  A license, however,
31    may not be surrendered without the approval of the Director.
32        More than one license may be issued to  the  same  person
33    for  separate  places  of business, but separate applications
34    shall be made for each place of business.
                            -22-               LRB9002126JSgc
 1    (Source: Laws 1959, p. 1287.)
 2        (205 ILCS 665/6) (from Ch. 17, par. 5306)
 3        Sec. 6. Renewal  of  license.  Each  licensee  under  the
 4    provisions  of  this  Act  may  on  or before December 1 make
 5    application to the Director for renewal of its license, which
 6    said application for renewal shall be on the form  prescribed
 7    by  the Director and shall be accompanied by a fee of $100.00
 8    together with a bond  or  other  surety  as  required,  in  a
 9    minimum  amount  of  $25,000 or such an amount as required by
10    the Director based on the amount of disbursements made by the
11    licensee in the previous year in  the  case  of  an  original
12    application.
13    (Source: Laws 1959, p. 1287.)
14        (205 ILCS 665/7) (from Ch. 17, par. 5307)
15        Sec.  7.  License,  display  and  location.  Each license
16    issued hereunder shall be kept conspicuously  posted  in  the
17    place  of  business  of  the  licensee. The business location
18    address may be changed by any licensee upon 10 ten days prior
19    written notice thereof to  the  Director.    A  license  must
20    operate under the name as stated in its original application.
21    (Source: Laws 1959, p. 1287.)
22        (205 ILCS 665/8.5 new)
23        Sec.  8.5.  Temporary location.  The Director may approve
24    a temporary additional business location for the  purpose  of
25    allowing  a licensee to conduct business outside the licensed
26    location.
27        (205 ILCS 665/9) (from Ch. 17, par. 5309)
28        Sec. 9. Denial of license. Any application for a  license
29    hereunder  shall  be approved or denied within 60 days of the
30    filing of an such application with the Director.  If  license
                            -23-               LRB9002126JSgc
 1    shall  be  denied, then the applicant shall be so notified by
 2    United  States  mail,  registered,  and  shall  be  given  an
 3    opportunity to be heard  thereon,  within  60  days  of  such
 4    denial of license.
 5    (Source: Laws 1959, p. 1287.)
 6        (205 ILCS 665/10) (from Ch. 17, par. 5310)
 7        Sec. 10. Revocation or suspension of license.)
 8        (a)  The Director may shall revoke or suspend any license
 9    issued hereunder if he finds shall find that:
10             (1)  any  licensee  has  failed  to  pay  the annual
11        license fee, or to maintain in effect the  bond  required
12        under the provisions of this Act; or
13             (2) the licensee has willfully failed to comply with
14        any  ruling  of the Director made within the authority of
15        this Act or has willfully violated any provisions of this
16        Act or any rule, lawfully made by the Director within the
17        authority of this Act; or
18             (3) any fact or condition exists which,  if  it  had
19        existed  at  the  time  of the original application for a
20        license, would have warranted the  Director  in  refusing
21        its issuance; or
22             (4)  any  applicant  or  party to an application has
23        made  any  false  statement  or  representation  to   the
24        Director in applying for a license hereunder.
25        (b)  In  every  case  in  which a license is suspended or
26    revoked on an application for  a  license  or  renewal  of  a
27    license  is  denied,  the  Director shall serve notice of his
28    action, including a statement of the reasons for his  actions
29    either  personally,  or  by  certified  mail,  return receipt
30    requested.  Service by mail shall be deemed completed if  the
31    notice is deposited in the U.S. Mail.
32        (c)  In the case of a denial of an application or renewal
33    of  a  license,  the  applicant  or  licensee  may request in
                            -24-               LRB9002126JSgc
 1    writing, within 30 days after the date of service, a hearing.
 2    In the case of a denial  of  a  renewal  of  a  license,  the
 3    license  shall  be  deemed to continue in force until 30 days
 4    after the service of the notice of denial, or if a hearing is
 5    requested during that period, until  a  final  administrative
 6    order is entered.
 7        (d)  An  order  of  revocation or suspension of a license
 8    shall take effect  upon  service  of  the  order  unless  the
 9    licensee  requests, in writing, within 10 days after the date
10    of service, a hearing. In the event a hearing  is  requested,
11    the  order shall be stayed until a final administrative order
12    is entered.
13        (e)  If the licensee requests  a  hearing,  the  Director
14    shall  schedule  the hearing within 30 days after the request
15    for a hearing unless otherwise agreed to by the parties.
16        (f)  The hearing shall be held  at  the  time  and  place
17    designated   by   the   Director.    The   Director  and  any
18    administrative law judge designated by him have the power  to
19    administer  oaths  and  affirmations,  subpoena witnesses and
20    compel their  attendance,  take  evidence,  and  require  the
21    production   of  books,  papers,  correspondence,  and  other
22    records or information that he considers relevant or material
23    to the injury.
24        (g)  The costs for the administrative  hearing  shall  be
25    set by rule.
26        (h)  The  Director  shall have the authority to prescribe
27    rules for the administration of this Section.
28        (b)  If the Director finds that a condition requiring the
29    revocation of a license  exists  and  finds  that  revocation
30    could  result  in  irreparable  harm  to the licensee or deny
31    necessary services to the public, the  Director  may  suspend
32    rather  than revoke the license. Such suspension shall be for
33    a specified period of time but not more than 90 days. If  the
34    condition  resulting in the suspension is not remedied during
                            -25-               LRB9002126JSgc
 1    the suspension period,  the  Director  shall  take  immediate
 2    action to revoke the license.
 3        (c)  Action   under   this   Section  for  revocation  or
 4    suspension of a license may be taken only upon 5 days  notice
 5    to  the  licensee. The notice shall be mailed to the licensee
 6    by registered United States mail, directed to the licensee at
 7    the address set forth on the license. The notice shall  state
 8    the  contemplated  action  and in general the grounds for the
 9    action. The Director shall provide reasonable opportunity for
10    the licensee to be heard prior to such action.
11    (Source: P.A. 81-1403.)
12        (205 ILCS 665/11) (from Ch. 17, par. 5311)
13        Sec.  11.  Contracts,   books,   records   and   contract
14    cancellation.  Each  licensee  shall furnish to the Director,
15    when requested, a copy of the contract entered  into  between
16    the  licensee  and  the debtor individual. The licensee shall
17    furnish the debtor with a copy of the  written  contract,  at
18    the  time  of  execution which shall set forth the charges if
19    any, agreed upon for the services of the licensee.
20        An individual  may  cancel  the  contract  upon  30  days
21    written  notice  to  the licensee in which event the licensee
22    shall be entitled to such charges as are provided in  Section
23    12.
24        Each   licensee  hereunder  shall  maintain  records  and
25    accounts which will enable any debtor individual  contracting
26    with  the  licensee, at any reasonable time, to ascertain the
27    amounts  paid  to  creditors  of  the  debtor  individual.  A
28    statement showing the total amount  received  and  the  total
29    disbursements  to  each  creditor  shall  be furnished by the
30    licensee to any individual within seven  days  of  a  request
31    therefor   by  the  said  debtor  individual.  Each  licensee
32    licensed hereunder shall issue a  receipt  for  each  payment
33    made  by the debtor individual to the licensee. Each licensee
                            -26-               LRB9002126JSgc
 1    shall prepare and retain in the file of each debtor a written
 2    analysis of debtor's income and expenses to substantiate that
 3    the plan of payment is feasible and practical.
 4    (Source: Laws 1959, p. 1287.)
 5        (205 ILCS 665/11.5 new)
 6        Sec. 11.5.  Examination of licensee.  The Director  shall
 7    examine,  on  an annual basis, the condition and affairs of a
 8    licensee.  In connection with any examination,  the  Director
 9    may  examine  on oath any licensee and any director, officer,
10    employee, customer, manager,  partner,  member,  creditor  or
11    stock  holder  of  a  licensee  concerning  the  affairs  and
12    business  of  the  licensee.   The  Director  shall ascertain
13    whether the licensee transacts its  business  in  the  manner
14    prescribed  by  law  and  the  rules  issued thereunder.  The
15    licensee shall pay the cost of the examination as  determined
16    by  the  Director by administrative rule.  Failure to pay the
17    examination fee within 30 days after receipt of  demand  from
18    the  Director  may  result  in  the suspension of the license
19    until the fee is paid.  The Director shall have the right  to
20    investigate  and examine any person, whether licensed or not,
21    who is engaged in the debt management service business.   The
22    Director  shall  have the power to subpoena the production of
23    any books and records pertinent to any investigation.
24        (205 ILCS 665/12) (from Ch. 17, par. 5312)
25        Sec. 12.  Fees and charges of licensees.  A licensee  may
26    not  charge  a  debtor  any  fees  or  penalties  except  the
27    following:
28        (1)  an  initial  counseling  fee  not  to exceed $50 per
29    debtor counseled; and
30        (2)  a monthly fee of not more than $20 per  debtor.  The
31    contract  between  a  licensee and the individual shall be in
32    writing and the fees and charges for this  service  shall  be
                            -27-               LRB9002126JSgc
 1    correctly  set  forth thereon, which fees or charges shall be
 2    pro-rated monthly over  the  entire  term  of  the  contract;
 3    provided  that  the  fees  or  charges  shall  not exceed the
 4    percentage of the amount required to pay the indebtedness  as
 5    follows: (a) not to exceed 10% when the plan of payment shall
 6    be  for  a  period of 10 months or less; (b) not to exceed 12
 7    1/2% when the plan of payment shall be for a period  of  more
 8    than  10  but less than 20 months; (c) not to exceed 15% when
 9    the plan of payment shall be for a period  of  more  than  20
10    months.  In  no  event  shall more than the pro-rated service
11    charge for one month be payable by the  individual  unless  a
12    plan  of  payment of his obligations shall have been accepted
13    by a majority in  number  of  the  creditors  listed  in  the
14    contract,  which  majority  in  number shall also represent a
15    majority of the total amount of  the  obligations  listed  as
16    owing to such creditors in the contract.
17        In  the  event  of  prepayment  of  the  listed  debts or
18    cancellation by the debtor, as provided in Section 11 of this
19    Act, or in the event of cancellation by  the  licensee  after
20    wilful default by the individual for a period of 30 days, and
21    if  the  licensee  has performed all of the services required
22    under  this  Act,  the  licensee  shall  be  entitled  to   a
23    cancellation  charge of 30% of the agreed service charges due
24    for the unexpired term of the contract at the  time  of  such
25    prepayment  or  cancellation,  but in no event to exceed $50.
26    The service charge or fee as herein determined, if any, shall
27    then be due and payable to the licensee.
28    (Source: Laws 1963, p. 3507.)
29        (205 ILCS 665/13) (from Ch. 17, par. 5313)
30        Sec. 13. Prohibitions. (1)  No licensee shall  advertise,
31    in  any  manner  whatsoever,  any statement or representation
32    with regard  to  the  rates,  terms  or  conditions  of  debt
33    financial  planning  and  management  service which is false,
                            -28-               LRB9002126JSgc
 1    misleading, or deceptive.
 2        (2)  No licensee shall require as a part of the agreement
 3    between the licensee and any  debtor,  the  purchase  of  any
 4    stock, insurance, commodity, service or other property or any
 5    interest therein.
 6        (3)  No  licensee  shall,  directly or indirectly, accept
 7    payment or any other consideration, whether  in  cash  or  in
 8    kind,  from  any  entity  for  referring  applicants  to that
 9    entity.  The licensee shall not, directly or indirectly, make
10    payments in any form, whether in cash  or  in  kind,  to  any
11    person, corporation, or other entity for referring applicants
12    or clients to the licensee.
13        (4)  No licensee shall make any loans.
14        (5)  No  licensee  shall  issue credit cards or act as an
15    agent in procuring customers for a credit card company or any
16    financial institution.
17        (6)  No licensee shall act as a loan broker.
18        (7)  No licensee shall operate any other business at  the
19    licensed location without another business authorization from
20    the Director, pursuant to Section 13.5.
21    (Source: Laws 1963, p. 3507.)
22        (205 ILCS 665/13.5 new)
23        Sec.  13.5.  Other  business.   Upon  application  by the
24    licensee, and approval by  the  Director,  the  Director  may
25    approve  the  conduct  of  other businesses in the licensee's
26    place of business.  The approval  shall  be  in  writing  and
27    shall  describe the other businesses that may be conducted in
28    the licensed office.  The Director  shall  make  and  enforce
29    reasonable  rules  to  prevent evasions or violations of this
30    Act.  The Director may investigate any business conducted  in
31    the  licensed  office  to  determine  whether  any evasion or
32    violation of this Act has occurred.
                            -29-               LRB9002126JSgc
 1        (205 ILCS 665/14) (from Ch. 17, par. 5314)
 2        Sec. 14.  Trust funds; requirements and restrictions.
 3        (a)  All funds received by a licensee or his  agent  from
 4    and for the purpose of paying bills, invoices, or accounts of
 5    a  debtor shall constitute trust funds owned by and belonging
 6    to the debtor from whom they were received.  All  such  funds
 7    received  by  a licensee shall be separated from the funds of
 8    the licensee not later than  the  end  of  the  business  day
 9    following  receipt  by the licensee.  All such funds shall be
10    kept separate and apart at all times from funds belonging  to
11    the  licensee or any of its officers, employees or agents and
12    may be used for no purpose other than paying bills, invoices,
13    or accounts of the debtor.  All such trust funds received  at
14    the  main  or branch offices of a licensee shall be deposited
15    in a  bank  in  an  account  in  the  name  of  the  licensee
16    designated "trust account", or by some other appropriate name
17    indicating  that  the funds are not the funds of the licensee
18    or its officers, employees, or agents, on or before the close
19    of the business day following receipt.
20        (b)  Prior to separation and  deposit  by  the  licensee,
21    such funds may be used by the licensee only for the making of
22    change  or  the cashing of checks in the normal course of its
23    business.  Such funds are not subject  to  attachment,  lien,
24    levy  of execution, or sequestration by order of court except
25    by a debtor for whom a licensee is  acting  as  an  agent  in
26    paying bills, invoices, or accounts.
27        (c)  Each  licensee shall make remittances within 30 days
28    after initial receipt of funds,  and  thereafter  remittances
29    shall be made within 15 days of receipt, less fees and costs,
30    unless  the reasonable payment of one or more of the debtor's
31    obligations requires that the funds  be  held  for  a  longer
32    period so as to accumulate a sum certain.
33        (d)  At least once every month, the licensee shall render
34    an  accounting  to  the  debtor which shall itemize the total
                            -30-               LRB9002126JSgc
 1    amount received from the debtor, the total amount  paid  each
 2    creditor, the amount of charges deducted, and any amount held
 3    in  reserve.   A licensee shall, in addition thereto, provide
 4    such an accounting to a debtor within 7  days  after  written
 5    demand,  but  not  more  than  3  times  per  6 month period.
 6    Licensee to remit to creditors. Each licensee shall remit the
 7    funds received by it, less the amount withheld for  fees  and
 8    charges  as  hereinabove  provided, to the creditors promptly
 9    after receipt of funds, and a record of the remittances shall
10    be furnished regularly to the debtor.
11    (Source: Laws 1963, p. 3507.)
12        (205 ILCS 665/15.1) (from Ch. 17, par. 5316)
13        Sec. 15.1. Advisory Board;  appointment. There is created
14    a Board of Debt Financial  Planning  and  Management  Service
15    ydvisors  composed  of  5  persons appointed by the Governor.
16    Each member shall be familiar  with  and  associated  in  the
17    field  of  debt  Financial  Planning  and management service.
18    Each Board member shall serve without compensation, but shall
19    be reimbursed for necessary expenses.  Initially,  the  Board
20    shall  consist  of  members  appointed for terms beginning on
21    July 1, 1965, and one member shall serve until July 1,  1966,
22    2 members shall serve until July 1, 1967, and 2 members shall
23    serve  until  July  1, 1968, as designated by the Governor at
24    the time of the initial appointments. As terms of appointment
25    expire, successors shall be appointed for terms to expire  on
26    July  1, 3 three years subsequent to the date of appointment.
27    Each member of the board shall  serve  until  his  respective
28    successor is appointed.
29    (Source: P.A. 89-400, eff. 8-20-95.)
30        (205 ILCS 665/15.3) (from Ch. 17, par. 5318)
31        Sec.  15.3.  Advisory Board; powers. The Board shall have
32    the following powers:
                            -31-               LRB9002126JSgc
 1        1.  To make recommendations to  the  Director  concerning
 2    matters which he may refer to the Board for consideration;
 3        2.   To  recommend  on  its  own  initiative policies and
 4    practices to the  Director,  the  Governor  and  the  General
 5    Assembly;
 6        3.   To  make  recommendations  to  the  Director for the
 7    purpose of preventing unsound practices in the field of  debt
 8    Financial Planning and management service;
 9        4.   To  foster  the  interest and cooperation of persons
10    rendering debt Financial Planning and management  service  in
11    improvement  of  their services to the people of the State of
12    Illinois.
13    (Source: Laws 1965, p. 2494.)
14        (205 ILCS 665/16) (from Ch. 17, par. 5319)
15        Sec. 16. Penalties.
16        (a)  Any person who  engages  in  the  business  of  debt
17    management  service  without  a  license shall be guilty of a
18    Class 4 felony. Any person willfully  violating  any  of  the
19    provisions  of  this  Act shall be deemed guilty of a Class B
20    misdemeanor.
21        (b)  Any contract of debt  management  service  financial
22    planning  and  management  as defined in this Act, made by an
23    unlicensed person, shall be null and void  and  of  no  legal
24    effect.
25        (c)  The  Director may set by rule monetary penalties for
26    violation of this Act.
27    (Source: P.A. 77-2323.)
28        (205 ILCS 665/17) (from Ch. 17, par. 5320)
29        Sec. 17. Injunction.) To engage  in  debt  the  Financial
30    Planning  and  management  service business, render financial
31    service, or accept debtors' individuals funds, as defined  in
32    this  Act,  without  a  valid  existing  license so to do, is
                            -32-               LRB9002126JSgc
 1    hereby declared to be inimical to the public welfare  and  to
 2    constitute  a public nuisance.  The Director may, in the name
 3    of the people of the State of Illinois, through the  Attorney
 4    General  of  the State of Illinois or the State's Attorney of
 5    any county in the State of Illinois, file a complaint for  an
 6    injunction  in the circuit court, to enjoin such person, firm
 7    or corporation from engaging in said business. and  any  such
 8    court may, as in cases relating to injunction in the State of
 9    Illinois,  enter  preliminary or permanent injunctions as the
10    circumstances shall require; and in case of the violation  of
11    any  injunction  entered  under  this  section, the court may
12    summarily try and punish the offender for contempt  of  court
13    for  each  violation.  Such injunction proceeding shall be in
14    addition to, and not  in  lieu  of,  penalties  and  remedies
15    otherwise in this Act provided.
16    (Source: P.A. 83-334.)
17        (205 ILCS 665/18) (from Ch. 17, par. 5321)
18        Sec.  18.  Review.  All final administrative decisions of
19    the Director hereunder shall be subject  to  judicial  review
20    pursuant  to the provisions of the Administrative Review Law,
21    and all amendments and modifications thereof  and  the  rules
22    adopted  pursuant thereto. The term "administrative decision"
23    is  defined  as  in  Section  3-101  of  the  Code  of  Civil
24    Procedure.
25    (Source: P.A. 82-783.)
26        (205 ILCS 665/20) (from Ch. 17, par. 5323)
27        Sec. 20.  Cease and desist orders.
28        (a)  The Director may issue a cease and desist  order  to
29    any  licensee,  or  other  person  doing business without the
30    required license, when in the opinion of  the  Director,  the
31    licensee,  or  other  person,  is  violating  or  is about to
32    violate any provision of the Act or  any  rule  or  condition
                            -33-               LRB9002126JSgc
 1    imposed in writing by the Department.
 2        (b)  The  Director  may  issue  a  cease and desist order
 3    prior to a hearing.
 4        (c)  The Director  shall  serve  notice  of  his  action,
 5    including  a  statement  of the reasons for his action either
 6    personally or by certified mail,  return  receipt  requested.
 7    Service  by  mail  shall be deemed completed if the notice is
 8    deposited in the U.S. mail.
 9        (d)  Within 10 days after service of the cease and desist
10    order, the licensee or other person may request, in  writing,
11    a hearing.
12        (e)  The Director shall schedule a hearing within 30 days
13    after the request for a hearing unless otherwise agreed to by
14    the parties.
15        (f)  The  Director  shall have the authority to prescribe
16    rules for the administration of this Section.
17        (g)  If it  is  determined  that  the  Director  had  the
18    authority  to  issue the cease and desist order, he may issue
19    such orders  as  may  be  reasonably  necessary  to  correct,
20    eliminate, or remedy such conduct.
21        (h)  The  powers  vested  in the Director by this Section
22    are additional to any  and  all  other  powers  and  remedies
23    vested  in  the  Director by law, and nothing in this Section
24    shall be construed  as  requiring  that  the  Director  shall
25    employ the power conferred in this Section instead of or as a
26    condition  precedent  to  the  exercise of any other power or
27    remedy vested in the Director.
28        (i)  The cost for the administrative hearing shall be set
29    by rule. Investigation. The Director may from  time  to  time
30    investigate  and  examine  the  books  and  records  of every
31    licensee hereunder and of any person,  firm,  association  or
32    corporation  who or which shall be engaged in the business as
33    defined in Section 2 of this Act and who  or  which  are  not
34    expressly exempted under this Act.
                            -34-               LRB9002126JSgc
 1    (Source: Laws 1959, p. 1287.)
 2        (205 ILCS 665/22) (from Ch. 17, par. 5325)
 3        Sec. 22. Title of Act. This Act shall be known and may be
 4    cited  as  the Debt Management Service Act Financial Planning
 5    and Management Service Act.
 6    (Source: Laws 1957, p. 2164.)
 7        Section 20.  The Viatical Settlements Act is  amended  by
 8    changing Section 5 as follows:
 9        (215 ILCS 158/5)
10        Sec. 5.  Definitions.  As used in this Act, the following
11    definitions apply:
12        "Director" means the Director of Insurance.
13        "Person"   means   any   natural   or  artificial  entity
14    including, but not  limited  to,  individuals,  partnerships,
15    associations, trusts, or corporations.
16        "Viatical   settlement   agent"   means   an  individual,
17    partnership,  corporation,  or  other  entity   who   through
18    appointment  by at least one viatical settlement provider and
19    for a  fee,  commission,  or  other  valuable  consideration,
20    offers   or   advertises   the   availability   of   viatical
21    settlements,   introduces   viators  to  viatical  settlement
22    providers,  or  offers  or  attempts  to  negotiate  viatical
23    settlements  between  a  viator  and  one  or  more  viatical
24    settlement providers.  "Viatical settlement agent"  does  not
25    include  an  attorney  licensed  to  practice  law,  a public
26    accountant as defined in the Illinois Public Accounting  Act,
27    or  a  person  licensed under the Debt Financial Planning and
28    Management Service Act retained to represent the viator whose
29    compensation is not paid by the viatical settlement provider.
30        "Viatical settlement contract" means a written  agreement
31    entered  into  between  a  viatical settlement provider and a
                            -35-               LRB9002126JSgc
 1    person who owns a life insurance policy or  who  owns  or  is
 2    covered  under  a group policy, insuring the life of a person
 3    who  has  a  catastrophic  or  life  threatening  illness  or
 4    condition.  The agreement shall  establish  the  terms  under
 5    which  the viatical settlement provider will pay compensation
 6    or anything of value, which compensation  or  value  is  less
 7    than  the  expected  death benefit of the insurance policy or
 8    certificate, in  return  for  the  policyowner's  assignment,
 9    transfer,  sale,  devise,  or bequest of the death benefit or
10    ownership of the  insurance  policy  or  certificate  to  the
11    viatical settlement provider.
12        "Viatical   settlement  provider"  means  an  individual,
13    partnership, corporation, or other entity that enters into an
14    agreement with a person who owns a life insurance policy,  or
15    who  owns  or  is  covered under a group policy, insuring the
16    life of a person who has a catastrophic or  life  threatening
17    illness  or  condition, under the terms of which the viatical
18    settlement provider pays compensation or anything  of  value,
19    which  compensation  or value is less than the expected death
20    benefit of the insurance policy or certificate, in return for
21    the policyowner's  assignment,  transfer,  sale,  devise,  or
22    bequest  of  the  death benefit or ownership of the insurance
23    policy or certificate to the  viatical  settlement  provider.
24    "Viatical settlement provider" does not include:
25             (1)  a  licensed  insurance  company,  bank, savings
26        bank,  savings  and  loan  association,   credit   union,
27        commercial  finance  company  or  other  licensed lending
28        institution,  investment  company  registered  under  the
29        Investment Company Act of 1940,  pension  plan  qualified
30        under  Section  401(a)  of  the  Internal Revenue Code of
31        1986, or trust funding such a pension plan that takes  an
32        assignment  of a life insurance policy only as collateral
33        for a loan;
34             (2)  sophisticated investors meeting  the  standards
                            -36-               LRB9002126JSgc
 1        of  subsection  H of Section 4 of the Illinois Securities
 2        Law of 1953 who invest in or lend to a licensed  viatical
 3        settlement  provider  or  other  persons  who  so  invest
 4        pursuant to a registered security offering; or
 5             (3)  the issuer of a life insurance policy providing
 6        accelerated benefits under the Illinois Insurance Code.
 7        "Viaticated policy" means a life insurance policy held by
 8    a  viatical  settlement  provider,  directly  or  indirectly,
 9    through a viatical settlement contract.
10        "Viator" means a person who owns a life insurance policy,
11    or  who owns or is covered under a group policy, insuring the
12    life of a person with  a  catastrophic  or  life  threatening
13    illness or condition who enters into an agreement under which
14    the  viatical  settlement  provider  will pay compensation or
15    anything of value, which compensation or value is  less  than
16    the  expected  death  benefit  of  the  insurance  policy  or
17    certificate, in return for the viator's assignment, transfer,
18    sale, devise, or bequest of the death benefit or ownership of
19    the   insurance   policy   or  certificate  to  the  viatical
20    settlement provider.
21    (Source: P.A. 89-484, eff. 6-21-96.)
22        Section 25.  The General Not For Profit  Corporation  Act
23    of 1986 is amended by changing Section 103.05 as follows:
24        (805 ILCS 105/103.05) (from Ch. 32, par. 103.05)
25        Sec.  103.05.   Purposes  and  authority of corporations;
26    particular purposes; exemptions.
27        (a)  Not-for-profit corporations may be  organized  under
28    this  Act  for  any  one  or more of the following or similar
29    purposes:
30             (1)  Charitable.
31             (2)  Benevolent.
32             (3)  Eleemosynary.
                            -37-               LRB9002126JSgc
 1             (4)  Educational.,
 2             (5)  Civic.
 3             (6)  Patriotic.
 4             (7)  Political.
 5             (8)  Religious.
 6             (9)  Social.
 7             (10)  Literary.
 8             (11)  Athletic.
 9             (12)  Scientific.
10             (13)  Research.
11             (14)  Agricultural.
12             (15)  Horticultural.
13             (16)  Soil improvement.
14             (17)  Crop improvement.
15             (18)  Livestock or poultry improvement.
16             (19)  Professional, commercial, industrial, or trade
17        association.
18             (20)  Promoting the development,  establishment,  or
19        expansion of industries.
20             (21)  Electrification on a cooperative basis.
21             (22)  Telephone  service  on a mutual or cooperative
22        basis.
23             (23)  Ownership  and  operation  of   water   supply
24        facilities  for  drinking  and  general domestic use on a
25        mutual or cooperative basis.
26             (24)  Ownership  or  administration  of  residential
27        property on a cooperative basis.
28             (25)  Administration and operation of property owned
29        on a condominium basis or by a homeowner association.
30             (26)  Administration    and    operation    of    an
31        organization  on  a  cooperative   basis   producing   or
32        furnishing  goods,  services, or facilities primarily for
33        the benefit of its members who  are  consumers  of  those
34        goods, services, or facilities.
                            -38-               LRB9002126JSgc
 1             (27)  Operation  of  a community mental health board
 2        or center organized  pursuant  to  the  Community  Mental
 3        Health  Act  for  the purpose of providing direct patient
 4        services.
 5             (28)  (Blank).   Provision   of   consumer    credit
 6        counseling   as   authorized   by   the  Consumer  Credit
 7        Counseling Corporation Act.
 8             (29)  Promotion, operation, and administration of  a
 9        ridesharing  arrangement as defined in Section 1-176.1 of
10        the Illinois Vehicle Code.
11             (30)  The  administration  and   operation   of   an
12        organization  for  the  purpose  of  assisting low-income
13        consumers in the acquisition  of  utility  and  telephone
14        services.
15        (b)  A corporation may be organized hereunder to serve in
16    an  area  that adjoins or borders (except for any intervening
17    natural watercourse) an area located in  an  adjoining  state
18    intended to be similarly served, and the corporation may join
19    any  corporation  created  by  the  adjoining state having an
20    identical  purpose  and   organized   as   a   not-for-profit
21    corporation.   Whenever  any corporation organized under this
22    Act so joins with a foreign corporation having  an  identical
23    purpose, the corporation shall be permitted to do business in
24    Illinois  as  one  corporation;  provided  (1) that the name,
25    bylaw provisions, officers, and directors of each corporation
26    are identical, (2) that the foreign corporation complies with
27    the provisions of this  Act  relating  to  the  admission  of
28    foreign  corporation,  and  (3) that the Illinois corporation
29    files a statement with the Secretary of State indicating that
30    it has joined with a foreign corporation  setting  forth  the
31    name thereof and the state of its incorporation.
32    (Source: P.A. 87-449.)
33        (805 ILCS 140/Act rep.)
                            -39-               LRB9002126JSgc
 1        Section  30.  The  Consumer Credit Counseling Corporation
 2    Act is repealed.
 3        Section 99.   Effective  date.   This  Act  takes  effect
 4    January 1, 1998.
                            -40-               LRB9002126JSgc
 1                                INDEX
 2               Statutes amended in order of appearance
 3    30 ILCS 105/6z-26
 4    205 ILCS 405/1            from Ch. 17, par. 4802
 5    205 ILCS 405/2            from Ch. 17, par. 4803
 6    205 ILCS 405/3            from Ch. 17, par. 4804
 7    205 ILCS 405/4            from Ch. 17, par. 4808
 8    205 ILCS 405/7            from Ch. 17, par. 4814
 9    205 ILCS 405/10           from Ch. 17, par. 4817
10    205 ILCS 405/13.1         from Ch. 17, par. 4822
11    205 ILCS 405/15.1b        from Ch. 17, par. 4827
12    205 ILCS 405/15.1c        from Ch. 17, par. 4828
13    205 ILCS 405/16           from Ch. 17, par. 4832
14    205 ILCS 405/24           from Ch. 17, par. 4847
15    205 ILCS 665/1            from Ch. 17, par. 5301
16    205 ILCS 665/2            from Ch. 17, par. 5302
17    205 ILCS 665/3            from Ch. 17, par. 5303
18    205 ILCS 665/4            from Ch. 17, par. 5304
19    205 ILCS 665/5            from Ch. 17, par. 5305
20    205 ILCS 665/6            from Ch. 17, par. 5306
21    205 ILCS 665/7            from Ch. 17, par. 5307
22    205 ILCS 665/8.5 new
23    205 ILCS 665/9            from Ch. 17, par. 5309
24    205 ILCS 665/10           from Ch. 17, par. 5310
25    205 ILCS 665/11           from Ch. 17, par. 5311
26    205 ILCS 665/11.5 new
27    205 ILCS 665/12           from Ch. 17, par. 5312
28    205 ILCS 665/13           from Ch. 17, par. 5313
29    205 ILCS 665/13.5 new
30    205 ILCS 665/14           from Ch. 17, par. 5314
31    205 ILCS 665/15.1         from Ch. 17, par. 5316
32    205 ILCS 665/15.3         from Ch. 17, par. 5318
33    205 ILCS 665/16           from Ch. 17, par. 5319
34    205 ILCS 665/17           from Ch. 17, par. 5320
                            -41-               LRB9002126JSgc
 1    205 ILCS 665/18           from Ch. 17, par. 5321
 2    205 ILCS 665/20           from Ch. 17, par. 5323
 3    205 ILCS 665/22           from Ch. 17, par. 5325
 4    215 ILCS 158/5
 5    805 ILCS 105/103.05       from Ch. 32, par. 103.05
 6    805 ILCS 140/Act rep.

[ Top ]