Sen. Michael Connelly

Filed: 5/18/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5141

2    AMENDMENT NO. ______. Amend House Bill 5141 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Currency Exchange Act is amended by
5changing Section 15.2 as follows:
 
6    (205 ILCS 405/15.2)  (from Ch. 17, par. 4831)
7    Sec. 15.2. No community currency exchange shall determine
8its affairs and close up its business unless it shall first
9deposit with the Secretary an amount of money equal to the
10whole of its debts, liabilities and lawful demands against it
11including the costs and expenses of this proceeding, and shall
12surrender to the Secretary its community currency exchange
13license, and shall file with the Secretary a statement of
14termination signed by the licensee of such community currency
15exchange, containing a pronouncement of intent to close up its
16business and liquidate its liabilities, and also containing a

 

 

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1sworn list itemizing in full all such debts, liabilities and
2lawful demands against it. Corporate licensees shall attach to,
3and make a part of such statement of termination, a copy of a
4resolution providing for the determination and closing up of
5the licensee's affairs, certified by the secretary of such
6licensee and duly adopted at a shareholders' meeting by the
7holders of at least two-thirds of the outstanding shares
8entitled to vote at such meeting. Upon the filing with the
9Secretary of a statement of termination the Secretary shall
10cause notice thereof to be published once each week for three
11consecutive weeks in a public newspaper of general circulation
12published in the city or village where such community currency
13exchange is located, and if no newspaper shall be there
14published, then in a public newspaper of general circulation
15nearest to said city or village; and such publication shall
16give notice that the debts, liabilities and lawful demands
17against such community currency exchange will be redeemed by
18the Secretary on demand in writing made by the owner thereof,
19at any time within one year three years from the date of first
20publication. After the expiration of such one-year three year
21period, the Secretary shall return to the person or persons
22designated in the statement of termination to receive such
23repayment and in the proportion therein specified, any balance
24of money then remaining in his possession, if any there be,
25after first deducting therefrom all unpaid costs and expenses
26incurred in connection with this proceeding. The Secretary

 

 

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1shall receive for his services, exclusive of costs and
2expenses, two per cent of any amount up to $5,000.00, and one
3per cent of any amount in excess of $5,000.00, deposited with
4him hereunder by any one community currency exchange. Nothing
5contained herein shall affect or impair the liability of any
6bonding or insurance company on any bond or insurance policy
7issued under this Act relating to such community currency
8exchange.
9(Source: P.A. 97-315, eff. 1-1-12.)
 
10    Section 10. The Consumer Installment Loan Act is amended by
11changing Section 8 as follows:
 
12    (205 ILCS 670/8)  (from Ch. 17, par. 5408)
13    Sec. 8. Annual license fee - Expenses. Before the 1st 15th
14day of each December, a licensee must pay to the Director, and
15the Department must receive, the annual license fee required by
16Section 2 for the next succeeding calendar year. The license
17shall expire on the first of January unless the license fee has
18been paid prior thereto.
19    In addition to such license fee, the reasonable expense of
20any examination, investigation or custody by the Director under
21any provisions of this Act shall be borne by the licensee.
22    If a licensee fails to renew his or her license by the 31st
23day of December, it shall automatically expire and the licensee
24is not entitled to a hearing; however, the Director, in his or

 

 

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1her discretion, may reinstate an expired license upon payment
2of the annual renewal fee and proof of good cause for failure
3to renew.
4(Source: P.A. 92-398, eff. 1-1-02.)
 
5    Section 15. The Payday Loan Reform Act is amended by
6changing Section 3-5 as follows:
 
7    (815 ILCS 122/3-5)
8    Sec. 3-5. Licensure.
9    (a) A license to make a payday loan shall state the
10address, including city and state, at which the business is to
11be conducted and shall state fully the name of the licensee.
12The license shall be conspicuously posted in the place of
13business of the licensee and shall not be transferable or
14assignable.
15    (b) An application for a license shall be in writing and in
16a form prescribed by the Secretary. The Secretary may not issue
17a payday loan license unless and until the following findings
18are made:
19        (1) that the financial responsibility, experience,
20    character, and general fitness of the applicant are such as
21    to command the confidence of the public and to warrant the
22    belief that the business will be operated lawfully and
23    fairly and within the provisions and purposes of this Act;
24    and

 

 

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1        (2) that the applicant has submitted such other
2    information as the Secretary may deem necessary.
3    (c) A license shall be issued for no longer than one year,
4and no renewal of a license may be provided if a licensee has
5substantially violated this Act and has not cured the violation
6to the satisfaction of the Department.
7    (d) A licensee shall appoint, in writing, the Secretary as
8attorney-in-fact upon whom all lawful process against the
9licensee may be served with the same legal force and validity
10as if served on the licensee. A copy of the written
11appointment, duly certified, shall be filed in the office of
12the Secretary, and a copy thereof certified by the Secretary
13shall be sufficient evidence to subject a licensee to
14jurisdiction in a court of law. This appointment shall remain
15in effect while any liability remains outstanding in this State
16against the licensee. When summons is served upon the Secretary
17as attorney-in-fact for a licensee, the Secretary shall
18immediately notify the licensee by registered mail, enclosing
19the summons and specifying the hour and day of service.
20    (e) A licensee must pay an annual fee of $1,000. In
21addition to the license fee, the reasonable expense of any
22examination or hearing by the Secretary under any provisions of
23this Act shall be borne by the licensee. If a licensee fails to
24renew its license by December 1 31, its license shall
25automatically expire; however, the Secretary, in his or her
26discretion, may reinstate an expired license upon:

 

 

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1        (1) payment of the annual fee within 30 days of the
2    date of expiration; and
3        (2) proof of good cause for failure to renew.
4    (f) Not more than one place of business shall be maintained
5under the same license, but the Secretary may issue more than
6one license to the same licensee upon compliance with all the
7provisions of this Act governing issuance of a single license.
8The location, except those locations already in existence as of
9June 1, 2005, may not be within one mile of a horse race track
10subject to the Illinois Horse Racing Act of 1975, within one
11mile of a facility at which gambling is conducted under the
12Riverboat Gambling Act, within one mile of the location at
13which a riverboat subject to the Riverboat Gambling Act docks,
14or within one mile of any State of Illinois or United States
15military base or naval installation.
16    (g) No licensee shall conduct the business of making loans
17under this Act within any office, suite, room, or place of
18business in which (1) any loans are offered or made under the
19Consumer Installment Loan Act other than title secured loans as
20defined in subsection (a) of Section 15 of the Consumer
21Installment Loan Act and governed by Title 38, Section 110.330
22of the Illinois Administrative Code or (2) any other business
23is solicited or engaged in unless the other business is
24licensed by the Department or, in the opinion of the Secretary,
25the other business would not be contrary to the best interests
26of consumers and is authorized by the Secretary in writing.

 

 

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1    (g-5) Notwithstanding subsection (g) of this Section, a
2licensee may obtain a license under the Consumer Installment
3Loan Act (CILA) for the exclusive purpose and use of making
4title secured loans, as defined in subsection (a) of Section 15
5of CILA and governed by Title 38, Section 110.300 of the
6Illinois Administrative Code. A licensee may continue to
7service Consumer Installment Loan Act loans that were
8outstanding as of the effective date of this amendatory Act of
9the 96th General Assembly.
10    (h) The Secretary shall maintain a list of licensees that
11shall be available to interested consumers and lenders and the
12public. The Secretary shall maintain a toll-free number whereby
13consumers may obtain information about licensees. The
14Secretary shall also establish a complaint process under which
15an aggrieved consumer may file a complaint against a licensee
16or non-licensee who violates any provision of this Act.
17(Source: P.A. 96-936, eff. 3-21-11.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".