Section 110.300  Definitions

"Motor vehicle" shall mean a motor vehicle as defined in the Illinois Vehicle Code [625 ILCS 5/1-146].

"Title-secured lender" shall mean any licensee engaged in making any title-secured loans.

"Title-secured loan" shall mean a loan made pursuant to the Act and in which at commencement, an obligor provides to the licensee, as security for the loan, physical possession of the obligor's title to a motor vehicle.  "Title-secured loan" means only a loan secured by a motor vehicle title which a consumer has possessed (physically or the electronic equivalent) at any time prior to the making of the loan, free and clear of any lienholder.  "Title-secured loan" does not include:

Any loan or credit transaction that is expressly intended to finance the purchase of motor vehicle or other item.

Any loan or credit transaction that is expressly intended to re-finance a transaction which financed the purchase of a motor vehicle or other item.

"Title-secured loan" includes loan or credit transactions that include motor vehicle title as a security and is intended to refinance a prior title-secured loan.  A licensee may rely on a consumer’s signed representation or certification that the motor vehicle title provided has never been held by the consumer free and clear. The certification that the motor vehicle title has never been held free and clear must include:

Date

State

City

Loan Number

Year and Make of Vehicle

Model of Vehicle

VIN

Certification from the consumer that:

The consumer has pledged to Lender the above Motor Vehicle as security for the requested loan; and

The consumer has never held the title to the above Motor Vehicle free and clear of any lienholder.

Signed acknowledgement that the consumer agrees that Lender will rely on the above certifications in connection with the requested loan. 

(Source:  Amended at 47 Ill. Reg. 9271, effective June 20, 2023)