Rep. Curtis J. Tarver, II
Filed: 3/21/2022
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1 | AMENDMENT TO SENATE BILL 1099
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2 | AMENDMENT NO. ______. Amend Senate Bill 1099 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Consumer Legal Funding Act. | ||||||
6 | Section 5. Definitions. | ||||||
7 | "Advertise" means publishing or disseminating any written, | ||||||
8 | electronic, or printed communication, or any communication by | ||||||
9 | means of recorded telephone messages or transmitted on radio, | ||||||
10 | television, the Internet, or similar communications media, | ||||||
11 | including film strips, motion pictures, and videos, published, | ||||||
12 | disseminated, circulated, or placed before the public, | ||||||
13 | directly or indirectly, for the purpose of inducing a consumer | ||||||
14 | to enter into a consumer legal funding. | ||||||
15 | "Charges" means the fees, as set forth in Section 25, to be | ||||||
16 | paid to the consumer legal funding company by or on behalf of |
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1 | the consumer above the funded amount provided by or on behalf | ||||||
2 | of the company to an Illinois consumer pursuant to this Act. | ||||||
3 | "Consumer" means a natural person who has a pending legal | ||||||
4 | claim and who resides or is domiciled in Illinois. | ||||||
5 | "Consumer legal funding" or "funding" means a nonrecourse | ||||||
6 | transaction in which a company purchases and a consumer | ||||||
7 | transfers to the company an unvested, contingent future | ||||||
8 | interest in the potential net proceeds of a settlement or | ||||||
9 | judgment obtained
from the consumer's legal claim; if no | ||||||
10 | proceeds are obtained from the consumer's legal claim, the | ||||||
11 | consumer is not required to repay the company the consumer | ||||||
12 | legal funding amount or charges. | ||||||
13 | "Consumer legal funding company" or "company" means a | ||||||
14 | person or entity that enters into, purchases, or services a | ||||||
15 | consumer legal funding transaction with an Illinois consumer. | ||||||
16 | "Consumer legal funding company" does not include:
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17 | (1) an immediate family member of the consumer; | ||||||
18 | (2) a bank, lender, financing entity, or other special | ||||||
19 | purpose entity: | ||||||
20 | (A) that provides financing to a consumer legal | ||||||
21 | funding company; or | ||||||
22 | (B) to which a consumer legal funding company | ||||||
23 | grants a security interest or transfers any rights or | ||||||
24 | interest in a consumer legal funding; or | ||||||
25 | (3) an attorney or accountant who provides services to | ||||||
26 | a consumer. |
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1 | "Department" means the Department of Financial and | ||||||
2 | Professional Regulation. | ||||||
3 | "Funded amount" means the amount of moneys provided to, or
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4 | on behalf of, the consumer in the consumer legal funding. | ||||||
5 | "Funded amount" does not include charges except for charges | ||||||
6 | that are deducted from the funded amount. | ||||||
7 | "Funding date" means the date on which the funded amount | ||||||
8 | is transferred to the consumer by the consumer legal funding | ||||||
9 | company either by personal delivery; via wire, ACH, or other | ||||||
10 | electronic means; or mailed by insured, certified, or | ||||||
11 | registered United States mail. | ||||||
12 | "Immediate family member" means a parent; sibling; child | ||||||
13 | by blood, adoption, or marriage; spouse; grandparent; or | ||||||
14 | grandchild. | ||||||
15 | "Legal claim" means a bona fide civil claim or cause of | ||||||
16 | action. | ||||||
17 | "Resolution amount" means the funded amount plus the | ||||||
18 | agreed-upon charges that are delivered to the consumer legal | ||||||
19 | funding company on the resolution date. | ||||||
20 | "Resolution date" means the date the resolution amount is | ||||||
21 | delivered to the consumer legal funding company. | ||||||
22 | "Secretary" means the Secretary of Financial and | ||||||
23 | Professional Regulation or the Secretary's designee. | ||||||
24 | Section 10. Contract requirements; right of rescission. | ||||||
25 | (a) All consumer legal fundings shall meet the following |
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1 | requirements: | ||||||
2 | (1) the contract shall be completely filled in when | ||||||
3 | presented to the consumer for signature with all blanks | ||||||
4 | marked "not applicable", "n/a", or "none"; | ||||||
5 | (2) the contract shall contain, in bold and boxed | ||||||
6 | type, a right of rescission, allowing the consumer to | ||||||
7 | cancel the contract without penalty or further obligation | ||||||
8 | if, within 14 business days after the funding date, the | ||||||
9 | consumer either: | ||||||
10 | (A) returns to the consumer legal funding company | ||||||
11 | the full amount of the disbursed funds by delivering | ||||||
12 | the company's uncashed check to the company's office | ||||||
13 | in person; or | ||||||
14 | (B) mails, by insured, certified, or registered | ||||||
15 | United States mail, to the address specified in the | ||||||
16 | contract, a notice of cancellation and includes in the | ||||||
17 | mailing a return of the full amount of disbursed funds | ||||||
18 | in the form of the company's uncashed check or a | ||||||
19 | registered or certified check or money order; and | ||||||
20 | (3) the contract shall contain the initials of the | ||||||
21 | consumer on each page. | ||||||
22 | (b) The contract shall contain a written acknowledgment by | ||||||
23 | the attorney retained by the consumer in the legal claim that | ||||||
24 | attests to the following: | ||||||
25 | (1) to the best of the attorney's knowledge, all the | ||||||
26 | costs and charges relating to the consumer legal funding |
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1 | have been disclosed to the consumer; | ||||||
2 | (2) the attorney is being paid on a contingency basis | ||||||
3 | pursuant to a written fee agreement; | ||||||
4 | (3) all proceeds of the legal claim will be disbursed | ||||||
5 | via either the trust account of the attorney or a | ||||||
6 | settlement fund established to receive the proceeds of the | ||||||
7 | legal claim on behalf of the consumer; | ||||||
8 | (4) the attorney is following the written instructions | ||||||
9 | of the consumer with regard to the consumer legal funding;
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10 | and | ||||||
11 | (5) the attorney has not received a referral fee or
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12 | other consideration from the consumer legal funding | ||||||
13 | company in connection with the consumer legal funding, nor | ||||||
14 | will the attorney receive such fee or other consideration | ||||||
15 | in the future. | ||||||
16 | (c) If the acknowledgment required in subsection (b) is | ||||||
17 | not completed by the attorney retained by the consumer in the | ||||||
18 | legal claim, the contract shall be null and void. The contract | ||||||
19 | remains valid and enforceable if the consumer terminates | ||||||
20 | representation by the initial attorney who completed the | ||||||
21 | acknowledgment required in subsection (b) or retains a new | ||||||
22 | attorney with respect to the legal claim. | ||||||
23 | (d) No licensee shall permit an obligor to owe the | ||||||
24 | licensee, an agent of the licensee, or an affiliate of the | ||||||
25 | licensee, including a corporation owned or managed by the | ||||||
26 | licensee, an aggregate principal amount in excess of $100,000, |
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1 | unless permitted by rule, at any time for consumer legal | ||||||
2 | fundings transacted pursuant to this Act.
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3 | (e) Any transaction that does not exactly meet the | ||||||
4 | definition of a consumer legal funding under Section 5 is | ||||||
5 | subject to the Interest Act and any other applicable law.
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6 | Section 15. Consumer legal funding company prohibitions. A | ||||||
7 | consumer legal funding company shall not: | ||||||
8 | (1) pay or offer to pay commissions, referral fees, or | ||||||
9 | other forms of consideration to any attorney, law firm, | ||||||
10 | medical provider, chiropractic physician, or physical | ||||||
11 | therapist or any of their employees or agents for | ||||||
12 | referring a consumer to the company; | ||||||
13 | (2) accept any commissions, referral fees, rebates, or | ||||||
14 | other forms of consideration from an attorney, law firm, | ||||||
15 | medical provider, chiropractor, or physical therapist or | ||||||
16 | any of their employees or agents; | ||||||
17 | (3) advertise materially false or misleading | ||||||
18 | information regarding its products or services; | ||||||
19 | (4) refer, in furtherance of an initial consumer legal | ||||||
20 | funding, a customer or potential customer to a specific | ||||||
21 | attorney, law firm, medical provider, chiropractor, or | ||||||
22 | physical therapist or any of their employees; however, if | ||||||
23 | a customer needs legal representation, the company may | ||||||
24 | refer the customer to a local or State bar association | ||||||
25 | referral service or to a legal aid organization; |
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1 | (5) fail to supply a true copy of the executed | ||||||
2 | contract to the attorney for the consumer upon execution | ||||||
3 | and if the consumer or their attorney requests a copy; | ||||||
4 | (6) knowingly provide funding to a consumer who has | ||||||
5 | previously assigned or sold a portion of the consumer's | ||||||
6 | right to proceeds from his or her legal claim without | ||||||
7 | first making payment to or purchasing a prior unsatisfied | ||||||
8 | consumer legal funding company's entire funded amount and | ||||||
9 | contracted charges, unless a lesser amount is otherwise | ||||||
10 | agreed to in writing by the consumer legal funding | ||||||
11 | companies, except that multiple companies may agree to | ||||||
12 | contemporaneously provide funding to a consumer if the | ||||||
13 | consumer and the consumer's attorney consent to the | ||||||
14 | arrangement in writing; | ||||||
15 | (7) receive any right to, nor make any decisions with | ||||||
16 | respect to, the conduct of the underlying legal claim or | ||||||
17 | any settlement or resolution of the legal claim; the right | ||||||
18 | to make such decisions shall remain solely with the | ||||||
19 | consumer and the consumer's attorney in the legal claim; | ||||||
20 | or | ||||||
21 | (8) knowingly pay or offer to pay for court costs,
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22 | filing fees, or attorney's fees either during or after the | ||||||
23 | resolution of the legal claim using funds from the | ||||||
24 | consumer legal funding transaction. | ||||||
25 | Section 20. Satisfaction of the contract. A consumer legal |
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1 | funding company shall require the resolution amount to be set | ||||||
2 | as a predetermined amount, based upon intervals of time from | ||||||
3 | the date of origination of the funding through the date of | ||||||
4 | resolution of the legal claim, and not be determined as a | ||||||
5 | percentage of the recovery from the legal claim. | ||||||
6 | Section 25. Fees. | ||||||
7 | (a) The fee charged by a consumer legal funding company to | ||||||
8 | the consumer shall be calculated as not more than 18% of the | ||||||
9 | funded amount, assessed on the outset of every 6 months. | ||||||
10 | (b) In addition, a consumer legal funding company may | ||||||
11 | charge a document preparation fee not to exceed $75, which may | ||||||
12 | be deducted from the funded amount. This fee is to be used to | ||||||
13 | defray the ordinary cost of opening, administering, and | ||||||
14 | terminating a consumer legal funding. | ||||||
15 | (c) A consumer legal funding company shall not collect any | ||||||
16 | additional fees unless otherwise specified in this Act. | ||||||
17 | (d) No charges may accrue on a consumer legal funding for | ||||||
18 | more than 42 months after the funding date of the consumer | ||||||
19 | legal funding. No consumer legal funding may be refinanced | ||||||
20 | except as authorized by rule. Notwithstanding the foregoing, a | ||||||
21 | consumer legal funding company may assess charges on any | ||||||
22 | additional amounts provided after the funding date for 42 | ||||||
23 | months after the additional funding date. | ||||||
24 | Section 30. Disclosures. All consumer legal funding
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1 | contracts shall contain the disclosures specified in this | ||||||
2 | Section, which shall constitute material terms of the | ||||||
3 | contract. Unless otherwise specified, the disclosures shall be | ||||||
4 | typed in at least 12-point bold-type font and be placed | ||||||
5 | clearly and conspicuously within the contract as follows: | ||||||
6 | (1) On the front page under appropriate headings, | ||||||
7 | language specifying: | ||||||
8 | (A) the funded amount to be paid to the consumer or | ||||||
9 | on the consumer's behalf by the consumer legal funding | ||||||
10 | company; | ||||||
11 | (B) an itemization of charges; | ||||||
12 | (C) the maximum total amount to be paid by the | ||||||
13 | consumer to the company, including the funded amount | ||||||
14 | and all fees; and | ||||||
15 | (D) a payment schedule to include the resolution | ||||||
16 | amount, listing dates, and the amount due at the end of | ||||||
17 | each 6-month period from the funding date, until the | ||||||
18 | date the maximum amount is due to the company by the | ||||||
19 | consumer to satisfy the amount due pursuant to the | ||||||
20 | contract. | ||||||
21 | (2) Pursuant to the provisions set forth in paragraph
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22 | (2) of subsection (a) of Section 10, within the body of the | ||||||
23 | contract: "CONSUMER'S RIGHT TO CANCELLATION: You may | ||||||
24 | cancel this contract without penalty or further obligation | ||||||
25 | within 14 business days after the funding date if you | ||||||
26 | either: |
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1 | (A) return to the consumer legal funding company
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2 | the full amount of the funds disbursed to you or on | ||||||
3 | your behalf by delivering the company's uncashed check | ||||||
4 | to the company's office in person; or | ||||||
5 | (B) place in the mail, by mail service materially | ||||||
6 | equivalent to United States Postal Service certified | ||||||
7 | mail, addressed to the company at the address | ||||||
8 | specified in the contract, a notice of cancellation | ||||||
9 | and include in such mailing a return of the full amount | ||||||
10 | of funds disbursed to you or on your behalf in the form | ||||||
11 | of the company's uncashed check or a registered or | ||||||
12 | certified check or money order." | ||||||
13 | (3) Within the body of the contract: "The consumer | ||||||
14 | legal funding company shall have no role in deciding | ||||||
15 | whether, when, and how much the legal claim is settled | ||||||
16 | for, however, the consumer and consumer's attorney must | ||||||
17 | notify the company of the outcome of the legal claim by | ||||||
18 | settlement or adjudication before the resolution date. The | ||||||
19 | company may seek updated information about the status of | ||||||
20 | the legal claim but in no event shall the company | ||||||
21 | interfere with the independent professional judgment of | ||||||
22 | the attorney in the handling of the legal claim or any | ||||||
23 | settlement thereof." | ||||||
24 | (4) Within the body of the contract, in all capital | ||||||
25 | letters in at least 12-point bold-type font contained | ||||||
26 | within a box: "THE FUNDED AMOUNT AND AGREED-UPON CHARGES |
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1 | SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, | ||||||
2 | AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE
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3 | AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE | ||||||
4 | [INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY] | ||||||
5 | ANYTHING IF THERE ARE NO REMAINING PROCEEDS AVAILABLE FROM | ||||||
6 | YOUR LEGAL CLAIM, UNLESS YOU OR YOUR ATTORNEY HAVE | ||||||
7 | COMMITTED FRAUD AGAINST THE CONSUMER LEGAL FUNDING | ||||||
8 | COMPANY." | ||||||
9 | (5) Located immediately above the place on the | ||||||
10 | contract where the consumer's signature is required, in | ||||||
11 | 12-point font: "Do not sign this contract before you read | ||||||
12 | it completely or if it contains any blank spaces. You are | ||||||
13 | entitled to a completely filled-in copy of the contract. | ||||||
14 | Before you sign this contract, you should obtain the | ||||||
15 | advice of an attorney. Depending on the circumstances, you | ||||||
16 | may want to consult a tax, public or private benefits | ||||||
17 | planning, or financial professional. You acknowledge that | ||||||
18 | your attorney in the legal claim has provided no tax, | ||||||
19 | public or private benefit planning, or financial advice | ||||||
20 | regarding this transaction." | ||||||
21 | (6) The consumer legal funding company shall provide | ||||||
22 | the consumer with information on accessing a financial | ||||||
23 | coaching program no later than the funding date. | ||||||
24 | Section 35. Violations. | ||||||
25 | (a) Nothing in this Act shall be construed to restrict the |
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1 | exercise of powers or the performance of the duties of the | ||||||
2 | Illinois Attorney General that he or she is authorized to | ||||||
3 | exercise or perform by law. | ||||||
4 | (b) Any violation of this Act constitutes a violation of | ||||||
5 | the Consumer Fraud and Deceptive Business Practices Act. | ||||||
6 | (c) The Illinois Attorney General may enforce a violation | ||||||
7 | of this Act as an unlawful practice under the Consumer Fraud | ||||||
8 | and Deceptive Business Practices Act. | ||||||
9 | Section 40. Assignability; liens. | ||||||
10 | (a) The contingent right to receive an amount of the | ||||||
11 | potential proceeds of a legal claim is assignable by a | ||||||
12 | consumer. | ||||||
13 | (b) Only liens related to the legal claim, including | ||||||
14 | attorney's liens, Medicare, or other statutory liens, shall | ||||||
15 | take priority over any lien of the consumer legal funding | ||||||
16 | company. All other liens shall take priority by normal | ||||||
17 | operation of law. | ||||||
18 | (c) A consumer legal funding transaction does not | ||||||
19 | constitute an assignment of a personal injury claim or chose | ||||||
20 | in action. | ||||||
21 | (d) A consumer legal funding transaction does not | ||||||
22 | constitute the assignment of any present right; the | ||||||
23 | transaction constitutes the transfer of an unvested, | ||||||
24 | contingent future interest in an amount of the potential | ||||||
25 | proceeds of a legal claim or cause of action.
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1 | Section 45. Attorney prohibitions. An attorney or law firm | ||||||
2 | retained by the consumer in the legal claim shall not have a | ||||||
3 | financial interest in the consumer legal funding company | ||||||
4 | offering consumer legal funding to that consumer. | ||||||
5 | Additionally, any attorney who has referred the consumer to | ||||||
6 | the consumer's retained attorney shall not have a financial | ||||||
7 | interest in the consumer legal funding company offering | ||||||
8 | consumer legal funding to that consumer. A consumer legal | ||||||
9 | funding that violates this Section is null and void and no | ||||||
10 | person or entity shall have any right to collect, attempt to | ||||||
11 | collect, receive, or retain any funded amount or charges | ||||||
12 | related to the consumer legal funding. | ||||||
13 | Section 50. Effect of communication on privileges. No | ||||||
14 | communication between the consumer's attorney in the legal | ||||||
15 | claim and the consumer legal funding company as it pertains to | ||||||
16 | the consumer legal funding shall limit, waive, or abrogate the | ||||||
17 | scope or nature of any statutory or common law privilege, | ||||||
18 | including the work product doctrine and the attorney-client | ||||||
19 | privilege. | ||||||
20 | Section 55. Consumer legal funding license scope. | ||||||
21 | (a) It shall be unlawful for any person or entity to | ||||||
22 | operate as a consumer legal funding provider in this State | ||||||
23 | except as authorized by this Act and without first having |
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1 | obtained a license in accordance with this Act. No person or | ||||||
2 | entity may engage in any device, subterfuge, or pretense to | ||||||
3 | evade the requirements of this Act. However, any company that | ||||||
4 | has a license in good standing under the Consumer Installment | ||||||
5 | Loan Act on the effective date of this Act shall be entitled to | ||||||
6 | make consumer legal fundings under the terms of this Act upon | ||||||
7 | the effective date of this Act if that company files an | ||||||
8 | application for a consumer legal funding license within 60 | ||||||
9 | days after the Department issues forms for the filing of that | ||||||
10 | application and until the Department approves or denies the | ||||||
11 | application for a funding license. Any consumer legal funding | ||||||
12 | contract made by any person or entity in violation of this | ||||||
13 | subsection shall be null and void and the person or entity who | ||||||
14 | entered into the consumer legal funding transaction shall have | ||||||
15 | no right to collect, attempt to collect, receive, or retain | ||||||
16 | any principal, interest, or charges related to the consumer | ||||||
17 | legal funding transaction.
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18 | (b) The provisions of this Act do not apply to a bank, | ||||||
19 | savings bank, savings association, or credit union organized | ||||||
20 | under the laws of this State, any other state, or under the | ||||||
21 | laws of the United States.
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22 | (c) Any consumer legal funding made by a person not | ||||||
23 | licensed under this Act, including a person holding an | ||||||
24 | inactive license, and not exempt under this Act shall be null | ||||||
25 | and void, and no person or entity shall have any right to | ||||||
26 | collect, attempt to collect, receive, or retain any principal, |
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1 | fee, interest, or charges related to the funding.
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2 | Section 60. Licensee name. No person, partnership, | ||||||
3 | association, corporation, limited liability company, or other | ||||||
4 | entity engaged in a business regulated by this Act shall | ||||||
5 | operate the business under a name other than the real names of | ||||||
6 | the entity and individuals conducting the business. The | ||||||
7 | business may in addition operate under an assumed corporate | ||||||
8 | name pursuant to the Business Corporation Act of 1983, an | ||||||
9 | assumed limited liability company name pursuant to the Limited | ||||||
10 | Liability Company Act, or an assumed business name pursuant to | ||||||
11 | the Assumed Business Name Act. | ||||||
12 | Section 65. License application process; investigation. | ||||||
13 | (a) The Secretary may issue a license upon completion of | ||||||
14 | all of the following:
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15 | (1) the filing of an application for a license with | ||||||
16 | the Secretary or the Nationwide Multistate Licensing | ||||||
17 | System and Registry as required by the Secretary;
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18 | (2) the filing with the Secretary of a listing of | ||||||
19 | judgments entered against and bankruptcy petitions by the | ||||||
20 | license applicant for the preceding 10 years;
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21 | (3) the filing of an audited balance sheet, including | ||||||
22 | all footnotes prepared by a certified public accountant in | ||||||
23 | accordance with generally accepted accounting principles | ||||||
24 | and generally accepted auditing standards; notwithstanding |
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1 | the requirements of this subsection, an applicant that is | ||||||
2 | a subsidiary may submit audited consolidated financial | ||||||
3 | statements of its parent, intermediary parent, or ultimate | ||||||
4 | parent if the consolidated statements are supported by | ||||||
5 | consolidating statements that include the applicant's | ||||||
6 | financial statement; if the consolidating statements are | ||||||
7 | unaudited, the applicant's chief financial officer shall | ||||||
8 | attest to the applicant's financial statements disclosed | ||||||
9 | in the consolidating statements; and
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10 | (4) an investigation of the averments required by | ||||||
11 | Section 80, which investigation must allow the Secretary | ||||||
12 | to issue positive findings stating that the financial | ||||||
13 | responsibility, experience, character, and general fitness | ||||||
14 | of the license applicant; of the members thereof if the | ||||||
15 | license applicant is a partnership or association; of the | ||||||
16 | officers and directors thereof if the license applicant is | ||||||
17 | a corporation; and of the managers and members that retain | ||||||
18 | any authority or responsibility under the operating | ||||||
19 | agreement if the license applicant is a limited liability | ||||||
20 | company are such as to command the confidence of the | ||||||
21 | community and to warrant belief that the business will be | ||||||
22 | operated honestly, fairly, and efficiently within the | ||||||
23 | purpose of this Act; if the Secretary does not so find, he | ||||||
24 | or she shall not issue the license and shall notify the | ||||||
25 | license applicant of the denial. The Secretary may impose | ||||||
26 | conditions on a license if the Secretary determines that |
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1 | those conditions are necessary or appropriate. These | ||||||
2 | conditions shall be imposed in writing and shall continue | ||||||
3 | in effect for a period prescribed by the Secretary.
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4 | (b) All licenses shall be issued to the license applicant. | ||||||
5 | Upon receipt of the license, a consumer legal funding licensee | ||||||
6 | shall be authorized to engage in the business regulated by | ||||||
7 | this Act. The license shall remain in full force and effect | ||||||
8 | until it expires, it is surrendered by the licensee, or it is | ||||||
9 | revoked or suspended as provided by this Act.
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10 | Section 70. License application form. | ||||||
11 | (a) An application for a consumer legal funding company | ||||||
12 | license must be made in accordance with Section 65 and, if | ||||||
13 | applicable, in accordance with requirements of the Nationwide | ||||||
14 | Multistate Licensing System and Registry. The application | ||||||
15 | shall be in writing, under oath, and on a form obtained from | ||||||
16 | and prescribed by the Secretary, or may be submitted | ||||||
17 | electronically with attestation to the Nationwide Multistate | ||||||
18 | Licensing System and Registry.
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19 | (b) The application shall contain the name and complete | ||||||
20 | business and residential address or addresses of the license | ||||||
21 | applicant. If the license applicant is a partnership, | ||||||
22 | association, corporation, or other form of business | ||||||
23 | organization, the application shall contain the names and | ||||||
24 | complete business and residential addresses of each member, | ||||||
25 | director, and principal officer of the business. The |
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1 | application shall also include a description of the activities | ||||||
2 | of the license applicant in such detail and for such periods as | ||||||
3 | the Secretary may require, including all of the following:
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4 | (1) an affirmation of financial solvency noting such | ||||||
5 | capitalization requirements as may be required by the | ||||||
6 | Secretary and access to such credit as may be required by | ||||||
7 | the Secretary;
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8 | (2) an applicant shall prove in a form satisfactory to | ||||||
9 | the Secretary that the applicant has and will maintain a | ||||||
10 | positive net worth of a minimum of $30,000;
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11 | (3) an applicant shall submit to the Secretary with | ||||||
12 | the application for a license and every licensee shall | ||||||
13 | maintain a bond to be approved by the Secretary in which | ||||||
14 | the applicant shall be the obligor, in the sum of $50,000 | ||||||
15 | or such additional amount as required by the Secretary | ||||||
16 | based on the amount of consumer legal fundings made, | ||||||
17 | purchased, or serviced by the licensee in the previous | ||||||
18 | year, and in which an insurance company that is duly | ||||||
19 | authorized by this State to transact the business of | ||||||
20 | fidelity and surety insurance shall be a surety. The | ||||||
21 | surety bond shall run to the Secretary and shall be for the | ||||||
22 | benefit of the Department and of any consumer who incurs | ||||||
23 | damages as a result of any violation of this Act or rules | ||||||
24 | adopted pursuant to this Act by a licensee;
| ||||||
25 | (4) an affirmation that the license applicant or its | ||||||
26 | members, directors, or principals, as may be appropriate, |
| |||||||
| |||||||
1 | are at least 18 years of age;
| ||||||
2 | (5) information as to the character, fitness, | ||||||
3 | financial and business responsibility, background, | ||||||
4 | experience, and criminal record of any:
| ||||||
5 | (i) person, entity, or ultimate equitable owner | ||||||
6 | that owns or controls, directly or indirectly, 10% or | ||||||
7 | more of any class of stock of the license applicant;
| ||||||
8 | (ii) person, entity, or ultimate equitable owner | ||||||
9 | that is not a depository institution, as defined in | ||||||
10 | Section 1007.50 of the Savings Bank Act, that lends, | ||||||
11 | provides, or infuses, directly or indirectly, in any | ||||||
12 | way, funds to or into a license applicant in an amount | ||||||
13 | equal to or more than 10% of the license applicant's | ||||||
14 | net worth;
| ||||||
15 | (iii) person, entity, or ultimate equitable owner | ||||||
16 | that controls, directly or indirectly, the election of | ||||||
17 | 25% or more of the members of the board of directors of | ||||||
18 | a license applicant; or
| ||||||
19 | (iv) person, entity, or ultimate equitable owner | ||||||
20 | that the Secretary finds influences management of the | ||||||
21 | license applicant; the provisions of this subparagraph | ||||||
22 | shall not apply to a public official serving on the | ||||||
23 | board of directors of a State guaranty agency;
| ||||||
24 | (6) upon written request by the licensee and | ||||||
25 | notwithstanding the provisions of paragraphs (1), (2), and | ||||||
26 | (3) of this subsection, the Secretary may permit the |
| |||||||
| |||||||
1 | licensee to omit all or part of the information required | ||||||
2 | by those paragraphs if instead of the omitted information, | ||||||
3 | the licensee submits an affidavit stating that the | ||||||
4 | information submitted on the licensee's previous renewal | ||||||
5 | application is still true and accurate; the Department may | ||||||
6 | adopt rules prescribing the form and content of the | ||||||
7 | affidavit that are necessary to accomplish the purposes of | ||||||
8 | this paragraph; and
| ||||||
9 | (7) any other information as required by rule.
| ||||||
10 | Section 75. License application; Nationwide Multistate | ||||||
11 | Licensing System and Registry. | ||||||
12 | (a) Applicants for a license shall apply in a form | ||||||
13 | prescribed by the Secretary. Each form shall contain content | ||||||
14 | as set forth by rule, regulation, instruction, or procedure of | ||||||
15 | the Department and may be changed or updated as necessary by | ||||||
16 | the Department in order to carry out the purposes of this Act.
| ||||||
17 | (b) In order to fulfill the purposes of this Act, the | ||||||
18 | Secretary is authorized to establish relationships or | ||||||
19 | contracts with the Nationwide Multistate Licensing System and | ||||||
20 | Registry or other entities designated by the Nationwide | ||||||
21 | Multistate Licensing System and Registry to collect and | ||||||
22 | maintain records and process transaction fees or other fees | ||||||
23 | related to licensees or other persons subject to this Act.
| ||||||
24 | (c) In connection with an application for licensing, the | ||||||
25 | applicant may be required, at a minimum, to furnish to the |
| |||||||
| |||||||
1 | Nationwide Multistate Licensing System and Registry | ||||||
2 | information concerning the applicant's identity, including | ||||||
3 | personal history and experience in a form prescribed by the | ||||||
4 | Nationwide Multistate Licensing System and Registry, including | ||||||
5 | the submission of authorization for the Nationwide Multistate | ||||||
6 | Licensing System and Registry and the Secretary to obtain:
| ||||||
7 | (1) an independent credit report obtained from a | ||||||
8 | consumer reporting agency described in Section 603(p) of | ||||||
9 | the Fair Credit Reporting Act, 15 U.S.C. 1681a(p); and
| ||||||
10 | (2) information related to any administrative, civil, | ||||||
11 | or criminal findings by any governmental jurisdiction.
| ||||||
12 | (d) For the purposes of this Section, and in order to | ||||||
13 | reduce the points of contact that the Secretary may have to | ||||||
14 | maintain for purposes of paragraph (2) of subsection (c), the | ||||||
15 | Secretary may use the Nationwide Multistate Licensing System | ||||||
16 | and Registry as a channeling agent for requesting and | ||||||
17 | distributing information to and from any source as directed by | ||||||
18 | the Secretary.
| ||||||
19 | Section 80. Averments of applicant. Each application for | ||||||
20 | license shall be accompanied by the following averments | ||||||
21 | stating that the applicant: | ||||||
22 | (1) will file with the Secretary or Nationwide | ||||||
23 | Multistate Licensing System and Registry, as applicable, | ||||||
24 | any report or reports that it is required to file under any | ||||||
25 | of the provisions of this Act when due;
|
| |||||||
| |||||||
1 | (2) has not committed a crime against the law of this | ||||||
2 | State, any other state, or of the United States involving | ||||||
3 | moral turpitude or fraudulent or dishonest dealing, and | ||||||
4 | that no final judgment has been entered against it in a | ||||||
5 | civil action upon grounds of fraud, misrepresentation, or | ||||||
6 | deceit that has not been previously reported to the | ||||||
7 | Secretary;
| ||||||
8 | (3) has not engaged in any conduct that would be cause | ||||||
9 | for denial of a license;
| ||||||
10 | (4) has not become insolvent;
| ||||||
11 | (5) has not submitted an application for a license | ||||||
12 | under this Act that contains a material misstatement;
| ||||||
13 | (6) has not demonstrated by course of conduct, | ||||||
14 | negligence or incompetence in performing any act for which | ||||||
15 | it is required to hold a license under this Act;
| ||||||
16 | (7) will advise the Secretary in writing or the | ||||||
17 | Nationwide Multistate Licensing System and Registry, as | ||||||
18 | applicable, of any changes to the information submitted on | ||||||
19 | the most recent application for license or averments of | ||||||
20 | record within 30 days after the change; the written notice | ||||||
21 | must be signed in the same form as the application for the | ||||||
22 | license being amended;
| ||||||
23 | (8) will comply with the provisions of this Act and | ||||||
24 | with any lawful order, rule, or regulation made or issued | ||||||
25 | under the provisions of this Act;
| ||||||
26 | (9) will submit to periodic examination by the |
| |||||||
| |||||||
1 | Secretary as required by this Act; and
| ||||||
2 | (10) will advise the Secretary in writing of judgments | ||||||
3 | entered against and bankruptcy petitions by the license | ||||||
4 | applicant within 5 days after the occurrence.
| ||||||
5 | A licensee who fails to fulfill the obligations of an | ||||||
6 | averment, fails to comply with averments made, or otherwise | ||||||
7 | violates any of the averments made under this Section shall be | ||||||
8 | subject to the penalties of this Act. | ||||||
9 | Section 85. Refusal to issue license. The Secretary may | ||||||
10 | refuse to issue or renew a license if:
| ||||||
11 | (1) it is determined that the applicant is not in | ||||||
12 | compliance with any provisions of this Act;
| ||||||
13 | (2) there is substantial continuity between the | ||||||
14 | applicant and any violator of this Act; or
| ||||||
15 | (3) the Secretary cannot make the findings specified | ||||||
16 | in subsection (a) of Section 65. | ||||||
17 | Section 90. Closing of business; surrender of license. At | ||||||
18 | least 10 days before a licensee ceases operations, closes | ||||||
19 | business, or files for bankruptcy: | ||||||
20 | (1) The licensee shall notify the Department of its | ||||||
21 | action in writing. | ||||||
22 | (2) With the exception of filing for bankruptcy, the | ||||||
23 | licensee shall surrender its license to the Secretary for | ||||||
24 | cancellation; the surrender of the license shall not |
| |||||||
| |||||||
1 | affect the licensee's civil or criminal liability for acts | ||||||
2 | committed before surrender or entitle the licensee to a | ||||||
3 | return of any part of the annual license fee. | ||||||
4 | (3) The licensee shall notify the Department of the | ||||||
5 | location where the books, accounts, contracts, and records | ||||||
6 | will be maintained and the procedure to ensure prompt | ||||||
7 | return of contracts, titles, and releases to the
| ||||||
8 | customers. | ||||||
9 | (4) The accounts, books, records, and contracts shall | ||||||
10 | be maintained and serviced by the licensee or another | ||||||
11 | licensee under this Act or an entity exempt from licensure | ||||||
12 | under this Act. | ||||||
13 | (5) The Department shall have the authority to conduct | ||||||
14 | examinations of the books, records, and funding documents | ||||||
15 | at any time after surrender of the license, filing of | ||||||
16 | bankruptcy, or the cessation of operations. | ||||||
17 | Section 95. License renewal; fees. | ||||||
18 | (a) Licenses shall be renewed every year using the common | ||||||
19 | renewal date of the Nationwide Multistate Licensing System and | ||||||
20 | Registry, as required by the Secretary. Properly completed | ||||||
21 | renewal application forms and filing fees may be received by | ||||||
22 | the Secretary 60 days before the license expiration date, but | ||||||
23 | to be deemed timely the completed renewal application forms | ||||||
24 | and filing fees must be received by the Secretary no later than | ||||||
25 | 30 days before the license expiration date.
|
| |||||||
| |||||||
1 | (b) It shall be the responsibility of each licensee to | ||||||
2 | accomplish renewal of its license. Failure by a licensee to | ||||||
3 | submit a properly completed renewal application form and fees | ||||||
4 | in a timely fashion, absent a written extension from the | ||||||
5 | Secretary, shall result in the license becoming inactive.
| ||||||
6 | (c) No activity regulated by this Act shall be conducted | ||||||
7 | by the licensee when a license becomes inactive. An inactive | ||||||
8 | license may be reactivated by the Secretary upon payment of a | ||||||
9 | renewal fee and payment of a reactivation fee equal to the | ||||||
10 | renewal fee.
| ||||||
11 | (d) A licensee ceasing an activity or activities regulated | ||||||
12 | by this Act and desiring to no longer be licensed shall inform | ||||||
13 | the Secretary in writing and, at the same time, convey any | ||||||
14 | license issued and all other symbols or indicia of licensure. | ||||||
15 | The licensee shall include a plan for the withdrawal from the | ||||||
16 | regulated business, including a timetable for the disposition | ||||||
17 | of the business, and comply with the surrender guidelines or | ||||||
18 | rules of the Department. Upon receipt of such written notice, | ||||||
19 | the Secretary shall post the cancellation or issue a certified | ||||||
20 | statement canceling the license.
| ||||||
21 | (e) The expenses of administering this Act, including | ||||||
22 | investigations and examinations provided for in this Act, | ||||||
23 | shall be borne by and assessed against entities regulated by | ||||||
24 | this Act. The fees listed in this Section shall be payable to | ||||||
25 | the Department or to the Nationwide Multistate Licensing | ||||||
26 | System and Registry for transfer to the required recipients by |
| |||||||
| |||||||
1 | the Secretary. The Secretary will specify the form of payment | ||||||
2 | to the Department or to the Nationwide Multistate Licensing | ||||||
3 | System and Registry, which may include certified check, money | ||||||
4 | order, credit card, or other forms of payment authorized by | ||||||
5 | the Secretary. The Nationwide Multistate Licensing System and | ||||||
6 | Registry shall be authorized to collect and process | ||||||
7 | transaction fees or other fees related to licensees or other | ||||||
8 | persons subject to the Act.
| ||||||
9 | (f) Applicants and licensees shall be subject to the | ||||||
10 | following fees:
| ||||||
11 | (1) For each application for an initial license, the | ||||||
12 | applicant shall pay a nonrefundable initial application | ||||||
13 | fee of $1,000 and a nonrefundable background investigation | ||||||
14 | fee of $800.
| ||||||
15 | (2) For each application for an annual renewal of a | ||||||
16 | license, the applicant shall pay a nonrefundable renewal | ||||||
17 | fee of $1,000. For each application for a renewal of an | ||||||
18 | inactive license, the applicant shall pay the | ||||||
19 | nonrefundable renewal fee of $1,000 and an additional | ||||||
20 | nonrefundable reactivation fee equal to the renewal fee.
| ||||||
21 | (3) The licensee shall pay a nonrefundable fee of | ||||||
22 | $1,000 for each notice of change of ownership or control | ||||||
23 | filed.
| ||||||
24 | (4) The licensee shall pay a nonrefundable fee of $50 | ||||||
25 | for each notice of change of officers or directors or | ||||||
26 | change of name or address filed.
|
| |||||||
| |||||||
1 | (5) Any licensee or person who delivers a check or | ||||||
2 | other payment to the Department that is returned unpaid by | ||||||
3 | the financial institution upon which it is drawn shall pay | ||||||
4 | to the Department, in addition to the amount already owed, | ||||||
5 | a fee of $50.
| ||||||
6 | (6) Time expended in the conduct of any examination of | ||||||
7 | the affairs of any licensee or its affiliates shall be | ||||||
8 | billed by the Department at a rate of $510 per examiner | ||||||
9 | day. Examination fees shall be billed following completion | ||||||
10 | of the examination and shall be paid within 30 days after | ||||||
11 | receipt of the billing.
| ||||||
12 | (7) If out-of-state travel occurs in the conduct of | ||||||
13 | any examination, the licensee shall make arrangements to | ||||||
14 | reimburse the Department for all charges for services, | ||||||
15 | including travel expenses, including airfare, hotel and | ||||||
16 | per diem expenses incurred by the employee. These expenses | ||||||
17 | are to be in accord with applicable travel regulations | ||||||
18 | published by the Department of Central Management Services | ||||||
19 | and approved by the Governor's Travel Control Board.
| ||||||
20 | (8) Each licensee shall pay to the Department its pro | ||||||
21 | rata share of the cost for administration of the Act that | ||||||
22 | exceeds other fees listed in this Section, as estimated by | ||||||
23 | the Department, for the current year and any deficit | ||||||
24 | actually incurred in the administration of the Act in | ||||||
25 | prior years. The calculation method for each licensee's | ||||||
26 | pro rata share shall be established by rule.
|
| |||||||
| |||||||
1 | (g) Beginning one year after the effective date of this | ||||||
2 | Act, the Department may, by rule, amend the fees set forth in | ||||||
3 | this Section.
| ||||||
4 | Section 100. Secretary of Financial and Professional | ||||||
5 | Regulation; functions and powers. The functions and powers of | ||||||
6 | the Secretary shall include the following: | ||||||
7 | (1) to issue or refuse to issue any license as | ||||||
8 | provided by this Act;
| ||||||
9 | (2) to revoke or suspend for cause any license issued | ||||||
10 | under this Act;
| ||||||
11 | (3) to keep records of all licenses issued under this | ||||||
12 | Act;
| ||||||
13 | (4) to receive, consider, investigate, and act upon | ||||||
14 | complaints made by any person in connection with any | ||||||
15 | licensed consumer legal funding company in this State or | ||||||
16 | unlicensed consumer legal funding activity;
| ||||||
17 | (5) to prescribe the forms of and receive:
| ||||||
18 | (A) applications for licenses; and
| ||||||
19 | (B) all reports and all books and records required | ||||||
20 | to be made by any licensee under this Act, including | ||||||
21 | annual audited financial statements and annual reports | ||||||
22 | of consumer legal funding activity;
| ||||||
23 | (6) to subpoena documents and witnesses and compel | ||||||
24 | their attendance and production, to administer oaths, and | ||||||
25 | to require the production of any books, papers, or other |
| |||||||
| |||||||
1 | materials relevant to any inquiry authorized by this Act;
| ||||||
2 | (7) to issue orders against any person:
| ||||||
3 | (A) if the Secretary has reasonable cause to | ||||||
4 | believe that an unsafe, unsound, or unlawful practice | ||||||
5 | has occurred, is occurring, or is about to occur;
| ||||||
6 | (B) if any person has violated, is violating, or | ||||||
7 | is about to violate any law, rule, or written | ||||||
8 | agreement with the Secretary; or
| ||||||
9 | (C) for the purpose of administering the | ||||||
10 | provisions of this Act and any rule adopted in | ||||||
11 | accordance with this Act;
| ||||||
12 | (8) to address any inquiries to any licensee, or the | ||||||
13 | officers of the licensee, in relation to the licensee's | ||||||
14 | activities and conditions or any other matter connected | ||||||
15 | with its affairs, and it shall be the duty of any licensee | ||||||
16 | or person so addressed to promptly reply in writing to | ||||||
17 | those inquiries; the Secretary may also require reports | ||||||
18 | from any licensee at any time the Secretary chooses;
| ||||||
19 | (9) to examine the books and records of every licensee | ||||||
20 | under this Act;
| ||||||
21 | (10) to enforce the provisions of this Act;
| ||||||
22 | (11) to levy fees, fines, and charges for services | ||||||
23 | performed in administering this Act; the aggregate of all | ||||||
24 | fees collected by the Secretary on and after the effective | ||||||
25 | date of this Act shall be paid promptly after receipt, | ||||||
26 | accompanied by a detailed statement of fees paid, into the |
| |||||||
| |||||||
1 | Financial Institutions Fund; the amounts deposited into | ||||||
2 | that Fund shall be used for the ordinary and contingent | ||||||
3 | expenses of the Department; nothing in this Act shall | ||||||
4 | prevent the continuation of the practice of paying | ||||||
5 | expenses involving salaries, retirement, social security, | ||||||
6 | and State-paid insurance of State officers by | ||||||
7 | appropriation from the General Revenue Fund or any other | ||||||
8 | fund;
| ||||||
9 | (12) to appoint examiners, supervisors, experts, and | ||||||
10 | special assistants as needed to effectively and | ||||||
11 | efficiently administer this Act;
| ||||||
12 | (13) to conduct hearings for the purpose of:
| ||||||
13 | (A) appeals of orders of the Secretary;
| ||||||
14 | (B) suspensions or revocations of licenses;
| ||||||
15 | (C) fining of licensees or unlicensed persons or | ||||||
16 | entities;
| ||||||
17 | (D) investigating:
| ||||||
18 | (i) complaints against licensees or unlicensed | ||||||
19 | persons or entities; or
| ||||||
20 | (ii) annual gross delinquency rates; and
| ||||||
21 | (E) carrying out the purposes of this Act;
| ||||||
22 | (14) to exercise visitorial power over a licensee;
| ||||||
23 | (15) to enter into cooperative agreements with state | ||||||
24 | regulatory authorities of other states to provide for | ||||||
25 | examination of corporate offices or branches of those | ||||||
26 | states and to accept reports of those examinations;
|
| |||||||
| |||||||
1 | (16) to assign an examiner or examiners to monitor the | ||||||
2 | affairs of a licensee with whatever frequency the | ||||||
3 | Secretary determines appropriate and to charge the | ||||||
4 | licensee for reasonable and necessary expenses of the | ||||||
5 | Secretary if in the opinion of the Secretary an emergency | ||||||
6 | exists or appears likely to occur;
| ||||||
7 | (17) to impose civil penalties of up to $50 per day | ||||||
8 | against a licensee for failing to respond to a regulatory | ||||||
9 | request or reporting requirement; and
| ||||||
10 | (18) to enter into agreements in connection with the | ||||||
11 | Nationwide Multistate Licensing System and Registry.
| ||||||
12 | Section 105. Other businesses. | ||||||
13 | (a) Upon application by the licensee and payment of a $500 | ||||||
14 | fee, the Secretary may approve the conduct of other businesses | ||||||
15 | not specifically permitted by this Act in the licensee's place | ||||||
16 | of business, unless the Secretary finds that such conduct will | ||||||
17 | conceal or facilitate evasion or violation of this Act. The | ||||||
18 | Secretary's approval shall be in writing and shall describe | ||||||
19 | the other businesses which may be conducted in the licensed | ||||||
20 | office. | ||||||
21 | (b) The Department shall adopt and enforce such reasonable | ||||||
22 | rules and regulations for the conduct of business under this | ||||||
23 | Act in the same office with other businesses as may be | ||||||
24 | necessary to prevent evasions or violations of this Act. The | ||||||
25 | Secretary may investigate any business conducted in the |
| |||||||
| |||||||
1 | licensed office. | ||||||
2 | Section 110. Financial Institution Fund. All moneys | ||||||
3 | received by the Secretary under this Act in conjunction with | ||||||
4 | the provisions relating to consumer legal funding companies | ||||||
5 | shall be paid into the Financial Institution Fund and all | ||||||
6 | expenses incurred by the Secretary under this Act in | ||||||
7 | conjunction with the provisions relating to consumer legal | ||||||
8 | funding companies shall be paid from the Financial Institution | ||||||
9 | Fund. | ||||||
10 | Section 115. Examination; prohibited activities. | ||||||
11 | (a) The business affairs of a licensee under this Act | ||||||
12 | shall be examined for compliance with this Act as often as the | ||||||
13 | Secretary deems necessary and proper. The Department may adopt | ||||||
14 | rules with respect to the frequency and manner of examination. | ||||||
15 | The Secretary shall appoint a suitable person to perform an | ||||||
16 | examination. The Secretary and his or her appointees may | ||||||
17 | examine the entire books, records, documents, and operations | ||||||
18 | of each licensee and its subsidiary, affiliate, or agent, and | ||||||
19 | may examine any of the licensee's or its subsidiary's, | ||||||
20 | affiliate's, or agent's officers, directors, employees, and | ||||||
21 | agents under oath.
| ||||||
22 | (b) The Secretary shall prepare a sufficiently detailed | ||||||
23 | report of each licensee's examination, shall issue a copy of | ||||||
24 | the report to each licensee's principals, officers, or |
| |||||||
| |||||||
1 | directors, and shall take appropriate steps to ensure | ||||||
2 | correction of violations of this Act.
| ||||||
3 | (c) Affiliates of a licensee shall be subject to | ||||||
4 | examination by the Secretary on the same terms as the | ||||||
5 | licensee, but only when reports from or examination of a | ||||||
6 | licensee provides for documented evidence of unlawful activity | ||||||
7 | between a licensee and affiliate benefiting, affecting, or | ||||||
8 | deriving from the activities regulated by this Act.
| ||||||
9 | (d) The expenses of any examination of the licensee and | ||||||
10 | affiliates shall be borne by the licensee and assessed by the | ||||||
11 | Secretary as may be established by rule.
| ||||||
12 | (e) Upon completion of the examination, the Secretary | ||||||
13 | shall issue a report to the licensee. All confidential | ||||||
14 | supervisory information, including the examination report and | ||||||
15 | the work papers of the report, shall belong to the Secretary's | ||||||
16 | office and may not be disclosed to anyone other than the | ||||||
17 | licensee, law enforcement officials or other regulatory | ||||||
18 | agencies that have an appropriate regulatory interest as | ||||||
19 | determined by the Secretary, or to a party presenting a lawful | ||||||
20 | subpoena to the Department. The Secretary may, through the | ||||||
21 | Attorney General, immediately appeal to the court of | ||||||
22 | jurisdiction the disclosure of such confidential supervisory | ||||||
23 | information and seek a stay of the subpoena pending the | ||||||
24 | outcome of the appeal. Reports required of licensees by the | ||||||
25 | Secretary under this Act and results of examinations performed | ||||||
26 | by the Secretary under this Act shall be the property of only |
| |||||||
| |||||||
1 | the Secretary, but may be shared with the licensee. Access | ||||||
2 | under this Act to the books and records of each licensee shall | ||||||
3 | be limited to the Secretary and his or her agents as provided | ||||||
4 | in this Act and to the licensee and its authorized agents and | ||||||
5 | designees. No other person shall have access to the books and | ||||||
6 | records of a licensee under this Act. Any person upon whom a | ||||||
7 | demand for production of confidential supervisory information | ||||||
8 | is made, whether by subpoena, order, or other judicial or | ||||||
9 | administrative process, must withhold production of the | ||||||
10 | confidential supervisory information and must notify the | ||||||
11 | Secretary of the demand, at which time the Secretary is | ||||||
12 | authorized to intervene for the purpose of enforcing the | ||||||
13 | limitations of this Section or seeking the withdrawal or | ||||||
14 | termination of the attempt to compel production of the | ||||||
15 | confidential supervisory information. The Secretary may impose | ||||||
16 | any conditions and limitations on the disclosure of | ||||||
17 | confidential supervisory information that are necessary to | ||||||
18 | protect the confidentiality of that information. Except as | ||||||
19 | authorized by the Secretary, no person obtaining access to | ||||||
20 | confidential supervisory information may make a copy of the | ||||||
21 | confidential supervisory information. The Secretary may | ||||||
22 | condition a decision to disclose confidential supervisory | ||||||
23 | information on entry of a protective order by the court or | ||||||
24 | administrative tribunal presiding in the particular case or on | ||||||
25 | a written agreement of confidentiality. In a case in which a | ||||||
26 | protective order or agreement has already been entered between |
| |||||||
| |||||||
1 | parties other than the Secretary, the Secretary may | ||||||
2 | nevertheless condition approval for release of confidential | ||||||
3 | supervisory information upon the inclusion of additional or | ||||||
4 | amended provisions in the protective order. The Secretary may | ||||||
5 | authorize a party who obtained the records for use in one case | ||||||
6 | to provide them to another party in another case, subject to | ||||||
7 | any conditions that the Secretary may impose on either or both | ||||||
8 | parties. The requester shall promptly notify other parties to | ||||||
9 | a case of the release of confidential supervisory information | ||||||
10 | obtained and, upon entry of a protective order, shall provide | ||||||
11 | copies of confidential supervisory information to the other | ||||||
12 | parties.
| ||||||
13 | Section 120. Judicial review. All final administrative | ||||||
14 | decisions of the Department under this Act, all amendments and | ||||||
15 | modifications of final administrative decisions, and any rules | ||||||
16 | adopted by the Department pursuant to this Act shall be | ||||||
17 | subject to judicial review pursuant to the provisions of the | ||||||
18 | Administrative Review Law. | ||||||
19 | Section 125. Subpoena power. | ||||||
20 | (a) The Secretary shall have the power to issue and to | ||||||
21 | serve subpoenas and subpoenas duces tecum to compel the | ||||||
22 | attendance of witnesses and the production of all books, | ||||||
23 | accounts, records, and other documents and materials relevant | ||||||
24 | to an examination or investigation. The Secretary, or his or |
| |||||||
| |||||||
1 | her duly authorized representative, shall have power to | ||||||
2 | administer oaths and affirmations to any person.
| ||||||
3 | (b) In the event of noncompliance with a subpoena or | ||||||
4 | subpoena duces tecum issued or caused to be issued by the | ||||||
5 | Secretary, the Secretary may, through the Attorney General, | ||||||
6 | petition the circuit court of the county in which the person | ||||||
7 | subpoenaed resides or has its principal place of business for | ||||||
8 | an order requiring the subpoenaed person to appear and testify | ||||||
9 | and to produce such books, accounts, records, and other | ||||||
10 | documents as are specified in the subpoena duces tecum. The | ||||||
11 | court may grant injunctive relief restraining the person from | ||||||
12 | advertising, promoting, soliciting, entering into, offering to | ||||||
13 | enter into, continuing, or completing any consumer legal | ||||||
14 | funding transaction. The court may grant other relief, | ||||||
15 | including, but not limited to, the restraint, by injunction or | ||||||
16 | appointment of a receiver, of any transfer, pledge, | ||||||
17 | assignment, or other disposition of the person's assets or any | ||||||
18 | concealment, alteration, destruction, or other disposition of | ||||||
19 | books, accounts, records, or other documents and materials as | ||||||
20 | the court deems appropriate, until the person has fully | ||||||
21 | complied with the subpoena or subpoena duces tecum and the | ||||||
22 | Secretary has completed an investigation or examination.
| ||||||
23 | (c) If it appears to the Secretary that the compliance | ||||||
24 | with a subpoena or subpoena duces tecum issued or caused to be | ||||||
25 | issued by the Secretary pursuant to this Section is essential | ||||||
26 | to an investigation or examination, the Secretary may, in |
| |||||||
| |||||||
1 | addition to the other remedies provided for in this Act, | ||||||
2 | through the Attorney General, apply for relief to the circuit | ||||||
3 | court of the county in which the subpoenaed person resides or | ||||||
4 | has its principal place of business. The court shall thereupon | ||||||
5 | direct the issuance of an order against the subpoenaed person | ||||||
6 | requiring sufficient bond conditioned on compliance with the | ||||||
7 | subpoena or subpoena duces tecum. The court shall cause to be | ||||||
8 | endorsed on the order a suitable amount of bond or payment | ||||||
9 | pursuant to which the person named in the order shall be freed, | ||||||
10 | having a due regard to the nature of the case.
| ||||||
11 | (d) In addition, the Secretary may, through the Attorney | ||||||
12 | General, seek a writ of attachment or an equivalent order from | ||||||
13 | the circuit court having jurisdiction over the person who has | ||||||
14 | refused to obey a subpoena, who has refused to give testimony, | ||||||
15 | or who has refused to produce the matters described in the | ||||||
16 | subpoena duces tecum.
| ||||||
17 | Section 130. Report required of licensee. In addition to | ||||||
18 | any reports required under this Act, every licensee shall file | ||||||
19 | any other report that the Secretary requires.
| ||||||
20 | Section 135. Suspension; revocation of licenses; fines.
| ||||||
21 | (a) Upon written notice to a licensee, the Secretary may | ||||||
22 | suspend or revoke any license issued pursuant to this Act if, | ||||||
23 | in the notice, he or she makes a finding of one or more of the | ||||||
24 | following:
|
| |||||||
| |||||||
1 | (1) that through separate acts or an act or a course of | ||||||
2 | conduct, the licensee has violated any provisions of this | ||||||
3 | Act, any rule adopted by the Department, or any other law, | ||||||
4 | rule, or regulation of this State or the United States;
| ||||||
5 | (2) that any fact or condition exists that, if it had | ||||||
6 | existed at the time of the original application for the | ||||||
7 | license, would have warranted the Secretary in refusing | ||||||
8 | originally to issue the license; or
| ||||||
9 | (3) that if a licensee is other than an individual, | ||||||
10 | any ultimate equitable owner, officer, director, or member | ||||||
11 | of the licensed partnership, association, corporation, or | ||||||
12 | other entity has acted or failed to act in a way that would | ||||||
13 | be cause for suspending or revoking a license to that | ||||||
14 | party as an individual.
| ||||||
15 | (b) No license shall be suspended or revoked, except as | ||||||
16 | provided in this Section, nor shall any licensee be fined | ||||||
17 | without notice of his or her right to a hearing as provided in | ||||||
18 | subsection (n).
| ||||||
19 | (c) The Secretary, on good cause shown that an emergency | ||||||
20 | exists, may suspend any license for a period not exceeding 180 | ||||||
21 | days, pending investigation.
| ||||||
22 | (d) The provisions of subsection (d) of Section 95 shall | ||||||
23 | not affect a licensee's civil or criminal liability for acts | ||||||
24 | committed before surrender of a license.
| ||||||
25 | (e) No revocation, suspension, or surrender of any license | ||||||
26 | shall impair or affect the obligation of any preexisting |
| |||||||
| |||||||
1 | lawful contract between the licensee and any person. | ||||||
2 |
(f) Every license issued under this Act shall remain in | ||||||
3 | force and effect until the license expires without renewal, is | ||||||
4 | surrendered, is revoked, or is suspended in accordance with | ||||||
5 | the provisions of this Act, but the Secretary shall have | ||||||
6 | authority to reinstate a suspended license or to issue a new | ||||||
7 | license to a licensee whose license has been revoked if no fact | ||||||
8 | or condition then exists which would have warranted the | ||||||
9 | Secretary in refusing originally to issue that license under | ||||||
10 | this Act.
| ||||||
11 | (g) Whenever the Secretary revokes or suspends a license | ||||||
12 | issued pursuant to this Act or fines a licensee under this Act, | ||||||
13 | he or she shall execute a written order to that effect. The | ||||||
14 | Secretary shall serve a copy of the order upon the licensee. | ||||||
15 | Any such order may be reviewed in the manner provided by | ||||||
16 | Section 170.
| ||||||
17 | (h) If the Secretary finds any person in violation of the | ||||||
18 | grounds set forth in subsection (p), he or she may enter an | ||||||
19 | order imposing one or more of the following penalties:
| ||||||
20 | (1) revocation of license;
| ||||||
21 | (2) suspension of a license subject to reinstatement | ||||||
22 | upon satisfying all reasonable conditions the Secretary | ||||||
23 | may specify;
| ||||||
24 | (3) placement of the licensee or applicant on | ||||||
25 | probation for a period of time and subject to all | ||||||
26 | reasonable conditions as the Secretary may specify; |
| |||||||
| |||||||
1 | (4) issuance of a reprimand;
| ||||||
2 | (5) imposition of a fine not to exceed $25,000 for | ||||||
3 | each count of separate offense; except that a fine may be | ||||||
4 | imposed that shall not exceed $75,000 for each separate | ||||||
5 | count of offense in violation of paragraph (2) of | ||||||
6 | subsection (i); | ||||||
7 | (6) denial of a license; or
| ||||||
8 | (7) restitution for the benefit of consumers.
| ||||||
9 | (i) The Secretary may, after 10 days' notice by certified | ||||||
10 | mail to the licensee at the address set forth in the license | ||||||
11 | stating the contemplated action and in general the grounds | ||||||
12 | therefor, fine the licensee an amount not exceeding $10,000 | ||||||
13 | per violation or revoke or suspend any license issued under | ||||||
14 | this Act if he or she finds that: | ||||||
15 | (1) the licensee has failed to comply with any | ||||||
16 | provision of this Act, any rule adopted pursuant to this | ||||||
17 | Act, or any order, decision, finding, or direction of the | ||||||
18 | Secretary lawfully made pursuant to the authority of this | ||||||
19 | Act; or | ||||||
20 | (2) any fact or condition exists which, if it had | ||||||
21 | existed at the time of the original application for the | ||||||
22 | license, clearly would have warranted the Secretary in | ||||||
23 | refusing to issue the license.
| ||||||
24 | (j) The Secretary may fine, suspend, or revoke only the | ||||||
25 | particular license with respect to which grounds for the fine, | ||||||
26 | revocation, or suspension occur or exist, but if the Secretary |
| |||||||
| |||||||
1 | finds that grounds for revocation are of general application | ||||||
2 | to all offices or to more than one office of the licensee, the | ||||||
3 | Secretary shall fine, suspend, or revoke every license to | ||||||
4 | which the grounds apply. | ||||||
5 | (k) No revocation, suspension, or surrender of any license | ||||||
6 | shall impair or affect the obligation of any preexisting | ||||||
7 | lawful contract between the licensee and any obligor.
| ||||||
8 | (l) The Secretary may issue a new license to a licensee | ||||||
9 | whose license has been revoked when facts or conditions which | ||||||
10 | clearly would have warranted the Secretary in refusing | ||||||
11 | originally to issue the license no longer exist.
| ||||||
12 | (m) In every case in which a license is suspended or | ||||||
13 | revoked or an application for a license or renewal of a license | ||||||
14 | is denied, the Secretary shall serve the licensee with notice | ||||||
15 | of his or her action, including a statement of the reasons for | ||||||
16 | his or her actions, either personally or by certified mail. | ||||||
17 | Service by certified mail shall be deemed completed when the | ||||||
18 | notice is deposited in the U.S. mail.
| ||||||
19 | (n) An order assessing a fine, an order revoking or | ||||||
20 | suspending a license, or an order denying renewal of a license | ||||||
21 | shall take effect upon service of the order unless the | ||||||
22 | licensee requests a hearing, in writing, within 10 days after | ||||||
23 | the date of service. If a hearing is requested, the order shall | ||||||
24 | be stayed until a final administrative order is entered.
| ||||||
25 | (1) If the licensee requests a hearing, the Secretary | ||||||
26 | shall schedule a hearing within 30 days after the request |
| |||||||
| |||||||
1 | for a hearing unless otherwise agreed to by the parties.
| ||||||
2 | (2) The hearing shall be held at the time and place | ||||||
3 | designated by the Secretary. The Secretary and any | ||||||
4 | administrative law judge designated by him or her shall | ||||||
5 | have the power to administer oaths and affirmations, | ||||||
6 | subpoena witnesses and compel their attendance, take | ||||||
7 | evidence, and require the production of books, papers, | ||||||
8 | correspondence, and other records or information that he | ||||||
9 | or she considers relevant or material to the inquiry.
| ||||||
10 | (o) The costs of administrative hearings conducted | ||||||
11 | pursuant to this Section shall be paid by the licensee.
| ||||||
12 | (p) The following acts shall constitute grounds for which | ||||||
13 | the disciplinary actions specified in subsection (h) may be | ||||||
14 | taken:
| ||||||
15 | (1) being convicted or found guilty, regardless of | ||||||
16 | pendency of an appeal, of a crime in any jurisdiction that | ||||||
17 | involves fraud, dishonest dealing, or any other act of | ||||||
18 | moral turpitude;
| ||||||
19 | (2) fraud, misrepresentation, deceit, or negligence in | ||||||
20 | any relation to any consumer legal funding; | ||||||
21 | (3) a material or intentional misstatement of fact on | ||||||
22 | an initial or renewal application;
| ||||||
23 | (4) insolvency or filing under any provision of the | ||||||
24 | United States Bankruptcy Code as a debtor;
| ||||||
25 | (5) failure to account or deliver to any person any | ||||||
26 | property, such as any money, fund, deposit, check, draft, |
| |||||||
| |||||||
1 | or other document or thing of value, that has come into his | ||||||
2 | or her hands and that is not his or her property or that he | ||||||
3 | or she is not in law or equity entitled to retain, under | ||||||
4 | the circumstances and at the time which has been agreed | ||||||
5 | upon or is required by law, or, in the absence of a fixed | ||||||
6 | time, upon demand of the person entitled to such | ||||||
7 | accounting and delivery;
| ||||||
8 | (6) failure to disburse funds in accordance with | ||||||
9 | agreements;
| ||||||
10 | (7) having a license, or the equivalent, to practice | ||||||
11 | any profession or occupation revoked, suspended, or | ||||||
12 | otherwise acted against, including the denial of licensure | ||||||
13 | by a licensing authority of this State or another state, | ||||||
14 | territory, or country, for fraud, dishonest dealing, or | ||||||
15 | any other act of moral turpitude;
| ||||||
16 | (8) failure to comply with an order of the Secretary | ||||||
17 | or rule adopted under the provisions of this Act;
| ||||||
18 | (9) engaging in activities regulated by this Act | ||||||
19 | without a current, active license unless specifically | ||||||
20 | exempted by this Act;
| ||||||
21 | (10) failure to pay in a timely manner any fee, | ||||||
22 | charge, or fine under this Act;
| ||||||
23 | (11) failure to maintain, preserve, and keep available | ||||||
24 | for examination all books, accounts, or other documents | ||||||
25 | required by the provisions of this Act and the rules of the | ||||||
26 | Department;
|
| |||||||
| |||||||
1 | (12) refusing, obstructing, evading, or unreasonably | ||||||
2 | delaying an investigation, information request, or | ||||||
3 | examination authorized under this Act, or refusing, | ||||||
4 | obstructing, evading, or unreasonably delaying compliance | ||||||
5 | with the Secretary's subpoena or subpoena duces tecum;
| ||||||
6 | (13) failure to comply with or a violation of any | ||||||
7 | provision of this Act; and
| ||||||
8 | (14) any unfair, deceptive, or abusive business | ||||||
9 | practice.
| ||||||
10 | (q) A licensee shall be subject to the disciplinary | ||||||
11 | actions specified in this Act for violations of subsection (i) | ||||||
12 | by any officer, director, shareholder, joint venture, partner, | ||||||
13 | ultimate equitable owner, or employee of the licensee.
| ||||||
14 | (r) A licensee shall be subject to suspension or | ||||||
15 | revocation for unauthorized employee actions only if there is | ||||||
16 | a pattern of repeated violations by employees, the licensee | ||||||
17 | has knowledge of the violations, or there is substantial harm | ||||||
18 | to a consumer. A licensee may be subject to fine for employee | ||||||
19 | actions, whether authorized or unauthorized, whether there is | ||||||
20 | a pattern of repeated violations or no pattern of repeated | ||||||
21 | violations.
| ||||||
22 | (s) Any licensee may submit an application to surrender a | ||||||
23 | license, but, upon the Secretary approving the surrender, it | ||||||
24 | shall not affect the licensee's civil or criminal liability | ||||||
25 | for acts committed before surrender or entitle the licensee to | ||||||
26 | a return of any part of the license fee. |
| |||||||
| |||||||
1 | Section 140. Investigation of complaints. The Secretary | ||||||
2 | may receive, record, and investigate complaints and inquiries | ||||||
3 | made by any person concerning this Act and any licensees under | ||||||
4 | this Act. Each licensee shall open its books, records, | ||||||
5 | documents, and offices wherever situated to the Secretary or | ||||||
6 | his or her appointees as needed to facilitate such | ||||||
7 | investigations. | ||||||
8 | Section 145. Additional investigation and examination | ||||||
9 | authority. In addition to any authority allowed under this | ||||||
10 | Act, the Secretary shall have the authority to conduct | ||||||
11 | investigations and examinations as follows:
| ||||||
12 | (1) For purposes of initial licensing, license | ||||||
13 | renewal, license suspension, license conditioning, license | ||||||
14 | revocation or termination, or general or specific inquiry | ||||||
15 | or investigation to determine compliance with this Act, | ||||||
16 | the Secretary shall have the authority to access, receive, | ||||||
17 | and use any books, accounts, records, files, documents, | ||||||
18 | information, or evidence, including, but not limited to, | ||||||
19 | the following:
| ||||||
20 | (A) criminal, civil, and administrative history | ||||||
21 | information, including nonconviction data as specified | ||||||
22 | in the Criminal Code of 2012;
| ||||||
23 | (B) personal history and experience information, | ||||||
24 | including independent credit reports obtained from a |
| |||||||
| |||||||
1 | consumer reporting agency described in Section 603(p) | ||||||
2 | of the federal Fair Credit Reporting Act; and
| ||||||
3 | (C) any other documents, information, or evidence | ||||||
4 | the Secretary deems relevant to the inquiry or | ||||||
5 | investigation, regardless of the location, possession, | ||||||
6 | control, or custody of the documents, information, or | ||||||
7 | evidence.
| ||||||
8 | (2) For the purposes of investigating violations or | ||||||
9 | complaints arising under this Act or for the purposes of | ||||||
10 | examination, the Secretary may review, investigate, or | ||||||
11 | examine any licensee, individual, or person subject to | ||||||
12 | this Act as often as necessary in order to carry out the | ||||||
13 | purposes of this Act. The Secretary may direct, subpoena, | ||||||
14 | or order the attendance of and examine under oath all | ||||||
15 | persons whose testimony may be required about the consumer | ||||||
16 | legal fundings or the business or subject matter of any | ||||||
17 | such examination or investigation, and may direct, | ||||||
18 | subpoena, or order the person to produce books, accounts, | ||||||
19 | records, files, and any other documents the Secretary | ||||||
20 | deems relevant to the inquiry.
| ||||||
21 | (3) Each licensee, individual, or person subject to | ||||||
22 | this Act shall make available to the Secretary upon | ||||||
23 | request the books and records relating to the operations | ||||||
24 | of the licensee, individual, or person subject to this | ||||||
25 | Act. The Secretary shall have access to those books and | ||||||
26 | records and may interview the officers, principals, |
| |||||||
| |||||||
1 | employees, independent contractors, agents, and customers | ||||||
2 | of the licensee, individual, or person subject to this Act | ||||||
3 | concerning their business.
| ||||||
4 | (4) Each licensee, individual, or person subject to | ||||||
5 | this Act shall make or compile reports or prepare other | ||||||
6 | information as directed by the Secretary in order to carry | ||||||
7 | out the purposes of this Section, including, but not | ||||||
8 | limited to:
| ||||||
9 | (A) accounting compilations;
| ||||||
10 | (B) information lists and data concerning consumer | ||||||
11 | legal fundings in a format prescribed by the | ||||||
12 | Secretary; or
| ||||||
13 | (C) other information deemed necessary to carry | ||||||
14 | out the purposes of this Section.
| ||||||
15 | (5) In making any examination or investigation | ||||||
16 | authorized by this Act, the Secretary may control access | ||||||
17 | to any documents and records of the licensee or person | ||||||
18 | under examination or investigation. The Secretary may take | ||||||
19 | possession of the documents and records or place a person | ||||||
20 | in exclusive charge of the documents and records in the | ||||||
21 | place where they are usually kept. During the period of | ||||||
22 | control, no person shall remove or attempt to remove any | ||||||
23 | of the documents or records, except pursuant to a court | ||||||
24 | order or with the consent of the Secretary. Unless the | ||||||
25 | Secretary has reasonable grounds to believe the documents | ||||||
26 | or records of the licensee have been or are at risk of |
| |||||||
| |||||||
1 | being altered or destroyed for purposes of concealing a | ||||||
2 | violation of this Act, the licensee or owner of the | ||||||
3 | documents and records shall have access to the documents | ||||||
4 | or records as necessary to conduct its ordinary business | ||||||
5 | affairs.
| ||||||
6 | (6) In order to carry out the purposes of this | ||||||
7 | Section, the Secretary may:
| ||||||
8 | (A) retain attorneys, accountants, or other | ||||||
9 | professionals and specialists as examiners, auditors, | ||||||
10 | or investigators to conduct or assist in the conduct | ||||||
11 | of examinations or investigations;
| ||||||
12 | (B) enter into agreements or relationships with | ||||||
13 | other government officials or regulatory associations | ||||||
14 | in order to improve efficiencies and reduce regulatory | ||||||
15 | burden by sharing resources, standardized or uniform | ||||||
16 | methods or procedures, and documents, records, | ||||||
17 | information, or evidence obtained under this Section;
| ||||||
18 | (C) use, hire, contract, or employ publicly or | ||||||
19 | privately available analytical systems, methods, or | ||||||
20 | software to examine or investigate the licensee, | ||||||
21 | individual, or person subject to this Act;
| ||||||
22 | (D) accept and rely on examination or | ||||||
23 | investigation reports made by other government | ||||||
24 | officials within or outside this State; or
| ||||||
25 | (E) accept audit reports made by an independent | ||||||
26 | certified public accountant for the licensee, |
| |||||||
| |||||||
1 | individual, or person subject to this Act in the | ||||||
2 | course of that part of the examination covering the | ||||||
3 | same general subject matter as the audit and may | ||||||
4 | incorporate the audit report in the report of the | ||||||
5 | examination, report of investigation, or other writing | ||||||
6 | of the Secretary.
| ||||||
7 | (7) The authority of this Section shall remain in | ||||||
8 | effect if a licensee, individual, or person subject to | ||||||
9 | this Act acts or claims to act under any licensing or | ||||||
10 | registration law of this State or claims to act without | ||||||
11 | the authority.
| ||||||
12 | (8) No licensee, individual, or person subject to | ||||||
13 | investigation or examination under this Section may | ||||||
14 | knowingly withhold, abstract, remove, mutilate, destroy, | ||||||
15 | or secrete any books, records, computer records, or other | ||||||
16 | information.
| ||||||
17 | Section 150. Confidential information. In hearings | ||||||
18 | conducted under this Act, information presented into evidence | ||||||
19 | that was acquired by the licensee when serving any individual | ||||||
20 | in connection with a consumer legal funding, including all | ||||||
21 | financial information of the individual, shall be deemed | ||||||
22 | strictly confidential and shall be made available only as part | ||||||
23 | of the record of a hearing under this Act or otherwise (i) when | ||||||
24 | the record is required, in its entirety, for purposes of | ||||||
25 | judicial review or (ii) upon the express written consent of |
| |||||||
| |||||||
1 | the individual served, or in the case of his or her death or | ||||||
2 | disability, the consent of his or her personal representative. | ||||||
3 | Section 155. Information sharing.
In order to promote more | ||||||
4 | effective regulation and reduce regulatory burden through | ||||||
5 | supervisory information sharing: | ||||||
6 | (1) Except as otherwise provided in any federal law or | ||||||
7 | State law regarding the privacy or confidentiality of any | ||||||
8 | information or material provided to the Nationwide | ||||||
9 | Mortgage Licensing System and Registry, any privilege | ||||||
10 | arising under federal or State law, including the rules of | ||||||
11 | any federal or State court, with respect to such | ||||||
12 | information or material shall continue to apply to | ||||||
13 | information or material after the information or material | ||||||
14 | has been disclosed to the Nationwide Mortgage Licensing | ||||||
15 | System and Registry. The information and material may be | ||||||
16 | shared with all State and federal regulatory officials | ||||||
17 | with relevant oversight authority without the loss of | ||||||
18 | privilege or the loss of confidentiality protections | ||||||
19 | provided by federal law or State law.
| ||||||
20 | (2) The Secretary is authorized to enter into | ||||||
21 | agreements or sharing arrangements with other governmental | ||||||
22 | agencies, the Conference of State Bank Supervisors, or | ||||||
23 | other associations representing governmental agencies as | ||||||
24 | established by rule or order of the Department. The | ||||||
25 | sharing of confidential supervisory information or any |
| |||||||
| |||||||
1 | information or material described in paragraph (1) | ||||||
2 | pursuant to an agreement or sharing arrangement shall not | ||||||
3 | result in the loss of privilege or the loss of | ||||||
4 | confidentiality protections provided by federal law or | ||||||
5 | State law.
| ||||||
6 | (3) Information or material that is subject to a | ||||||
7 | privilege or confidentiality under paragraph (1) shall not | ||||||
8 | be subject to the following:
| ||||||
9 | (A) disclosure under any State law governing the | ||||||
10 | disclosure to the public of information held by an | ||||||
11 | officer or an agency of the State; or
| ||||||
12 | (B) subpoena, discovery, or admission into | ||||||
13 | evidence in any private civil action or administrative | ||||||
14 | process, unless with respect to any privilege held by | ||||||
15 | the Nationwide Mortgage Licensing System and Registry | ||||||
16 | with respect to the information or material, the | ||||||
17 | person to whom such information or material pertains | ||||||
18 | waives, in whole or in part, in the discretion of that | ||||||
19 | person, that privilege.
| ||||||
20 | (4) Any other law relating to the disclosure of | ||||||
21 | confidential supervisory information or any information or | ||||||
22 | material described in paragraph (1) that is inconsistent | ||||||
23 | with paragraph (1) shall be superseded by the requirements | ||||||
24 | of this Section to the extent the other law provides less | ||||||
25 | confidentiality or a weaker privilege.
|
| |||||||
| |||||||
1 | Section 160. Reports of violations. Any person licensed | ||||||
2 | under this Act or any other person may report to the Secretary | ||||||
3 | any information to show that a person subject to this Act is or | ||||||
4 | may be in violation of this Act. A person who files a report | ||||||
5 | with the Department that a licensee is engaged in one or more | ||||||
6 | violations pursuant to this Act shall not be the subject of | ||||||
7 | disciplinary action by the Department, unless the Department | ||||||
8 | determines, by a preponderance of the evidence available to | ||||||
9 | the Department, that the reporting person knowingly and | ||||||
10 | willingly participated in the violation that was reported. | ||||||
11 | Section 165. Rules of the Department.
| ||||||
12 | (a) In addition to such powers as may be prescribed by this | ||||||
13 | Act, the Department is hereby authorized and empowered to | ||||||
14 | adopt rules consistent with the purposes of this Act, | ||||||
15 | including, but not limited to:
| ||||||
16 | (1) rules in connection with the activities of | ||||||
17 | licensees or unlicensed consumer legal funding companies | ||||||
18 | as may be necessary and appropriate for the protection of | ||||||
19 | consumers in this State;
| ||||||
20 | (2) rules as may be necessary and appropriate to | ||||||
21 | define improper or fraudulent business practices in | ||||||
22 | connection with the activities of licensees in servicing | ||||||
23 | consumer legal fundings;
| ||||||
24 | (3) rules that define the terms used in this Act and as | ||||||
25 | may be necessary and appropriate to interpret and |
| |||||||
| |||||||
1 | implement the provisions of this Act; and
| ||||||
2 | (4) rules as may be necessary for the enforcement and | ||||||
3 | administration of this Act.
| ||||||
4 | (b) The Secretary is hereby authorized and empowered to | ||||||
5 | make specific rulings, demands, and findings that he or she | ||||||
6 | deems necessary for the proper conduct of the consumer legal | ||||||
7 | funding company industry.
| ||||||
8 | Section 170. Appeal and review.
| ||||||
9 | (a) The Department may, in accordance with the Illinois | ||||||
10 | Administrative Procedure Act, adopt rules to provide for | ||||||
11 | review within the Department of the Secretary's decisions | ||||||
12 | affecting the rights of persons or entities under this Act. | ||||||
13 | The review shall provide for, at a minimum:
| ||||||
14 | (1) appointment of a hearing officer other than a | ||||||
15 | regular employee of the Department;
| ||||||
16 | (2) appropriate procedural rules, specific deadlines | ||||||
17 | for filings, and standards of evidence and of proof; and
| ||||||
18 | (3) provision for apportioning costs among parties to | ||||||
19 | the appeal.
| ||||||
20 | (b) All final agency determinations of appeals to | ||||||
21 | decisions of the Secretary may be reviewed in accordance with | ||||||
22 | and under the provisions of the Administrative Review Law. | ||||||
23 | Appeals from all final orders and judgments entered by a court | ||||||
24 | in review of any final administrative decision of the | ||||||
25 | Secretary or of any final agency review of a decision of the |
| |||||||
| |||||||
1 | Secretary may be taken as in other civil cases.
| ||||||
2 | Section 175. Collection of compensation. Unless exempt | ||||||
3 | from licensure under this Act, no person engaged in or | ||||||
4 | offering to engage in any act or service for which a license | ||||||
5 | under this Act is required may bring or maintain any action in | ||||||
6 | any court of this State to collect compensation for the | ||||||
7 | performance of the licensable services without alleging and | ||||||
8 | proving that he or she was the holder of a valid consumer legal | ||||||
9 | funding company license under this Act at all times during the | ||||||
10 | performance of those services. | ||||||
11 | Section 180. Cease and desist order.
| ||||||
12 | (a) The Secretary may issue a cease and desist order to any | ||||||
13 | licensee or other person doing business without the required | ||||||
14 | license, when in the opinion of the Secretary the licensee or | ||||||
15 | other person is violating or is about to violate any provision | ||||||
16 | of this Act or any rule or requirement imposed in writing by | ||||||
17 | the Department as a condition of granting any authorization | ||||||
18 | permitted by this Act. The cease and desist order permitted by | ||||||
19 | this Section may be issued before a hearing.
| ||||||
20 | (b) The Secretary shall serve notice of his or her action, | ||||||
21 | including, but not limited to, a statement of the reasons for | ||||||
22 | the action, either personally or by certified mail. Service by | ||||||
23 | certified mail shall be deemed completed when the notice is | ||||||
24 | deposited in the U.S. Mail.
|
| |||||||
| |||||||
1 | (c) Within 10 days after service of the cease and desist | ||||||
2 | order, the licensee or other person may request a hearing in | ||||||
3 | writing. The Secretary shall schedule a hearing within 90 days | ||||||
4 | after the request for a hearing unless otherwise agreed to by | ||||||
5 | the parties.
| ||||||
6 | (d) If it is determined that the Secretary had the | ||||||
7 | authority to issue the cease and desist order, he or she may | ||||||
8 | issue such orders as may be reasonably necessary to correct, | ||||||
9 | eliminate, or remedy the conduct.
| ||||||
10 | (e) The powers vested in the Secretary by this Section are | ||||||
11 | in addition to any and all other powers and remedies vested in | ||||||
12 | the Secretary by law, and nothing in this Section shall be | ||||||
13 | construed as requiring that the Secretary shall employ the | ||||||
14 | power conferred in this subsection instead of or as a | ||||||
15 | condition precedent to the exercise of any other power or | ||||||
16 | remedy vested in the Secretary.
| ||||||
17 | Section 185. Injunction. The Secretary may, through the | ||||||
18 | Attorney General, maintain an action in the name of the people | ||||||
19 | of the State of Illinois and may apply for an injunction in the | ||||||
20 | circuit court to enjoin a person from violating this Act or | ||||||
21 | engaging in unlicensed consumer legal funding activity. | ||||||
22 | Section 190. Pledge or sale of consumer legal funding.
| ||||||
23 | (a) No licensee or other person shall pledge, hypothecate, | ||||||
24 | or sell a consumer legal funding entered into under the |
| |||||||
| |||||||
1 | provisions of this Act by a consumer except to another | ||||||
2 | licensee under this Act, a bank, savings bank, savings and | ||||||
3 | loan association, or credit union created under the laws of | ||||||
4 | this State or the United States, or to other persons or | ||||||
5 | entities authorized by the Secretary in writing. Sales of such | ||||||
6 | notes by licensees under this Act or other persons shall be | ||||||
7 | made by agreement in writing and shall authorize the Secretary | ||||||
8 | to examine the consumer legal funding documents so | ||||||
9 | hypothecated, pledged, or sold.
| ||||||
10 | (b) A consumer may pay the original consumer legal funding | ||||||
11 | company until he or she receives notification of assignment of | ||||||
12 | rights to payment pursuant to a consumer legal funding and | ||||||
13 | that payment is to be made to the assignee. A notification | ||||||
14 | which does not reasonably identify the rights assigned is | ||||||
15 | ineffective. If requested by the consumer, the assignee shall | ||||||
16 | seasonably furnish reasonable proof that the assignment has | ||||||
17 | been made and, unless the assignee does so, the consumer may | ||||||
18 | pay the original consumer legal funding company.
| ||||||
19 | (c) An assignee of the rights of the consumer legal | ||||||
20 | funding company is subject to all claims and defenses of the | ||||||
21 | consumer against the consumer legal funding company arising | ||||||
22 | from the consumer legal funding. A claim or defense of a | ||||||
23 | consumer may be asserted against the assignee under this | ||||||
24 | Section only if the consumer has made a good faith attempt to | ||||||
25 | obtain satisfaction from the consumer legal funding company | ||||||
26 | with respect to the claim or defense and then only to the |
| |||||||
| |||||||
1 | extent of the amount owing to the assignee with respect to the | ||||||
2 | consumer legal funding company claim or defense that arose at | ||||||
3 | the time the assignee has notice of the claim or defense. | ||||||
4 | Notice of the claim or defense may be given before the attempt | ||||||
5 | specified in this subsection. Oral notice is effective unless | ||||||
6 | the assignee requests written confirmation when or promptly | ||||||
7 | after oral notice is given and the consumer fails to give the | ||||||
8 | assignee written confirmation within the period of time, not | ||||||
9 | less than 14 days, stated to the consumer when written | ||||||
10 | confirmation is requested. An agreement may not limit or waive | ||||||
11 | the claims or defenses of a consumer under this Section. | ||||||
12 | Section 195. Penalties. Any person who engages in business | ||||||
13 | as a licensee without the license required by this Act commits | ||||||
14 | a Class 4 felony. | ||||||
15 | Section 200. Civil action. A claim of violation of this | ||||||
16 | Act may be asserted in a civil action. Additionally, a | ||||||
17 | prevailing consumer may be awarded reasonable attorney's fees | ||||||
18 | and court costs. | ||||||
19 | Section 205. Evasion. An agreement, contract, or | ||||||
20 | transaction that is structured to evade the definition of | ||||||
21 | consumer legal funding shall be deemed a consumer legal | ||||||
22 | funding for the purposes of this Act. |
| |||||||
| |||||||
1 | Section 210. Severability. If any clause, sentence, | ||||||
2 | provision, or part of this Act or its application to any person | ||||||
3 | or circumstance is adjudged to be unconstitutional or invalid | ||||||
4 | for any reason by any court of competent jurisdiction, that | ||||||
5 | judgment shall not impair, affect, or invalidate other | ||||||
6 | provisions or applications of this Act, which shall remain in | ||||||
7 | full force and effect thereafter. | ||||||
8 | Section 905. The Interest Act is amended by changing | ||||||
9 | Section 4 as follows: | ||||||
10 | (815 ILCS 205/4) (from Ch. 17, par. 6404) | ||||||
11 | Sec. 4. General interest rate. | ||||||
12 | (1) Except as otherwise provided in Section 4.05, in all | ||||||
13 | written contracts it shall be lawful for the parties to
| ||||||
14 | stipulate or agree that an annual percentage rate of 9%, or any | ||||||
15 | less sum, shall be
taken and paid upon every $100 of money | ||||||
16 | loaned or in any manner due and
owing from any person to any | ||||||
17 | other person or corporation in this state, and
after that rate | ||||||
18 | for a greater or less sum, or for a longer or shorter time,
| ||||||
19 | except as herein provided. | ||||||
20 | The maximum rate of interest that may lawfully be | ||||||
21 | contracted for is
determined by the law applicable thereto at | ||||||
22 | the time the contract is
made. Any provision in any contract, | ||||||
23 | whether made before or after July
1, 1969, which provides for | ||||||
24 | or purports to authorize, contingent upon a
change in the |
| |||||||
| |||||||
1 | Illinois law after the contract is made, any rate of
interest | ||||||
2 | greater than the maximum lawful rate at the time the contract
| ||||||
3 | is made, is void. | ||||||
4 | It is lawful for a state bank or a branch of an | ||||||
5 | out-of-state bank, as those
terms are defined in Section 2 of | ||||||
6 | the Illinois Banking Act, to receive or to
contract to receive
| ||||||
7 | and collect interest and charges at any rate or rates agreed | ||||||
8 | upon by
the bank or branch and the borrower.
It is lawful for a | ||||||
9 | savings bank chartered under the Savings Bank Act or a
savings | ||||||
10 | association chartered under the Illinois Savings and Loan Act | ||||||
11 | of 1985
to receive or contract to receive and collect interest | ||||||
12 | and charges at any rate
agreed upon by the savings bank or | ||||||
13 | savings association and the borrower. | ||||||
14 | It is lawful to receive or to contract to receive and | ||||||
15 | collect
interest and charges as authorized by this Act and as | ||||||
16 | authorized by the
Consumer Installment Loan Act, the Payday | ||||||
17 | Loan Reform Act, the Retail Installment Sales Act, the | ||||||
18 | Illinois Financial Services Development Act, or the Motor | ||||||
19 | Vehicle Retail Installment Sales Act , or the Consumer Legal | ||||||
20 | Funding Act . It is lawful to charge, contract
for, and receive | ||||||
21 | any rate or amount of interest or compensation, except as | ||||||
22 | otherwise provided in the Predatory Loan Prevention Act, with
| ||||||
23 | respect to the following transactions: | ||||||
24 | (a) Any loan made to a corporation; | ||||||
25 | (b) Advances of money, repayable on demand, to an | ||||||
26 | amount not less
than $5,000, which are made upon warehouse |
| |||||||
| |||||||
1 | receipts, bills of lading,
certificates of stock, | ||||||
2 | certificates of deposit, bills of exchange, bonds
or other | ||||||
3 | negotiable instruments pledged as collateral security for | ||||||
4 | such
repayment, if evidenced by a writing; | ||||||
5 | (c) Any credit transaction between a merchandise | ||||||
6 | wholesaler and
retailer; any business loan to a business | ||||||
7 | association or copartnership
or to a person owning and | ||||||
8 | operating a business as sole proprietor or to
any persons | ||||||
9 | owning and operating a business as joint venturers, joint
| ||||||
10 | tenants or tenants in common, or to any limited | ||||||
11 | partnership, or to any
trustee owning and operating a | ||||||
12 | business or whose beneficiaries own and
operate a | ||||||
13 | business, except that any loan which is secured (1) by an
| ||||||
14 | assignment of an individual obligor's salary, wages, | ||||||
15 | commissions or
other compensation for services, or (2) by | ||||||
16 | his household furniture or
other goods used for his | ||||||
17 | personal, family or household purposes shall be
deemed not | ||||||
18 | to be a loan within the meaning of this subsection; and
| ||||||
19 | provided further that a loan which otherwise qualifies as | ||||||
20 | a business
loan within the meaning of this subsection | ||||||
21 | shall not be deemed as not so
qualifying because of the | ||||||
22 | inclusion, with other security consisting of
business | ||||||
23 | assets of any such obligor, of real estate occupied by an
| ||||||
24 | individual obligor solely as his residence. The term | ||||||
25 | "business" shall
be deemed to mean a commercial, | ||||||
26 | agricultural or industrial enterprise
which is carried on |
| |||||||
| |||||||
1 | for the purpose of investment or profit, but shall
not be | ||||||
2 | deemed to mean the ownership or maintenance of real estate
| ||||||
3 | occupied by an individual obligor solely as his residence; | ||||||
4 | (d) Any loan made in accordance with the provisions of | ||||||
5 | Subchapter I
of Chapter 13 of Title 12 of the United States | ||||||
6 | Code, which is designated
as "Housing Renovation and | ||||||
7 | Modernization"; | ||||||
8 | (e) Any mortgage loan insured or upon which a | ||||||
9 | commitment to insure
has been issued under the provisions | ||||||
10 | of the National Housing Act,
Chapter 13 of Title 12 of the | ||||||
11 | United States Code; | ||||||
12 | (f) Any mortgage loan guaranteed or upon which a | ||||||
13 | commitment to
guaranty has been issued under the | ||||||
14 | provisions of the Veterans' Benefits
Act, Subchapter II of | ||||||
15 | Chapter 37 of Title 38 of the United States Code; | ||||||
16 | (g) Interest charged by a broker or dealer registered | ||||||
17 | under the
Securities Exchange Act of 1934, as amended, or | ||||||
18 | registered under the
Illinois Securities Law of 1953, | ||||||
19 | approved July 13, 1953, as now or
hereafter amended, on a | ||||||
20 | debit balance in an account for a customer if
such debit | ||||||
21 | balance is payable at will without penalty and is secured | ||||||
22 | by
securities as defined in Uniform Commercial | ||||||
23 | Code-Investment Securities; | ||||||
24 | (h) Any loan made by a participating bank as part of | ||||||
25 | any loan
guarantee program which provides for loans and | ||||||
26 | for the refinancing of
such loans to medical students, |
| |||||||
| |||||||
1 | interns and residents and which are
guaranteed by the | ||||||
2 | American Medical Association Education and Research
| ||||||
3 | Foundation; | ||||||
4 | (i) Any loan made, guaranteed, or insured in | ||||||
5 | accordance with the
provisions of the Housing Act of 1949, | ||||||
6 | Subchapter III of Chapter 8A of
Title 42 of the United | ||||||
7 | States Code and the Consolidated Farm and Rural
| ||||||
8 | Development Act, Subchapters I, II, and III of Chapter 50 | ||||||
9 | of Title 7 of
the United States Code; | ||||||
10 | (j) Any loan by an employee pension benefit plan, as | ||||||
11 | defined in Section
3 (2) of the Employee Retirement Income | ||||||
12 | Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an | ||||||
13 | individual participating in such plan, provided that such
| ||||||
14 | loan satisfies the prohibited transaction exemption | ||||||
15 | requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 | ||||||
16 | (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) | ||||||
17 | (1)) of the Employee Retirement Income Security Act of | ||||||
18 | 1974; | ||||||
19 | (k) Written contracts, agreements or bonds for deed | ||||||
20 | providing for
installment purchase of real estate, | ||||||
21 | including a manufactured home as defined in subdivision | ||||||
22 | (53) of Section 9-102 of the Uniform Commercial Code that | ||||||
23 | is real property as defined in the Conveyance and | ||||||
24 | Encumbrance of Manufactured Homes as Real Property and | ||||||
25 | Severance Act; | ||||||
26 | (l) Loans secured by a mortgage on real estate, |
| |||||||
| |||||||
1 | including a manufactured home as defined in subdivision | ||||||
2 | (53) of Section 9-102 of the Uniform Commercial Code that | ||||||
3 | is real property as defined in the Conveyance and | ||||||
4 | Encumbrance of Manufactured Homes as Real Property and | ||||||
5 | Severance Act; | ||||||
6 | (m) Loans made by a sole proprietorship, partnership, | ||||||
7 | or corporation to
an employee or to a person who has been | ||||||
8 | offered employment by such sole
proprietorship, | ||||||
9 | partnership, or corporation made for the sole purpose of
| ||||||
10 | transferring an employee or person who has been offered | ||||||
11 | employment to another
office maintained and operated by | ||||||
12 | the same sole proprietorship, partnership,
or corporation; | ||||||
13 | (n) Loans to or for the benefit of students made by an | ||||||
14 | institution of
higher education. | ||||||
15 | (2) Except for loans described in subparagraph (a), (c), | ||||||
16 | (d),
(e), (f) or (i) of subsection (1) of this Section, and | ||||||
17 | except to the
extent permitted by the applicable statute for | ||||||
18 | loans made pursuant to
Section 4a or pursuant to the Consumer | ||||||
19 | Installment Loan Act: | ||||||
20 | (a) Whenever the rate of interest exceeds an annual | ||||||
21 | percentage rate of 8% on any
written contract, agreement | ||||||
22 | or bond for deed providing for the installment
purchase of | ||||||
23 | residential real estate, or on any loan secured by a | ||||||
24 | mortgage
on residential real estate, it shall be unlawful | ||||||
25 | to provide for a
prepayment penalty or other charge for | ||||||
26 | prepayment. |
| |||||||
| |||||||
1 | (b) No agreement, note or other instrument evidencing | ||||||
2 | a loan
secured by a mortgage on residential real estate, | ||||||
3 | or written contract,
agreement or bond for deed providing | ||||||
4 | for the installment purchase of
residential real estate, | ||||||
5 | may provide for any change in the contract rate of
| ||||||
6 | interest during the term thereof. However, if the Congress | ||||||
7 | of the United
States or any federal agency authorizes any | ||||||
8 | class of lender to enter, within
limitations, into | ||||||
9 | mortgage contracts or written contracts, agreements or
| ||||||
10 | bonds for deed in which the rate of interest may be changed | ||||||
11 | during the
term of the contract, any person, firm, | ||||||
12 | corporation or other entity
not otherwise prohibited from | ||||||
13 | entering into mortgage contracts or
written contracts, | ||||||
14 | agreements or bonds for deed in Illinois may enter
into | ||||||
15 | mortgage contracts or written contracts, agreements or | ||||||
16 | bonds
for deed in which the rate of interest may be changed | ||||||
17 | during the term
of the contract, within the same | ||||||
18 | limitations. | ||||||
19 | (3) In any contract or loan which is secured by a mortgage, | ||||||
20 | deed of
trust, or conveyance in the nature of a mortgage, on | ||||||
21 | residential real
estate, the interest which is computed, | ||||||
22 | calculated, charged, or collected
pursuant to such contract or | ||||||
23 | loan, or pursuant to any regulation or rule
promulgated | ||||||
24 | pursuant to this Act, may not be computed, calculated, charged
| ||||||
25 | or collected for any period of time occurring after the date on | ||||||
26 | which the
total indebtedness, with the exception of late |
| |||||||
| |||||||
1 | payment penalties, is paid
in full. | ||||||
2 | (4) For purposes of this Section, a prepayment shall mean | ||||||
3 | the payment of the
total indebtedness, with the exception of | ||||||
4 | late payment penalties if
incurred or charged, on any date | ||||||
5 | before the date specified in the contract
or loan agreement on | ||||||
6 | which the total indebtedness shall be paid in full, or
before | ||||||
7 | the date on which all payments, if timely made, shall have been
| ||||||
8 | made. In the event of a prepayment of the indebtedness which is | ||||||
9 | made on a
date after the date on which interest on the | ||||||
10 | indebtedness was last
computed, calculated, charged, or | ||||||
11 | collected but before the next date on
which interest on the | ||||||
12 | indebtedness was to be calculated, computed, charged,
or | ||||||
13 | collected, the lender may calculate, charge and collect | ||||||
14 | interest on the
indebtedness for the period which elapsed | ||||||
15 | between the date on which the
prepayment is made and the date | ||||||
16 | on which interest on the indebtedness was
last computed, | ||||||
17 | calculated, charged or collected at a rate equal to 1/360 of
| ||||||
18 | the annual rate for each day which so elapsed, which rate shall | ||||||
19 | be applied
to the indebtedness outstanding as of the date of | ||||||
20 | prepayment. The lender
shall refund to the borrower any | ||||||
21 | interest charged or collected which
exceeds that which the | ||||||
22 | lender may charge or collect pursuant to the
preceding | ||||||
23 | sentence. The provisions of this amendatory Act of 1985 shall
| ||||||
24 | apply only to contracts or loans entered into on or after the | ||||||
25 | effective
date of this amendatory Act, but shall not apply to | ||||||
26 | contracts or loans
entered into on or after that date that are |
| |||||||
| |||||||
1 | subject to Section 4a of this
Act, the Consumer Installment | ||||||
2 | Loan Act, the Payday Loan Reform Act, the Predatory Loan | ||||||
3 | Prevention Act, or the Retail Installment Sales
Act, or that | ||||||
4 | provide for the refund of precomputed interest on prepayment
| ||||||
5 | in the manner provided by such Act. | ||||||
6 | (5) For purposes of items (a) and (c) of subsection (1) of | ||||||
7 | this Section, a rate or amount of interest may be lawfully | ||||||
8 | computed when applying the ratio of the annual interest rate | ||||||
9 | over a year based on 360 days. The provisions of this | ||||||
10 | amendatory Act of the 96th General Assembly are declarative of | ||||||
11 | existing law. | ||||||
12 | (6) For purposes of this Section, "real estate" and "real | ||||||
13 | property" include a manufactured home, as defined in | ||||||
14 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
15 | Code that is real property as defined in the Conveyance and | ||||||
16 | Encumbrance of Manufactured Homes as Real Property and | ||||||
17 | Severance Act. | ||||||
18 | (Source: P.A. 101-658, eff. 3-23-21.) | ||||||
19 | Section 910. The Consumer Fraud and Deceptive Business | ||||||
20 | Practices Act is amended by adding Section 2AAAA as follows: | ||||||
21 | (815 ILCS 505/2AAAA new) | ||||||
22 | Sec. 2AAAA. Violations of the Consumer Legal Funding Act. | ||||||
23 | Any person who violates the Consumer Legal Funding Act commits | ||||||
24 | an unlawful practice within the meaning of this Act. |
| |||||||
| |||||||
1 | Section 999. Effective date. This Act takes effect upon | ||||||
2 | becoming law.".
|