Rep. Joseph M. Lyons
Filed: 4/2/2004
 
 

 




 

 		












09300HB5856ham001

LRB093 16897 WGH 48652 a






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AMENDMENT TO HOUSE BILL 5856




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    AMENDMENT NO. ______. Amend House Bill 5856 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Consumer Installment Loan Act is amended by 
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changing Sections 1 and 2 as follows:


 



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    (205 ILCS 670/1)  (from Ch. 17, par. 5401)


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    Sec. 1. License required to engage in business. No person, 
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partnership, association, limited liability
company, or 
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corporation shall engage in
the business of making loans of 
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money in a principal amount  not
exceeding $40,000
$25,000, and 
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charge, contract for, or receive on any
such loan a
greater 
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rate of interest, discount, or consideration therefor than the

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lender would be permitted by law to charge if he were not a 
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licensee
hereunder, except as authorized by this Act after 
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first obtaining a license
from the Director of Financial 
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Institutions (hereinafter called the Director).

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(Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)


 



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    (205 ILCS 670/2)  (from Ch. 17, par. 5402)


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    Sec. 2. Application; fees; positive net worth. Application 
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for such license shall be in writing, and in the
form 
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prescribed by the Director. Such
applicant at the time of 
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making such application shall pay to the
Director the sum of 
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$300 as an application fee and the additional
sum of $450
as an 
 


 






09300HB5856ham001
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LRB093 16897 WGH 48652 a




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annual license
fee, for a period terminating on the last day of 
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the current
calendar year; provided that if the application is 
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filed after June 30th
in any year, such license fee shall be 
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1/2 of the annual license fee
for such year.

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    Before the license is granted, every applicant shall prove 
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in form
satisfactory to the Director that the applicant has and 
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will maintain a
positive net
worth of a minimum of $45,000

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$30,000.  Every applicant and licensee shall maintain
a surety 
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bond in
the
principal sum of $40,000
$25,000 issued by a 
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bonding company authorized
to do
business in this State and 
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which shall be approved by the Director.  Such
bond shall run to 
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the Director and shall be for the benefit of any consumer
who 
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incurs damages as a result of any violation of the Act or rules 
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by a
licensee.  If
the Director finds at any time that a bond is 
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of insufficient size, is
insecure, exhausted, or otherwise 
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doubtful, an additional bond in such
amount as determined by 
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the Director shall be filed by the licensee within
30 days 
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after written demand therefor by the Director.
"Net worth" 
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means total assets minus total liabilities.

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(Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)".