Full Text of HB2773 98th General Assembly
HB2773sam003 98TH GENERAL ASSEMBLY | Sen. John M. Sullivan Filed: 5/22/2013
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| 1 | | AMENDMENT TO HOUSE BILL 2773
| 2 | | AMENDMENT NO. ______. Amend House Bill 2773 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Vehicle Code is amended by | 5 | | changing Sections 5-101, 5-102, and 5-102.7 as follows:
| 6 | | (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
| 7 | | Sec. 5-101. New vehicle dealers must be licensed.
| 8 | | (a) No person shall engage in this State in the business of | 9 | | selling
or dealing in, on consignment or otherwise, new | 10 | | vehicles of any make, or
act as an intermediary or agent or | 11 | | broker for any licensed dealer or
vehicle purchaser other than | 12 | | as a salesperson, or represent or advertise
that he is so | 13 | | engaged or intends to so engage in such business unless
| 14 | | licensed to do so in writing by the Secretary of State under | 15 | | the
provisions of this Section.
| 16 | | (b) An application for a new vehicle dealer's license shall |
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| 1 | | be filed
with the Secretary of State, duly verified by oath, on | 2 | | such form as the
Secretary of State may by rule or regulation | 3 | | prescribe and shall contain:
| 4 | | 1. The name and type of business organization of the | 5 | | applicant and
his established and additional places of | 6 | | business, if any, in this State.
| 7 | | 2. If the applicant is a corporation, a list of its | 8 | | officers,
directors, and shareholders having a ten percent | 9 | | or greater ownership
interest in the corporation, setting | 10 | | forth the residence address of
each; if the applicant is a | 11 | | sole proprietorship, a partnership, an
unincorporated | 12 | | association, a trust, or any similar form of business
| 13 | | organization, the name and residence address of the | 14 | | proprietor or of
each partner, member, officer, director, | 15 | | trustee, or manager.
| 16 | | 3. The make or makes of new vehicles which the | 17 | | applicant will offer
for sale at retail in this State.
| 18 | | 4. The name of each manufacturer or franchised | 19 | | distributor, if any,
of new vehicles with whom the | 20 | | applicant has contracted for the sale of
such new vehicles. | 21 | | As evidence of this fact, the application shall be
| 22 | | accompanied by a signed statement from each such | 23 | | manufacturer or
franchised distributor. If the applicant | 24 | | is in the business of
offering for sale new conversion | 25 | | vehicles, trucks or vans, except for
trucks modified to | 26 | | serve a special purpose which includes but is not
limited |
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| 1 | | to the following vehicles: street sweepers, fertilizer | 2 | | spreaders,
emergency vehicles, implements of husbandry or | 3 | | maintenance type vehicles,
he must furnish evidence of a | 4 | | sales and service agreement from both the
chassis | 5 | | manufacturer and second stage manufacturer.
| 6 | | 5. A statement that the applicant has been approved for | 7 | | registration
under the Retailers' Occupation Tax Act by the | 8 | | Department of Revenue:
Provided that this requirement does | 9 | | not apply to a dealer who is already
licensed hereunder | 10 | | with the Secretary of State, and who is merely applying
for | 11 | | a renewal of his license. As evidence of this fact, the | 12 | | application
shall be accompanied by a certification from | 13 | | the Department of Revenue
showing that that Department has | 14 | | approved the applicant for registration
under the | 15 | | Retailers' Occupation Tax Act.
| 16 | | 6. A statement that the applicant has complied with the | 17 | | appropriate
liability insurance requirement. A Certificate | 18 | | of Insurance in a solvent
company authorized to do business | 19 | | in the State of Illinois shall be included
with each | 20 | | application covering each location at which he proposes to | 21 | | act
as a new vehicle dealer. The policy must provide | 22 | | liability coverage in
the minimum amounts of $100,000 for | 23 | | bodily injury to, or death of, any person,
$300,000 for | 24 | | bodily injury to, or death of, two or more persons in any | 25 | | one
accident, and $50,000 for damage to property. Such | 26 | | policy shall expire
not sooner than December 31 of the year |
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| 1 | | for which the license was issued
or renewed. The expiration | 2 | | of the insurance policy shall not terminate
the liability | 3 | | under the policy arising during the period for which the
| 4 | | policy was filed. Trailer and mobile home dealers are | 5 | | exempt from this
requirement.
| 6 | | If the permitted user has a liability insurance policy | 7 | | that provides
automobile
liability insurance coverage of | 8 | | at least $100,000 for bodily injury to or the
death of any
| 9 | | person, $300,000 for bodily injury to or the death of any 2 | 10 | | or more persons in
any one
accident, and $50,000 for damage | 11 | | to property,
then the permitted user's insurer shall be the | 12 | | primary
insurer and the
dealer's insurer shall be the | 13 | | secondary insurer. If the permitted user does not
have a | 14 | | liability
insurance policy that provides automobile | 15 | | liability insurance coverage of at
least
$100,000 for | 16 | | bodily injury to or the death of any person, $300,000 for | 17 | | bodily
injury to or the death of any 2 or more persons in | 18 | | any one accident, and
$50,000 for damage to property, or | 19 | | does not have any insurance at all,
then the dealer's | 20 | | insurer shall be the primary insurer and the permitted | 21 | | user's
insurer shall be the secondary
insurer.
| 22 | | When a permitted user is "test driving" a new vehicle | 23 | | dealer's automobile,
the new vehicle dealer's insurance | 24 | | shall be primary and the permitted user's
insurance shall | 25 | | be secondary.
| 26 | | As used in this paragraph 6, a "permitted user" is a |
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| 1 | | person who, with the
permission of the new vehicle dealer | 2 | | or an employee of the new vehicle dealer,
drives a vehicle | 3 | | owned and held for sale or lease by the new vehicle dealer
| 4 | | which the person is considering
to purchase or lease, in | 5 | | order to evaluate the performance, reliability, or
| 6 | | condition of the vehicle.
The term "permitted user" also | 7 | | includes a person who, with the permission of
the new
| 8 | | vehicle dealer, drives a vehicle owned or held for sale or | 9 | | lease by the new
vehicle dealer
for loaner purposes while | 10 | | the user's vehicle is being repaired or evaluated.
| 11 | | As used in this paragraph 6, "test driving" occurs when | 12 | | a permitted user
who,
with the permission of the new | 13 | | vehicle dealer or an employee of the new vehicle
dealer, | 14 | | drives a vehicle owned and held for sale or lease by a new | 15 | | vehicle
dealer that the person is considering to purchase | 16 | | or lease, in order to
evaluate the performance, | 17 | | reliability, or condition of the
vehicle.
| 18 | | As used in this paragraph 6, "loaner purposes" means | 19 | | when a person who,
with the permission of the new vehicle | 20 | | dealer, drives a vehicle owned or held
for sale or lease by | 21 | | the new vehicle dealer while the
user's vehicle is being | 22 | | repaired or evaluated.
| 23 | | 7. (A) An application for a new motor vehicle dealer's | 24 | | license shall be
accompanied by the following license fees:
| 25 | | (i) $1,000 for applicant's established place of | 26 | | business, and
$100 for each
additional place of |
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| 1 | | business, if any, to which the application
pertains; | 2 | | but if the application is made after June 15 of any | 3 | | year, the license
fee shall be $500 for applicant's | 4 | | established place of business
plus
$50 for each | 5 | | additional place of business, if any, to which the
| 6 | | application pertains. License fees shall be returnable | 7 | | only in the event that
the application is denied by the | 8 | | Secretary of State.
All moneys received by the | 9 | | Secretary of State as license fees under this | 10 | | subparagraph (i) prior to applications for the 2004
| 11 | | licensing year
shall be
deposited into the Motor | 12 | | Vehicle Review Board Fund and shall
be used to | 13 | | administer the Motor Vehicle Review Board under the | 14 | | Motor Vehicle
Franchise Act. Of the money received by | 15 | | the Secretary of State as license
fees under this | 16 | | subparagraph (i) for the 2004
licensing year and
| 17 | | thereafter, 10% shall
be deposited into the Motor | 18 | | Vehicle Review Board Fund and shall be used to
| 19 | | administer the Motor Vehicle Review Board under the | 20 | | Motor Vehicle Franchise Act
and 90% shall be deposited | 21 | | into the General Revenue Fund.
| 22 | | (ii) Except for dealers selling 25 or fewer | 23 | | automobiles or as provided in subsection (h) of Section | 24 | | 5-102.7 of this Code, an Annual Dealer Recovery Fund | 25 | | Fee in the amount of $500 for the applicant's | 26 | | established place of business, and $50 for each |
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| 1 | | additional place of business, if any, to which the | 2 | | application pertains; but if the application is made | 3 | | after June 15 of any year, the fee shall be $250 for | 4 | | the applicant's established place of business plus $25 | 5 | | for each additional place of business, if any, to which | 6 | | the application pertains. For a license renewal | 7 | | application, the fee shall be based on the amount of | 8 | | automobiles sold in the past year according to the | 9 | | following formula: | 10 | | (1) $0 for dealers selling 25 or less | 11 | | automobiles; | 12 | | (2) $150 for dealers selling more than 25 but | 13 | | less than 200 automobiles; | 14 | | (3) $300 for dealers selling 200 or more | 15 | | automobiles but less than 300 automobiles; and | 16 | | (4) $500 for dealers selling 300 or more | 17 | | automobiles. | 18 | | License fees shall be returnable only in the event | 19 | | that the application is denied by the Secretary of | 20 | | State. Moneys received under this subparagraph (ii) | 21 | | shall be deposited into the Dealer Recovery Trust Fund.
| 22 | | (B) An application for a new vehicle dealer's license, | 23 | | other than for
a new motor vehicle dealer's license, shall | 24 | | be accompanied by the following
license fees:
| 25 | | (i) $1,000 for applicant's established place of | 26 | | business, and
$50 for each
additional place of |
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| 1 | | business, if any, to which the application pertains; | 2 | | but if
the application is made after June 15 of any | 3 | | year, the license fee shall be
$500
for applicant's | 4 | | established place of business plus $25 for each
| 5 | | additional
place of business, if any, to which the | 6 | | application pertains. License fees
shall be returnable | 7 | | only in the event that the application is denied by the
| 8 | | Secretary of State. Of the money received by the | 9 | | Secretary of State as
license fees under this | 10 | | subparagraph (i) for the 2004 licensing year and | 11 | | thereafter,
95% shall be deposited into the General | 12 | | Revenue Fund.
| 13 | | (ii) Except as provided in subsection (h) of | 14 | | Section 5-102.7 of this Code, an Annual Dealer Recovery | 15 | | Fund Fee in the amount of $500 for the applicant's | 16 | | established place of business, and $50 for each | 17 | | additional place of business, if any, to which the | 18 | | application pertains; but if the application is made | 19 | | after June 15 of any year, the fee shall be $250 for | 20 | | the applicant's established place of business plus $25 | 21 | | for each additional place of business, if any, to which | 22 | | the application pertains. License fees shall be | 23 | | returnable only in the event that the application is | 24 | | denied by the Secretary of State. Moneys received under | 25 | | this subparagraph (ii) shall be deposited into the | 26 | | Dealer Recovery Trust Fund.
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| 1 | | 8. A statement that the applicant's officers, | 2 | | directors,
shareholders having a 10% or greater ownership | 3 | | interest
therein, proprietor, a partner, member, officer, | 4 | | director, trustee, manager
or other principals in the | 5 | | business have not committed in the past 3
years any one | 6 | | violation as determined in any civil, criminal or
| 7 | | administrative proceedings of any one of the following | 8 | | Acts:
| 9 | | (A) The Anti Theft Laws of the Illinois Vehicle | 10 | | Code;
| 11 | | (B) The Certificate of Title Laws of the Illinois | 12 | | Vehicle Code;
| 13 | | (C) The Offenses against Registration and | 14 | | Certificates of Title
Laws of the Illinois Vehicle | 15 | | Code;
| 16 | | (D) The Dealers, Transporters, Wreckers and | 17 | | Rebuilders
Laws of the Illinois Vehicle Code;
| 18 | | (E) Section 21-2 of the Criminal Code of 1961 or | 19 | | the Criminal Code of 2012, Criminal Trespass to
| 20 | | Vehicles; or
| 21 | | (F) The Retailers' Occupation Tax Act.
| 22 | | 9. A statement that the applicant's officers, | 23 | | directors,
shareholders having a 10% or greater ownership | 24 | | interest
therein, proprietor, partner, member, officer, | 25 | | director, trustee, manager
or other principals in the | 26 | | business have not committed in any calendar year
3 or more |
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| 1 | | violations, as determined in any civil, criminal or
| 2 | | administrative proceedings, of any one or more of the | 3 | | following Acts:
| 4 | | (A) The Consumer Finance Act;
| 5 | | (B) The Consumer Installment Loan Act;
| 6 | | (C) The Retail Installment Sales Act;
| 7 | | (D) The Motor Vehicle Retail Installment Sales | 8 | | Act;
| 9 | | (E) The Interest Act;
| 10 | | (F) The Illinois Wage Assignment Act;
| 11 | | (G) Part 8 of Article XII of the Code of Civil | 12 | | Procedure; or
| 13 | | (H) The Consumer Fraud Act.
| 14 | | 10. A bond or certificate of deposit in the amount of | 15 | | $20,000 for
each location at which the applicant intends to | 16 | | act as a new vehicle
dealer. The bond shall be for the term | 17 | | of the license, or its renewal, for
which application is | 18 | | made, and shall expire not sooner than
December 31 of the | 19 | | year for which the license was issued or renewed. The bond
| 20 | | shall run to the People of the State of Illinois, with | 21 | | surety by a bonding or
insurance company authorized to do | 22 | | business in this State. It shall be
conditioned upon the | 23 | | proper transmittal of all title and registration fees and
| 24 | | taxes (excluding taxes under the Retailers' Occupation Tax | 25 | | Act) accepted by the
applicant as a new vehicle dealer.
| 26 | | 11. Such other information concerning the business of |
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| 1 | | the applicant as
the Secretary of State may by rule or | 2 | | regulation prescribe.
| 3 | | 12. A statement that the applicant understands Chapter | 4 | | One through
Chapter Five of this Code.
| 5 | | (c) Any change which renders no longer accurate any | 6 | | information
contained in any application for a new vehicle | 7 | | dealer's license shall be
amended within 30 days after the | 8 | | occurrence of such change on such form
as the Secretary of | 9 | | State may prescribe by rule or regulation,
accompanied by an | 10 | | amendatory fee of $2.
| 11 | | (d) Anything in this Chapter 5 to the contrary | 12 | | notwithstanding no
person shall be licensed as a new vehicle | 13 | | dealer unless:
| 14 | | 1. He is authorized by contract in writing between | 15 | | himself and the
manufacturer or franchised distributor of | 16 | | such make of vehicle to so
sell the same in this State, and
| 17 | | 2. Such person shall maintain an established place of | 18 | | business as
defined in this Act.
| 19 | | (e) The Secretary of State shall, within a reasonable time | 20 | | after
receipt, examine an application submitted to him under | 21 | | this Section and
unless he makes a determination that the | 22 | | application submitted to him
does not conform with the | 23 | | requirements of this Section or that grounds
exist for a denial | 24 | | of the application, under Section 5-501 of this
Chapter, grant | 25 | | the applicant an original new vehicle dealer's license in
| 26 | | writing for his established place of business and a |
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| 1 | | supplemental license
in writing for each additional place of | 2 | | business in such form as he may
prescribe by rule or regulation | 3 | | which shall include the following:
| 4 | | 1. The name of the person licensed;
| 5 | | 2. If a corporation, the name and address of its | 6 | | officers or if a
sole proprietorship, a partnership, an | 7 | | unincorporated association or any
similar form of business | 8 | | organization, the name and address of the
proprietor or of | 9 | | each partner, member, officer, director, trustee or
| 10 | | manager;
| 11 | | 3. In the case of an original license, the established | 12 | | place of
business of the licensee;
| 13 | | 4. In the case of a supplemental license, the | 14 | | established place of
business of the licensee and the | 15 | | additional place of business to which such
supplemental | 16 | | license pertains;
| 17 | | 5. The make or makes of new vehicles which the licensee | 18 | | is licensed
to sell.
| 19 | | (f) The appropriate instrument evidencing the license or a | 20 | | certified
copy thereof, provided by the Secretary of State, | 21 | | shall be kept posted
conspicuously in the established place of | 22 | | business of the licensee and
in each additional place of | 23 | | business, if any, maintained by such
licensee.
| 24 | | (g) Except as provided in subsection (h) hereof, all new | 25 | | vehicle
dealer's licenses granted under this Section shall | 26 | | expire by operation
of law on December 31 of the calendar year |
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| 1 | | for which they are granted
unless sooner revoked or cancelled | 2 | | under the provisions of Section 5-501
of this Chapter.
| 3 | | (h) A new vehicle dealer's license may be renewed upon | 4 | | application
and payment of the fee required herein, and | 5 | | submission of proof of
coverage under an approved bond under | 6 | | the "Retailers' Occupation Tax
Act" or proof that applicant is | 7 | | not subject to such bonding
requirements, as in the case of an | 8 | | original license, but in case an
application for the renewal of | 9 | | an effective license is made during the
month of December, the | 10 | | effective license shall remain in force until the
application | 11 | | is granted or denied by the Secretary of State.
| 12 | | (i) All persons licensed as a new vehicle dealer are | 13 | | required to
furnish each purchaser of a motor vehicle:
| 14 | | 1. In the case of a new vehicle a manufacturer's | 15 | | statement of origin
and in the case of a used motor vehicle | 16 | | a certificate of title, in
either case properly assigned to | 17 | | the purchaser;
| 18 | | 2. A statement verified under oath that all identifying | 19 | | numbers on
the vehicle agree with those on the certificate | 20 | | of title or
manufacturer's statement of origin;
| 21 | | 3. A bill of sale properly executed on behalf of such | 22 | | person;
| 23 | | 4. A copy of the Uniform Invoice-transaction reporting | 24 | | return
referred to in Section 5-402 hereof;
| 25 | | 5. In the case of a rebuilt vehicle, a copy of the | 26 | | Disclosure of Rebuilt
Vehicle Status; and
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| 1 | | 6. In the case of a vehicle for which the warranty has | 2 | | been reinstated, a
copy of the warranty.
| 3 | | (j) Except at the time of sale or repossession of the | 4 | | vehicle, no person
licensed as a new vehicle dealer may issue | 5 | | any other person a newly created
key to a vehicle unless the | 6 | | new vehicle dealer makes a copy of the driver's
license or | 7 | | State identification card of the person requesting or obtaining | 8 | | the
newly created key. The new vehicle dealer must retain the | 9 | | copy for 30 days.
| 10 | | A new vehicle dealer who violates this subsection (j) is | 11 | | guilty of a
petty offense. Violation of this subsection (j) is | 12 | | not cause to suspend,
revoke,
cancel, or deny renewal of the | 13 | | new vehicle dealer's license.
| 14 | | This amendatory Act of 1983 shall be applicable to the 1984 | 15 | | registration
year and thereafter.
| 16 | | (Source: P.A. 97-480, eff. 10-1-11; 97-1150, eff. 1-25-13.)
| 17 | | (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
| 18 | | Sec. 5-102. Used vehicle dealers must be licensed.
| 19 | | (a) No person, other than a licensed new vehicle dealer, | 20 | | shall engage in
the business of selling or dealing in, on | 21 | | consignment or otherwise, 5 or
more used vehicles of any make | 22 | | during the year (except house trailers as
authorized by | 23 | | paragraph (j) of this Section and rebuilt salvage vehicles
sold | 24 | | by their rebuilders to persons licensed under this Chapter), or | 25 | | act as
an intermediary, agent or broker for any licensed dealer |
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| 1 | | or vehicle
purchaser (other than as a salesperson) or represent | 2 | | or advertise that he
is so engaged or intends to so engage in | 3 | | such business unless licensed to
do so by the Secretary of | 4 | | State under the provisions of this Section.
| 5 | | (b) An application for a used vehicle dealer's license | 6 | | shall be
filed with the Secretary of State, duly verified by | 7 | | oath, in such form
as the Secretary of State may by rule or | 8 | | regulation prescribe and shall
contain:
| 9 | | 1. The name and type of business organization | 10 | | established and additional
places of business, if any, in | 11 | | this State.
| 12 | | 2. If the applicant is a corporation, a list of its | 13 | | officers,
directors, and shareholders having a ten percent | 14 | | or greater ownership
interest in the corporation, setting | 15 | | forth the residence address of
each; if the applicant is a | 16 | | sole proprietorship, a partnership, an
unincorporated | 17 | | association, a trust, or any similar form of business
| 18 | | organization, the names and residence address of the | 19 | | proprietor or of
each partner, member, officer, director, | 20 | | trustee or manager.
| 21 | | 3. A statement that the applicant has been approved for | 22 | | registration
under the Retailers' Occupation Tax Act by the | 23 | | Department of Revenue. However,
this requirement does not | 24 | | apply to a dealer who is already licensed
hereunder with | 25 | | the Secretary of State, and who is merely applying for a
| 26 | | renewal of his license. As evidence of this fact, the |
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| 1 | | application shall be
accompanied by a certification from | 2 | | the Department of Revenue showing that
the Department has | 3 | | approved the applicant for registration under the
| 4 | | Retailers' Occupation Tax Act.
| 5 | | 4. A statement that the applicant has complied with the | 6 | | appropriate
liability insurance requirement. A Certificate | 7 | | of Insurance in a solvent
company authorized to do business | 8 | | in the State of Illinois shall be included
with each | 9 | | application covering each location at which he proposes to | 10 | | act
as a used vehicle dealer. The policy must provide | 11 | | liability coverage in
the minimum amounts of $100,000 for | 12 | | bodily injury to, or death of, any person,
$300,000 for | 13 | | bodily injury to, or death of, two or more persons in any | 14 | | one
accident, and $50,000 for damage to property. Such | 15 | | policy shall expire
not sooner than December 31 of the year | 16 | | for which the license was issued
or renewed. The expiration | 17 | | of the insurance policy shall not terminate
the liability | 18 | | under the policy arising during the period for which the | 19 | | policy
was filed. Trailer and mobile home dealers are | 20 | | exempt from this requirement.
| 21 | | If the permitted user has a liability insurance policy | 22 | | that provides
automobile
liability insurance coverage of | 23 | | at least $100,000 for bodily injury to or the
death of any
| 24 | | person, $300,000 for bodily injury to or the death of any 2 | 25 | | or more persons in
any one
accident, and $50,000 for damage | 26 | | to property,
then the permitted user's insurer shall be the |
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| 1 | | primary
insurer and the
dealer's insurer shall be the | 2 | | secondary insurer. If the permitted user does not
have a | 3 | | liability
insurance policy that provides automobile | 4 | | liability insurance coverage of at
least
$100,000 for | 5 | | bodily injury to or the death of any person, $300,000 for | 6 | | bodily
injury to or
the death of any 2 or more persons in | 7 | | any one accident, and $50,000 for damage
to
property, or | 8 | | does not have any insurance at all,
then the
dealer's
| 9 | | insurer shall be the primary insurer and the permitted | 10 | | user's insurer shall be
the secondary
insurer.
| 11 | | When a permitted user is "test driving" a used vehicle | 12 | | dealer's automobile,
the used vehicle dealer's insurance | 13 | | shall be primary and the permitted user's
insurance shall | 14 | | be secondary.
| 15 | | As used in this paragraph 4, a "permitted user" is a | 16 | | person who, with the
permission of the used vehicle dealer | 17 | | or an employee of the used vehicle
dealer, drives a vehicle | 18 | | owned and held for sale or lease by the used vehicle
dealer | 19 | | which the person is considering to purchase or lease, in | 20 | | order to
evaluate the performance, reliability, or | 21 | | condition of the vehicle.
The term "permitted user" also | 22 | | includes a person who, with the permission of
the used
| 23 | | vehicle dealer, drives a vehicle owned or held for sale or | 24 | | lease by the used
vehicle dealer
for loaner purposes while | 25 | | the user's vehicle is being repaired or evaluated.
| 26 | | As used in this paragraph 4, "test driving" occurs when |
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| 1 | | a permitted user
who,
with the permission of the used | 2 | | vehicle dealer or an employee of the used
vehicle
dealer, | 3 | | drives a vehicle owned and held for sale or lease by a used | 4 | | vehicle
dealer that the person is considering to purchase | 5 | | or lease, in order to
evaluate the performance, | 6 | | reliability, or condition of the
vehicle.
| 7 | | As used in this paragraph 4, "loaner purposes" means | 8 | | when a person who,
with the permission of the used vehicle | 9 | | dealer, drives a vehicle owned or held
for sale or lease by | 10 | | the used vehicle dealer while the
user's vehicle is being | 11 | | repaired or evaluated.
| 12 | | 5. An application for a used vehicle dealer's license | 13 | | shall be
accompanied by the following license fees:
| 14 | | (A) $1,000 for applicant's established place of | 15 | | business, and
$50 for
each additional place of | 16 | | business, if any, to which the application
pertains; | 17 | | however, if the application is made after June 15 of | 18 | | any
year, the license fee shall be $500 for applicant's | 19 | | established
place of
business plus $25 for each | 20 | | additional place of business, if any,
to
which the | 21 | | application pertains. License fees shall be returnable | 22 | | only in
the event that the application is denied by
the | 23 | | Secretary of State. Of the money received by the | 24 | | Secretary of State as
license fees under this | 25 | | subparagraph (A) for the 2004 licensing year and | 26 | | thereafter, 95%
shall be deposited into the General |
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| 1 | | Revenue Fund.
| 2 | | (B) Except for dealers selling 25 or fewer | 3 | | automobiles or as provided in subsection (h) of Section | 4 | | 5-102.7 of this Code, an Annual Dealer Recovery Fund | 5 | | Fee in the amount of $500 for the applicant's | 6 | | established place of business, and $50 for each | 7 | | additional place of business, if any, to which the | 8 | | application pertains; but if the application is made | 9 | | after June 15 of any year, the fee shall be $250 for | 10 | | the applicant's established place of business plus $25 | 11 | | for each additional place of business, if any, to which | 12 | | the application pertains. For a license renewal | 13 | | application, the fee shall be based on the amount of | 14 | | automobiles sold in the past year according to the | 15 | | following formula: | 16 | | (1) $0 for dealers selling 25 or less | 17 | | automobiles; | 18 | | (2) $150 for dealers selling more than 25 but | 19 | | less than 200 automobiles; | 20 | | (3) $300 for dealers selling 200 or more | 21 | | automobiles but less than 300 automobiles; and | 22 | | (4) $500 for dealers selling 300 or more | 23 | | automobiles. | 24 | | License fees shall be returnable only in the event | 25 | | that the application is denied by the Secretary of | 26 | | State. Moneys received under this subparagraph (B) |
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| 1 | | shall be deposited into the Dealer Recovery Trust Fund.
| 2 | | 6. A statement that the applicant's officers, | 3 | | directors, shareholders
having a 10% or greater ownership | 4 | | interest therein, proprietor, partner,
member, officer, | 5 | | director, trustee, manager or other principals in the
| 6 | | business have not committed in the past 3 years any one | 7 | | violation as
determined in any civil, criminal or | 8 | | administrative proceedings of any one
of the following | 9 | | Acts:
| 10 | | (A) The Anti Theft Laws of the Illinois Vehicle | 11 | | Code;
| 12 | | (B) The Certificate of Title Laws of the Illinois | 13 | | Vehicle Code;
| 14 | | (C) The Offenses against Registration and | 15 | | Certificates of Title
Laws of the Illinois Vehicle | 16 | | Code;
| 17 | | (D) The Dealers, Transporters, Wreckers and | 18 | | Rebuilders Laws of the
Illinois Vehicle Code;
| 19 | | (E) Section 21-2 of the Illinois Criminal Code of | 20 | | 1961 or the Criminal Code of 2012, Criminal
Trespass to | 21 | | Vehicles; or
| 22 | | (F) The Retailers' Occupation Tax Act.
| 23 | | 7. A statement that the applicant's officers, | 24 | | directors,
shareholders having a 10% or greater ownership | 25 | | interest therein,
proprietor, partner, member, officer, | 26 | | director, trustee, manager or
other principals in the |
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| 1 | | business have not committed in any calendar year
3 or more | 2 | | violations, as determined in any civil or criminal or
| 3 | | administrative proceedings, of any one or more of the | 4 | | following Acts:
| 5 | | (A) The Consumer Finance Act;
| 6 | | (B) The Consumer Installment Loan Act;
| 7 | | (C) The Retail Installment Sales Act;
| 8 | | (D) The Motor Vehicle Retail Installment Sales | 9 | | Act;
| 10 | | (E) The Interest Act;
| 11 | | (F) The Illinois Wage Assignment Act;
| 12 | | (G) Part 8 of Article XII of the Code of Civil | 13 | | Procedure; or
| 14 | | (H) The Consumer Fraud Act.
| 15 | | 8. A bond or Certificate of Deposit in the amount of | 16 | | $20,000 for
each location at which the applicant intends to | 17 | | act as a used vehicle
dealer. The bond shall be for the | 18 | | term of the license, or its renewal, for
which application | 19 | | is made, and shall expire not sooner than December 31 of
| 20 | | the year for which the license was issued or renewed. The | 21 | | bond shall run
to the People of the State of Illinois, with | 22 | | surety by a bonding or
insurance company authorized to do | 23 | | business in this State. It shall be
conditioned upon the | 24 | | proper transmittal of all title and registration fees
and | 25 | | taxes (excluding taxes under the Retailers' Occupation Tax | 26 | | Act) accepted
by the applicant as a used vehicle dealer.
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| 1 | | 9. Such other information concerning the business of | 2 | | the applicant as
the Secretary of State may by rule or | 3 | | regulation prescribe.
| 4 | | 10. A statement that the applicant understands Chapter | 5 | | 1 through
Chapter 5 of this Code.
| 6 | | 11. A copy of the certification from the prelicensing | 7 | | education
program. | 8 | | (c) Any change which renders no longer accurate any | 9 | | information
contained in any application for a used vehicle | 10 | | dealer's license shall
be amended within 30 days after the | 11 | | occurrence of each change on such
form as the Secretary of | 12 | | State may prescribe by rule or regulation,
accompanied by an | 13 | | amendatory fee of $2.
| 14 | | (d) Anything in this Chapter to the contrary | 15 | | notwithstanding, no
person shall be licensed as a used vehicle | 16 | | dealer unless such person
maintains an established place of | 17 | | business as
defined in this Chapter.
| 18 | | (e) The Secretary of State shall, within a reasonable time | 19 | | after
receipt, examine an application submitted to him under | 20 | | this Section.
Unless the Secretary makes a determination that | 21 | | the application
submitted to him does not conform to this | 22 | | Section or that grounds exist
for a denial of the application | 23 | | under Section 5-501 of this Chapter, he
must grant the | 24 | | applicant an original used vehicle dealer's license in
writing | 25 | | for his established place of business and a supplemental | 26 | | license
in writing for each additional place of business in |
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| 1 | | such form as he may
prescribe by rule or regulation which shall | 2 | | include the following:
| 3 | | 1. The name of the person licensed;
| 4 | | 2. If a corporation, the name and address of its | 5 | | officers or if a
sole proprietorship, a partnership, an | 6 | | unincorporated association or any
similar form of business | 7 | | organization, the name and address of the
proprietor or of | 8 | | each partner, member, officer, director, trustee or
| 9 | | manager;
| 10 | | 3. In case of an original license, the established | 11 | | place of business
of the licensee;
| 12 | | 4. In the case of a supplemental license, the | 13 | | established place of
business of the licensee and the | 14 | | additional place of business to which such
supplemental | 15 | | license pertains.
| 16 | | (f) The appropriate instrument evidencing the license or a | 17 | | certified
copy thereof, provided by the Secretary of State | 18 | | shall be kept posted,
conspicuously, in the established place | 19 | | of business of the licensee and
in each additional place of | 20 | | business, if any, maintained by such
licensee.
| 21 | | (g) Except as provided in subsection (h) of this Section, | 22 | | all used
vehicle dealer's licenses granted under this Section | 23 | | expire by operation
of law on December 31 of the calendar year | 24 | | for which they are granted
unless sooner revoked or cancelled | 25 | | under Section 5-501 of this Chapter.
| 26 | | (h) A used vehicle dealer's license may be renewed upon |
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| 1 | | application
and payment of the fee required herein, and | 2 | | submission of proof of
coverage by an approved bond under the | 3 | | "Retailers' Occupation Tax Act"
or proof that applicant is not | 4 | | subject to such bonding requirements, as
in the case of an | 5 | | original license, but in case an application for the
renewal of | 6 | | an effective license is made during the month of December,
the | 7 | | effective license shall remain in force until the application | 8 | | for
renewal is granted or denied by the Secretary of State.
| 9 | | (i) All persons licensed as a used vehicle dealer are | 10 | | required to
furnish each purchaser of a motor vehicle:
| 11 | | 1. A certificate of title properly assigned to the | 12 | | purchaser;
| 13 | | 2. A statement verified under oath that all identifying | 14 | | numbers on
the vehicle agree with those on the certificate | 15 | | of title;
| 16 | | 3. A bill of sale properly executed on behalf of such | 17 | | person;
| 18 | | 4. A copy of the Uniform Invoice-transaction reporting | 19 | | return
referred to in Section 5-402 of this Chapter;
| 20 | | 5. In the case of a rebuilt vehicle, a copy of the | 21 | | Disclosure of Rebuilt
Vehicle Status; and
| 22 | | 6. In the case of a vehicle for which the warranty has | 23 | | been reinstated, a
copy of the warranty.
| 24 | | (j) A real estate broker holding a valid certificate of | 25 | | registration issued
pursuant to "The Real Estate Brokers and | 26 | | Salesmen License Act" may engage
in the business of selling or |
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| 1 | | dealing in house trailers not his own without
being licensed as | 2 | | a used vehicle dealer under this Section; however such
broker | 3 | | shall maintain a record of the transaction including the | 4 | | following:
| 5 | | (1) the name and address of the buyer and seller,
| 6 | | (2) the date of sale,
| 7 | | (3) a description of the mobile home, including the | 8 | | vehicle identification
number, make, model, and year, and
| 9 | | (4) the Illinois certificate of title number.
| 10 | | The foregoing records shall be available for inspection by | 11 | | any officer
of the Secretary of State's Office at any | 12 | | reasonable hour.
| 13 | | (k) Except at the time of sale or repossession of the | 14 | | vehicle, no
person licensed as a used vehicle dealer may issue | 15 | | any other person a newly
created key to a vehicle unless the | 16 | | used vehicle dealer makes a copy of the
driver's license or | 17 | | State identification card of the person requesting or
obtaining | 18 | | the newly created key. The used vehicle dealer must retain the
| 19 | | copy for 30 days.
| 20 | | A used vehicle dealer who violates this subsection (k) is | 21 | | guilty of a
petty offense. Violation of this subsection (k) is | 22 | | not cause to suspend,
revoke, cancel, or deny renewal of the | 23 | | used vehicle dealer's license. | 24 | | (l) Used vehicle dealers licensed under this Section shall | 25 | | provide the Secretary of State a register for the sale at | 26 | | auction of each salvage or junk certificate vehicle. Each |
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| 1 | | register shall include the following information: | 2 | | 1. The year, make, model, style and color of the | 3 | | vehicle; | 4 | | 2. The vehicle's manufacturer's identification number | 5 | | or, if applicable, the Secretary of State or Illinois | 6 | | Department of State Police identification number; | 7 | | 3. The date of acquisition of the vehicle; | 8 | | 4. The name and address of the person from whom the | 9 | | vehicle was acquired; | 10 | | 5. The name and address of the person to whom any | 11 | | vehicle was disposed, the person's Illinois license number | 12 | | or if the person is an out-of-state salvage vehicle buyer, | 13 | | the license number from the state or jurisdiction where the | 14 | | buyer is licensed; and | 15 | | 6. The purchase price of the vehicle. | 16 | | The register shall be submitted to the Secretary of State | 17 | | via written or electronic means within 10 calendar days from | 18 | | the date of the auction.
| 19 | | (Source: P.A. 96-678, eff. 8-25-09; 97-480, eff. 10-1-11; | 20 | | 97-1150, eff. 1-25-13.)
| 21 | | (625 ILCS 5/5-102.7) | 22 | | Sec. 5-102.7. Dealer Recovery Trust Fund. | 23 | | (a) The General Assembly finds that motor vehicle dealers | 24 | | that go out of business without fulfilling agreements to pay | 25 | | off the balance of their customers' liens on traded-in vehicles |
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| 1 | | cause financial harm to those customers by leaving those | 2 | | customers liable for multiple vehicle loans and cause harm to | 3 | | the integrity of the motor vehicle retailing industry. It is | 4 | | the intent of the General Assembly to protect vehicle | 5 | | purchasers by creating a Dealer Recovery Trust Fund to | 6 | | reimburse these consumers. | 7 | | (b) The Dealer Recovery Trust Fund shall be used solely for | 8 | | the limited purpose of
helping victims of dealership closings. | 9 | | Any interest accrued by moneys in the Fund shall be
deposited | 10 | | and become part of the Dealer Recovery Trust Fund and its | 11 | | purpose. The sole beneficiaries of the Dealer Recovery Trust | 12 | | Fund are victims of
dealership closings. | 13 | | (c) Except where the context otherwise requires, the | 14 | | following words and phrases, when used in this Section, have | 15 | | the meanings ascribed to them in this subsection (c): | 16 | | "Applicant" means a person who applies for reimbursement | 17 | | from the Dealer Recovery Trust Fund Board. | 18 | | "Board" means the Dealer Recovery Trust Fund Board created | 19 | | under this Section. | 20 | | "Dealer" means a new vehicle dealer licensed under Section | 21 | | 5-101 or a used vehicle dealer licensed under Section 5-102, | 22 | | excepting a dealer who primarily sells mobile homes, | 23 | | recreational vehicles, or trailers or any dealer who sells 25 | 24 | | vehicles or fewer per calendar year . | 25 | | "Fund" means the Dealer Recovery Trust Fund created under | 26 | | this Section. |
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| 1 | | "Fund Administrator" means the private entity, which shall | 2 | | be appointed by the Board, that administers the Dealer Recovery | 3 | | Trust Fund. | 4 | | (d) Beginning October 1, 2011, each application or renewal | 5 | | for a new vehicle dealer's license and each application or | 6 | | renewal for a used vehicle dealer's license shall be | 7 | | accompanied by the applicable Annual Dealer Recovery Fund Fee | 8 | | under Section 5-101 or 5-102 of this Code. The fee shall be in | 9 | | addition to any other fees imposed under this Article, shall be | 10 | | submitted at the same time an application or renewal for a new | 11 | | vehicle dealer's license or used vehicle dealer's license is | 12 | | submitted, and shall be made payable to and remitted directly | 13 | | to the Dealer Recovery Trust Fund, a trust fund outside of the | 14 | | State Treasury which is hereby created. In addition, the Dealer | 15 | | Recovery Trust Fund may accept any federal, State, or private | 16 | | moneys for deposit into the Fund. | 17 | | (e) The Fund Administrator shall maintain a list of all | 18 | | dealers who have paid the fee under subsection (d) of this | 19 | | Section for the current year, which shall be available to the | 20 | | Secretary of State and the Board. The Secretary of State shall | 21 | | revoke the dealer license of any dealer who does not pay the | 22 | | fee imposed under subsection (d) of this Section. The Secretary | 23 | | of State and the Fund Administrator may enter into information | 24 | | sharing agreements as needed to implement this Section. | 25 | | (f) The Fund shall be audited annually by an independent | 26 | | auditor who is a certified public accountant and who has been |
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| 1 | | selected by the Board. The independent auditor shall compile an | 2 | | annual report, which shall be filed with the Board and shall be | 3 | | a public record. The auditor shall be paid by the Fund, | 4 | | pursuant to an order of the Board. | 5 | | (g) The Fund shall be maintained by the Fund Administrator, | 6 | | who shall keep current records of the amounts deposited into | 7 | | the Fund and the amounts paid out of the Fund pursuant to an | 8 | | order of the Board. These records shall be made available to | 9 | | all members of the Board upon reasonable request during normal | 10 | | business hours. The Fund Administrator shall report the balance | 11 | | in the Fund to the Board monthly, by the 15th day of each | 12 | | month. For purposes of determining the amount available to pay | 13 | | claims under this Section at any meeting of the Board, the | 14 | | Board shall use the Fund Administrator's most recent monthly | 15 | | report. The Fund Administrator shall purchase liability | 16 | | insurance to cover management of the Fund at a cost not to | 17 | | exceed 2% of the balance in the Fund as of January 15th of that | 18 | | year. | 19 | | (h) In any year for which the balance in the Fund as of | 20 | | August 31st is greater than $3,500,000, the Fund Administrator | 21 | | shall notify the Secretary of State and the Secretary of State | 22 | | shall suspend collection of the fee for the following year for | 23 | | any dealer who has not had a claim paid from the Fund, has not | 24 | | had his or her license suspended or revoked, and has not been | 25 | | assessed any civil penalties under this Code during the 3 | 26 | | previous years. |
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| 1 | | (i) Moneys in the Dealer Recovery Trust Fund may be paid | 2 | | from the Fund only as directed by a written order of the Board | 3 | | and used only for the following purposes: | 4 | | (i) to pay claims under a written order of the Board as | 5 | | provided in this Section; or | 6 | | (ii) to reimburse the Fund Administrator for its | 7 | | expenses related to the administration of the Fund, | 8 | | provided that the reimbursement to the Fund Administrator | 9 | | in any year shall not exceed 2% of the balance in the Fund | 10 | | as of January 15th of that year. | 11 | | (j) The Dealer Recovery Trust Fund Board is hereby created. | 12 | | The Board shall consist of the Secretary of State, or his or | 13 | | her designee, who shall serve as chair, the Attorney General, | 14 | | or his or her designee, who shall serve as secretary, and one | 15 | | person alternatively representing new and independent Illinois | 16 | | automobile dealers, selected collectively by the Attorney | 17 | | General, or his or her designee, and the Secretary of State, or | 18 | | his or her designee. The Secretary of State may propose | 19 | | procedures and employ personnel as necessary to implement this | 20 | | Section. The Board shall meet quarterly, and as needed, as | 21 | | directed by the chair. The Board may not pay out any claims | 22 | | before the balance deposited into the Fund exceeds $500,000. | 23 | | Board meetings shall be open to the public. The Board has the | 24 | | authority to take any action by at least a two-thirds majority | 25 | | vote. | 26 | | (k) The following persons may apply to the Board for |
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| 1 | | reimbursement from the Dealer Recovery Trust Fund: | 2 | | (i) A retail customer who, on or after October 1, 2011, | 3 | | purchases a vehicle from a dealer who subsequently files | 4 | | for bankruptcy or whose vehicle dealer's license is | 5 | | subsequently revoked by the Secretary of State or otherwise | 6 | | terminated and, as part of the purchase transaction, trades | 7 | | in a vehicle with an outstanding lien to the dealer if lien | 8 | | satisfaction was a condition of the purchase agreement and | 9 | | the retail customer determines that the lien has not been | 10 | | satisfied; | 11 | | (ii) A retail customer who, on or after October 1, | 12 | | 2011, purchases a vehicle with an undisclosed lien from a | 13 | | dealer who subsequently files for bankruptcy or whose | 14 | | vehicle dealer's license is subsequently revoked by the | 15 | | Secretary of State or otherwise terminated; | 16 | | (iii) A dealer who, on or after October 1, 2011, | 17 | | purchases a vehicle with an undisclosed lien from another | 18 | | dealer who subsequently files for bankruptcy or whose | 19 | | vehicle dealer's license is subsequently revoked by the | 20 | | Secretary of State or otherwise terminated. | 21 | | (l) To be considered by the Board, an applicant must submit | 22 | | his or her claim to the Board within 2 years 9 months after the | 23 | | date of the transaction that gave rise to the claim. | 24 | | (m) At each meeting of the Board, it shall consider all | 25 | | claims that are properly submitted to it on forms prescribed by | 26 | | the Secretary of State at least 30 days before the date of the |
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| 1 | | Board's meeting. Before the Board may consider a claim against | 2 | | a dealer, it must make a written determination that the dealer | 3 | | has filed for bankruptcy under the provisions of 11 U.S.C. | 4 | | Chapter 7; that the Secretary of State has revoked his or her | 5 | | dealer's license; or that the license has been otherwise | 6 | | terminated. Once the Board has made this determination, it may | 7 | | consider the applicant's claim against the dealer. If a | 8 | | two-thirds majority of the Board determines that the dealer has | 9 | | committed a violation under subsection (k), it shall grant the | 10 | | applicant's claim. Except as otherwise provided in this | 11 | | Section, the maximum amount of any award for a claim under | 12 | | paragraph (i) of subsection (k) of this Section shall be equal | 13 | | to the amount of the unpaid balance of the lien that the dealer | 14 | | agreed to pay off on behalf of the applicant as shown on the | 15 | | bill of sale or the retail installment sales contract. The | 16 | | maximum amount of any claim under paragraph (ii) or (iii) of | 17 | | subsection (k) of this Section shall be equal to the amount of | 18 | | the undisclosed lien. However, no award for a claim under | 19 | | subsection (k) of this Section shall exceed $35,000. | 20 | | (n) If the balance in the Fund at the time of any Board | 21 | | meeting is less than the amount of the total amount of all | 22 | | claims awarded at that meeting, then all awards made at that | 23 | | meeting shall be reduced, pro rata, so that the amount of | 24 | | claims does not exceed the balance in the Fund. Before it | 25 | | reviews new claims, the Board shall issue written orders to pay | 26 | | the remaining portion of any claims that were so reduced, |
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| 1 | | provided that the balance in the Fund is sufficient to pay | 2 | | those claims. | 3 | | (o) Whenever the balance of the Fund falls below $500,000, | 4 | | the Board may charge dealers
an additional assessment of up to | 5 | | $50 to bring the balance to at least $500,000.
Not more than | 6 | | one additional assessment may be made against a dealer in any | 7 | | 12-month period. | 8 | | (p) If the total amount of claims awarded against any | 9 | | dealer exceeds 33% of the balance in the Fund, the Board may | 10 | | permanently reduce the amount of those claims, pro rata, so | 11 | | that those claims do not exceed 33% of the balance in the Fund. | 12 | | (q) The Board shall issue a written order directing the | 13 | | Fund Administrator to pay an applicant's claim to a secured | 14 | | party where the Board has received a signed agreement between | 15 | | the applicant and the secured party holding the lien. The | 16 | | agreement must (i) state that the applicant and the secured | 17 | | party agree to accept payment from the Fund to the secured | 18 | | party as settlement in full of all claims against the dealer; | 19 | | and (ii) release the lien and the title, if applicable, to the | 20 | | vehicle that was the subject of the claim. The written order | 21 | | shall state the amount of the claim and the name and address of | 22 | | the secured party to whom the claim shall be paid. The Fund | 23 | | Administrator shall pay the claim within 30 days after it | 24 | | receives the Board's order. | 25 | | (r) No dealer or principal associated with a dealer's | 26 | | license is eligible for licensure, renewal or relicensure until |
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| 1 | | the full amount of reimbursement for an unpaid claim, plus | 2 | | interest as determined by the Board, is paid to the Fund. | 3 | | Nothing in this Section shall limit the authority of the | 4 | | Secretary of State to suspend, revoke, or levy civil penalties | 5 | | against a dealer, nor shall full repayment of the amount owed | 6 | | to the Fund nullify or modify the effect of any action by the | 7 | | Secretary. | 8 | | (s) Nothing in this Section shall limit the right of any | 9 | | person to seek relief though civil action against any other | 10 | | person as an alternative to seeking reimbursement from the | 11 | | Fund.
| 12 | | (Source: P.A. 97-480, eff. 10-1-11.)".
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