Full Text of SB2865 99th General Assembly
SB2865sam001 99TH GENERAL ASSEMBLY | Sen. Jacqueline Y. Collins Filed: 4/6/2016
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| 1 | | AMENDMENT TO SENATE BILL 2865
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2865 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the Small | 5 | | Business Lending Act. | 6 | | Section 5. Findings. The General Assembly finds the | 7 | | following:
| 8 | | (1) Small businesses are critical to the Illinois | 9 | | economy and job creation throughout the State.
| 10 | | (2) Small businesses rely on financing to grow and such | 11 | | financing can be provided by a variety of lenders.
| 12 | | (3) Transparency in financing terms protects the | 13 | | Illinois economy by helping small businesses avoid | 14 | | defaulting on loans provided by lenders.
| 15 | | Section 10. Definitions. In this Act:
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| 1 | | "Borrower" means a sole proprietor, partnership, | 2 | | association, limited liability company, corporation, or other | 3 | | entity that executes, or seeks to execute, a contract with a | 4 | | lender for a small business loan.
| 5 | | "Commercial loan" means a loan of a principal amount or any | 6 | | loan under an open-end credit program, whether secured by | 7 | | either real or personal property, or both, or unsecured, the | 8 | | proceeds of which are intended by the borrower for use | 9 | | primarily for purposes other than personal, family, or | 10 | | household purposes.
| 11 | | "Department" means the Department of Financial and | 12 | | Professional Regulation.
| 13 | | "Lender" and "licensee" means a person or entity, including | 14 | | an affiliate or subsidiary of a lender or licensee, that offers | 15 | | or makes a small business loan, buys a whole or partial | 16 | | interest in a small business loan, arranges a small business | 17 | | loan for a third party, or acts as an agent for a third party in | 18 | | making a small business loan, regardless of whether approval, | 19 | | acceptance, or ratification by the third party is necessary to | 20 | | create a legal obligation for the third party, and includes any | 21 | | other person or entity if the Department determines that the | 22 | | person or entity is engaged in a transaction that is in | 23 | | substance a disguised small business loan or a subterfuge for | 24 | | the purpose of avoiding this Act.
| 25 | | "Merchant cash advance" means a payment to a borrower in | 26 | | exchange for an agreed-upon percentage or amount of future |
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| 1 | | earnings accrued by the borrower.
| 2 | | "Monthly net revenue" means monthly gross revenue minus | 3 | | monthly expenses, including the costs of goods sold, operating | 4 | | expenses, and debt service. "Debt service" includes, but is not | 5 | | limited to, payments per month to be made on all outstanding | 6 | | small business loans.
| 7 | | "Secretary" means the Secretary of the Department of | 8 | | Financial and Professional Regulation. | 9 | | "Small business loan" means a commercial loan or a merchant | 10 | | cash advance in an amount not exceeding $250,000.
| 11 | | "Sole proprietorship" means an unincorporated business | 12 | | entity that is owned and run by one natural person.
| 13 | | Section 15. Applicability and scope.
| 14 | | (a) Unless otherwise specified, this Act does not apply to | 15 | | a person, business, partnership, association, limited | 16 | | liability company, or corporation that is defined as any of the | 17 | | following:
| 18 | | (1) a bank chartered and supervised by the Office of | 19 | | the Comptroller of the Currency, an agency in the U.S. | 20 | | Treasury Department, pursuant to the National Bank Act;
| 21 | | (2) a bank under the Illinois Banking Act;
| 22 | | (3) a bank, Illinois bank, or Illinois bank holding | 23 | | company under the Illinois Bank Holding Company Act of | 24 | | 1957;
| 25 | | (4) a savings bank under the Savings Bank Act; or
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| 1 | | (5) a credit union under the Illinois Credit Union Act.
| 2 | | (b) A lender that is an agent for a person, business, | 3 | | partnership, association, limited liability company, or | 4 | | corporation as defined in subsection (a) is subject to all of | 5 | | the provisions of this Act.
| 6 | | Section 20. License required to engage in business.
| 7 | | (a) No lender shall make a small business loan to a person, | 8 | | business, partnership, association, limited liability company, | 9 | | or corporation except as authorized by this Act after first | 10 | | obtaining a license from the Department.
| 11 | | (b) Subsection (a) does not apply to any person, | 12 | | partnership, association, limited liability company, or | 13 | | corporation that is exempt from federal income taxes under | 14 | | Section 501(c)(3) of the Internal Revenue Code, or is a | 15 | | business assistance organization recognized by the United | 16 | | States Small Business Administration.
| 17 | | (c) A person, partnership, association, limited liability | 18 | | company, or corporation that violates this Section commits a | 19 | | Class A misdemeanor, and the Attorney General or the State's | 20 | | Attorney of the county in which the violation occurs may file a | 21 | | complaint in the circuit court of the county to restrain the | 22 | | violation.
| 23 | | Section 25. Application. An application for a license shall | 24 | | be in writing, and in the form prescribed by the Secretary. The |
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| 1 | | applicant, at the time of making an application, shall pay to | 2 | | the Secretary the sum of $1,000 as an application fee and the | 3 | | additional sum of $750 as an annual license fee, for a period | 4 | | terminating on the last day of the current calendar year; | 5 | | however, if the application is filed after June 30th in a year, | 6 | | the license fee is one-half of the annual license fee for the | 7 | | year.
| 8 | | Every applicant and licensee shall maintain a surety bond | 9 | | in the principal sum of $500,000 issued by a bonding company | 10 | | that is authorized to do business in this State and is approved | 11 | | by the Secretary. The bond shall run to the Secretary and shall | 12 | | be for the benefit of any consumer who incurs damages as a | 13 | | result of a violation of this Act or rules by a licensee. If | 14 | | the Secretary finds at any time that a bond is of insufficient | 15 | | size, is insecure, exhausted, or otherwise doubtful, an | 16 | | additional bond in such amount as determined by the Secretary | 17 | | shall be filed by the licensee within 30 days after written | 18 | | demand by the Secretary for the filing of the additional bond.
| 19 | | Section 30. Appointment of attorney-in-fact for service of | 20 | | process. A licensee shall appoint, in writing, the Secretary | 21 | | and the Secretary's successors in office or an official who is | 22 | | charged with the administration of this Act, as | 23 | | attorney-in-fact upon whom all lawful process against the | 24 | | licensee may be served with the same legal force and validity | 25 | | as if served on the licensee. A copy of the written |
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| 1 | | appointment, duly certified, shall be filed in the office of | 2 | | the Secretary, and a copy of the written appointment certified | 3 | | by the Secretary shall be sufficient evidence. This appointment | 4 | | shall remain in effect while any liability remains outstanding | 5 | | in this State against the licensee. If summons is served upon | 6 | | the Secretary as attorney-in-fact for the licensee, the | 7 | | Secretary shall immediately notify the licensee by registered | 8 | | mail, enclosing the summons and specifying the hour and day of | 9 | | service. | 10 | | Section 35. Investigation to determine whether license | 11 | | shall be issued. Upon the filing of an application and the | 12 | | payment of the fee, the Secretary shall investigate to | 13 | | determine that the reputation of the applicant, including | 14 | | managers of a limited liability company, partners, owners, | 15 | | officers, or directors thereof, is such as to warrant belief | 16 | | that the business will be operated honestly and fairly within | 17 | | the purposes of this Act. Unless the Secretary makes findings | 18 | | hereinabove enumerated, the Secretary shall not issue a license | 19 | | and shall notify the applicant of the denial and return to the | 20 | | applicant the sum paid by the applicant as a license fee, but | 21 | | shall retain the $1,000 application fee. The Secretary shall | 22 | | approve or deny every application for a license under this Act | 23 | | within 60 days from the filing of the application with the fee; | 24 | | however, if the Secretary does not approve or deny an | 25 | | application within this 60-day period, the application shall be |
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| 1 | | deemed denied. | 2 | | Section 40. License. The license shall state the address, | 3 | | including city, county, and state, at which the business is to | 4 | | be conducted and shall state fully the name of the licensee. | 5 | | The license shall be displayed on licensee websites. The | 6 | | license shall not be transferable or assignable. | 7 | | Section 45. More than one license to same licensee; | 8 | | changing place of business. Not more than one place of business | 9 | | shall be maintained under the same license, but the Secretary | 10 | | may issue more than one license to the same licensee upon | 11 | | compliance with all of the provisions of this Act governing the | 12 | | original issuance of a license. | 13 | | Section 50. Annual license fee; expenses. On or before | 14 | | December 15 of each year, a licensee must pay to the Secretary, | 15 | | and the Department must receive, the annual license fee | 16 | | required by Section 25 for the next succeeding calendar year. | 17 | | If a licensee fails to renew his or her license by December 31, | 18 | | the license shall automatically expire and the licensee is not | 19 | | entitled to a hearing; however, the Secretary, in his or her | 20 | | discretion, may reinstate an expired license upon payment of | 21 | | the annual renewal fee and proof of good cause for failure to | 22 | | renew. |
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| 1 | | Section 55. Education. All moneys received by the | 2 | | Department under this Act that, in the opinion of the | 3 | | Secretary, exceed the amount required for the administration of | 4 | | this Act shall be deposited into the Financial Institution Fund | 5 | | and shall inure to the benefit of State programs directed at | 6 | | small business owner education and assistance. | 7 | | Section 60. Advertising. Advertising for small business | 8 | | loans may not be false, misleading, or deceptive. | 9 | | Section 65. Fund transfers. No lender may condition an | 10 | | extension of credit to a borrower on the borrower's repayment | 11 | | by preauthorized electronic fund transfers. Payment options, | 12 | | including, but not limited to, electronic fund transfers and | 13 | | Automated Clearing House transactions may be offered to | 14 | | borrowers as a choice and method of payment chosen by the | 15 | | borrower. | 16 | | Section 70. Insufficient funds; late fees.
| 17 | | (a) If there are insufficient funds to pay a check or | 18 | | Automated Clearing House debit on the day of presentment and | 19 | | only after the lender has incurred an expense, a lender may | 20 | | charge a fee not to exceed $25. Only one such fee may be | 21 | | collected by the lender with respect to a particular check or | 22 | | Automated Clearing House debit even if it has been deposited | 23 | | and returned more than once. A lender shall present the check |
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| 1 | | or Automated Clearing House debit not more than twice.
| 2 | | (b) Within 10 days of the date on which an unpaid payment | 3 | | is due, a lender may charge a late charge equal to (i) $100 or | 4 | | (ii) 5% of the amount of the late payment, whichever is less.
| 5 | | Section 75. Refinancing. A lender shall not, when | 6 | | refinancing or modifying a loan, add new fees or fixed charges | 7 | | on existing principal. | 8 | | Section 80. Enforcement and remedies.
| 9 | | (a) The Secretary may issue a cease and desist order to a | 10 | | lender if, in the opinion of the Secretary, the lender is | 11 | | violating or is about to violate any provision of this Act or | 12 | | any rule or requirement imposed in writing by the Department as | 13 | | a condition or granting any authorization permitted by this | 14 | | Act. The cease and desist order permitted by this Section may | 15 | | be issued prior to a hearing.
| 16 | | (b) The Secretary shall serve notice of his or her action, | 17 | | including, but not limited to, a statement of the reasons for | 18 | | the action, either personally or by certified mail, return | 19 | | receipt requested. Service by certified mail shall be deemed | 20 | | completed when the notice is deposited in the U.S. Mail.
| 21 | | Within 10 days of service of the cease and desist order, | 22 | | the lender may request a hearing in writing. The Secretary | 23 | | shall schedule a hearing within 30 days after the request for a | 24 | | hearing unless otherwise agreed to by the parties.
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| 1 | | If it is determined that the Secretary had the authority to | 2 | | issue the cease and desist order, the Secretary may issue such | 3 | | orders as may be reasonably necessary to correct, eliminate, or | 4 | | remedy the conduct.
| 5 | | The powers vested in the Secretary by this subsection are | 6 | | additional to any and all other powers and remedies vested in | 7 | | the Secretary by law, and nothing in this subsection shall be | 8 | | construed as requiring that the Secretary shall employ the | 9 | | power conferred in this Section instead of or as a condition | 10 | | precedent to the exercise of any other power or remedy vested | 11 | | in the Secretary.
| 12 | | (c) The Secretary may, after 10 days' notice by registered | 13 | | mail to the licensee at the address set forth in the license, | 14 | | stating the contemplated action and in general the grounds for | 15 | | the contemplated action, fine the licensee an amount not | 16 | | exceeding $15,000 per violation or revoke or suspend any | 17 | | license issued under this Act if the Secretary finds that:
| 18 | | (1) the licensee has failed to comply with any | 19 | | provision of this Act or any order, decision, finding, | 20 | | rule, or direction of the Secretary lawfully made pursuant | 21 | | to the authority of this Act; or
| 22 | | (2) any fact or condition exists which, if it had | 23 | | existed at the time of the original application for the | 24 | | license, clearly would have warranted the Secretary in | 25 | | refusing to issue the license.
| 26 | | (d) The Secretary may fine, suspend, or revoke only the |
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| 1 | | particular license with respect to which grounds for the fine, | 2 | | revocation, or suspension occur or exist, but if the Secretary | 3 | | finds that grounds for revocation are of general application to | 4 | | all offices or to more than one office of the licensee, the | 5 | | Secretary shall fine, suspend, or revoke every license to which | 6 | | such grounds apply.
| 7 | | (e) No revocation, suspension, or surrender of a license | 8 | | shall impair or affect the obligation of any pre-existing | 9 | | lawful contract between the licensee and any borrower.
| 10 | | (f) The Secretary may issue a new license to a licensee | 11 | | whose license has been revoked if facts or conditions that | 12 | | clearly would have warranted the Secretary in refusing | 13 | | originally to issue the license no longer exist.
| 14 | | (g) If a license is suspended or revoked or an application | 15 | | for a license or renewal of a license is denied, the Secretary | 16 | | shall serve the licensee with notice of his or her action, | 17 | | including a statement of the reasons for his or her actions, | 18 | | either personally, or by certified mail, return receipt | 19 | | requested. Service by certified mail shall be deemed completed | 20 | | when the notice is deposited in the U.S. Mail.
| 21 | | (h) An order assessing a fine, an order revoking or | 22 | | suspending a license, or an order denying renewal of a license | 23 | | shall take effect upon service of the order unless the licensee | 24 | | requests, in writing, within 10 days after the date of service, | 25 | | a hearing. If a hearing is requested, the order shall be stayed | 26 | | until a final administrative order is entered.
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| 1 | | (i) If the licensee requests a hearing, the Secretary shall | 2 | | schedule a hearing within 30 days after the request for a | 3 | | hearing unless otherwise agreed to by the parties.
| 4 | | (j) The hearing shall be held at the time and place | 5 | | designated by the Secretary. The Secretary and any | 6 | | administrative law judge designated by the Secretary have the | 7 | | power to administer oaths and affirmations, subpoena witnesses | 8 | | and compel their attendance, take evidence, and require the | 9 | | production of books, papers, correspondence, and other records | 10 | | or information that he or she considers relevant or material to | 11 | | the inquiry.
| 12 | | (k) The costs for the administrative hearing shall be set | 13 | | by rule.
| 14 | | (l) The Secretary has the authority to prescribe rules for | 15 | | the administration of this Section.
| 16 | | (m) The Department shall report to the Attorney General all | 17 | | material violations of this Act of which it becomes aware.
| 18 | | (n) Notwithstanding any other provision of this Section, if | 19 | | a lender who does not have a license issued under this Act | 20 | | makes a small business loan to an Illinois borrower, then the | 21 | | loan shall be null and void and the lender who made the loan | 22 | | shall have no right to collect, receive, or retain any | 23 | | principal, interest, or charges related to the loan.
| 24 | | Section 85. Closing of business; surrender of license. | 25 | | (a) At least 10 days before a licensee ceases operations, |
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| 1 | | closes business, or files for bankruptcy, the licensee shall:
| 2 | | (1) Notify the Department of its action in writing.
| 3 | | (2) With the exception of filing for bankruptcy, | 4 | | surrender its license to the Secretary for cancellation. | 5 | | The surrender of the license shall not affect the | 6 | | licensee's civil or criminal liability for acts committed | 7 | | prior to surrender or entitle the licensee to a return of | 8 | | any part of the annual license fee.
| 9 | | (3) Notify the Department of the location where the | 10 | | books, accounts, contracts, and records will be maintained | 11 | | and the procedure to ensure prompt return of contracts, | 12 | | titles, and releases to the customers. The accounts, books, | 13 | | records, and contracts shall be maintained and serviced by | 14 | | the licensee or another licensee under this Act or an | 15 | | entity exempt from licensure under this Act. | 16 | | (b) The Department has the authority to conduct | 17 | | examinations of the books, records, and loan documents at any | 18 | | time after surrender of the license, filing of bankruptcy, or | 19 | | the cessation of operations.
| 20 | | Section 90. Investigation of conduct of business. For the | 21 | | purpose of discovering violations of this Act or securing | 22 | | information lawfully required by it, the Secretary may at any | 23 | | time investigate the loans and business and examine the books, | 24 | | accounts, records, and files used therein of every licensee and | 25 | | of every person, partnership, association, limited liability |
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| 1 | | company, and corporation engaged in small business lending, | 2 | | whether the person, partnership, association, limited | 3 | | liability company, or corporation shall act or claim to act as | 4 | | principal or agent or within or without the authority of this | 5 | | Act. For such purpose the Secretary shall have free access to | 6 | | the offices, websites and places of business, books, accounts, | 7 | | papers, records, files, safes, and vaults of the persons, | 8 | | partnerships, associations, limited liability companies, and | 9 | | corporations. The Secretary may require the attendance of and | 10 | | examine under oath all persons whose testimony he or she may | 11 | | require relative to such loans or such business, and in such | 12 | | cases the Secretary has the power to administer oaths to all | 13 | | persons called as witnesses, and the Secretary may conduct such | 14 | | examinations. | 15 | | Section 95. Prohibition against taking power of attorney. | 16 | | No licensee shall take any power of attorney except to cancel | 17 | | any policies of insurance financed by the licensee as permitted | 18 | | by this Act and to receive either rebate of unearned premiums | 19 | | or loss payments. | 20 | | Section 100. Pledge or sale of note. No licensee or other | 21 | | person shall pledge, assign, hypothecate, or sell a small | 22 | | business loan entered into under this Act by a borrower except | 23 | | to another licensee under this Act, a licensee under the Sales | 24 | | Finance Agency Act, a bank, savings bank, community development |
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| 1 | | financial institution, savings and loan association, or credit | 2 | | union created under the laws of this State or the United | 3 | | States, or to other persons or entities authorized by the | 4 | | Secretary in writing. Sales of such small business loans by | 5 | | licensees under this Act or other persons shall be made by | 6 | | agreement in writing and shall authorize the Secretary to | 7 | | examine the loan documents so hypothecated, pledged, or sold. | 8 | | Section 105. Commercial status. Before making a small | 9 | | business loan to a borrower, the lender shall obtain | 10 | | documentation from the prospective borrower documenting the | 11 | | borrower's commercial status. Examples of acceptable forms of | 12 | | documentation include, but are not limited to, a seller's | 13 | | permit, business license, articles of incorporation, income | 14 | | tax returns showing business income, and bank account | 15 | | statements showing business income. | 16 | | Section 110. Ability to repay. | 17 | | (a) No lender may make a small business loan to a borrower | 18 | | if the total loan payments per month exceed 50% of the | 19 | | borrower's monthly net revenue. | 20 | | (b) To determine a borrower's monthly net revenue, a lender | 21 | | shall obtain official documentation from the borrower | 22 | | including: (1) bank statements for the preceding 6 months, (2) | 23 | | the preceding year's tax return, or (3) a current profit and | 24 | | loss statement, a current balance sheet, and current |
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| 1 | | receivables aging. | 2 | | (c) If the loan will be secured by a personal guarantee, a | 3 | | credit report from a major credit reporting bureau shall be | 4 | | obtained and considered by the lender. | 5 | | (d) If the loan was secured by a personal guarantee, a | 6 | | lender shall report loan repayment information to at least one | 7 | | major credit reporting bureau. | 8 | | Section 115. Referral.
| 9 | | (a) A licensee may pay compensation to a person in | 10 | | connection with the referral of one or more prospective | 11 | | borrowers to the licensee if the referral leads to the | 12 | | consummation of a small business loan between the lender and | 13 | | the prospective borrower.
| 14 | | (b) The lender shall annually submit information requested | 15 | | by the Secretary regarding the payment of compensation in a | 16 | | form set forth by the Secretary.
| 17 | | (c) A lender that pays compensation to a person or entity | 18 | | pursuant to this Section in connection with a referral for a | 19 | | small business loan made by that licensee to a borrower by the | 20 | | referral agent is liable for any misrepresentation made to that | 21 | | borrower in connection with that small business loan.
| 22 | | (d) The Secretary shall adopt rules under this Section to | 23 | | impose conditions on the referral activity authorized under | 24 | | this Section. The Secretary may classify persons, loans, loan | 25 | | terms, referral methods, and other matters within the |
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| 1 | | Secretary's jurisdiction, and may prescribe different | 2 | | requirements for different classes of small business loans.
| 3 | | (e) Nothing in this Section authorizes the payment of a | 4 | | referral fee for a residential mortgage loan.
| 5 | | (f) As used in this Section, "referral" means either the | 6 | | introduction of the borrower and the lender or the delivery to | 7 | | the lender of the borrower's contact information.
| 8 | | Section 120. Disclosure. Before executing a contract for a | 9 | | small business loan, a lender shall display the following | 10 | | information in clear and unequivocal language in bold font in | 11 | | all offering documentation:
| 12 | | (1) The term of the small business loan.
| 13 | | (2) The annualized interest rate expressed as an annual | 14 | | percentage rate inclusive of all fees, including | 15 | | third-party origination fees, except any such fees imposed | 16 | | by the Department, calculated in accordance with the | 17 | | federal Truth in Lending Act.
| 18 | | (3) The total amount of money that the borrower will | 19 | | pay the licensee over the course of the small business | 20 | | loan.
| 21 | | (4) Any fees assessed due to prepayment.
| 22 | | (5) A full schedule of any fees and payments made by | 23 | | the borrower to the lender including how payment is | 24 | | remitted and to whom.
| 25 | | (6) The total of all loan payments per month.
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| 1 | | (7) The total amount of borrower receivables, | 2 | | expressed as a percentage of the borrower's total amount of | 3 | | receivables over a clearly articulated period of time, that | 4 | | have been pledged as payments on a small business loan.
| 5 | | (8) All loan options for which the borrower qualifies | 6 | | through the licensee's services with the lowest annual | 7 | | percentage rate option included.
| 8 | | Section 125. Performance disclosures. Prior to executing a | 9 | | contract for a small business loan with a borrower, the lender | 10 | | shall disclose in its offering documentation, in an anonymous | 11 | | and aggregated format, the percentage of loans that defaulted | 12 | | based on their contract terms. | 13 | | Section 130. Prepayment.
| 14 | | (a) If a borrower seeks to prepay a loan, the lender must | 15 | | provide the borrower with any information, including a pay-off | 16 | | letter, required for prepayment within 2 business days of the | 17 | | borrower's request.
| 18 | | (b) If a borrower elects to pay off a loan before the end | 19 | | of the loan term, the lender is not entitled to collect any | 20 | | unearned finance charges but is entitled to collect a | 21 | | prepayment fee equal to the lesser of: (1) 25% of the total | 22 | | finance charges; or (2) the full amount of the total unpaid | 23 | | finance charge.
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| 1 | | Section 135. Default. Upon and after default, a lender | 2 | | shall not charge the borrower any finance charges, interest, | 3 | | fees, or charges of any kind. | 4 | | Section 140. Release of liens. Without charge to the | 5 | | borrower, the lender shall release all liens within 2 business | 6 | | days after a small business loan is paid in full. | 7 | | Section 145. Verification.
| 8 | | (a) Before entering into a loan agreement with a borrower, | 9 | | a lender must use the Department's existing certified database | 10 | | to verify that the proposed loan agreement is permissible under | 11 | | this Act.
| 12 | | (b) Within 6 months after the effective date of this Act, | 13 | | the Department shall ensure that the consumer database | 14 | | maintained by the Department for compliance with the Payday | 15 | | Loan Reform Act and the Consumer Installment Loan Act is | 16 | | modified to enable verification compliance with this Act while | 17 | | maintaining functionality for the Payday Loan Reform Act and | 18 | | the Consumer Installment Loan Act.
| 19 | | (c) Within 6 months after the effective date of this Act, | 20 | | the Department shall use the consumer reporting service | 21 | | database referenced in this Section for Act compliance.
| 22 | | (d) All personally identifiable information regarding any | 23 | | borrower obtained by way of the certified database and | 24 | | maintained by the Department is strictly confidential and is |
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| 1 | | exempt from disclosure under subdivision (1)(b) of Section 7 of | 2 | | the Freedom of Information Act.
| 3 | | (e) A lender shall update the certified database by | 4 | | inputting all information on the same day that a small business | 5 | | loan is made and on the same day that a small business loan is | 6 | | paid in full, including the refinancing of a small business | 7 | | loan as permitted in Section 110.
| 8 | | (f) A lender may charge a borrower a fee not to exceed $1 | 9 | | for the verification required in this Section. Only one such | 10 | | fee may be collected by the lender with respect to a particular | 11 | | loan.
| 12 | | Section 150. Civil action. A claim of violation of this Act | 13 | | may be asserted in a civil action. | 14 | | Section 155. Rules. The Department shall make and enforce | 15 | | such reasonable rules, directions, orders, decisions, and | 16 | | findings as the execution and enforcement of this Act requires, | 17 | | and as are not inconsistent with this Act. In addition, the | 18 | | Department shall adopt rules in connection with the activities | 19 | | of licensees that are necessary and appropriate for the | 20 | | protection of businesses in this State. All rules and | 21 | | directions of a general character shall be sent electronically | 22 | | to all licensees. | 23 | | Section 160. Judicial review. All final administrative |
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| 1 | | decisions of the Secretary under this Act are subject to | 2 | | judicial review pursuant to the Administrative Review Law. | 3 | | Section 165. Partial invalidity. If any clause, sentence, | 4 | | provision, or part of this Act shall be adjudged to be | 5 | | unconstitutional or invalid for any reason by any court of | 6 | | competent jurisdiction, such judgment shall not impair, | 7 | | affect, or invalidate the remainder of this Act, which shall | 8 | | remain in full force and effect thereafter.
| 9 | | Section 900. The State Finance Act is amended by changing | 10 | | Section 6z-26 as follows:
| 11 | | (30 ILCS 105/6z-26)
| 12 | | Sec. 6z-26. The Financial Institution Fund. All moneys | 13 | | received by the
Department of Financial and Professional | 14 | | Regulation under the Safety Deposit License Act, the
Foreign | 15 | | Exchange License Act, the Pawners Societies Act, the Sale of | 16 | | Exchange
Act, the Currency Exchange Act, the Sales Finance | 17 | | Agency Act, the Debt Management Service Act, the Consumer | 18 | | Installment Loan Act, the Illinois Development Credit
| 19 | | Corporation Act, the Title Insurance Act, the Debt Settlement | 20 | | Consumer Protection Act, the Debt Management Service Consumer | 21 | | Protection Fund, the Small Business Lending Act, and any other | 22 | | Act administered by the Department of Financial and | 23 | | Professional Regulation as the successor of the
Department of |
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| 1 | | Financial Institutions now or in the future (unless an Act
| 2 | | specifically provides otherwise) shall be deposited in the | 3 | | Financial
Institution Fund (hereinafter "Fund"), a special | 4 | | fund that is hereby created in
the State Treasury.
| 5 | | Moneys in the Fund shall be used by the Department, subject | 6 | | to appropriation,
for expenses incurred in administering the | 7 | | above named and referenced Acts. Moneys in the Fund received | 8 | | under the Small Business Lending Act shall be used as set forth | 9 | | in Section 55 of that Act.
| 10 | | The Comptroller and the State Treasurer shall transfer from | 11 | | the General
Revenue Fund to the Fund any monies received by the | 12 | | Department after June 30,
1993, under any of the above named | 13 | | and referenced Acts that have been deposited
in the General | 14 | | Revenue Fund.
| 15 | | As soon as possible after the end of each calendar year, | 16 | | the Comptroller
shall compare the balance in the Fund at the | 17 | | end of the calendar year with the
amount appropriated from the | 18 | | Fund for the fiscal year beginning on July 1 of
that calendar | 19 | | year. If the balance in the Fund exceeds the amount
| 20 | | appropriated, the Comptroller and the State Treasurer shall | 21 | | transfer from the
Fund to the General Revenue Fund an amount | 22 | | equal to the difference between the
balance in the Fund and the | 23 | | amount appropriated.
| 24 | | Nothing in this Section shall be construed to prohibit | 25 | | appropriations from
the General Revenue Fund for expenses | 26 | | incurred in the administration of the
above named and |
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| 1 | | referenced Acts.
| 2 | | Moneys in the Fund may be transferred to the Professions | 3 | | Indirect Cost Fund, as authorized under Section 2105-300 of the | 4 | | Department of Professional Regulation Law of the Civil | 5 | | Administrative Code of Illinois.
| 6 | | (Source: P.A. 96-1420, eff. 8-3-10.)".
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