Sen. Elgie R. Sims, Jr.

Filed: 4/16/2021





10200SB1088sam001LRB102 04911 BMS 25203 a


2    AMENDMENT NO. ______. Amend Senate Bill 1088 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Consumer Legal Funding Act.
6    Section 5. Definitions.
7    "Advertise" means publishing or disseminating any written,
8electronic, or printed communication, or any communication by
9means of recorded telephone messages or transmitted on radio,
10television, the Internet, or similar communications media,
11including film strips, motion pictures, and videos, published,
12disseminated, circulated, or placed before the public,
13directly or indirectly, for the purpose of inducing a consumer
14to enter into a consumer legal funding.
15    "Charges" means the fees, as outlined in Section 25, to be
16paid to the consumer legal funding company by or on behalf of



10200SB1088sam001- 2 -LRB102 04911 BMS 25203 a

1the consumer above the funded amount provided by or on behalf
2of the company to an Illinois consumer pursuant to this Act.
3    "Consumer legal funding" means a non-recourse transaction,
4in an amount that does not exceed $500,000, in which a consumer
5legal funding company purchases and a consumer assigns to the
6company a contingent right to receive an amount of the
7potential proceeds of a settlement, judgment, award, or
8verdict obtained in the consumer's legal claim.
9    "Consumer legal funding company" or "company" means a
10person or entity that enters into a consumer legal funding
11transaction with an Illinois consumer. "Consumer legal funding
12company" does not include:
13        (1) an immediate family member of the consumer;
14        (2) a bank, lender, financing entity, or other special
15    purpose entity:
16            (A) that provides financing to a consumer legal
17        funding company; or
18            (B) to which a consumer legal funding company
19        grants a security interest or transfers any rights or
20        interest in a consumer legal funding; and
21        (3) an attorney or accountant who provides services to
22    a consumer.
23    "Consumer" means a natural person who has a pending legal
24claim and who resides or is domiciled in Illinois.
25    "Director" means the Director of Financial Institutions.
26    "Division" means the Division of Financial Institutions of



10200SB1088sam001- 3 -LRB102 04911 BMS 25203 a

1the Department of Financial and Professional Regulation.
2    "Funded amount" means the amount of moneys provided to, or
3on behalf of, the consumer in the consumer legal funding.
4"Funded amount" does not include charges.
5    "Funding date" means the date on which the funded amount
6is transferred to the consumer by the consumer legal funding
7company either by personal delivery, via wire, ACH, or other
8electronic means, or mailed by insured, certified, or
9registered United States mail.
10    "Immediate family member" means a parent; sibling; child
11by blood, adoption, or marriage; spouse; grandparent; or
13    "Legal claim" means a bona fide civil claim or cause of
15    "Resolution amount" means the funded amount plus the
16agreed-upon charges that are delivered to the consumer legal
17funding company on the resolution date.
18    "Resolution date" means the date the resolution amount is
19delivered to the consumer legal funding company.
20    Section 10. Contract requirements; right of rescission.
21    (a) All consumer legal fundings shall meet the following
23        (1) the contract shall be completely filled in when
24    presented to the consumer for signature;
25        (2) the contract shall contain, in bold and boxed



10200SB1088sam001- 4 -LRB102 04911 BMS 25203 a

1    type, a right of rescission, allowing the consumer to
2    cancel the contract without penalty or further obligation
3    if, within 5 business days after the funding date, the
4    consumer either:
5            (A) returns to the consumer legal funding company
6        the full amount of the disbursed funds by delivering
7        the company's uncashed check to the company's office
8        in person; or
9            (B) mails, by insured, certified, or registered
10        United States mail, to the address specified in the
11        contract, a notice of cancellation and includes in
12        such mailing a return of the full amount of disbursed
13        funds in the form of the company's uncashed check or a
14        registered or certified check or money order; and
15        (3) the contract shall contain the initials of the
16    consumer on each page.
17    (b) The contract shall contain a written acknowledgment by
18the attorney retained by the consumer in the legal claim that
19attests to the following:
20        (1) to the best of the attorney's knowledge, all the
21    costs and charges relating to the consumer legal funding
22    have been disclosed to the consumer;
23        (2) the attorney is being paid on a contingency basis
24    pursuant to a written fee agreement;
25        (3) all proceeds of the legal claim will be disbursed
26    via either the trust account of the attorney or a



10200SB1088sam001- 5 -LRB102 04911 BMS 25203 a

1    settlement fund established to receive the proceeds of the
2    legal claim on behalf of the consumer;
3        (4) the attorney is following the written instructions
4    of the consumer with regard to the consumer legal funding;
5    and
6        (5) the attorney has not received a referral fee or
7    other consideration from the consumer legal funding
8    company in connection with the consumer legal funding, nor
9    will the attorney receive such fee or other consideration
10    in the future.
11    (c) If the acknowledgment required in subsection (b) is
12not completed by the attorney retained by the consumer in the
13legal claim, the contract shall be null and void. The contract
14remains valid and enforceable in the event the consumer
15terminates the initial attorney or retains a new attorney with
16respect to the legal claim.
17    Section 15. Consumer legal funding company prohibitions. A
18consumer legal funding company shall not:
19        (1) pay or offer to pay commissions, referral fees, or
20    other forms of consideration to any attorney, law firm,
21    medical provider, chiropractor, or physical therapist or
22    any of their employees for referring a consumer to the
23    company;
24        (2) accept any commissions, referral fees, rebates, or
25    other forms of consideration from an attorney, law firm,



10200SB1088sam001- 6 -LRB102 04911 BMS 25203 a

1    medical provider, chiropractor, or physical therapist or
2    any of their employees;
3        (3) intentionally advertise materially false or
4    misleading information regarding its products or services;
5        (4) refer, in furtherance of an initial legal funding,
6    a customer or potential customer to a specific attorney,
7    law firm, medical provider, chiropractor, or physical
8    therapist or any of their employees; however, if a
9    customer needs legal representation, the company may refer
10    the customer to a local or state bar association referral
11    service;
12        (5) fail to supply a copy of the executed contract to
13    the attorney for the consumer;
14        (6) knowingly provide funding to a consumer who has
15    previously assigned or sold a portion of the consumer's
16    right to proceeds from his or her legal claim without
17    first making payment to or purchasing a prior unsatisfied
18    consumer legal funding company's entire funded amount and
19    contracted charges, unless a lesser amount is otherwise
20    agreed to in writing by the consumer legal funding
21    companies, except that multiple companies may agree to
22    contemporaneously provide funding to a consumer if the
23    consumer and the consumer's attorney consent to the
24    arrangement in writing;
25        (7) receive any right to nor make any decisions with
26    respect to the conduct of the underlying legal claim or



10200SB1088sam001- 7 -LRB102 04911 BMS 25203 a

1    any settlement or resolution of the legal claim. The right
2    to make such decisions shall remain solely with the
3    consumer and the attorney in the legal claim; or
4        (8) knowingly pay or offer to pay for court costs,
5    filing fees, or attorney's fees either during or after the
6    resolution of the legal claim using funds from the
7    consumer legal funding transaction.
8    Section 20. Satisfaction of the contract. A consumer legal
9funding company shall require the resolution amount to be set
10as a predetermined amount, based upon intervals of time from
11the date of origination of the funding through the date of
12resolution of the legal claim, and not be determined as a
13percentage of the recovery from the legal claim.
14    Section 25. Fees.
15    (a) The fee charged by the consumer legal funding company
16shall not exceed an annual fee of 36% of the funded amount in a
1712-month period.
18    (b) The consumer legal funding company may charge an
19additional annual servicing fee that does not exceed 10% of
20the funded amount.
21    (c) In addition to the annual and servicing fees set forth
22in subsections (a) and (b), a consumer legal funding company
23may collect a fee of $100 per consumer legal funding
24transaction to defray the ordinary costs of opening,



10200SB1088sam001- 8 -LRB102 04911 BMS 25203 a

1administering, and terminating a consumer legal funding.
2    (d) A consumer legal funding company shall not collect any
3additional fees unless otherwise specified in this Act.
4    (e) No fees shall extend past 42 months from the funding
6    Section 30. Disclosures. All consumer legal funding
7contracts shall contain the disclosures specified in this
8Section, which shall constitute material terms of the
9contract. Unless otherwise specified, the disclosures shall be
10typed in at least 12-point bold-type font and be placed
11clearly and conspicuously within the contract as follows:
12        (1) On the front page under appropriate headings,
13    language specifying:
14            (A) the funded amount to be paid to the consumer by
15        the consumer legal funding company;
16            (B) an itemization of one-time charges;
17            (C) the total amount to be paid by the consumer to
18        the company, including the funded amount and all
19        charges; and
20            (D) a payment schedule to include the resolution
21        amount, listing dates, and the amount due at the end of
22        each 6-month period from the funding date, until the
23        date the maximum amount due to the company by the
24        consumer to satisfy the amount due pursuant to the
25        contract.



10200SB1088sam001- 9 -LRB102 04911 BMS 25203 a

1        (2) Pursuant to the provisions set forth in paragraph
2    (2) of subsection (a) of Section 10, within the body of the
3    contract: "Consumer's Right to Cancellation: You may
4    cancel this contract without penalty or further obligation
5    within five (5) business days after the funding date if
6    you either:
7            (A) return to the consumer legal funding company
8        the full amount of the disbursed funds by delivering
9        the company's uncashed check to the company's office
10        in person; or
11            (B) mail by insured, certified, or registered
12        United States mail, to the company at the address
13        specified in the contract, a notice of cancellation
14        and include in such mailing a return of the full amount
15        of disbursed funds in the form of the company's
16        uncashed check or a registered or certified check or
17        money order."
18        (3) Within the body of the contract: "The consumer
19    legal funding company shall have no role in deciding
20    whether, when, and how much the legal claim is settled
21    for, however, the consumer and consumer's attorney must
22    notify the company of the outcome of the legal claim by
23    settlement or adjudication before the resolution date. The
24    company may seek updated information about the status of
25    the legal claim but in no event shall the company
26    interfere with the independent professional judgment of



10200SB1088sam001- 10 -LRB102 04911 BMS 25203 a

1    the attorney in the handling of the legal claim or any
2    settlement thereof."
3        (4) Within the body of the contract, in all capital
4    letters in at least 12-point bold-type font contained
14        (5) Located immediately above the place on the
15    contract where the consumer's signature is required, in
16    12-point font: "Do not sign this contract before you read
17    it completely or if it contains any blank spaces. You are
18    entitled to a completely filled-in copy of the contract.
19    Before you sign this contract, you should obtain the
20    advice of an attorney. Depending on the circumstances, you
21    may want to consult a tax, public or private benefits
22    planning, or financial professional. You acknowledge that
23    your attorney in the legal claim has provided no tax,
24    public or private benefit planning, or financial advice
25    regarding this transaction."



10200SB1088sam001- 11 -LRB102 04911 BMS 25203 a

1    Section 35. Violations.
2    (a) Nothing in this Act shall be construed to restrict the
3exercise of powers or the performance of the duties of the
4Illinois Attorney General that he or she is authorized to
5exercise or perform by law.
6    (b) If a court of competent jurisdiction determines that a
7consumer legal funding company has intentionally violated the
8provisions of this Act with regard to a specific consumer
9legal funding, the consumer legal funding company shall only
10be entitled to recover the funded amount provided to the
11consumer in such specific consumer legal funding and shall not
12be entitled to any additional charges.
13    Section 40. Assignability; liens.
14    (a) The contingent right to receive an amount of the
15potential proceeds of a legal claim is assignable by a
17    (b) Nothing contained in this Act shall be construed to
18cause any consumer legal funding transaction conforming to
19this Act to be deemed a loan or to be subject to any of the
20provisions governing loans contained in this Act. A consumer
21legal funding transaction that complies with this Act is not
22subject to any other statutory or regulatory provisions
23governing loans or investment contracts. To the extent that
24this Act conflicts with any other law, this Act supersedes the
25other law for the purposes of regulating consumer legal



10200SB1088sam001- 12 -LRB102 04911 BMS 25203 a

1funding in Illinois.
2    (c) Only liens related to the legal claim, including
3attorney's liens, Medicare, or other statutory liens, shall
4take priority over any lien of the consumer legal funding
5company. All other liens shall take priority by normal
6operation of law.
7    Section 45. Attorney prohibitions. An attorney or law firm
8retained by the consumer in the legal claim shall not have a
9financial interest in the consumer legal funding company
10offering consumer legal funding to that consumer.
11Additionally, any attorney who has referred the consumer to
12his or her retained attorney shall not have a financial
13interest in the consumer legal funding company offering
14consumer legal funding to that consumer.
15    Section 50. Effect of communication on privileges. No
16communication between the consumer's attorney in the legal
17claim and the consumer legal funding company as it pertains to
18the consumer legal funding shall limit, waive, or abrogate the
19scope or nature of any statutory or common law privilege,
20including the work product doctrine and the attorney-client
22    Section 55. Application; fees; positive net worth; new
23funding application.



10200SB1088sam001- 13 -LRB102 04911 BMS 25203 a

1    (a) Application for a consumer legal funding license shall
2be in writing and in the form prescribed by the Director. An
3applicant at the time of making such application shall pay to
4the Director the sum of $300 as an application fee and the
5additional sum of $450 as an annual license fee, for a period
6terminating on the last day of the current calendar year; if
7the application is filed after June 30 in any year, the license
8fee shall be one-half of the annual license fee for such year.
9    (b) Before the consumer legal funding license is granted,
10every applicant shall prove in a form satisfactory to the
11Director that the applicant has and will maintain a positive
12net worth of a minimum of $30,000. Every applicant and
13licensee shall maintain a surety bond in the principal sum of
14$25,000 issued by a bonding company authorized to do business
15in this State and that shall be approved by the Director. The
16surety bond shall run to the Director and shall be for the
17benefit of any consumer who incurs damages as a result of any
18violation of this Act or rules by a licensee. If the Director
19finds at any time that a bond is of insufficient size, is
20insecure, is exhausted, or is otherwise doubtful, an
21additional bond in such amount as determined by the Director
22shall be filed by the licensee within 30 days after written
23demand therefor by the Director. As used in this subsection,
24"net worth" means total assets minus total liabilities.
25    (c) A company may not engage in the business of consumer
26legal funding in this State until it has received a consumer



10200SB1088sam001- 14 -LRB102 04911 BMS 25203 a

1legal funding license from the Division pursuant to this Act,
2except any company that has a license in good standing under
3the Consumer Installment Loan Act as of the effective date of
4this Act shall be entitled to do consumer legal fundings under
5the terms of this Act so long as that company files an
6application for a consumer legal funding license within 60
7days of the Division issuing forms for the filing of such an
8application until the Division fully rules on the application
9and either approves or denies the application for a funding
11    Section 60. Appointment of attorney-in-fact for service of
12process. Every consumer legal funding licensee shall appoint,
13in writing, the Director and his or her successors in office or
14any official who shall hereafter be charged with the
15administration of this Act as attorney-in-fact upon whom all
16lawful process against such licensee may be served with the
17same legal force and validity as if served on such licensee. A
18copy of such written appointment, duly certified, shall be
19filed in the office of the Director, and a copy of the written
20appointment certified by him or her shall be sufficient
21evidence. This appointment shall remain in effect while any
22liability remains outstanding in this State against the
23licensee. When summons is served upon the Director as
24attorney-in-fact for such licensee, the Director shall
25immediately notify the licensee by registered mail, enclosing



10200SB1088sam001- 15 -LRB102 04911 BMS 25203 a

1the summons and specifying the hour and day of service.
2    Section 65. Investigation to determine whether to issue a
3consumer legal funding license. Upon the filing of an
4application and the payment of the fee, the Director shall
5investigate to determine (1) that the reputation of the
6applicant, including the reputation of the managers of a
7limited liability company, partners, owners, officers or
8directors of the applicant, is such as to warrant belief that
9the business will be operated honestly and fairly within the
10purposes of this Act, and (2) that the applicant meets the
11positive net worth requirement set forth in Section 55 of this
12Act. Unless the Director finds that the applicant meets these
13requirements, he or she shall not issue a consumer legal
14funding license and shall notify the applicant of the denial
15and return to the applicant the sum paid by the applicant as a
16license fee, but shall retain the $300 application fee. The
17Director shall approve or deny every application for a license
18within 60 days from the filing of the application with the fee.
19    Section 70. License. The license shall state the address,
20including city and state, at which the business is to be
21conducted and shall state fully the name of the licensee. The
22license shall be conspicuously posted in the place of business
23of the licensee and shall not be transferable or assignable.



10200SB1088sam001- 16 -LRB102 04911 BMS 25203 a

1    Section 75. More than one license to same licensee;
2changing place of business.
3    (a) Not more than one place of business shall be
4maintained under the same license, but the Director may issue
5more than one license to the same licensee upon compliance
6with all the provisions of this Act governing an original
7issuance of a license.
8    (b) Whenever a licensee changes his or her place of
9business to a location other than that set forth in his or her
10license, he or she shall give written notice of the change of
11place of business to the Director at least 10 days before the
12relocation. However, if the new location is in excess of 15
13miles from the previous location, the licensee shall obtain
14written approval from the Director before the relocation.
15    Section 80. Annual license fee; expenses. Before December
161 of each year, a licensee must pay to the Director and the
17Division must receive the annual license fee required under
18Section 55 for the next succeeding calendar year. The license
19shall expire on January 1 unless the license fee has been paid
20before that date.
21    In addition to the annual license fee, the reasonable
22expense of any examination, investigation, or custody by the
23Director under any provision of this Act shall be borne by the
25    If a licensee fails to renew his or her license by December



10200SB1088sam001- 17 -LRB102 04911 BMS 25203 a

131, it shall automatically expire and the licensee is not
2entitled to a hearing; however, the Director, in his or her
3discretion, may reinstate an expired license upon payment of
4the annual renewal fee and proof of good cause for failure to
6    Section 85. Fines; suspension or revocation of license.
7    (a) The Director may, after 10 days' notice by registered
8mail to the licensee at the address set forth in the license
9stating the contemplated action and in general the grounds
10therefor, fine such licensee an amount not exceeding $10,000
11per violation or revoke or suspend any license issued under
12this Act if he or she finds that:
13        (1) the licensee has failed to comply with any
14    provision of this Act or any order, decision, finding,
15    rule, regulation, or direction of the Director lawfully
16    made pursuant to the authority of this Act; or
17        (2) any fact or condition exists that, if it had
18    existed at the time of the original application for the
19    license, clearly would have warranted the Director in
20    refusing to issue the license.
21    (b) The Director may fine, suspend, or revoke only the
22particular license with respect to which grounds for the fine,
23revocation, or suspension occur or exist, but if the Director
24finds that grounds for revocation are of general application
25to all offices or to more than one office of the licensee, the



10200SB1088sam001- 18 -LRB102 04911 BMS 25203 a

1Director shall fine, suspend, or revoke every license to which
2such grounds apply.
3    (c) No revocation, suspension, or surrender of any license
4shall impair or affect the obligation of any preexisting
5lawful contract between the licensee and any obligor.
6    (d) The Director may issue a new license to a licensee
7whose license has been revoked when facts or conditions that
8clearly would have warranted the Director in refusing
9originally to issue the license no longer exist.
10    (e) In every case in which a license is suspended or
11revoked or an application for a license or renewal of a license
12is denied, the Director shall serve the licensee with notice
13of his or her action, including a statement of the reasons for
14his or her actions, either personally or by certified mail,
15return receipt requested. Service by certified mail shall be
16deemed completed when the notice is deposited in the United
17States mail.
18    (f) An order assessing a fine, an order revoking or
19suspending a license, or an order denying renewal of a license
20shall take effect upon service of the order unless the
21licensee requests a hearing in writing within 10 days after
22the date of service. If a hearing is requested, the order shall
23be stayed until a final administrative order is entered.
24    (g) If the licensee requests a hearing, the Director shall
25schedule a hearing within 30 days after the request for a
26hearing unless otherwise agreed to by the parties.



10200SB1088sam001- 19 -LRB102 04911 BMS 25203 a

1    (h) The hearing shall be held at the time and place
2designated by the Director. The Director and any
3administrative law judge designated by him or her shall have
4the power to administer oaths and affirmations, subpoena
5witnesses and compel their attendance, take evidence, and
6require the production of books, papers, correspondence, and
7other records or information that he or she considers relevant
8or material to the inquiry.
9    (i) The costs for the administrative hearing shall be set
10by rule.
11    (j) The Division shall have the authority to adopt rules
12for the administration of this Section.
13    (k) The Division shall establish by rule and publish a
14schedule of fines that are reasonably tailored to ensure
15compliance with the provisions of this Act and which include
16remedial measures intended to improve licensee compliance.
17Such rules shall set forth the standards and procedures to be
18used in imposing any such fines and remedies.
19    Section 90. Closing of business; surrender of license. At
20least 10 days before a licensee ceases operations, closes
21business, or files for bankruptcy:
22        (1) The licensee shall notify the Division of its
23    action in writing.
24        (2) With the exception of filing for bankruptcy, the
25    licensee shall surrender its license to the Director for



10200SB1088sam001- 20 -LRB102 04911 BMS 25203 a

1    cancellation; the surrender of the license shall not
2    affect the licensee's civil or criminal liability for acts
3    committed before surrender or entitle the licensee to a
4    return of any part of the annual license fee.
5        (3) The licensee shall notify the Division of the
6    location where the books, accounts, contracts, and records
7    will be maintained and the procedure to ensure prompt
8    return of contracts, titles, and releases to the
9    customers.
10        (4) The accounts, books, records, and contracts shall
11    be maintained and serviced by the licensee or another
12    licensee under this Act or an entity exempt from licensure
13    under this Act.
14        (5) The Division shall have the authority to conduct
15    examinations of the books, records, and funding documents
16    at any time after surrender of the license, filing of
17    bankruptcy, or the cessation of operations.
18    Section 95. Investigation of conduct of business. For the
19purpose of discovering violations of this Act or securing
20information lawfully required by it, the Director may at any
21time investigate the fundings and business and examine the
22books, accounts, records, and files used therein, of every
23licensee and of every person, partnership, association,
24limited liability company, and corporation engaged in the
25business described in Section 5 of this Act, whether such



10200SB1088sam001- 21 -LRB102 04911 BMS 25203 a

1person, partnership, association, limited liability company,
2or corporation shall act or claim to act as principal or agent
3or within or without the authority of this Act. For such
4purpose the Director shall have free access to the offices and
5places of business, books, accounts, papers, records, files,
6safes, and vaults of such persons, partnerships, associations,
7limited liability companies, and corporations. The Director
8may require the attendance of and examine under oath all
9persons whose testimony he or she may require relative to such
10fundings or such business, and in such cases the Director
11shall have power to administer oaths to all persons called as
12witnesses, and the Director may conduct such examinations.
13    The Director shall make an examination of the affairs,
14business, office, and records of each licensee at least once
15each year. The Director shall by rule and regulation set the
16fee to be charged for each examination day, including travel
17expenses for out-of-state licensed locations. The fee shall
18reasonably reflect actual costs. The Director shall also have
19authority to examine the books and records of any business
20made by a former licensee which is being liquidated, as the
21Director deems necessary, and may charge the examination fees
22otherwise required for licensees.
23    Section 100. Books and records; reports.
24    (a) Every licensee shall retain and use in his or her
25business or at another location approved by the Director such



10200SB1088sam001- 22 -LRB102 04911 BMS 25203 a

1records as are required by the Director to enable the Director
2to determine whether the licensee is complying with the
3provisions of this Act and the rules and regulations adopted
4pursuant to this Act. Every licensee shall preserve the
5records of any funding for at least 2 years after making the
6final entry for such funding. Accounting systems maintained in
7whole or in part by mechanical or electronic data processing
8methods that provide information equivalent to that otherwise
9required and follow generally accepted accounting principles
10are acceptable for that purpose if approved by the Director in
12    (b) Each licensee shall annually, on or before March 1,
13file a report with the Director giving such relevant
14information as the Director may reasonably require concerning
15the business and operations during the preceding calendar year
16of each licensed place of business conducted by the licensee.
17The report must be received by the Division on or before March
181. The report shall be made under oath and in a form prescribed
19by the Director. Whenever a licensee operates 2 or more
20licensed offices or whenever 2 or more affiliated licensees
21operate licensed offices, a composite report of such group of
22licensed offices may be filed instead of individual reports.
23The Director may make and publish annually an analysis and
24recapitulation of such reports. The Director may fine each
25licensee $25 for each day beyond March 1 such report is filed.



10200SB1088sam001- 23 -LRB102 04911 BMS 25203 a

1    Section 105. Other businesses.
2    (a) Upon application by the licensee, the Director may
3approve the conduct of other businesses not specifically
4permitted by this Act in the licensee's place of business,
5unless the Director finds that such conduct will conceal or
6facilitate evasion or violation of this Act. The Director's
7approval shall be in writing and shall describe the other
8businesses which may be conducted in the licensed office.
9    (b) A licensee may without notice to and approval of the
10Director, in addition to the business permitted by this Act,
11conduct the following business:
12        (1) The business of a sales finance agency as defined
13    in the Sales Finance Agency Act.
14        (2) The business of soliciting or selling any type of
15    insurance provided that all such insurance transactions
16    are conducted in accordance with and are regulated under
17    the Illinois Insurance Code.
18        (3) The business of financing premiums for insurance.
19        (4) Making fundings pursuant to the Illinois Financial
20    Services Development Act.
21    The Division shall make and enforce such reasonable rules
22and regulations for the conduct of business under this Act in
23the same office with other businesses as may be necessary to
24prevent evasions or violations of this Act. The Director may
25investigate any business conducted in the licensed office to
26determine whether any evasion or violation of this Act has



10200SB1088sam001- 24 -LRB102 04911 BMS 25203 a

2    Section 110. Cease and desist.
3    (a) The Director may issue a cease and desist order to any
4licensee, or other person doing business without the required
5license, when in the opinion of the Director, the licensee, or
6other person, is violating or is about to violate any
7provision of this Act or any rule or requirement imposed in
8writing by the Division as a condition of granting any
9authorization permitted by this Act.
10    (b) The Director may issue a cease and desist order before
11a hearing.
12    (c) The Director shall serve notice of his or her action,
13designated as a cease and desist order made pursuant to this
14Section, including a statement of the reasons for the action,
15either personally or by certified mail, return receipt
16requested. Service by certified mail shall be deemed completed
17when the notice is deposited in the United States mail.
18    (d) Within 15 days after service of the cease and desist
19order, the licensee or other person may request, in writing, a
21    (e) The Director shall schedule a hearing within 30 days
22after the request for a hearing unless otherwise agreed to by
23the parties.
24    (f) The Division shall have the authority to prescribe
25rules for the administration of this Section.



10200SB1088sam001- 25 -LRB102 04911 BMS 25203 a

1    (g) If it is determined that the Director had the
2authority to issue the cease and desist order, he or she may
3issue such orders as may be reasonably necessary to correct,
4eliminate, or remedy such conduct.
5    (h) The powers vested in the Director by this Section are
6additional to any and all other powers and remedies vested in
7the Director by law, and nothing in this Section shall be
8construed as requiring that the Director shall employ the
9power conferred in this Section instead of or as a condition
10precedent to the exercise of any other power or remedy vested
11in the Director.
12    (i) The cost for the administrative hearing shall be set
13by rule.
14    Section 115. Rules and regulations. The Division may make
15and enforce such reasonable rules, regulations, directions,
16orders, decisions, and findings as the execution and
17enforcement of the provisions of this Act require, and as are
18not inconsistent therewith. In addition, the Division may
19adopt rules in connection with the activities of licensees
20that are necessary and appropriate for the protection of
21consumers in this State. All rules, regulations, and
22directions of a general character shall be sent electronically
23to all licensees.
24    Section 120. Judicial review. All final administrative



10200SB1088sam001- 26 -LRB102 04911 BMS 25203 a

1decisions of the Division under this Act, all amendments and
2modifications of final administrative decisions, and any rules
3adopted by the Division pursuant to this Act shall be subject
4to judicial review pursuant to the provisions of the
5Administrative Review Law.
6    Section 125. Injunction; civil penalty; costs. If it
7appears to the Director that a person or any entity has
8committed or is about to commit a violation of this Act, a rule
9adopted under this Act, or an order of the Director, the
10Director may apply to the circuit court for an order enjoining
11the person or entity from violating or continuing to violate
12this Act, the rule, or order and for injunctive or other relief
13that the nature of the case may require and may, in addition,
14request the court to assess a civil penalty up to $1,000 along
15with costs and attorney's fees.
16    Section 130. Severability. If any clause, sentence,
17provision or part of this Act or its application to any person
18or circumstance is adjudged to be unconstitutional or invalid
19for any reason by any court of competent jurisdiction, that
20judgment shall not impair, affect, or invalidate other
21provisions or applications of this Act, which shall remain in
22full force and effect thereafter.
23    Section 999. Effective date. This Act takes effect upon



10200SB1088sam001- 27 -LRB102 04911 BMS 25203 a

1becoming law.".