Illinois General Assembly - Full Text of SB1099
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Full Text of SB1099  102nd General Assembly

SB1099ham001 102ND GENERAL ASSEMBLY

Rep. Curtis J. Tarver, II

Filed: 3/21/2022

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1099

2    AMENDMENT NO. ______. Amend Senate Bill 1099 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 set forth in Section 25, to be
16paid to the consumer legal funding company by or on behalf of

 

 

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1the consumer above the funded amount provided by or on behalf
2of the company to an Illinois consumer pursuant to this Act.
3    "Consumer" means a natural person who has a pending legal
4claim and who resides or is domiciled in Illinois.
5    "Consumer legal funding" or "funding" means a nonrecourse
6transaction in which a company purchases and a consumer
7transfers to the company an unvested, contingent future
8interest in the potential net proceeds of a settlement or
9judgment obtained from the consumer's legal claim; if no
10proceeds are obtained from the consumer's legal claim, the
11consumer is not required to repay the company the consumer
12legal funding amount or charges.
13    "Consumer legal funding company" or "company" means a
14person or entity that enters into, purchases, or services a
15consumer legal funding transaction with an Illinois consumer.
16"Consumer legal funding company" does not include:
17        (1) an immediate family member of the consumer;
18        (2) a bank, lender, financing entity, or other special
19    purpose entity:
20            (A) that provides financing to a consumer legal
21        funding company; or
22            (B) to which a consumer legal funding company
23        grants a security interest or transfers any rights or
24        interest in a consumer legal funding; or
25        (3) an attorney or accountant who provides services to
26    a consumer.

 

 

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1    "Department" means the Department of Financial and
2Professional Regulation.
3    "Funded amount" means the amount of moneys provided to, or
4on behalf of, the consumer in the consumer legal funding.
5"Funded amount" does not include charges except for charges
6that are deducted from the funded amount.
7    "Funding date" means the date on which the funded amount
8is transferred to the consumer by the consumer legal funding
9company either by personal delivery; via wire, ACH, or other
10electronic means; or mailed by insured, certified, or
11registered United States mail.
12    "Immediate family member" means a parent; sibling; child
13by blood, adoption, or marriage; spouse; grandparent; or
14grandchild.
15    "Legal claim" means a bona fide civil claim or cause of
16action.
17    "Resolution amount" means the funded amount plus the
18agreed-upon charges that are delivered to the consumer legal
19funding company on the resolution date.
20    "Resolution date" means the date the resolution amount is
21delivered to the consumer legal funding company.
22    "Secretary" means the Secretary of Financial and
23Professional Regulation or the Secretary's designee.
 
24    Section 10. Contract requirements; right of rescission.
25    (a) All consumer legal fundings shall meet the following

 

 

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1requirements:
2        (1) the contract shall be completely filled in when
3    presented to the consumer for signature with all blanks
4    marked "not applicable", "n/a", or "none";
5        (2) the contract shall contain, in bold and boxed
6    type, a right of rescission, allowing the consumer to
7    cancel the contract without penalty or further obligation
8    if, within 14 business days after the funding date, the
9    consumer either:
10            (A) returns to the consumer legal funding company
11        the full amount of the disbursed funds by delivering
12        the company's uncashed check to the company's office
13        in person; or
14            (B) mails, by insured, certified, or registered
15        United States mail, to the address specified in the
16        contract, a notice of cancellation and includes in the
17        mailing a return of the full amount of disbursed funds
18        in the form of the company's uncashed check or a
19        registered or certified check or money order; and
20        (3) the contract shall contain the initials of the
21    consumer on each page.
22    (b) The contract shall contain a written acknowledgment by
23the attorney retained by the consumer in the legal claim that
24attests to the following:
25        (1) to the best of the attorney's knowledge, all the
26    costs and charges relating to the consumer legal funding

 

 

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1    have been disclosed to the consumer;
2        (2) the attorney is being paid on a contingency basis
3    pursuant to a written fee agreement;
4        (3) all proceeds of the legal claim will be disbursed
5    via either the trust account of the attorney or a
6    settlement fund established to receive the proceeds of the
7    legal claim on behalf of the consumer;
8        (4) the attorney is following the written instructions
9    of the consumer with regard to the consumer legal funding;
10    and
11        (5) the attorney has not received a referral fee or
12    other consideration from the consumer legal funding
13    company in connection with the consumer legal funding, nor
14    will the attorney receive such fee or other consideration
15    in the future.
16    (c) If the acknowledgment required in subsection (b) is
17not completed by the attorney retained by the consumer in the
18legal claim, the contract shall be null and void. The contract
19remains valid and enforceable if the consumer terminates
20representation by the initial attorney who completed the
21acknowledgment required in subsection (b) or retains a new
22attorney with respect to the legal claim.
23    (d) No licensee shall permit an obligor to owe the
24licensee, an agent of the licensee, or an affiliate of the
25licensee, including a corporation owned or managed by the
26licensee, an aggregate principal amount in excess of $100,000,

 

 

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1unless permitted by rule, at any time for consumer legal
2fundings transacted pursuant to this Act.
3    (e) Any transaction that does not exactly meet the
4definition of a consumer legal funding under Section 5 is
5subject to the Interest Act and any other applicable law.
 
6    Section 15. Consumer legal funding company prohibitions. A
7consumer legal funding company shall not:
8        (1) pay or offer to pay commissions, referral fees, or
9    other forms of consideration to any attorney, law firm,
10    medical provider, chiropractic physician, or physical
11    therapist or any of their employees or agents for
12    referring a consumer to the company;
13        (2) accept any commissions, referral fees, rebates, or
14    other forms of consideration from an attorney, law firm,
15    medical provider, chiropractor, or physical therapist or
16    any of their employees or agents;
17        (3) advertise materially false or misleading
18    information regarding its products or services;
19        (4) refer, in furtherance of an initial consumer legal
20    funding, a customer or potential customer to a specific
21    attorney, law firm, medical provider, chiropractor, or
22    physical therapist or any of their employees; however, if
23    a customer needs legal representation, the company may
24    refer the customer to a local or State bar association
25    referral service or to a legal aid organization;

 

 

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1        (5) fail to supply a true copy of the executed
2    contract to the attorney for the consumer upon execution
3    and if the consumer or their attorney requests a copy;
4        (6) knowingly provide funding to a consumer who has
5    previously assigned or sold a portion of the consumer's
6    right to proceeds from his or her legal claim without
7    first making payment to or purchasing a prior unsatisfied
8    consumer legal funding company's entire funded amount and
9    contracted charges, unless a lesser amount is otherwise
10    agreed to in writing by the consumer legal funding
11    companies, except that multiple companies may agree to
12    contemporaneously provide funding to a consumer if the
13    consumer and the consumer's attorney consent to the
14    arrangement in writing;
15        (7) receive any right to, nor make any decisions with
16    respect to, the conduct of the underlying legal claim or
17    any settlement or resolution of the legal claim; the right
18    to make such decisions shall remain solely with the
19    consumer and the consumer's attorney in the legal claim;
20    or
21        (8) knowingly pay or offer to pay for court costs,
22    filing fees, or attorney's fees either during or after the
23    resolution of the legal claim using funds from the
24    consumer legal funding transaction.
 
25    Section 20. Satisfaction of the contract. A consumer legal

 

 

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1funding company shall require the resolution amount to be set
2as a predetermined amount, based upon intervals of time from
3the date of origination of the funding through the date of
4resolution of the legal claim, and not be determined as a
5percentage of the recovery from the legal claim.
 
6    Section 25. Fees.
7    (a) The fee charged by a consumer legal funding company to
8the consumer shall be calculated as not more than 18% of the
9funded amount, assessed on the outset of every 6 months.
10    (b) In addition, a consumer legal funding company may
11charge a document preparation fee not to exceed $75, which may
12be deducted from the funded amount. This fee is to be used to
13defray the ordinary cost of opening, administering, and
14terminating a consumer legal funding.
15    (c) A consumer legal funding company shall not collect any
16additional fees unless otherwise specified in this Act.
17    (d) No charges may accrue on a consumer legal funding for
18more than 42 months after the funding date of the consumer
19legal funding. No consumer legal funding may be refinanced
20except as authorized by rule. Notwithstanding the foregoing, a
21consumer legal funding company may assess charges on any
22additional amounts provided after the funding date for 42
23months after the additional funding date.
 
24    Section 30. Disclosures. All consumer legal funding

 

 

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1contracts shall contain the disclosures specified in this
2Section, which shall constitute material terms of the
3contract. Unless otherwise specified, the disclosures shall be
4typed in at least 12-point bold-type font and be placed
5clearly and conspicuously within the contract as follows:
6        (1) On the front page under appropriate headings,
7    language specifying:
8            (A) the funded amount to be paid to the consumer or
9        on the consumer's behalf by the consumer legal funding
10        company;
11            (B) an itemization of charges;
12            (C) the maximum total amount to be paid by the
13        consumer to the company, including the funded amount
14        and all fees; and
15            (D) a payment schedule to include the resolution
16        amount, listing dates, and the amount due at the end of
17        each 6-month period from the funding date, until the
18        date the maximum amount is due to the company by the
19        consumer to satisfy the amount due pursuant to the
20        contract.
21        (2) Pursuant to the provisions set forth in paragraph
22    (2) of subsection (a) of Section 10, within the body of the
23    contract: "CONSUMER'S RIGHT TO CANCELLATION: You may
24    cancel this contract without penalty or further obligation
25    within 14 business days after the funding date if you
26    either:

 

 

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1            (A) return to the consumer legal funding company
2        the full amount of the funds disbursed to you or on
3        your behalf by delivering the company's uncashed check
4        to the company's office in person; or
5            (B) place in the mail, by mail service materially
6        equivalent to United States Postal Service certified
7        mail, addressed to the company at the address
8        specified in the contract, a notice of cancellation
9        and include in such mailing a return of the full amount
10        of funds disbursed to you or on your behalf in the form
11        of the company's uncashed check or a registered or
12        certified check or money order."
13        (3) Within the body of the contract: "The consumer
14    legal funding company shall have no role in deciding
15    whether, when, and how much the legal claim is settled
16    for, however, the consumer and consumer's attorney must
17    notify the company of the outcome of the legal claim by
18    settlement or adjudication before the resolution date. The
19    company may seek updated information about the status of
20    the legal claim but in no event shall the company
21    interfere with the independent professional judgment of
22    the attorney in the handling of the legal claim or any
23    settlement thereof."
24        (4) Within the body of the contract, in all capital
25    letters in at least 12-point bold-type font contained
26    within a box: "THE FUNDED AMOUNT AND AGREED-UPON CHARGES

 

 

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1    SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM,
2    AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE
3    AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE
4    [INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY]
5    ANYTHING IF THERE ARE NO REMAINING PROCEEDS AVAILABLE FROM
6    YOUR LEGAL CLAIM, UNLESS YOU OR YOUR ATTORNEY HAVE
7    COMMITTED FRAUD AGAINST THE CONSUMER LEGAL FUNDING
8    COMPANY."
9        (5) Located immediately above the place on the
10    contract where the consumer's signature is required, in
11    12-point font: "Do not sign this contract before you read
12    it completely or if it contains any blank spaces. You are
13    entitled to a completely filled-in copy of the contract.
14    Before you sign this contract, you should obtain the
15    advice of an attorney. Depending on the circumstances, you
16    may want to consult a tax, public or private benefits
17    planning, or financial professional. You acknowledge that
18    your attorney in the legal claim has provided no tax,
19    public or private benefit planning, or financial advice
20    regarding this transaction."
21        (6) The consumer legal funding company shall provide
22    the consumer with information on accessing a financial
23    coaching program no later than the funding date.
 
24    Section 35. Violations.
25    (a) Nothing in this Act shall be construed to restrict the

 

 

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1exercise of powers or the performance of the duties of the
2Illinois Attorney General that he or she is authorized to
3exercise or perform by law.
4    (b) Any violation of this Act constitutes a violation of
5the Consumer Fraud and Deceptive Business Practices Act.
6    (c) The Illinois Attorney General may enforce a violation
7of this Act as an unlawful practice under the Consumer Fraud
8and Deceptive Business Practices Act.
 
9    Section 40. Assignability; liens.
10    (a) The contingent right to receive an amount of the
11potential proceeds of a legal claim is assignable by a
12consumer.
13    (b) Only liens related to the legal claim, including
14attorney's liens, Medicare, or other statutory liens, shall
15take priority over any lien of the consumer legal funding
16company. All other liens shall take priority by normal
17operation of law.
18    (c) A consumer legal funding transaction does not
19constitute an assignment of a personal injury claim or chose
20in action.
21    (d) A consumer legal funding transaction does not
22constitute the assignment of any present right; the
23transaction constitutes the transfer of an unvested,
24contingent future interest in an amount of the potential
25proceeds of a legal claim or cause of action.
 

 

 

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1    Section 45. Attorney prohibitions. An attorney or law firm
2retained by the consumer in the legal claim shall not have a
3financial interest in the consumer legal funding company
4offering consumer legal funding to that consumer.
5Additionally, any attorney who has referred the consumer to
6the consumer's retained attorney shall not have a financial
7interest in the consumer legal funding company offering
8consumer legal funding to that consumer. A consumer legal
9funding that violates this Section is null and void and no
10person or entity shall have any right to collect, attempt to
11collect, receive, or retain any funded amount or charges
12related to the consumer legal funding.
 
13    Section 50. Effect of communication on privileges. No
14communication between the consumer's attorney in the legal
15claim and the consumer legal funding company as it pertains to
16the consumer legal funding shall limit, waive, or abrogate the
17scope or nature of any statutory or common law privilege,
18including the work product doctrine and the attorney-client
19privilege.
 
20    Section 55. Consumer legal funding license scope.
21    (a) It shall be unlawful for any person or entity to
22operate as a consumer legal funding provider in this State
23except as authorized by this Act and without first having

 

 

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1obtained a license in accordance with this Act. No person or
2entity may engage in any device, subterfuge, or pretense to
3evade the requirements of this Act. However, any company that
4has a license in good standing under the Consumer Installment
5Loan Act on the effective date of this Act shall be entitled to
6make consumer legal fundings under the terms of this Act upon
7the effective date of this Act if that company files an
8application for a consumer legal funding license within 60
9days after the Department issues forms for the filing of that
10application and until the Department approves or denies the
11application for a funding license. Any consumer legal funding
12contract made by any person or entity in violation of this
13subsection shall be null and void and the person or entity who
14entered into the consumer legal funding transaction shall have
15no right to collect, attempt to collect, receive, or retain
16any principal, interest, or charges related to the consumer
17legal funding transaction.
18    (b) The provisions of this Act do not apply to a bank,
19savings bank, savings association, or credit union organized
20under the laws of this State, any other state, or under the
21laws of the United States.
22    (c) Any consumer legal funding made by a person not
23licensed under this Act, including a person holding an
24inactive license, and not exempt under this Act shall be null
25and void, and no person or entity shall have any right to
26collect, attempt to collect, receive, or retain any principal,

 

 

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1fee, interest, or charges related to the funding.
 
2    Section 60. Licensee name. No person, partnership,
3association, corporation, limited liability company, or other
4entity engaged in a business regulated by this Act shall
5operate the business under a name other than the real names of
6the entity and individuals conducting the business. The
7business may in addition operate under an assumed corporate
8name pursuant to the Business Corporation Act of 1983, an
9assumed limited liability company name pursuant to the Limited
10Liability Company Act, or an assumed business name pursuant to
11the Assumed Business Name Act.
 
12    Section 65. License application process; investigation.
13    (a) The Secretary may issue a license upon completion of
14all of the following:
15        (1) the filing of an application for a license with
16    the Secretary or the Nationwide Multistate Licensing
17    System and Registry as required by the Secretary;
18        (2) the filing with the Secretary of a listing of
19    judgments entered against and bankruptcy petitions by the
20    license applicant for the preceding 10 years;
21        (3) the filing of an audited balance sheet, including
22    all footnotes prepared by a certified public accountant in
23    accordance with generally accepted accounting principles
24    and generally accepted auditing standards; notwithstanding

 

 

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1    the requirements of this subsection, an applicant that is
2    a subsidiary may submit audited consolidated financial
3    statements of its parent, intermediary parent, or ultimate
4    parent if the consolidated statements are supported by
5    consolidating statements that include the applicant's
6    financial statement; if the consolidating statements are
7    unaudited, the applicant's chief financial officer shall
8    attest to the applicant's financial statements disclosed
9    in the consolidating statements; and
10        (4) an investigation of the averments required by
11    Section 80, which investigation must allow the Secretary
12    to issue positive findings stating that the financial
13    responsibility, experience, character, and general fitness
14    of the license applicant; of the members thereof if the
15    license applicant is a partnership or association; of the
16    officers and directors thereof if the license applicant is
17    a corporation; and of the managers and members that retain
18    any authority or responsibility under the operating
19    agreement if the license applicant is a limited liability
20    company are such as to command the confidence of the
21    community and to warrant belief that the business will be
22    operated honestly, fairly, and efficiently within the
23    purpose of this Act; if the Secretary does not so find, he
24    or she shall not issue the license and shall notify the
25    license applicant of the denial. The Secretary may impose
26    conditions on a license if the Secretary determines that

 

 

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1    those conditions are necessary or appropriate. These
2    conditions shall be imposed in writing and shall continue
3    in effect for a period prescribed by the Secretary.
4    (b) All licenses shall be issued to the license applicant.
5Upon receipt of the license, a consumer legal funding licensee
6shall be authorized to engage in the business regulated by
7this Act. The license shall remain in full force and effect
8until it expires, it is surrendered by the licensee, or it is
9revoked or suspended as provided by this Act.
 
10    Section 70. License application form.
11    (a) An application for a consumer legal funding company
12license must be made in accordance with Section 65 and, if
13applicable, in accordance with requirements of the Nationwide
14Multistate Licensing System and Registry. The application
15shall be in writing, under oath, and on a form obtained from
16and prescribed by the Secretary, or may be submitted
17electronically with attestation to the Nationwide Multistate
18Licensing System and Registry.
19    (b) The application shall contain the name and complete
20business and residential address or addresses of the license
21applicant. If the license applicant is a partnership,
22association, corporation, or other form of business
23organization, the application shall contain the names and
24complete business and residential addresses of each member,
25director, and principal officer of the business. The

 

 

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1application shall also include a description of the activities
2of the license applicant in such detail and for such periods as
3the Secretary may require, including all of the following:
4        (1) an affirmation of financial solvency noting such
5    capitalization requirements as may be required by the
6    Secretary and access to such credit as may be required by
7    the Secretary;
8        (2) an applicant shall prove in a form satisfactory to
9    the Secretary that the applicant has and will maintain a
10    positive net worth of a minimum of $30,000;
11        (3) an applicant shall submit to the Secretary with
12    the application for a license and every licensee shall
13    maintain a bond to be approved by the Secretary in which
14    the applicant shall be the obligor, in the sum of $50,000
15    or such additional amount as required by the Secretary
16    based on the amount of consumer legal fundings made,
17    purchased, or serviced by the licensee in the previous
18    year, and in which an insurance company that is duly
19    authorized by this State to transact the business of
20    fidelity and surety insurance shall be a surety. The
21    surety bond shall run to the Secretary and shall be for the
22    benefit of the Department and of any consumer who incurs
23    damages as a result of any violation of this Act or rules
24    adopted pursuant to this Act by a licensee;
25        (4) an affirmation that the license applicant or its
26    members, directors, or principals, as may be appropriate,

 

 

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1    are at least 18 years of age;
2        (5) information as to the character, fitness,
3    financial and business responsibility, background,
4    experience, and criminal record of any:
5            (i) person, entity, or ultimate equitable owner
6        that owns or controls, directly or indirectly, 10% or
7        more of any class of stock of the license applicant;
8            (ii) person, entity, or ultimate equitable owner
9        that is not a depository institution, as defined in
10        Section 1007.50 of the Savings Bank Act, that lends,
11        provides, or infuses, directly or indirectly, in any
12        way, funds to or into a license applicant in an amount
13        equal to or more than 10% of the license applicant's
14        net worth;
15            (iii) person, entity, or ultimate equitable owner
16        that controls, directly or indirectly, the election of
17        25% or more of the members of the board of directors of
18        a license applicant; or
19            (iv) person, entity, or ultimate equitable owner
20        that the Secretary finds influences management of the
21        license applicant; the provisions of this subparagraph
22        shall not apply to a public official serving on the
23        board of directors of a State guaranty agency;
24        (6) upon written request by the licensee and
25    notwithstanding the provisions of paragraphs (1), (2), and
26    (3) of this subsection, the Secretary may permit the

 

 

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1    licensee to omit all or part of the information required
2    by those paragraphs if instead of the omitted information,
3    the licensee submits an affidavit stating that the
4    information submitted on the licensee's previous renewal
5    application is still true and accurate; the Department may
6    adopt rules prescribing the form and content of the
7    affidavit that are necessary to accomplish the purposes of
8    this paragraph; and
9        (7) any other information as required by rule.
 
10    Section 75. License application; Nationwide Multistate
11Licensing System and Registry.
12    (a) Applicants for a license shall apply in a form
13prescribed by the Secretary. Each form shall contain content
14as set forth by rule, regulation, instruction, or procedure of
15the Department and may be changed or updated as necessary by
16the Department in order to carry out the purposes of this Act.
17    (b) In order to fulfill the purposes of this Act, the
18Secretary is authorized to establish relationships or
19contracts with the Nationwide Multistate Licensing System and
20Registry or other entities designated by the Nationwide
21Multistate Licensing System and Registry to collect and
22maintain records and process transaction fees or other fees
23related to licensees or other persons subject to this Act.
24    (c) In connection with an application for licensing, the
25applicant may be required, at a minimum, to furnish to the

 

 

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1Nationwide Multistate Licensing System and Registry
2information concerning the applicant's identity, including
3personal history and experience in a form prescribed by the
4Nationwide Multistate Licensing System and Registry, including
5the submission of authorization for the Nationwide Multistate
6Licensing System and Registry and the Secretary to obtain:
7        (1) an independent credit report obtained from a
8    consumer reporting agency described in Section 603(p) of
9    the Fair Credit Reporting Act, 15 U.S.C. 1681a(p); and
10        (2) information related to any administrative, civil,
11    or criminal findings by any governmental jurisdiction.
12    (d) For the purposes of this Section, and in order to
13reduce the points of contact that the Secretary may have to
14maintain for purposes of paragraph (2) of subsection (c), the
15Secretary may use the Nationwide Multistate Licensing System
16and Registry as a channeling agent for requesting and
17distributing information to and from any source as directed by
18the Secretary.
 
19    Section 80. Averments of applicant. Each application for
20license shall be accompanied by the following averments
21stating that the applicant:
22        (1) will file with the Secretary or Nationwide
23    Multistate Licensing System and Registry, as applicable,
24    any report or reports that it is required to file under any
25    of the provisions of this Act when due;

 

 

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1        (2) has not committed a crime against the law of this
2    State, any other state, or of the United States involving
3    moral turpitude or fraudulent or dishonest dealing, and
4    that no final judgment has been entered against it in a
5    civil action upon grounds of fraud, misrepresentation, or
6    deceit that has not been previously reported to the
7    Secretary;
8        (3) has not engaged in any conduct that would be cause
9    for denial of a license;
10        (4) has not become insolvent;
11        (5) has not submitted an application for a license
12    under this Act that contains a material misstatement;
13        (6) has not demonstrated by course of conduct,
14    negligence or incompetence in performing any act for which
15    it is required to hold a license under this Act;
16        (7) will advise the Secretary in writing or the
17    Nationwide Multistate Licensing System and Registry, as
18    applicable, of any changes to the information submitted on
19    the most recent application for license or averments of
20    record within 30 days after the change; the written notice
21    must be signed in the same form as the application for the
22    license being amended;
23        (8) will comply with the provisions of this Act and
24    with any lawful order, rule, or regulation made or issued
25    under the provisions of this Act;
26        (9) will submit to periodic examination by the

 

 

10200SB1099ham001- 23 -LRB102 04923 BMS 37596 a

1    Secretary as required by this Act; and
2        (10) will advise the Secretary in writing of judgments
3    entered against and bankruptcy petitions by the license
4    applicant within 5 days after the occurrence.
5    A licensee who fails to fulfill the obligations of an
6averment, fails to comply with averments made, or otherwise
7violates any of the averments made under this Section shall be
8subject to the penalties of this Act.
 
9    Section 85. Refusal to issue license. The Secretary may
10refuse to issue or renew a license if:
11        (1) it is determined that the applicant is not in
12    compliance with any provisions of this Act;
13        (2) there is substantial continuity between the
14    applicant and any violator of this Act; or
15        (3) the Secretary cannot make the findings specified
16    in subsection (a) of Section 65.
 
17    Section 90. Closing of business; surrender of license. At
18least 10 days before a licensee ceases operations, closes
19business, or files for bankruptcy:
20        (1) The licensee shall notify the Department of its
21    action in writing.
22        (2) With the exception of filing for bankruptcy, the
23    licensee shall surrender its license to the Secretary for
24    cancellation; the surrender of the license shall not

 

 

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1    affect the licensee's civil or criminal liability for acts
2    committed before surrender or entitle the licensee to a
3    return of any part of the annual license fee.
4        (3) The licensee shall notify the Department of the
5    location where the books, accounts, contracts, and records
6    will be maintained and the procedure to ensure prompt
7    return of contracts, titles, and releases to the
8    customers.
9        (4) The accounts, books, records, and contracts shall
10    be maintained and serviced by the licensee or another
11    licensee under this Act or an entity exempt from licensure
12    under this Act.
13        (5) The Department shall have the authority to conduct
14    examinations of the books, records, and funding documents
15    at any time after surrender of the license, filing of
16    bankruptcy, or the cessation of operations.
 
17    Section 95. License renewal; fees.
18    (a) Licenses shall be renewed every year using the common
19renewal date of the Nationwide Multistate Licensing System and
20Registry, as required by the Secretary. Properly completed
21renewal application forms and filing fees may be received by
22the Secretary 60 days before the license expiration date, but
23to be deemed timely the completed renewal application forms
24and filing fees must be received by the Secretary no later than
2530 days before the license expiration date.

 

 

10200SB1099ham001- 25 -LRB102 04923 BMS 37596 a

1    (b) It shall be the responsibility of each licensee to
2accomplish renewal of its license. Failure by a licensee to
3submit a properly completed renewal application form and fees
4in a timely fashion, absent a written extension from the
5Secretary, shall result in the license becoming inactive.
6    (c) No activity regulated by this Act shall be conducted
7by the licensee when a license becomes inactive. An inactive
8license may be reactivated by the Secretary upon payment of a
9renewal fee and payment of a reactivation fee equal to the
10renewal fee.
11    (d) A licensee ceasing an activity or activities regulated
12by this Act and desiring to no longer be licensed shall inform
13the Secretary in writing and, at the same time, convey any
14license issued and all other symbols or indicia of licensure.
15The licensee shall include a plan for the withdrawal from the
16regulated business, including a timetable for the disposition
17of the business, and comply with the surrender guidelines or
18rules of the Department. Upon receipt of such written notice,
19the Secretary shall post the cancellation or issue a certified
20statement canceling the license.
21    (e) The expenses of administering this Act, including
22investigations and examinations provided for in this Act,
23shall be borne by and assessed against entities regulated by
24this Act. The fees listed in this Section shall be payable to
25the Department or to the Nationwide Multistate Licensing
26System and Registry for transfer to the required recipients by

 

 

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1the Secretary. The Secretary will specify the form of payment
2to the Department or to the Nationwide Multistate Licensing
3System and Registry, which may include certified check, money
4order, credit card, or other forms of payment authorized by
5the Secretary. The Nationwide Multistate Licensing System and
6Registry shall be authorized to collect and process
7transaction fees or other fees related to licensees or other
8persons subject to the Act.
9    (f) Applicants and licensees shall be subject to the
10following fees:
11        (1) For each application for an initial license, the
12    applicant shall pay a nonrefundable initial application
13    fee of $1,000 and a nonrefundable background investigation
14    fee of $800.
15        (2) For each application for an annual renewal of a
16    license, the applicant shall pay a nonrefundable renewal
17    fee of $1,000. For each application for a renewal of an
18    inactive license, the applicant shall pay the
19    nonrefundable renewal fee of $1,000 and an additional
20    nonrefundable reactivation fee equal to the renewal fee.
21        (3) The licensee shall pay a nonrefundable fee of
22    $1,000 for each notice of change of ownership or control
23    filed.
24        (4) The licensee shall pay a nonrefundable fee of $50
25    for each notice of change of officers or directors or
26    change of name or address filed.

 

 

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1        (5) Any licensee or person who delivers a check or
2    other payment to the Department that is returned unpaid by
3    the financial institution upon which it is drawn shall pay
4    to the Department, in addition to the amount already owed,
5    a fee of $50.
6        (6) Time expended in the conduct of any examination of
7    the affairs of any licensee or its affiliates shall be
8    billed by the Department at a rate of $510 per examiner
9    day. Examination fees shall be billed following completion
10    of the examination and shall be paid within 30 days after
11    receipt of the billing.
12        (7) If out-of-state travel occurs in the conduct of
13    any examination, the licensee shall make arrangements to
14    reimburse the Department for all charges for services,
15    including travel expenses, including airfare, hotel and
16    per diem expenses incurred by the employee. These expenses
17    are to be in accord with applicable travel regulations
18    published by the Department of Central Management Services
19    and approved by the Governor's Travel Control Board.
20        (8) Each licensee shall pay to the Department its pro
21    rata share of the cost for administration of the Act that
22    exceeds other fees listed in this Section, as estimated by
23    the Department, for the current year and any deficit
24    actually incurred in the administration of the Act in
25    prior years. The calculation method for each licensee's
26    pro rata share shall be established by rule.

 

 

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1    (g) Beginning one year after the effective date of this
2Act, the Department may, by rule, amend the fees set forth in
3this Section.
 
4    Section 100. Secretary of Financial and Professional
5Regulation; functions and powers. The functions and powers of
6the Secretary shall include the following:
7        (1) to issue or refuse to issue any license as
8    provided by this Act;
9        (2) to revoke or suspend for cause any license issued
10    under this Act;
11        (3) to keep records of all licenses issued under this
12    Act;
13        (4) to receive, consider, investigate, and act upon
14    complaints made by any person in connection with any
15    licensed consumer legal funding company in this State or
16    unlicensed consumer legal funding activity;
17        (5) to prescribe the forms of and receive:
18            (A) applications for licenses; and
19            (B) all reports and all books and records required
20        to be made by any licensee under this Act, including
21        annual audited financial statements and annual reports
22        of consumer legal funding activity;
23        (6) to subpoena documents and witnesses and compel
24    their attendance and production, to administer oaths, and
25    to require the production of any books, papers, or other

 

 

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1    materials relevant to any inquiry authorized by this Act;
2        (7) to issue orders against any person:
3            (A) if the Secretary has reasonable cause to
4        believe that an unsafe, unsound, or unlawful practice
5        has occurred, is occurring, or is about to occur;
6            (B) if any person has violated, is violating, or
7        is about to violate any law, rule, or written
8        agreement with the Secretary; or
9            (C) for the purpose of administering the
10        provisions of this Act and any rule adopted in
11        accordance with this Act;
12        (8) to address any inquiries to any licensee, or the
13    officers of the licensee, in relation to the licensee's
14    activities and conditions or any other matter connected
15    with its affairs, and it shall be the duty of any licensee
16    or person so addressed to promptly reply in writing to
17    those inquiries; the Secretary may also require reports
18    from any licensee at any time the Secretary chooses;
19        (9) to examine the books and records of every licensee
20    under this Act;
21        (10) to enforce the provisions of this Act;
22        (11) to levy fees, fines, and charges for services
23    performed in administering this Act; the aggregate of all
24    fees collected by the Secretary on and after the effective
25    date of this Act shall be paid promptly after receipt,
26    accompanied by a detailed statement of fees paid, into the

 

 

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1    Financial Institutions Fund; the amounts deposited into
2    that Fund shall be used for the ordinary and contingent
3    expenses of the Department; nothing in this Act shall
4    prevent the continuation of the practice of paying
5    expenses involving salaries, retirement, social security,
6    and State-paid insurance of State officers by
7    appropriation from the General Revenue Fund or any other
8    fund;
9        (12) to appoint examiners, supervisors, experts, and
10    special assistants as needed to effectively and
11    efficiently administer this Act;
12        (13) to conduct hearings for the purpose of:
13            (A) appeals of orders of the Secretary;
14            (B) suspensions or revocations of licenses;
15            (C) fining of licensees or unlicensed persons or
16        entities;
17            (D) investigating:
18                (i) complaints against licensees or unlicensed
19            persons or entities; or
20                (ii) annual gross delinquency rates; and
21            (E) carrying out the purposes of this Act;
22        (14) to exercise visitorial power over a licensee;
23        (15) to enter into cooperative agreements with state
24    regulatory authorities of other states to provide for
25    examination of corporate offices or branches of those
26    states and to accept reports of those examinations;

 

 

10200SB1099ham001- 31 -LRB102 04923 BMS 37596 a

1        (16) to assign an examiner or examiners to monitor the
2    affairs of a licensee with whatever frequency the
3    Secretary determines appropriate and to charge the
4    licensee for reasonable and necessary expenses of the
5    Secretary if in the opinion of the Secretary an emergency
6    exists or appears likely to occur;
7        (17) to impose civil penalties of up to $50 per day
8    against a licensee for failing to respond to a regulatory
9    request or reporting requirement; and
10        (18) to enter into agreements in connection with the
11    Nationwide Multistate Licensing System and Registry.
 
12    Section 105. Other businesses.
13    (a) Upon application by the licensee and payment of a $500
14fee, the Secretary may approve the conduct of other businesses
15not specifically permitted by this Act in the licensee's place
16of business, unless the Secretary finds that such conduct will
17conceal or facilitate evasion or violation of this Act. The
18Secretary's approval shall be in writing and shall describe
19the other businesses which may be conducted in the licensed
20office.
21    (b) The Department shall adopt and enforce such reasonable
22rules and regulations for the conduct of business under this
23Act in the same office with other businesses as may be
24necessary to prevent evasions or violations of this Act. The
25Secretary may investigate any business conducted in the

 

 

10200SB1099ham001- 32 -LRB102 04923 BMS 37596 a

1licensed office.
 
2    Section 110. Financial Institution Fund. All moneys
3received by the Secretary under this Act in conjunction with
4the provisions relating to consumer legal funding companies
5shall be paid into the Financial Institution Fund and all
6expenses incurred by the Secretary under this Act in
7conjunction with the provisions relating to consumer legal
8funding companies shall be paid from the Financial Institution
9Fund.
 
10    Section 115. Examination; prohibited activities.
11    (a) The business affairs of a licensee under this Act
12shall be examined for compliance with this Act as often as the
13Secretary deems necessary and proper. The Department may adopt
14rules with respect to the frequency and manner of examination.
15The Secretary shall appoint a suitable person to perform an
16examination. The Secretary and his or her appointees may
17examine the entire books, records, documents, and operations
18of each licensee and its subsidiary, affiliate, or agent, and
19may examine any of the licensee's or its subsidiary's,
20affiliate's, or agent's officers, directors, employees, and
21agents under oath.
22    (b) The Secretary shall prepare a sufficiently detailed
23report of each licensee's examination, shall issue a copy of
24the report to each licensee's principals, officers, or

 

 

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1directors, and shall take appropriate steps to ensure
2correction of violations of this Act.
3    (c) Affiliates of a licensee shall be subject to
4examination by the Secretary on the same terms as the
5licensee, but only when reports from or examination of a
6licensee provides for documented evidence of unlawful activity
7between a licensee and affiliate benefiting, affecting, or
8deriving from the activities regulated by this Act.
9    (d) The expenses of any examination of the licensee and
10affiliates shall be borne by the licensee and assessed by the
11Secretary as may be established by rule.
12    (e) Upon completion of the examination, the Secretary
13shall issue a report to the licensee. All confidential
14supervisory information, including the examination report and
15the work papers of the report, shall belong to the Secretary's
16office and may not be disclosed to anyone other than the
17licensee, law enforcement officials or other regulatory
18agencies that have an appropriate regulatory interest as
19determined by the Secretary, or to a party presenting a lawful
20subpoena to the Department. The Secretary may, through the
21Attorney General, immediately appeal to the court of
22jurisdiction the disclosure of such confidential supervisory
23information and seek a stay of the subpoena pending the
24outcome of the appeal. Reports required of licensees by the
25Secretary under this Act and results of examinations performed
26by the Secretary under this Act shall be the property of only

 

 

10200SB1099ham001- 34 -LRB102 04923 BMS 37596 a

1the Secretary, but may be shared with the licensee. Access
2under this Act to the books and records of each licensee shall
3be limited to the Secretary and his or her agents as provided
4in this Act and to the licensee and its authorized agents and
5designees. No other person shall have access to the books and
6records of a licensee under this Act. Any person upon whom a
7demand for production of confidential supervisory information
8is made, whether by subpoena, order, or other judicial or
9administrative process, must withhold production of the
10confidential supervisory information and must notify the
11Secretary of the demand, at which time the Secretary is
12authorized to intervene for the purpose of enforcing the
13limitations of this Section or seeking the withdrawal or
14termination of the attempt to compel production of the
15confidential supervisory information. The Secretary may impose
16any conditions and limitations on the disclosure of
17confidential supervisory information that are necessary to
18protect the confidentiality of that information. Except as
19authorized by the Secretary, no person obtaining access to
20confidential supervisory information may make a copy of the
21confidential supervisory information. The Secretary may
22condition a decision to disclose confidential supervisory
23information on entry of a protective order by the court or
24administrative tribunal presiding in the particular case or on
25a written agreement of confidentiality. In a case in which a
26protective order or agreement has already been entered between

 

 

10200SB1099ham001- 35 -LRB102 04923 BMS 37596 a

1parties other than the Secretary, the Secretary may
2nevertheless condition approval for release of confidential
3supervisory information upon the inclusion of additional or
4amended provisions in the protective order. The Secretary may
5authorize a party who obtained the records for use in one case
6to provide them to another party in another case, subject to
7any conditions that the Secretary may impose on either or both
8parties. The requester shall promptly notify other parties to
9a case of the release of confidential supervisory information
10obtained and, upon entry of a protective order, shall provide
11copies of confidential supervisory information to the other
12parties.
 
13    Section 120. Judicial review. All final administrative
14decisions of the Department under this Act, all amendments and
15modifications of final administrative decisions, and any rules
16adopted by the Department pursuant to this Act shall be
17subject to judicial review pursuant to the provisions of the
18Administrative Review Law.
 
19    Section 125. Subpoena power.
20    (a) The Secretary shall have the power to issue and to
21serve subpoenas and subpoenas duces tecum to compel the
22attendance of witnesses and the production of all books,
23accounts, records, and other documents and materials relevant
24to an examination or investigation. The Secretary, or his or

 

 

10200SB1099ham001- 36 -LRB102 04923 BMS 37596 a

1her duly authorized representative, shall have power to
2administer oaths and affirmations to any person.
3    (b) In the event of noncompliance with a subpoena or
4subpoena duces tecum issued or caused to be issued by the
5Secretary, the Secretary may, through the Attorney General,
6petition the circuit court of the county in which the person
7subpoenaed resides or has its principal place of business for
8an order requiring the subpoenaed person to appear and testify
9and to produce such books, accounts, records, and other
10documents as are specified in the subpoena duces tecum. The
11court may grant injunctive relief restraining the person from
12advertising, promoting, soliciting, entering into, offering to
13enter into, continuing, or completing any consumer legal
14funding transaction. The court may grant other relief,
15including, but not limited to, the restraint, by injunction or
16appointment of a receiver, of any transfer, pledge,
17assignment, or other disposition of the person's assets or any
18concealment, alteration, destruction, or other disposition of
19books, accounts, records, or other documents and materials as
20the court deems appropriate, until the person has fully
21complied with the subpoena or subpoena duces tecum and the
22Secretary has completed an investigation or examination.
23    (c) If it appears to the Secretary that the compliance
24with a subpoena or subpoena duces tecum issued or caused to be
25issued by the Secretary pursuant to this Section is essential
26to an investigation or examination, the Secretary may, in

 

 

10200SB1099ham001- 37 -LRB102 04923 BMS 37596 a

1addition to the other remedies provided for in this Act,
2through the Attorney General, apply for relief to the circuit
3court of the county in which the subpoenaed person resides or
4has its principal place of business. The court shall thereupon
5direct the issuance of an order against the subpoenaed person
6requiring sufficient bond conditioned on compliance with the
7subpoena or subpoena duces tecum. The court shall cause to be
8endorsed on the order a suitable amount of bond or payment
9pursuant to which the person named in the order shall be freed,
10having a due regard to the nature of the case.
11    (d) In addition, the Secretary may, through the Attorney
12General, seek a writ of attachment or an equivalent order from
13the circuit court having jurisdiction over the person who has
14refused to obey a subpoena, who has refused to give testimony,
15or who has refused to produce the matters described in the
16subpoena duces tecum.
 
17    Section 130. Report required of licensee. In addition to
18any reports required under this Act, every licensee shall file
19any other report that the Secretary requires.
 
20    Section 135. Suspension; revocation of licenses; fines.
21    (a) Upon written notice to a licensee, the Secretary may
22suspend or revoke any license issued pursuant to this Act if,
23in the notice, he or she makes a finding of one or more of the
24following:

 

 

10200SB1099ham001- 38 -LRB102 04923 BMS 37596 a

1        (1) that through separate acts or an act or a course of
2    conduct, the licensee has violated any provisions of this
3    Act, any rule adopted by the Department, or any other law,
4    rule, or regulation of this State or the United States;
5        (2) that any fact or condition exists that, if it had
6    existed at the time of the original application for the
7    license, would have warranted the Secretary in refusing
8    originally to issue the license; or
9        (3) that if a licensee is other than an individual,
10    any ultimate equitable owner, officer, director, or member
11    of the licensed partnership, association, corporation, or
12    other entity has acted or failed to act in a way that would
13    be cause for suspending or revoking a license to that
14    party as an individual.
15    (b) No license shall be suspended or revoked, except as
16provided in this Section, nor shall any licensee be fined
17without notice of his or her right to a hearing as provided in
18subsection (n).
19    (c) The Secretary, on good cause shown that an emergency
20exists, may suspend any license for a period not exceeding 180
21days, pending investigation.
22    (d) The provisions of subsection (d) of Section 95 shall
23not affect a licensee's civil or criminal liability for acts
24committed before surrender of a license.
25    (e) No revocation, suspension, or surrender of any license
26shall impair or affect the obligation of any preexisting

 

 

10200SB1099ham001- 39 -LRB102 04923 BMS 37596 a

1lawful contract between the licensee and any person.
2     (f) Every license issued under this Act shall remain in
3force and effect until the license expires without renewal, is
4surrendered, is revoked, or is suspended in accordance with
5the provisions of this Act, but the Secretary shall have
6authority to reinstate a suspended license or to issue a new
7license to a licensee whose license has been revoked if no fact
8or condition then exists which would have warranted the
9Secretary in refusing originally to issue that license under
10this Act.
11    (g) Whenever the Secretary revokes or suspends a license
12issued pursuant to this Act or fines a licensee under this Act,
13he or she shall execute a written order to that effect. The
14Secretary shall serve a copy of the order upon the licensee.
15Any such order may be reviewed in the manner provided by
16Section 170.
17    (h) If the Secretary finds any person in violation of the
18grounds set forth in subsection (p), he or she may enter an
19order imposing one or more of the following penalties:
20        (1) revocation of license;
21        (2) suspension of a license subject to reinstatement
22    upon satisfying all reasonable conditions the Secretary
23    may specify;
24        (3) placement of the licensee or applicant on
25    probation for a period of time and subject to all
26    reasonable conditions as the Secretary may specify;

 

 

10200SB1099ham001- 40 -LRB102 04923 BMS 37596 a

1        (4) issuance of a reprimand;
2        (5) imposition of a fine not to exceed $25,000 for
3    each count of separate offense; except that a fine may be
4    imposed that shall not exceed $75,000 for each separate
5    count of offense in violation of paragraph (2) of
6    subsection (i);
7        (6) denial of a license; or
8        (7) restitution for the benefit of consumers.
9    (i) The Secretary may, after 10 days' notice by certified
10mail to the licensee at the address set forth in the license
11stating the contemplated action and in general the grounds
12therefor, fine the licensee an amount not exceeding $10,000
13per violation or revoke or suspend any license issued under
14this Act if he or she finds that:
15        (1) the licensee has failed to comply with any
16    provision of this Act, any rule adopted pursuant to this
17    Act, or any order, decision, finding, or direction of the
18    Secretary lawfully made pursuant to the authority of this
19    Act; or
20        (2) any fact or condition exists which, if it had
21    existed at the time of the original application for the
22    license, clearly would have warranted the Secretary in
23    refusing to issue the license.
24    (j) The Secretary may fine, suspend, or revoke only the
25particular license with respect to which grounds for the fine,
26revocation, or suspension occur or exist, but if the Secretary

 

 

10200SB1099ham001- 41 -LRB102 04923 BMS 37596 a

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

 

 

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1    for a hearing unless otherwise agreed to by the parties.
2        (2) The hearing shall be held at the time and place
3    designated by the Secretary. The Secretary and any
4    administrative law judge designated by him or her shall
5    have the power to administer oaths and affirmations,
6    subpoena witnesses and compel their attendance, take
7    evidence, and require the production of books, papers,
8    correspondence, and other records or information that he
9    or she considers relevant or material to the inquiry.
10    (o) The costs of administrative hearings conducted
11pursuant to this Section shall be paid by the licensee.
12    (p) The following acts shall constitute grounds for which
13the disciplinary actions specified in subsection (h) may be
14taken:
15        (1) being convicted or found guilty, regardless of
16    pendency of an appeal, of a crime in any jurisdiction that
17    involves fraud, dishonest dealing, or any other act of
18    moral turpitude;
19        (2) fraud, misrepresentation, deceit, or negligence in
20    any relation to any consumer legal funding;
21        (3) a material or intentional misstatement of fact on
22    an initial or renewal application;
23        (4) insolvency or filing under any provision of the
24    United States Bankruptcy Code as a debtor;
25        (5) failure to account or deliver to any person any
26    property, such as any money, fund, deposit, check, draft,

 

 

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1    or other document or thing of value, that has come into his
2    or her hands and that is not his or her property or that he
3    or she is not in law or equity entitled to retain, under
4    the circumstances and at the time which has been agreed
5    upon or is required by law, or, in the absence of a fixed
6    time, upon demand of the person entitled to such
7    accounting and delivery;
8        (6) failure to disburse funds in accordance with
9    agreements;
10        (7) having a license, or the equivalent, to practice
11    any profession or occupation revoked, suspended, or
12    otherwise acted against, including the denial of licensure
13    by a licensing authority of this State or another state,
14    territory, or country, for fraud, dishonest dealing, or
15    any other act of moral turpitude;
16        (8) failure to comply with an order of the Secretary
17    or rule adopted under the provisions of this Act;
18        (9) engaging in activities regulated by this Act
19    without a current, active license unless specifically
20    exempted by this Act;
21        (10) failure to pay in a timely manner any fee,
22    charge, or fine under this Act;
23        (11) failure to maintain, preserve, and keep available
24    for examination all books, accounts, or other documents
25    required by the provisions of this Act and the rules of the
26    Department;

 

 

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1        (12) refusing, obstructing, evading, or unreasonably
2    delaying an investigation, information request, or
3    examination authorized under this Act, or refusing,
4    obstructing, evading, or unreasonably delaying compliance
5    with the Secretary's subpoena or subpoena duces tecum;
6        (13) failure to comply with or a violation of any
7    provision of this Act; and
8        (14) any unfair, deceptive, or abusive business
9    practice.
10    (q) A licensee shall be subject to the disciplinary
11actions specified in this Act for violations of subsection (i)
12by any officer, director, shareholder, joint venture, partner,
13ultimate equitable owner, or employee of the licensee.
14    (r) A licensee shall be subject to suspension or
15revocation for unauthorized employee actions only if there is
16a pattern of repeated violations by employees, the licensee
17has knowledge of the violations, or there is substantial harm
18to a consumer. A licensee may be subject to fine for employee
19actions, whether authorized or unauthorized, whether there is
20a pattern of repeated violations or no pattern of repeated
21violations.
22    (s) Any licensee may submit an application to surrender a
23license, but, upon the Secretary approving the surrender, it
24shall not affect the licensee's civil or criminal liability
25for acts committed before surrender or entitle the licensee to
26a return of any part of the license fee.
 

 

 

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1    Section 140. Investigation of complaints. The Secretary
2may receive, record, and investigate complaints and inquiries
3made by any person concerning this Act and any licensees under
4this Act. Each licensee shall open its books, records,
5documents, and offices wherever situated to the Secretary or
6his or her appointees as needed to facilitate such
7investigations.
 
8    Section 145. Additional investigation and examination
9authority. In addition to any authority allowed under this
10Act, the Secretary shall have the authority to conduct
11investigations and examinations as follows:
12        (1) For purposes of initial licensing, license
13    renewal, license suspension, license conditioning, license
14    revocation or termination, or general or specific inquiry
15    or investigation to determine compliance with this Act,
16    the Secretary shall have the authority to access, receive,
17    and use any books, accounts, records, files, documents,
18    information, or evidence, including, but not limited to,
19    the following:
20            (A) criminal, civil, and administrative history
21        information, including nonconviction data as specified
22        in the Criminal Code of 2012;
23            (B) personal history and experience information,
24        including independent credit reports obtained from a

 

 

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1        consumer reporting agency described in Section 603(p)
2        of the federal Fair Credit Reporting Act; and
3            (C) any other documents, information, or evidence
4        the Secretary deems relevant to the inquiry or
5        investigation, regardless of the location, possession,
6        control, or custody of the documents, information, or
7        evidence.
8        (2) For the purposes of investigating violations or
9    complaints arising under this Act or for the purposes of
10    examination, the Secretary may review, investigate, or
11    examine any licensee, individual, or person subject to
12    this Act as often as necessary in order to carry out the
13    purposes of this Act. The Secretary may direct, subpoena,
14    or order the attendance of and examine under oath all
15    persons whose testimony may be required about the consumer
16    legal fundings or the business or subject matter of any
17    such examination or investigation, and may direct,
18    subpoena, or order the person to produce books, accounts,
19    records, files, and any other documents the Secretary
20    deems relevant to the inquiry.
21        (3) Each licensee, individual, or person subject to
22    this Act shall make available to the Secretary upon
23    request the books and records relating to the operations
24    of the licensee, individual, or person subject to this
25    Act. The Secretary shall have access to those books and
26    records and may interview the officers, principals,

 

 

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1    employees, independent contractors, agents, and customers
2    of the licensee, individual, or person subject to this Act
3    concerning their business.
4        (4) Each licensee, individual, or person subject to
5    this Act shall make or compile reports or prepare other
6    information as directed by the Secretary in order to carry
7    out the purposes of this Section, including, but not
8    limited to:
9            (A) accounting compilations;
10            (B) information lists and data concerning consumer
11        legal fundings in a format prescribed by the
12        Secretary; or
13            (C) other information deemed necessary to carry
14        out the purposes of this Section.
15        (5) In making any examination or investigation
16    authorized by this Act, the Secretary may control access
17    to any documents and records of the licensee or person
18    under examination or investigation. The Secretary may take
19    possession of the documents and records or place a person
20    in exclusive charge of the documents and records in the
21    place where they are usually kept. During the period of
22    control, no person shall remove or attempt to remove any
23    of the documents or records, except pursuant to a court
24    order or with the consent of the Secretary. Unless the
25    Secretary has reasonable grounds to believe the documents
26    or records of the licensee have been or are at risk of

 

 

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1    being altered or destroyed for purposes of concealing a
2    violation of this Act, the licensee or owner of the
3    documents and records shall have access to the documents
4    or records as necessary to conduct its ordinary business
5    affairs.
6        (6) In order to carry out the purposes of this
7    Section, the Secretary may:
8            (A) retain attorneys, accountants, or other
9        professionals and specialists as examiners, auditors,
10        or investigators to conduct or assist in the conduct
11        of examinations or investigations;
12            (B) enter into agreements or relationships with
13        other government officials or regulatory associations
14        in order to improve efficiencies and reduce regulatory
15        burden by sharing resources, standardized or uniform
16        methods or procedures, and documents, records,
17        information, or evidence obtained under this Section;
18            (C) use, hire, contract, or employ publicly or
19        privately available analytical systems, methods, or
20        software to examine or investigate the licensee,
21        individual, or person subject to this Act;
22            (D) accept and rely on examination or
23        investigation reports made by other government
24        officials within or outside this State; or
25            (E) accept audit reports made by an independent
26        certified public accountant for the licensee,

 

 

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1        individual, or person subject to this Act in the
2        course of that part of the examination covering the
3        same general subject matter as the audit and may
4        incorporate the audit report in the report of the
5        examination, report of investigation, or other writing
6        of the Secretary.
7        (7) The authority of this Section shall remain in
8    effect if a licensee, individual, or person subject to
9    this Act acts or claims to act under any licensing or
10    registration law of this State or claims to act without
11    the authority.
12        (8) No licensee, individual, or person subject to
13    investigation or examination under this Section may
14    knowingly withhold, abstract, remove, mutilate, destroy,
15    or secrete any books, records, computer records, or other
16    information.
 
17    Section 150. Confidential information. In hearings
18conducted under this Act, information presented into evidence
19that was acquired by the licensee when serving any individual
20in connection with a consumer legal funding, including all
21financial information of the individual, shall be deemed
22strictly confidential and shall be made available only as part
23of the record of a hearing under this Act or otherwise (i) when
24the record is required, in its entirety, for purposes of
25judicial review or (ii) upon the express written consent of

 

 

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1the individual served, or in the case of his or her death or
2disability, the consent of his or her personal representative.
 
3    Section 155. Information sharing. In order to promote more
4effective regulation and reduce regulatory burden through
5supervisory information sharing:
6        (1) Except as otherwise provided in any federal law or
7    State law regarding the privacy or confidentiality of any
8    information or material provided to the Nationwide
9    Mortgage Licensing System and Registry, any privilege
10    arising under federal or State law, including the rules of
11    any federal or State court, with respect to such
12    information or material shall continue to apply to
13    information or material after the information or material
14    has been disclosed to the Nationwide Mortgage Licensing
15    System and Registry. The information and material may be
16    shared with all State and federal regulatory officials
17    with relevant oversight authority without the loss of
18    privilege or the loss of confidentiality protections
19    provided by federal law or State law.
20        (2) The Secretary is authorized to enter into
21    agreements or sharing arrangements with other governmental
22    agencies, the Conference of State Bank Supervisors, or
23    other associations representing governmental agencies as
24    established by rule or order of the Department. The
25    sharing of confidential supervisory information or any

 

 

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1    information or material described in paragraph (1)
2    pursuant to an agreement or sharing arrangement shall not
3    result in the loss of privilege or the loss of
4    confidentiality protections provided by federal law or
5    State law.
6        (3) Information or material that is subject to a
7    privilege or confidentiality under paragraph (1) shall not
8    be subject to the following:
9            (A) disclosure under any State law governing the
10        disclosure to the public of information held by an
11        officer or an agency of the State; or
12            (B) subpoena, discovery, or admission into
13        evidence in any private civil action or administrative
14        process, unless with respect to any privilege held by
15        the Nationwide Mortgage Licensing System and Registry
16        with respect to the information or material, the
17        person to whom such information or material pertains
18        waives, in whole or in part, in the discretion of that
19        person, that privilege.
20        (4) Any other law relating to the disclosure of
21    confidential supervisory information or any information or
22    material described in paragraph (1) that is inconsistent
23    with paragraph (1) shall be superseded by the requirements
24    of this Section to the extent the other law provides less
25    confidentiality or a weaker privilege.
 

 

 

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1    Section 160. Reports of violations. Any person licensed
2under this Act or any other person may report to the Secretary
3any information to show that a person subject to this Act is or
4may be in violation of this Act. A person who files a report
5with the Department that a licensee is engaged in one or more
6violations pursuant to this Act shall not be the subject of
7disciplinary action by the Department, unless the Department
8determines, by a preponderance of the evidence available to
9the Department, that the reporting person knowingly and
10willingly participated in the violation that was reported.
 
11    Section 165. Rules of the Department.
12    (a) In addition to such powers as may be prescribed by this
13Act, the Department is hereby authorized and empowered to
14adopt rules consistent with the purposes of this Act,
15including, but not limited to:
16        (1) rules in connection with the activities of
17    licensees or unlicensed consumer legal funding companies
18    as may be necessary and appropriate for the protection of
19    consumers in this State;
20        (2) rules as may be necessary and appropriate to
21    define improper or fraudulent business practices in
22    connection with the activities of licensees in servicing
23    consumer legal fundings;
24        (3) rules that define the terms used in this Act and as
25    may be necessary and appropriate to interpret and

 

 

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1    implement the provisions of this Act; and
2        (4) rules as may be necessary for the enforcement and
3    administration of this Act.
4    (b) The Secretary is hereby authorized and empowered to
5make specific rulings, demands, and findings that he or she
6deems necessary for the proper conduct of the consumer legal
7funding company industry.
 
8    Section 170. Appeal and review.
9    (a) The Department may, in accordance with the Illinois
10Administrative Procedure Act, adopt rules to provide for
11review within the Department of the Secretary's decisions
12affecting the rights of persons or entities under this Act.
13The review shall provide for, at a minimum:
14        (1) appointment of a hearing officer other than a
15    regular employee of the Department;
16        (2) appropriate procedural rules, specific deadlines
17    for filings, and standards of evidence and of proof; and
18        (3) provision for apportioning costs among parties to
19    the appeal.
20    (b) All final agency determinations of appeals to
21decisions of the Secretary may be reviewed in accordance with
22and under the provisions of the Administrative Review Law.
23Appeals from all final orders and judgments entered by a court
24in review of any final administrative decision of the
25Secretary or of any final agency review of a decision of the

 

 

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1Secretary may be taken as in other civil cases.
 
2    Section 175. Collection of compensation. Unless exempt
3from licensure under this Act, no person engaged in or
4offering to engage in any act or service for which a license
5under this Act is required may bring or maintain any action in
6any court of this State to collect compensation for the
7performance of the licensable services without alleging and
8proving that he or she was the holder of a valid consumer legal
9funding company license under this Act at all times during the
10performance of those services.
 
11    Section 180. Cease and desist order.
12    (a) The Secretary may issue a cease and desist order to any
13licensee or other person doing business without the required
14license, when in the opinion of the Secretary the licensee or
15other person is violating or is about to violate any provision
16of this Act or any rule or requirement imposed in writing by
17the Department as a condition of granting any authorization
18permitted by this Act. The cease and desist order permitted by
19this Section may be issued before a hearing.
20    (b) The Secretary shall serve notice of his or her action,
21including, but not limited to, a statement of the reasons for
22the action, either personally or by certified mail. Service by
23certified mail shall be deemed completed when the notice is
24deposited in the U.S. Mail.

 

 

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1    (c) Within 10 days after service of the cease and desist
2order, the licensee or other person may request a hearing in
3writing. The Secretary shall schedule a hearing within 90 days
4after the request for a hearing unless otherwise agreed to by
5the parties.
6    (d) If it is determined that the Secretary had the
7authority to issue the cease and desist order, he or she may
8issue such orders as may be reasonably necessary to correct,
9eliminate, or remedy the conduct.
10    (e) The powers vested in the Secretary by this Section are
11in addition to any and all other powers and remedies vested in
12the Secretary by law, and nothing in this Section shall be
13construed as requiring that the Secretary shall employ the
14power conferred in this subsection instead of or as a
15condition precedent to the exercise of any other power or
16remedy vested in the Secretary.
 
17    Section 185. Injunction. The Secretary may, through the
18Attorney General, maintain an action in the name of the people
19of the State of Illinois and may apply for an injunction in the
20circuit court to enjoin a person from violating this Act or
21engaging in unlicensed consumer legal funding activity.
 
22    Section 190. Pledge or sale of consumer legal funding.
23    (a) No licensee or other person shall pledge, hypothecate,
24or sell a consumer legal funding entered into under the

 

 

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1provisions of this Act by a consumer except to another
2licensee under this Act, a bank, savings bank, savings and
3loan association, or credit union created under the laws of
4this State or the United States, or to other persons or
5entities authorized by the Secretary in writing. Sales of such
6notes by licensees under this Act or other persons shall be
7made by agreement in writing and shall authorize the Secretary
8to examine the consumer legal funding documents so
9hypothecated, pledged, or sold.
10    (b) A consumer may pay the original consumer legal funding
11company until he or she receives notification of assignment of
12rights to payment pursuant to a consumer legal funding and
13that payment is to be made to the assignee. A notification
14which does not reasonably identify the rights assigned is
15ineffective. If requested by the consumer, the assignee shall
16seasonably furnish reasonable proof that the assignment has
17been made and, unless the assignee does so, the consumer may
18pay the original consumer legal funding company.
19    (c) An assignee of the rights of the consumer legal
20funding company is subject to all claims and defenses of the
21consumer against the consumer legal funding company arising
22from the consumer legal funding. A claim or defense of a
23consumer may be asserted against the assignee under this
24Section only if the consumer has made a good faith attempt to
25obtain satisfaction from the consumer legal funding company
26with respect to the claim or defense and then only to the

 

 

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1extent of the amount owing to the assignee with respect to the
2consumer legal funding company claim or defense that arose at
3the time the assignee has notice of the claim or defense.
4Notice of the claim or defense may be given before the attempt
5specified in this subsection. Oral notice is effective unless
6the assignee requests written confirmation when or promptly
7after oral notice is given and the consumer fails to give the
8assignee written confirmation within the period of time, not
9less than 14 days, stated to the consumer when written
10confirmation is requested. An agreement may not limit or waive
11the claims or defenses of a consumer under this Section.
 
12    Section 195. Penalties. Any person who engages in business
13as a licensee without the license required by this Act commits
14a Class 4 felony.
 
15    Section 200. Civil action. A claim of violation of this
16Act may be asserted in a civil action. Additionally, a
17prevailing consumer may be awarded reasonable attorney's fees
18and court costs.
 
19    Section 205. Evasion. An agreement, contract, or
20transaction that is structured to evade the definition of
21consumer legal funding shall be deemed a consumer legal
22funding for the purposes of this Act.
 

 

 

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1    Section 210. Severability. If any clause, sentence,
2provision, or part of this Act or its application to any person
3or circumstance is adjudged to be unconstitutional or invalid
4for any reason by any court of competent jurisdiction, that
5judgment shall not impair, affect, or invalidate other
6provisions or applications of this Act, which shall remain in
7full force and effect thereafter.
 
8    Section 905. The Interest Act is amended by changing
9Section 4 as follows:
 
10    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
11    Sec. 4. General interest rate.
12    (1) Except as otherwise provided in Section 4.05, in all
13written contracts it shall be lawful for the parties to
14stipulate or agree that an annual percentage rate of 9%, or any
15less sum, shall be taken and paid upon every $100 of money
16loaned or in any manner due and owing from any person to any
17other person or corporation in this state, and after that rate
18for a greater or less sum, or for a longer or shorter time,
19except as herein provided.
20    The maximum rate of interest that may lawfully be
21contracted for is determined by the law applicable thereto at
22the time the contract is made. Any provision in any contract,
23whether made before or after July 1, 1969, which provides for
24or purports to authorize, contingent upon a change in the

 

 

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1Illinois law after the contract is made, any rate of interest
2greater than the maximum lawful rate at the time the contract
3is made, is void.
4    It is lawful for a state bank or a branch of an
5out-of-state bank, as those terms are defined in Section 2 of
6the Illinois Banking Act, to receive or to contract to receive
7and collect interest and charges at any rate or rates agreed
8upon by the bank or branch and the borrower. It is lawful for a
9savings bank chartered under the Savings Bank Act or a savings
10association chartered under the Illinois Savings and Loan Act
11of 1985 to receive or contract to receive and collect interest
12and charges at any rate agreed upon by the savings bank or
13savings association and the borrower.
14    It is lawful to receive or to contract to receive and
15collect interest and charges as authorized by this Act and as
16authorized by the Consumer Installment Loan Act, the Payday
17Loan Reform Act, the Retail Installment Sales Act, the
18Illinois Financial Services Development Act, or the Motor
19Vehicle Retail Installment Sales Act, or the Consumer Legal
20Funding Act. It is lawful to charge, contract for, and receive
21any rate or amount of interest or compensation, except as
22otherwise provided in the Predatory Loan Prevention Act, with
23respect to the following transactions:
24        (a) Any loan made to a corporation;
25        (b) Advances of money, repayable on demand, to an
26    amount not less than $5,000, which are made upon warehouse

 

 

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1    receipts, bills of lading, certificates of stock,
2    certificates of deposit, bills of exchange, bonds or other
3    negotiable instruments pledged as collateral security for
4    such repayment, if evidenced by a writing;
5        (c) Any credit transaction between a merchandise
6    wholesaler and retailer; any business loan to a business
7    association or copartnership or to a person owning and
8    operating a business as sole proprietor or to any persons
9    owning and operating a business as joint venturers, joint
10    tenants or tenants in common, or to any limited
11    partnership, or to any trustee owning and operating a
12    business or whose beneficiaries own and operate a
13    business, except that any loan which is secured (1) by an
14    assignment of an individual obligor's salary, wages,
15    commissions or other compensation for services, or (2) by
16    his household furniture or other goods used for his
17    personal, family or household purposes shall be deemed not
18    to be a loan within the meaning of this subsection; and
19    provided further that a loan which otherwise qualifies as
20    a business loan within the meaning of this subsection
21    shall not be deemed as not so qualifying because of the
22    inclusion, with other security consisting of business
23    assets of any such obligor, of real estate occupied by an
24    individual obligor solely as his residence. The term
25    "business" shall be deemed to mean a commercial,
26    agricultural or industrial enterprise which is carried on

 

 

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1    for the purpose of investment or profit, but shall not be
2    deemed to mean the ownership or maintenance of real estate
3    occupied by an individual obligor solely as his residence;
4        (d) Any loan made in accordance with the provisions of
5    Subchapter I of Chapter 13 of Title 12 of the United States
6    Code, which is designated as "Housing Renovation and
7    Modernization";
8        (e) Any mortgage loan insured or upon which a
9    commitment to insure has been issued under the provisions
10    of the National Housing Act, Chapter 13 of Title 12 of the
11    United States Code;
12        (f) Any mortgage loan guaranteed or upon which a
13    commitment to guaranty has been issued under the
14    provisions of the Veterans' Benefits Act, Subchapter II of
15    Chapter 37 of Title 38 of the United States Code;
16        (g) Interest charged by a broker or dealer registered
17    under the Securities Exchange Act of 1934, as amended, or
18    registered under the Illinois Securities Law of 1953,
19    approved July 13, 1953, as now or hereafter amended, on a
20    debit balance in an account for a customer if such debit
21    balance is payable at will without penalty and is secured
22    by securities as defined in Uniform Commercial
23    Code-Investment Securities;
24        (h) Any loan made by a participating bank as part of
25    any loan guarantee program which provides for loans and
26    for the refinancing of such loans to medical students,

 

 

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1    interns and residents and which are guaranteed by the
2    American Medical Association Education and Research
3    Foundation;
4        (i) Any loan made, guaranteed, or insured in
5    accordance with the provisions of the Housing Act of 1949,
6    Subchapter III of Chapter 8A of Title 42 of the United
7    States Code and the Consolidated Farm and Rural
8    Development Act, Subchapters I, II, and III of Chapter 50
9    of Title 7 of the United States Code;
10        (j) Any loan by an employee pension benefit plan, as
11    defined in Section 3 (2) of the Employee Retirement Income
12    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
13    individual participating in such plan, provided that such
14    loan satisfies the prohibited transaction exemption
15    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
16    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
17    (1)) of the Employee Retirement Income Security Act of
18    1974;
19        (k) Written contracts, agreements or bonds for deed
20    providing for installment purchase of real estate,
21    including a manufactured home as defined in subdivision
22    (53) of Section 9-102 of the Uniform Commercial Code that
23    is real property as defined in the Conveyance and
24    Encumbrance of Manufactured Homes as Real Property and
25    Severance Act;
26        (l) Loans secured by a mortgage on real estate,

 

 

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1    including a manufactured home as defined in subdivision
2    (53) of Section 9-102 of the Uniform Commercial Code that
3    is real property as defined in the Conveyance and
4    Encumbrance of Manufactured Homes as Real Property and
5    Severance Act;
6        (m) Loans made by a sole proprietorship, partnership,
7    or corporation to an employee or to a person who has been
8    offered employment by such sole proprietorship,
9    partnership, or corporation made for the sole purpose of
10    transferring an employee or person who has been offered
11    employment to another office maintained and operated by
12    the same sole proprietorship, partnership, or corporation;
13        (n) Loans to or for the benefit of students made by an
14    institution of higher education.
15    (2) Except for loans described in subparagraph (a), (c),
16(d), (e), (f) or (i) of subsection (1) of this Section, and
17except to the extent permitted by the applicable statute for
18loans made pursuant to Section 4a or pursuant to the Consumer
19Installment Loan Act:
20        (a) Whenever the rate of interest exceeds an annual
21    percentage rate of 8% on any written contract, agreement
22    or bond for deed providing for the installment purchase of
23    residential real estate, or on any loan secured by a
24    mortgage on residential real estate, it shall be unlawful
25    to provide for a prepayment penalty or other charge for
26    prepayment.

 

 

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1        (b) No agreement, note or other instrument evidencing
2    a loan secured by a mortgage on residential real estate,
3    or written contract, agreement or bond for deed providing
4    for the installment purchase of residential real estate,
5    may provide for any change in the contract rate of
6    interest during the term thereof. However, if the Congress
7    of the United States or any federal agency authorizes any
8    class of lender to enter, within limitations, into
9    mortgage contracts or written contracts, agreements or
10    bonds for deed in which the rate of interest may be changed
11    during the term of the contract, any person, firm,
12    corporation or other entity not otherwise prohibited from
13    entering into mortgage contracts or written contracts,
14    agreements or bonds for deed in Illinois may enter into
15    mortgage contracts or written contracts, agreements or
16    bonds for deed in which the rate of interest may be changed
17    during the term of the contract, within the same
18    limitations.
19    (3) In any contract or loan which is secured by a mortgage,
20deed of trust, or conveyance in the nature of a mortgage, on
21residential real estate, the interest which is computed,
22calculated, charged, or collected pursuant to such contract or
23loan, or pursuant to any regulation or rule promulgated
24pursuant to this Act, may not be computed, calculated, charged
25or collected for any period of time occurring after the date on
26which the total indebtedness, with the exception of late

 

 

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1payment penalties, is paid in full.
2    (4) For purposes of this Section, a prepayment shall mean
3the payment of the total indebtedness, with the exception of
4late payment penalties if incurred or charged, on any date
5before the date specified in the contract or loan agreement on
6which the total indebtedness shall be paid in full, or before
7the date on which all payments, if timely made, shall have been
8made. In the event of a prepayment of the indebtedness which is
9made on a date after the date on which interest on the
10indebtedness was last computed, calculated, charged, or
11collected but before the next date on which interest on the
12indebtedness was to be calculated, computed, charged, or
13collected, the lender may calculate, charge and collect
14interest on the indebtedness for the period which elapsed
15between the date on which the prepayment is made and the date
16on which interest on the indebtedness was last computed,
17calculated, charged or collected at a rate equal to 1/360 of
18the annual rate for each day which so elapsed, which rate shall
19be applied to the indebtedness outstanding as of the date of
20prepayment. The lender shall refund to the borrower any
21interest charged or collected which exceeds that which the
22lender may charge or collect pursuant to the preceding
23sentence. The provisions of this amendatory Act of 1985 shall
24apply only to contracts or loans entered into on or after the
25effective date of this amendatory Act, but shall not apply to
26contracts or loans entered into on or after that date that are

 

 

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1subject to Section 4a of this Act, the Consumer Installment
2Loan Act, the Payday Loan Reform Act, the Predatory Loan
3Prevention Act, or the Retail Installment Sales Act, or that
4provide for the refund of precomputed interest on prepayment
5in the manner provided by such Act.
6    (5) For purposes of items (a) and (c) of subsection (1) of
7this Section, a rate or amount of interest may be lawfully
8computed when applying the ratio of the annual interest rate
9over a year based on 360 days. The provisions of this
10amendatory Act of the 96th General Assembly are declarative of
11existing law.
12    (6) For purposes of this Section, "real estate" and "real
13property" include a manufactured home, as defined in
14subdivision (53) of Section 9-102 of the Uniform Commercial
15Code that is real property as defined in the Conveyance and
16Encumbrance of Manufactured Homes as Real Property and
17Severance Act.
18(Source: P.A. 101-658, eff. 3-23-21.)
 
19    Section 910. The Consumer Fraud and Deceptive Business
20Practices Act is amended by adding Section 2AAAA as follows:
 
21    (815 ILCS 505/2AAAA new)
22    Sec. 2AAAA. Violations of the Consumer Legal Funding Act.
23Any person who violates the Consumer Legal Funding Act commits
24an unlawful practice within the meaning of this Act.
 

 

 

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1    Section 999. Effective date. This Act takes effect upon
2becoming law.".