Full Text of HB0779 103rd General Assembly
HB0779sam001 103RD GENERAL ASSEMBLY | Sen. Elgie R. Sims, Jr. Filed: 5/17/2023
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| 1 | | AMENDMENT TO HOUSE BILL 779
| 2 | | AMENDMENT NO. ______. Amend House Bill 779 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Article 1. General Provisions | 5 | | Section 1-1. Short title. This Act may be cited as the | 6 | | Pawnbroker Regulation Act of 2023. | 7 | | Section 1-5. Definitions. | 8 | | As used in this Act: | 9 | | "Applicant" means a person applying for a license pursuant | 10 | | to this Act. | 11 | | "Department" means the Department of Financial and | 12 | | Professional Regulation. | 13 | | "Licensee" means a person licensed pursuant to this Act. | 14 | | "Pawn" means the advance of money on the deposit or pledge | 15 | | of physically delivered personal property, other than property |
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| 1 | | the ownership of which is subject to a legal dispute or other | 2 | | exempt property or instruments. | 3 | | "Pawnbroker" means every individual or business entity | 4 | | that: | 5 | | (1) advances money on the pledge of tangible personal | 6 | | property, other than securities, printed evidence of | 7 | | indebtedness, or printed evidence of ownership of the | 8 | | personal property; or | 9 | | (2) deals in the purchase of personal property on the | 10 | | condition of selling the property back again at a | 11 | | stipulated price. | 12 | | "Pawn customer" means a person who pawns or pledges and | 13 | | physically delivers personal property in exchange for money. | 14 | | "Secretary" means the Secretary of Financial and | 15 | | Professional Regulation, or his or her designee, including the | 16 | | Director of the Division of Banking of the Department of | 17 | | Financial and Professional Regulation. | 18 | | Article 5. Licensure | 19 | | Section 5-1. Scope; number of pawnbroker licenses. | 20 | | (a) It is unlawful for any person to operate as a | 21 | | pawnbroker in Illinois except as authorized by this Act and | 22 | | without first having obtained a license in accordance with | 23 | | this Act. | 24 | | (b) The business of a pawnbroker does not include advances |
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| 1 | | of money secured by a deposit or pledge of title to personal | 2 | | property or motor vehicles. | 3 | | (c) There shall not be more than 250 active pawnbroker | 4 | | licenses at any one time within the State of Illinois. There | 5 | | shall not be more than 150 active pawnbroker licenses issued | 6 | | for the counties of Cook, DuPage, Kane, Lake, McHenry, and | 7 | | Will at any one time. | 8 | | Section 5-5. Licensee name. | 9 | | (a) No person, partnership, association, corporation, | 10 | | limited liability company, or other entity engaged in the | 11 | | business regulated by this Act shall operate the business | 12 | | under a name other than the real names of the entity and | 13 | | individuals conducting the business. The business may in | 14 | | addition operate under an assumed corporate name pursuant to | 15 | | the Business Corporation Act of 1983, an assumed limited | 16 | | liability company name pursuant to the Limited Liability | 17 | | Company Act, or an assumed business name pursuant to the | 18 | | Assumed Business Name Act. | 19 | | (b) It is unlawful for an individual or business entity to | 20 | | conduct business in this State using the word "pawn", | 21 | | "pawnshop", or "pawnbroker" in connection with the business or | 22 | | to transact business in this State in a manner that has a | 23 | | substantial likelihood of misleading the public by implying | 24 | | that the business is a pawnshop, without first obtaining a | 25 | | license from the Secretary. |
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| 1 | | Section 5-10. Application process; investigation; fees. | 2 | | (a) The Secretary shall issue a license upon completion of | 3 | | all of the following: | 4 | | (1) The filing of an application for license with the | 5 | | Secretary or the Nationwide Multistate Licensing System | 6 | | and Registry as approved by the Secretary. | 7 | | (2) The filing with the Secretary of a listing of | 8 | | judgments entered against, and bankruptcy petitions by, | 9 | | the license applicant for the preceding 10 years. | 10 | | (3) The payment, in certified funds, of the following | 11 | | investigation and application fees: | 12 | | (A) the fees for licensure shall be a $2,000 | 13 | | application fee and an additional $800 fee for | 14 | | investigation. These fees are nonrefundable; and | 15 | | (B) the fee for an application renewal shall be | 16 | | $2,000. The fee is nonrefundable. | 17 | | (4) An investigation of the application, which | 18 | | investigation must allow the Secretary to issue positive | 19 | | findings stating that the financial responsibility, | 20 | | experience, character, and general fitness of the license | 21 | | applicant and of the members thereof if the license | 22 | | applicant is a partnership or association, of the officers | 23 | | and directors thereof if the license applicant is a | 24 | | corporation, and of the managers and members that retain | 25 | | any authority or responsibility under the operating |
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| 1 | | agreement if the license applicant is a limited liability | 2 | | company, are such as to command the confidence of the | 3 | | community and to warrant belief that the business will be | 4 | | operated honestly, fairly, and efficiently within the | 5 | | purpose of this Act; if the Secretary does not so find, he | 6 | | or she shall not issue the license, and he or she shall | 7 | | notify the license applicant of the denial. | 8 | | The Secretary may impose conditions on a license if the | 9 | | Secretary determines that those conditions are necessary or | 10 | | appropriate. These conditions shall be imposed in writing and | 11 | | shall continue in effect for the period prescribed by the | 12 | | Secretary. | 13 | | (b) All licenses shall be issued to the license applicant. | 14 | | Upon issuance of the license, a pawnbroker licensee shall be | 15 | | authorized to engage in the business regulated by this Act. | 16 | | The license shall remain in full force and effect until it | 17 | | expires without renewal, is surrendered by the licensee, or | 18 | | revoked or suspended. | 19 | | Section 5-15. Application form. | 20 | | (a) Application for a pawnbroker license must be made in | 21 | | accordance with Section 5-20 and, if applicable, in accordance | 22 | | with requirements of the Nationwide Multistate Licensing | 23 | | System and Registry. The application shall be in writing, | 24 | | under oath or affirmation, and on a form obtained from and | 25 | | prescribed by the Secretary, or may be submitted |
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| 1 | | electronically, with attestation, to the Nationwide Multistate | 2 | | Licensing System and Registry. | 3 | | (b) The application shall contain the name, complete | 4 | | business, and residential address or addresses of the license | 5 | | applicant. If the license applicant is a partnership, | 6 | | association, corporation, or other form of business | 7 | | organization, the application shall contain the names and | 8 | | complete business and residential addresses of each member, | 9 | | director, and principal officer thereof. The application shall | 10 | | also include a description of the activities of the license | 11 | | applicant in such detail and for such periods as the Secretary | 12 | | may require, including all of the following: | 13 | | (1) an affirmation of financial solvency noting such | 14 | | capitalization requirements as may be required by the | 15 | | Secretary and access to such credit as may be required by | 16 | | the Secretary; | 17 | | (2) an affirmation that the license applicant or its | 18 | | members, directors, or principals, as may be appropriate, | 19 | | are at least 18 years of age; | 20 | | (3) information as to the character, fitness, | 21 | | financial and business responsibility, background, | 22 | | experience, and criminal record of any: | 23 | | (A) person, entity, or ultimate equitable owner | 24 | | that owns or controls, directly or indirectly, 10% or | 25 | | more of any class of stock of the license applicant; | 26 | | (B) person, entity, or ultimate equitable owner |
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| 1 | | that is not a depository institution, as defined in | 2 | | Section 1007.50 of the Savings Bank Act, that lends, | 3 | | provides, or infuses, directly or indirectly, in any | 4 | | way, funds to or into a license applicant in an amount | 5 | | equal to or more than 10% of the license applicant's | 6 | | net worth; | 7 | | (C) person, entity, or ultimate equitable owner | 8 | | that controls, directly or indirectly, the election of | 9 | | 25% or more of the members of the board of directors of | 10 | | a license applicant; or | 11 | | (D) person, entity, or ultimate equitable owner | 12 | | that the Secretary finds influences management of the | 13 | | license applicant; the provisions of this subsection | 14 | | shall not apply to a public official serving on the | 15 | | board of directors of a State guaranty agency; | 16 | | (4) upon written request by the licensee and | 17 | | notwithstanding the provisions of paragraphs (1) and (2) | 18 | | of this subsection, the Secretary may permit the licensee | 19 | | to omit all or part of the information required by those | 20 | | paragraphs if, instead of the omitted information, the | 21 | | licensee submits an affidavit stating that the information | 22 | | submitted on the licensee's previous renewal application | 23 | | is still true and accurate; then the Secretary may adopt | 24 | | rules prescribing the form and content of the affidavit | 25 | | that are necessary to accomplish the purposes of this | 26 | | Section; and |
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| 1 | | (5) such other information as required by rules of the | 2 | | Secretary. | 3 | | Section 5-20. Pawnbroker license application and issuance. | 4 | | (a) Applicants for a license shall apply in a form | 5 | | prescribed by the Secretary. Each form shall contain content | 6 | | as set forth by rule, regulation, instruction, or procedure of | 7 | | the Department or Secretary and may be changed or updated as | 8 | | necessary by the Department or Secretary in order to carry out | 9 | | the purposes of this Act. | 10 | | (b) In order to fulfill the purposes of this Act, the | 11 | | Secretary is authorized to establish relationships or | 12 | | contracts with the Nationwide Multistate Licensing System and | 13 | | Registry or other entities designated by the Nationwide | 14 | | Multistate Licensing System and Registry to collect and | 15 | | maintain records and process transaction fees or other fees | 16 | | related to licensees or other persons subject to this Act. | 17 | | (c) In connection with an application for licensing, the | 18 | | applicant may be required, at a minimum, to furnish to the | 19 | | Nationwide Multistate Licensing System and Registry | 20 | | information concerning the applicant's identity, including: | 21 | | (1) fingerprints for submission to the Federal Bureau | 22 | | of Investigation or any governmental agency or entity | 23 | | authorized to receive such information for a State, | 24 | | national, and international criminal history background | 25 | | check; and |
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| 1 | | (2) personal history and experience in a form | 2 | | prescribed by the Nationwide Multistate Licensing System | 3 | | and Registry, including the submission of authorization | 4 | | for the Nationwide Multistate Licensing System and | 5 | | Registry and the Secretary to obtain: | 6 | | (A) an independent credit report obtained from a | 7 | | consumer reporting agency described in Section 603(p) | 8 | | of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p); | 9 | | and | 10 | | (B) information related to any administrative, | 11 | | civil, or criminal findings by any governmental | 12 | | jurisdiction. | 13 | | (d) For the purposes of this Section, and in order to | 14 | | reduce the points of contact that the Federal Bureau of | 15 | | Investigation may have to maintain for purposes of subsection | 16 | | (c), the Secretary may use the Nationwide Multistate Licensing | 17 | | System and Registry as a channeling agent for requesting | 18 | | information from and distributing information to the federal | 19 | | Department of Justice or any governmental agency. | 20 | | (e) For the purposes of this Section, and in order to | 21 | | reduce the points of contact that the Secretary may have to | 22 | | maintain for purposes of paragraph (2) of subsection (c), the | 23 | | Secretary may use the Nationwide Multistate Licensing System | 24 | | and Registry as a channeling agent for requesting and | 25 | | distributing information to and from any source as directed by | 26 | | the Secretary. |
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| 1 | | Section 5-25. Prohibited acts and practices for licensees. | 2 | | (a) It is a violation of this Act for a licensee subject to | 3 | | this Act to: | 4 | | (1) fail to file with the Secretary or Nationwide | 5 | | Multistate Licensing System and Registry, as applicable, | 6 | | when due, any report or reports that it is required to file | 7 | | under any of the provisions of this Act; | 8 | | (2) commit a crime against the law of this State, any | 9 | | other state, or of the United States involving moral | 10 | | turpitude or fraudulent or dishonest dealing, and that no | 11 | | final judgment has been entered against it in a civil | 12 | | action upon grounds of fraud, misrepresentation, or deceit | 13 | | that has not been previously reported to the Secretary; | 14 | | (3) engage in any conduct that would be cause for | 15 | | denial of a license; | 16 | | (4) become insolvent; | 17 | | (5) submit an application for a license under this Act | 18 | | that contains a material misstatement; | 19 | | (6) demonstrate by course of conduct, negligence, or | 20 | | incompetence in performing any act for which it is | 21 | | required to hold a license under this Act; | 22 | | (7) fail to advise the Secretary in writing or the | 23 | | Nationwide Multistate Licensing System and Registry, as | 24 | | applicable, of any changes to the information submitted on | 25 | | the most recent application for license or averments of |
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| 1 | | record within 30 days after the change; the written notice | 2 | | must be signed in the same form as the application for the | 3 | | license being amended; | 4 | | (8) fail to comply with the provisions of this Act and | 5 | | with any lawful order, rule, or regulation made or issued | 6 | | under the provisions of this Act; | 7 | | (9) fail to submit to periodic examination by the | 8 | | Secretary as required by this Act; and | 9 | | (10) fail to advise the Secretary in writing of | 10 | | judgments entered against and bankruptcy petitions by the | 11 | | license applicant within 5 days after the occurrence. | 12 | | (b) A licensee who fails to comply with this Section or | 13 | | otherwise violates any of the provisions of this Section shall | 14 | | be subject to the penalties in Section 30-30. | 15 | | Section 5-30. Refusal to issue license. The Secretary | 16 | | shall refuse to issue or renew a license if: | 17 | | (1) it is determined that the applicant is not in | 18 | | compliance with any provisions of this Act; | 19 | | (2) there is substantial continuity between the | 20 | | applicant and any violator of this Act; or | 21 | | (3) the Secretary cannot make the findings specified | 22 | | in subsection (a) of Section 5-10. | 23 | | Section 5-35. License issuance and renewal; fees. | 24 | | (a) Licenses shall be renewed every year using the common |
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| 1 | | renewal date of the Nationwide Multistate Licensing System and | 2 | | Registry, as adopted by the Secretary. Properly completed | 3 | | renewal application forms and filing fees may be received by | 4 | | the Secretary 60 days before the license expiration date, but, | 5 | | to be deemed timely, the completed renewal application forms | 6 | | and filing fees must be received by the Secretary no later than | 7 | | 30 days before the license expiration date. | 8 | | (b) It shall be the responsibility of each licensee to | 9 | | accomplish renewal of its license. Failure by a licensee to | 10 | | submit a properly completed renewal application form and fees | 11 | | in a timely fashion, absent a written extension from the | 12 | | Secretary, shall result in the license becoming inactive. | 13 | | (c) No activity regulated by this Act shall be conducted | 14 | | by the licensee when a license becomes inactive. An inactive | 15 | | license may be reactivated by the Secretary upon payment of | 16 | | the renewal fee and payment of a reactivation fee equal to the | 17 | | renewal fee. | 18 | | (d) A licensee ceasing an activity regulated by this Act | 19 | | and desiring to no longer be licensed shall so inform the | 20 | | Secretary in writing and, at the same time, convey any license | 21 | | issued and all other symbols or indicia of licensure. The | 22 | | licensee shall include a plan for the withdrawal from | 23 | | regulated business, including a timetable for the disposition | 24 | | of the business, and comply with the surrender guidelines or | 25 | | requirements of the Secretary. Upon receipt of such written | 26 | | notice, the Secretary shall post the cancellation or issue a |
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| 1 | | certified statement canceling the license. | 2 | | (e) The expenses of administering this Act, including | 3 | | investigations and examinations provided for in this Act, | 4 | | shall be borne by and assessed against entities regulated by | 5 | | this Act. Subject to the limitations set forth in Section | 6 | | 5-10, the Department shall establish fees by rule in at least | 7 | | the following categories: | 8 | | (1) investigation of licensees and license | 9 | | applicant fees; | 10 | | (2) examination fees; | 11 | | (3) contingent fees; and | 12 | | (4) such other categories as may be required to | 13 | | administer this Act. | 14 | | Article 10. Supervision | 15 | | Section 10-5. Functions; powers; duties. | 16 | | The functions, powers, and duties of the Secretary shall | 17 | | include the following: | 18 | | (1) to issue or refuse to issue any license as | 19 | | provided by this Act; | 20 | | (2) to revoke or suspend for cause any license issued | 21 | | under this Act; | 22 | | (3) to keep records of all licenses issued under this | 23 | | Act; | 24 | | (4) to receive, consider, investigate, and act upon |
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| 1 | | complaints made by any person in connection with any | 2 | | pawnbroker licensee in this State; | 3 | | (5) to prescribe the forms of and receive: | 4 | | (A) applications for licenses; and | 5 | | (B) all reports and all books and records required | 6 | | to be made by any licensee under this Act; | 7 | | (6) to adopt rules necessary and proper for the | 8 | | administration of this Act; | 9 | | (7) to subpoena documents and witnesses and compel | 10 | | their attendance and production, to administer oaths and | 11 | | affirmations, and to require the production of any books, | 12 | | papers, or other materials relevant to any inquiry | 13 | | authorized by this Act; | 14 | | (8) to issue orders against any person, including, but | 15 | | not limited to, any officer, director, employee, | 16 | | prospective employee, or agent of the licensee, if the | 17 | | Secretary has reasonable cause to believe that an unsafe, | 18 | | unsound, or unlawful practice has occurred, is occurring, | 19 | | or is about to occur; if any person has violated, is | 20 | | violating, or is about to violate any law, rule, or | 21 | | written agreement with the Secretary; or for the purpose | 22 | | of administering the provisions of this Act and any rule | 23 | | adopted in accordance with this Act; | 24 | | (9) to address any inquiries to any licensee, or the | 25 | | officers thereof, in relation to its activities and | 26 | | conditions, or any other matter connected with its |
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| 1 | | affairs, and it shall be the duty of any licensee or person | 2 | | so addressed to promptly reply in writing to those | 3 | | inquiries; the Secretary may also require reports from any | 4 | | licensee at any time the Secretary may deem desirable; | 5 | | (10) to examine the books and records of every | 6 | | licensee under this Act; | 7 | | (11) to enforce provisions of this Act; | 8 | | (12) to levy fees, fines, and charges for services | 9 | | performed in administering this Act; the aggregate of all | 10 | | fees collected by the Secretary on and after the effective | 11 | | date of this Act shall be paid promptly after receipt, | 12 | | accompanied by a detailed statement thereof, into the | 13 | | Pawnbroker Regulation Fund under Section 10-10; the | 14 | | amounts deposited into that Fund shall be used for the | 15 | | ordinary and contingent expenses of the Department; | 16 | | nothing in this Act shall prevent the continuation of the | 17 | | practice of paying expenses involving salaries, | 18 | | retirement, social security, and State-paid insurance of | 19 | | State officers by appropriation from the General Revenue | 20 | | Fund; | 21 | | (13) to appoint examiners, supervisors, experts, and | 22 | | special assistants as needed to effectively and | 23 | | efficiently administer this Act; | 24 | | (14) to conduct hearings for the purpose of: | 25 | | (A) appeals of orders of the Secretary; | 26 | | (B) suspensions or revocations of licenses, or |
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| 1 | | fining of licensees; | 2 | | (C) investigating complaints against licensees; | 3 | | and | 4 | | (D) carrying out the purposes of this Act; | 5 | | (15) to exercise exclusive visitorial power over a | 6 | | licensee unless otherwise authorized by this Act or as | 7 | | vested in the courts; | 8 | | (16) to assign on an emergency basis an examiner or | 9 | | examiners to monitor the affairs of a licensee with | 10 | | whatever frequency the Secretary determines appropriate | 11 | | and to charge the licensee for reasonable and necessary | 12 | | expenses of the Secretary, if in the opinion of the | 13 | | Secretary an emergency exists or appears likely to occur; | 14 | | (17) to impose civil penalties of up to $50 per day | 15 | | against a licensee for failing to respond to a regulatory | 16 | | request or reporting requirement; | 17 | | (18) to enter into agreements in connection with the | 18 | | Nationwide Multistate Licensing System and Registry; and | 19 | | (19) to perform any other lawful acts necessary or | 20 | | desirable to carry out the purposes and provisions of this | 21 | | Act. | 22 | | Section 10-10. Pawnbroker Regulation Fund. The Pawnbroker | 23 | | Regulation Fund, which was established by Public Act 90-477, | 24 | | shall continue to be a special fund in the State treasury. All | 25 | | moneys received by the Secretary under this Act in conjunction |
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| 1 | | with the provisions relating to pawnbrokers shall be deposited | 2 | | into the Pawnbroker Regulation Fund and used for the | 3 | | administration of this Act. Moneys in the Pawnbroker | 4 | | Regulation Fund may be transferred to the Professions Indirect | 5 | | Cost Fund, as authorized under Section 2105-300 of the | 6 | | Department of Professional Regulation Law of the Civil | 7 | | Administrative Code of Illinois. | 8 | | Section 10-15. Examination; prohibited activities. | 9 | | (a) The business affairs of a licensee under this Act | 10 | | shall be examined for compliance with this Act as often as the | 11 | | Secretary deems necessary and proper. The Department may adopt | 12 | | rules with respect to the frequency and manner of examination. | 13 | | The Secretary shall appoint a suitable person to perform such | 14 | | examination. The Secretary and his or her appointees may | 15 | | examine the entire books, records, documents, and operations | 16 | | of each licensee and its subsidiary, affiliate, or agent, and | 17 | | may examine any of the licensee's or its subsidiary's, | 18 | | affiliate's, or agent's officers, directors, employees, and | 19 | | agents under oath or affirmation. | 20 | | (b) The Secretary shall prepare a sufficiently detailed | 21 | | report of each licensee's examination, shall issue a copy of | 22 | | the report to each licensee's principals, officers, or | 23 | | directors, and shall take appropriate steps to ensure | 24 | | correction of violations of this Act. | 25 | | (c) Affiliates of a licensee shall be subject to |
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| 1 | | examination by the Secretary on the same terms as the | 2 | | licensee, but only if reports from or examination of a | 3 | | licensee provides for documented evidence of unlawful activity | 4 | | between a licensee and affiliate benefiting, affecting, or | 5 | | deriving from the activities regulated by this Act. | 6 | | (d) The expenses of any examination of the licensee and | 7 | | affiliates shall be borne by the licensee and assessed by the | 8 | | Secretary as may be established by rule. | 9 | | (e) Upon completion of the examination, the Secretary | 10 | | shall issue a report to the licensee. All confidential | 11 | | supervisory information, including the examination report and | 12 | | the work papers of the report, shall belong to the Secretary's | 13 | | office and may not be disclosed to anyone other than the | 14 | | licensee, law enforcement officials or other regulatory | 15 | | agencies that have an appropriate regulatory interest as | 16 | | determined by the Secretary, or to a party presenting a lawful | 17 | | subpoena to the Department. The Secretary may, through the | 18 | | Attorney General, immediately appeal to the court of | 19 | | jurisdiction the disclosure of such confidential supervisory | 20 | | information and seek a stay of the subpoena pending the | 21 | | outcome of the appeal. Reports required of licensees by the | 22 | | Secretary under this Act and results of examinations performed | 23 | | by the Secretary under this Act shall be the property of only | 24 | | the Secretary, but may be shared with the licensee. Access | 25 | | under this Act to the books and records of each licensee shall | 26 | | be limited to the Secretary and his or her agents as provided |
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| 1 | | in this Act and to the licensee and its authorized agents and | 2 | | designees. No other person shall have access to the books and | 3 | | records of a licensee under this Act. Any person upon whom a | 4 | | demand for production of confidential supervisory information | 5 | | is made, whether by subpoena, order, or other judicial or | 6 | | administrative process, must withhold production of the | 7 | | confidential supervisory information and must notify the | 8 | | Secretary of the demand, at which time the Secretary is | 9 | | authorized to intervene for the purpose of enforcing the | 10 | | limitations of this Section or seeking the withdrawal or | 11 | | termination of the attempt to compel production of the | 12 | | confidential supervisory information. The Secretary may impose | 13 | | any conditions and limitations on the disclosure of | 14 | | confidential supervisory information that are necessary to | 15 | | protect the confidentiality of that information. Except as | 16 | | authorized by the Secretary, no person obtaining access to | 17 | | confidential supervisory information may make a copy of the | 18 | | confidential supervisory information. The Secretary may | 19 | | condition a decision to disclose confidential supervisory | 20 | | information on entry of a protective order by the court or | 21 | | administrative tribunal presiding in the particular case or on | 22 | | a written agreement of confidentiality. In a case in which a | 23 | | protective order or agreement has already been entered between | 24 | | parties other than the Secretary, the Secretary may | 25 | | nevertheless condition approval for release of confidential | 26 | | supervisory information upon the inclusion of additional or |
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| 1 | | amended provisions in the protective order. The Secretary may | 2 | | authorize a party who obtained the records for use in one case | 3 | | to provide them to another party in another case, subject to | 4 | | any conditions that the Secretary may impose on either or both | 5 | | parties. The requester shall promptly notify other parties to | 6 | | a case of the release of confidential supervisory information | 7 | | obtained and, upon entry of a protective order, shall provide | 8 | | copies of confidential supervisory information to the other | 9 | | parties. | 10 | | (f) The Secretary and employees of the Department shall be | 11 | | subject to the restrictions provided in Section 2.5 of the | 12 | | Division of Banking Act, including, without limitation, the | 13 | | restrictions on: | 14 | | (1) owning shares of stock or holding any other equity | 15 | | interest in an entity regulated under this Act or in any | 16 | | corporation or company that owns or controls an entity | 17 | | regulated under this Act; | 18 | | (2) being an officer, director, employee, or agent of | 19 | | an entity regulated under this Act; and | 20 | | (3) obtaining a pawn or accepting a gratuity from an | 21 | | entity regulated under this Act. | 22 | | Section 10-20. Subpoena power of the Secretary. | 23 | | (a) The Secretary shall have the power to issue and to | 24 | | serve subpoenas and subpoenas duces tecum to compel the | 25 | | attendance of witnesses and the production of all books, |
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| 1 | | accounts, records, and other documents and materials relevant | 2 | | to an examination or investigation. The Secretary, or his or | 3 | | her duly authorized representative, shall have power to | 4 | | administer oaths and affirmations to any person. | 5 | | (b) In the event of noncompliance with a subpoena or | 6 | | subpoena duces tecum issued or caused to be issued by the | 7 | | Secretary, the Secretary may, through the Attorney General, | 8 | | petition the circuit court of the county in which the person | 9 | | subpoenaed resides or has its principal place of business for | 10 | | an order requiring the subpoenaed person to appear and testify | 11 | | and to produce such books, accounts, records, and other | 12 | | documents as are specified in the subpoena duces tecum. The | 13 | | court may grant injunctive relief restraining the person from | 14 | | advertising, promoting, soliciting, entering into, offering to | 15 | | enter into, continuing, or completing any pawn transaction. | 16 | | The court may grant other relief, including, but not limited | 17 | | to, the restraint, by injunction or appointment of a receiver, | 18 | | of any transfer, pledge, assignment, or other disposition of | 19 | | the person's assets or any concealment, alteration, | 20 | | destruction, or other disposition of books, accounts, records, | 21 | | or other documents and materials as the court deems | 22 | | appropriate, until the person has fully complied with the | 23 | | subpoena or subpoena duces tecum and the Secretary has | 24 | | completed an investigation or examination. | 25 | | (c) If it appears to the Secretary that the compliance | 26 | | with a subpoena or subpoena duces tecum issued or caused to be |
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| 1 | | issued by the Secretary pursuant to this Section is essential | 2 | | to an investigation or examination, the Secretary, in addition | 3 | | to the other remedies provided for in this Act, may, through | 4 | | the Attorney General, apply for relief to the circuit court of | 5 | | the county in which the subpoenaed person resides or has its | 6 | | principal place of business. The court shall thereupon direct | 7 | | the issuance of an order against the subpoenaed person | 8 | | requiring sufficient bond conditioned on compliance with the | 9 | | subpoena or subpoena duces tecum. The court shall cause to be | 10 | | endorsed on the order a suitable amount of bond or payment | 11 | | pursuant to which the person named in the order shall be freed, | 12 | | having a due regard to the nature of the case. | 13 | | (d) In addition, the Secretary may, through the Attorney | 14 | | General, seek a writ of attachment or an equivalent order from | 15 | | the circuit court having jurisdiction over the person who has | 16 | | refused to obey a subpoena, who has refused to give testimony, | 17 | | or who has refused to produce the matters described in the | 18 | | subpoena duces tecum. | 19 | | Section 10-25. Inspection of records and reports required | 20 | | of licensee. | 21 | | (a) Inspection of records. | 22 | | (1) The book or computer records, as well as every | 23 | | article or other thing of value so pawned or pledged, | 24 | | shall at all times be open to the inspection of the | 25 | | Secretary, the sheriff of the county, his deputies, or any |
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| 1 | | members of the police force of any city in the county in | 2 | | which such pawnbroker does business. In addition, the | 3 | | Secretary shall be authorized to inspect the books or | 4 | | records of any business he or she has reasonable cause to | 5 | | believe is conducting pawn transactions and should be | 6 | | licensed under this Act. | 7 | | (2) The book or computer records, pawn tickets, or any | 8 | | other records required by the Secretary under this Act or | 9 | | any rule adopted in accordance with this Act shall be | 10 | | maintained for a period of 3 years after the date on which | 11 | | the record or ticket was prepared. These records and | 12 | | tickets shall be open to inspection of the Secretary at | 13 | | all times during the 3-year period. | 14 | | (b) Daily report. | 15 | | (1) Except as provided in paragraph (2) of this | 16 | | subsection, it shall be the duty of every pawnbroker to | 17 | | make out and deliver to the sheriff of the county in which | 18 | | such pawnbroker does business, on each day before noon, a | 19 | | legible and exact copy from the standard record book, as | 20 | | required in subsection (a) of Section 15-25, that lists | 21 | | all personal property and any other valuable thing | 22 | | received on deposit or purchased during the preceding day, | 23 | | including the exact time when received or purchased, and a | 24 | | description of the person or person by whom left in | 25 | | pledge, or from whom the same were purchased; however, in | 26 | | cities or towns having 25,000 or more inhabitants, a copy |
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| 1 | | of the report shall at the same time also be delivered to | 2 | | the superintendent of police or the chief police officer | 3 | | of such city or town. The report may be made by computer | 4 | | printout or input memory device if the format has been | 5 | | approved by the local law enforcement agency. | 6 | | (2) In counties with more than 3,000,000 inhabitants, | 7 | | a pawnbroker must provide the daily report to the sheriff | 8 | | only if the pawnshop is located in an unincorporated area | 9 | | of the county. Pawnbrokers located in cities or towns in | 10 | | such counties must deliver such reports to the | 11 | | superintendent of police or the chief police officer of | 12 | | the city or town. | 13 | | (c) Report to the Secretary. The Secretary, as often as | 14 | | the Secretary shall deem necessary or proper, may require a | 15 | | pawnshop to submit a full and detailed report of its | 16 | | operations including, but not limited to, the number of pawns | 17 | | made, the amount advanced on pawn transactions, the number and | 18 | | amount of pawns surrendered to law enforcement, and any | 19 | | information required for purposes of reporting pursuant to | 20 | | Section 10-60. The Secretary shall prescribe the form of the | 21 | | report and establish the date by which the report must be | 22 | | filed. | 23 | | Section 10-30. Suspension; revocation of licenses; fines. | 24 | | (a) Upon written notice to a licensee, the Secretary may | 25 | | suspend or revoke any license issued pursuant to this Act if, |
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| 1 | | in the notice, he or she makes a finding of one or more of the | 2 | | following: | 3 | | (1) that through separate acts or an act or a course of | 4 | | conduct, the licensee has violated any provisions of this | 5 | | Act, any rule adopted by the Department, or any other law, | 6 | | rule, or regulation of this State or the United States; | 7 | | (2) that any fact or condition exists that, if it had | 8 | | existed at the time of the original application for the | 9 | | license, would have warranted the Secretary in refusing | 10 | | originally to issue the license; or | 11 | | (3) that if a licensee is not an individual, any | 12 | | ultimate equitable owner, officer, director, or member of | 13 | | the licensed partnership, association, corporation, or | 14 | | other entity has acted or failed to act in a way that would | 15 | | be cause for suspending or revoking a license to that | 16 | | party as an individual. | 17 | | (b) No license shall be suspended or revoked, except as | 18 | | provided in this Section, nor shall any licensee be fined | 19 | | without notice of his or her right to a hearing as provided in | 20 | | Section 10-75. | 21 | | (c) The Secretary, on good cause shown that an emergency | 22 | | exists, may suspend any license for a period not exceeding 180 | 23 | | days, pending investigation. | 24 | | (d) The provisions of subsection (d) of Section 5-35 shall | 25 | | not affect a licensee's civil or criminal liability for acts | 26 | | committed before surrender of a license. |
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| 1 | | (e) No revocation, suspension, or surrender of any license | 2 | | shall impair or affect the obligation of any preexisting | 3 | | lawful contract between the licensee and any person. | 4 | | (f) Every license issued under this Act shall remain in | 5 | | force and effect until the license expires without renewal, is | 6 | | surrendered, is revoked, or is suspended in accordance with | 7 | | the provisions of this Act, but the Secretary shall have | 8 | | authority to reinstate a suspended license or to issue a new | 9 | | license to a licensee whose license has been revoked if no fact | 10 | | or condition then exists which would have warranted the | 11 | | Secretary in refusing originally to issue that license under | 12 | | this Act. | 13 | | (g) Whenever the Secretary revokes or suspends a license | 14 | | issued pursuant to this Act or fines a licensee under this Act, | 15 | | he or she shall execute a written order to that effect. The | 16 | | Secretary shall post notice of the order on an agency website | 17 | | maintained by the Secretary or on the Nationwide Multistate | 18 | | Licensing System and Registry and shall serve a copy of the | 19 | | order upon the licensee. Any such order may be reviewed in the | 20 | | manner provided by Section 10-75. | 21 | | (h) If the Secretary finds any person in violation of the | 22 | | grounds set forth in subsection (i), he or she may enter an | 23 | | order imposing one or more of the following penalties: | 24 | | (1) revocation of license; | 25 | | (2) suspension of a license subject to reinstatement | 26 | | upon satisfying all reasonable conditions the Secretary |
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| 1 | | may specify; | 2 | | (3) placement of the licensee or applicant on | 3 | | probation for a period of time and subject to all | 4 | | reasonable conditions as the Secretary may specify; | 5 | | (4) issuance of a reprimand; | 6 | | (5) imposition of a fine not to exceed $25,000 for | 7 | | each count of separate offense; except that a fine may be | 8 | | imposed not to exceed $75,000 for each separate count of | 9 | | offense of paragraph (2) of subsection (i); or | 10 | | (6) denial of a license. | 11 | | (i) The following acts shall constitute grounds for which | 12 | | the disciplinary actions specified in subsection (h) may be | 13 | | taken: | 14 | | (1) being convicted or found guilty, regardless of | 15 | | pendency of an appeal, of a crime in any jurisdiction that | 16 | | involves fraud, dishonest dealing, or any other act of | 17 | | moral turpitude; | 18 | | (2) fraud, misrepresentation, deceit, or negligence in | 19 | | any pawn transaction; | 20 | | (3) a material or intentional misstatement of fact on | 21 | | an initial or renewal application; | 22 | | (4) insolvency or filing under any provision of the | 23 | | federal Bankruptcy Code as a debtor; | 24 | | (5) failure to account or deliver to any person any | 25 | | property, such as any money, fund, deposit, check, draft, | 26 | | or other document or thing of value, that has come into his |
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| 1 | | or her hands and that is not his or her property or that he | 2 | | or she is not in law or equity entitled to retain, under | 3 | | the circumstances and at the time which has been agreed | 4 | | upon or is required by law or, in the absence of a fixed | 5 | | time, upon demand of the person entitled to such | 6 | | accounting and delivery; | 7 | | (6) failure to disburse funds in accordance with | 8 | | agreements; | 9 | | (7) having a license, or the equivalent, to practice | 10 | | any profession or occupation revoked, suspended, or | 11 | | otherwise acted against, including the denial of licensure | 12 | | by a licensing authority of this State or another state, | 13 | | territory, or country for fraud, dishonest dealing, or any | 14 | | other act of moral turpitude; | 15 | | (8) failure to comply with an order of the Secretary | 16 | | or rule made or issued under the provisions of this Act; | 17 | | (9) engaging in activities regulated by this Act | 18 | | without a current, active license unless specifically | 19 | | exempted by this Act; | 20 | | (10) failure to pay in a timely manner any fee, | 21 | | charge, or fine under this Act; | 22 | | (11) failure to maintain, preserve, and keep available | 23 | | for examination all books, accounts, or other documents | 24 | | required by the provisions of this Act and the rules of the | 25 | | Secretary; | 26 | | (12) refusing, obstructing, evading, or unreasonably |
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| 1 | | delaying an investigation, information request, or | 2 | | examination authorized under this Act, or refusing, | 3 | | obstructing, evading, or unreasonably delaying compliance | 4 | | with the Secretary's subpoena or subpoena duces tecum; and | 5 | | (13) failure to comply with or a violation of any | 6 | | provision of this Act. | 7 | | (j) A licensee shall be subject to the disciplinary | 8 | | actions specified in this Act for violations of subsection (i) | 9 | | by any officer, director, shareholder, joint venture, partner, | 10 | | ultimate equitable owner, or employee of the licensee. | 11 | | (k) A licensee shall be subject to suspension or | 12 | | revocation for unauthorized employee actions only if there is | 13 | | a pattern of repeated violations by employees or the licensee | 14 | | has knowledge of the violations or there is substantial harm | 15 | | to a consumer. | 16 | | (l) Procedures for surrender of a license include the | 17 | | following: | 18 | | (1) The Secretary may, after 10 days' notice by | 19 | | certified mail to the licensee at the address set forth on | 20 | | the license, stating the contemplated action and in | 21 | | general the grounds for the contemplated action and the | 22 | | date, time, and place of a hearing thereon, and after | 23 | | providing the licensee with a reasonable opportunity to be | 24 | | heard at the hearing before the action, fine such licensee | 25 | | an amount not exceeding $25,000 per violation, or revoke | 26 | | or suspend any license issued under this Act if he or she |
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| 1 | | finds that: | 2 | | (A) the licensee has failed to comply with any | 3 | | provision of this Act or any order, decision, finding, | 4 | | rule, regulation, or direction of the Department or | 5 | | Secretary lawfully made pursuant to the authority of | 6 | | this Act; or | 7 | | (B) any fact or condition exists that, if it had | 8 | | existed at the time of the original application for | 9 | | the license, clearly would have warranted the | 10 | | Secretary in refusing to issue the license. | 11 | | (2) Any licensee may submit an application to | 12 | | surrender a license, but, upon the Secretary approving the | 13 | | surrender, it shall not affect the licensee's civil or | 14 | | criminal liability for acts committed before surrender or | 15 | | entitle the licensee to a return of any part of the license | 16 | | fee. | 17 | | Section 10-35. Investigation of complaints. The Secretary | 18 | | shall maintain staff and facilities adequate to receive, | 19 | | record, and investigate complaints and inquiries made by any | 20 | | person concerning this Act and any licensees under this Act. | 21 | | Each licensee shall open its books, records, documents, and | 22 | | offices wherever situated to the Secretary or his or her | 23 | | appointees as needed to facilitate such investigations. | 24 | | Section 10-40. Additional investigation and examination |
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| 1 | | authority. In addition to any authority allowed under this | 2 | | Act, the Secretary shall have the authority to conduct | 3 | | investigations and examinations as follows: | 4 | | (1) For purposes of initial licensing, license | 5 | | renewal, license discipline, license conditioning, license | 6 | | revocation or termination, or general or specific inquiry | 7 | | or investigation to determine compliance with this Act, | 8 | | the Secretary shall have the authority to access, receive, | 9 | | and use any books, accounts, records, files, documents, | 10 | | information, or evidence, including, but not limited to, | 11 | | the following: | 12 | | (A) criminal, civil, and administrative history | 13 | | information, including nonconviction data as specified | 14 | | in the Criminal Code of 2012; | 15 | | (B) personal history and experience information, | 16 | | including independent credit reports obtained from a | 17 | | consumer reporting agency described in Section 603(p) | 18 | | of the federal Fair Credit Reporting Act; and | 19 | | (C) any other documents, information, or evidence | 20 | | the Secretary deems relevant to the inquiry or | 21 | | investigation, regardless of the location, possession, | 22 | | control, or custody of the documents, information, or | 23 | | evidence. | 24 | | (2) For the purposes of investigating violations or | 25 | | complaints arising under this Act or for the purposes of | 26 | | examination, the Secretary may review, investigate, or |
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| 1 | | examine any licensee, individual, or person subject to | 2 | | this Act as often as necessary in order to carry out the | 3 | | purposes of this Act. The Secretary may direct, subpoena, | 4 | | or order the attendance of and examine under oath or | 5 | | affirmation all persons whose testimony may be required | 6 | | about the pawn transactions or the business or subject | 7 | | matter of any such examination or investigation, and may | 8 | | direct, subpoena, or order the person to produce books, | 9 | | accounts, records, files, and any other documents the | 10 | | Secretary deems relevant to the inquiry. | 11 | | (3) Each licensee, individual, or person subject to | 12 | | this Act shall make available to the Secretary upon | 13 | | request the books and records relating to the operations | 14 | | of the licensee, individual, or person subject to this | 15 | | Act. The Secretary shall have access to those books and | 16 | | records and interview the officers, principals, employees, | 17 | | independent contractors, agents, and customers of the | 18 | | licensee, individual, or person subject to this Act | 19 | | concerning their business. | 20 | | (4) Each licensee, individual, or person subject to | 21 | | this Act shall make or compile reports or prepare other | 22 | | information as directed by the Secretary in order to carry | 23 | | out the purposes of this Section, including, but not | 24 | | limited to: | 25 | | (A) accounting compilations; | 26 | | (B) information lists and data concerning pawn |
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| 1 | | transactions in a format prescribed by the Secretary; | 2 | | or | 3 | | (C) other information deemed necessary to carry | 4 | | out the purposes of this Section. | 5 | | (5) In making any examination or investigation | 6 | | authorized by this Act, the Secretary may control access | 7 | | to any documents and records of the licensee or person | 8 | | under examination or investigation. The Secretary may take | 9 | | possession of the documents and records or place a person | 10 | | in exclusive charge of the documents and records in the | 11 | | place where they are usually kept. During the period of | 12 | | control, no person shall remove or attempt to remove any | 13 | | of the documents or records, except pursuant to a court | 14 | | order or with the consent of the Secretary. Unless the | 15 | | Secretary has reasonable grounds to believe the documents | 16 | | or records of the licensee have been, or are at risk of | 17 | | being altered or destroyed for purposes of concealing a | 18 | | violation of this Act, the licensee or owner of the | 19 | | documents and records shall have access to the documents | 20 | | or records as necessary to conduct its ordinary business | 21 | | affairs. | 22 | | (6) In order to carry out the purposes of this | 23 | | Section, the Secretary may: | 24 | | (A) retain attorneys, accountants, or other | 25 | | professionals and specialists as examiners, auditors, | 26 | | or investigators to conduct or assist in the conduct |
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| 1 | | of examinations or investigations; | 2 | | (B) enter into agreements or relationships with | 3 | | other government officials or regulatory associations | 4 | | in order to improve efficiencies and reduce regulatory | 5 | | burden by sharing resources, standardized or uniform | 6 | | methods or procedures, and documents, records, | 7 | | information, or evidence obtained under this Section; | 8 | | (C) use, hire, contract, or employ public or | 9 | | privately available analytical systems, methods, or | 10 | | software to examine or investigate the licensee, | 11 | | individual, or person subject to this Act; | 12 | | (D) accept and rely on examination or | 13 | | investigation reports made by other government | 14 | | officials, within or outside this State; or | 15 | | (E) accept audit reports made by an independent | 16 | | certified public accountant for the licensee, | 17 | | individual, or person subject to this Act in the | 18 | | course of that part of the examination covering the | 19 | | same general subject matter as the audit and may | 20 | | incorporate the audit report in the report of the | 21 | | examination, report of investigation, or other writing | 22 | | of the Secretary. | 23 | | (7) The authority of this Section shall remain in | 24 | | effect, whether such a licensee, individual, or person | 25 | | subject to this Act acts or claims to act under any | 26 | | licensing or registration law of this State or claims to |
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| 1 | | act without the authority. | 2 | | (8) No licensee, individual, or person subject to | 3 | | investigation or examination under this Section may | 4 | | knowingly withhold, abstract, remove, mutilate, destroy, | 5 | | or secrete any books, records, computer records, or other | 6 | | information. | 7 | | Section 10-45. Confidential information. In hearings | 8 | | conducted under this Act, information presented into evidence | 9 | | that was acquired by the licensee when serving any individual | 10 | | in connection with a pawn transaction, including all financial | 11 | | information of the individual, shall be deemed strictly | 12 | | confidential and shall be made available only as part of the | 13 | | record of a hearing under this Act or otherwise (i) when the | 14 | | record is required, in its entirety, for purposes of judicial | 15 | | review or (ii) upon the express written consent of the | 16 | | individual served, or in the case of his or her death or | 17 | | disability, the consent of his or her personal representative. | 18 | | Section 10-50. Confidentiality. | 19 | | (a) In order to promote more effective regulation and | 20 | | reduce regulatory burden through supervisory information | 21 | | sharing, except as otherwise provided in 12 U.S.C. Section | 22 | | 5111, the requirements under any federal law or State law | 23 | | regarding the privacy or confidentiality of any information or | 24 | | material provided to the Nationwide Mortgage Licensing System |
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| 1 | | and Registry, and any privilege arising under federal or State | 2 | | law, including the rules of any federal or State court, with | 3 | | respect to such information or material, shall continue to | 4 | | apply to information or material after the information or | 5 | | material has been disclosed to the Nationwide Mortgage | 6 | | Licensing System and Registry. The information and material | 7 | | may be shared with all State and federal regulatory officials | 8 | | with pawnbroker industry oversight authority without the loss | 9 | | of privilege or the loss of confidentiality protections | 10 | | provided by federal law or State law. | 11 | | (b) In order to promote more effective regulation and | 12 | | reduce regulatory burden through supervisory information | 13 | | sharing, the Secretary is authorized to enter agreements or | 14 | | sharing into arrangements with other governmental agencies, | 15 | | the Conference of State Bank Supervisors or other associations | 16 | | representing governmental agencies as established by rule, | 17 | | regulation, or order of the Secretary. The sharing of | 18 | | confidential supervisory information or any information or | 19 | | material described in subsection (a) pursuant to an agreement | 20 | | or sharing arrangement shall not result in the loss of | 21 | | privilege or the loss of confidentiality protections provided | 22 | | by federal law or State law. | 23 | | (c) In order to promote more effective regulation and | 24 | | reduce regulatory burden through supervisory information | 25 | | sharing, information or material that is subject to a | 26 | | privilege or confidentiality under subsection (a) shall not be |
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| 1 | | subject to the following: | 2 | | (1) disclosure under any State law governing the | 3 | | disclosure to the public of information held by an officer | 4 | | or an agency of the State; or | 5 | | (2) subpoena, discovery, or admission into evidence, | 6 | | in any private civil action or administrative process, | 7 | | unless with respect to any privilege held by the | 8 | | Nationwide Mortgage Licensing System and Registry with | 9 | | respect to the information or material, the person to whom | 10 | | such information or material pertains waives, in whole or | 11 | | in part, in the discretion of that person, that privilege. | 12 | | (d) In order to promote more effective regulation and | 13 | | reduce regulatory burden through supervisory information | 14 | | sharing, any other law relating to the disclosure of | 15 | | confidential supervisory information or any information or | 16 | | material described in subsection (a) that is inconsistent with | 17 | | subsection (a) shall be superseded by the requirements of this | 18 | | Section to the extent the other law provides less | 19 | | confidentiality or a weaker privilege. | 20 | | Section 10-55. Reports of violations. Any person licensed | 21 | | under this Act or any other person may report to the Secretary | 22 | | any information to show that a person subject to this Act is or | 23 | | may be in violation of this Act. A licensee who files a report | 24 | | with the Department that another licensee is engaged in one or | 25 | | more violations pursuant to this Act shall not be the subject |
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| 1 | | of disciplinary action by the Department, unless the | 2 | | Department determines, by a preponderance of the evidence | 3 | | available to the Department, that the reporting person | 4 | | knowingly or recklessly participated in the violation that was | 5 | | reported. | 6 | | Section 10-60. Pawnbroker annual report. The Department | 7 | | shall, in conjunction with advice from a professional | 8 | | association that represents 50 or more licensees, issue an | 9 | | annual report, via an Internet-based program, of aggregate | 10 | | pawnbroker activity within 180 days after the beginning of the | 11 | | calendar year. The report shall contain at a minimum: | 12 | | (1) The number of licensed pawnbrokers. | 13 | | (2) The total dollar amount financed. | 14 | | (3) The total number of pawns for each value threshold | 15 | | set forth in subsection (c) of Section 15-10. | 16 | | (4) The total dollar amount of extensions. | 17 | | (5) The total number of extensions for each value | 18 | | threshold set forth in subsection (c) of Section 15-10. | 19 | | (6) The average pawn dollar amount for each value | 20 | | threshold set forth in subsection (c) of Section 15-10. | 21 | | (7) The average monthly finance charge for each value | 22 | | threshold set forth in subsection (c) of Section 15-10. | 23 | | (8) The percentage of pawns surrendered to law | 24 | | enforcement. | 25 | | (9) The percentage of total pawns surrendered to law |
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| 1 | | enforcement by dollar amount. | 2 | | (10) The percentage of pawns redeemed. | 3 | | (11) The percentage of pawns extended. | 4 | | (12) The total number of pawnbroker employees. | 5 | | (13) The total number of licensees reporting. | 6 | | (14) The total number of complaints received by the | 7 | | Department. | 8 | | Section 10-65. Responsible pawnbroker training; pawnbroker | 9 | | managers and employees. | 10 | | (a) A person who manages or is an employee of a pawnbroker | 11 | | that provides pawnbroker services and related functions shall | 12 | | complete, within 90 days after commencing employment, a | 13 | | minimum of 4 hours of training, which may be provided in a | 14 | | classroom or seminar setting or via Internet-based online | 15 | | learning programs, such training shall be provided at the | 16 | | employer's expense and shall be provided by qualified vendor | 17 | | approved by the Secretary. The training subjects shall be | 18 | | established by rule, and may include the following: | 19 | | (1) federal, State, and local laws, administrative | 20 | | rules, and regulations that pertain to the business of | 21 | | being a licensed pawnbroker under this Act; | 22 | | (2) procedures for identifying possible fraudulent | 23 | | transactions; | 24 | | (3) anti-money laundering; | 25 | | (4) store operations, maintenance of records, |
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| 1 | | inventory management, recording and reporting of serial | 2 | | numbers; | 3 | | (5) general product knowledge, including, but not | 4 | | limited to, jewelry and firearms; | 5 | | (6) identification, verification, and weighing of | 6 | | precious metals; | 7 | | (7) inspections by State and local licensing and law | 8 | | enforcement authorities, including hold order procedures; | 9 | | (8) the federal Military Lending Act; | 10 | | (9) pawn forfeits; and | 11 | | (10) security, risk, and crisis management. | 12 | | (b) The training may be provided in a classroom or seminar | 13 | | setting or via Internet-based online learning programs, as | 14 | | established by rule. The substance of the training shall be | 15 | | related to the work performed by the registered employee. | 16 | | (c) In addition to the training provided for in | 17 | | subsections (a) and (b), registered employees of a pawnbroker | 18 | | shall complete an additional 4 hours of refresher training on | 19 | | subjects to be determined by the employer each calendar year | 20 | | commencing with the calendar year following the employee's | 21 | | first employment anniversary date, which refresher training | 22 | | may be site-specific and may be conducted on the job. | 23 | | (d) It is the responsibility of the pawnbroker or the | 24 | | Secretary-approved qualified vendor to certify, on a form | 25 | | prescribed by the Secretary, that the employee has | 26 | | successfully completed the basic and refresher training. The |
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| 1 | | original form or a copy shall be a permanent record of training | 2 | | completed by the employee and shall be placed in the | 3 | | employee's file with the employer for the period the employee | 4 | | remains with the employer. The original form or a copy shall be | 5 | | given to the employee when his or her employment is | 6 | | terminated. Failure to return the original form or a copy to | 7 | | the employee is grounds for disciplinary action. The employee | 8 | | shall not be required to repeat the required training once the | 9 | | employee has been issued the form. An employer may provide or | 10 | | require additional training. | 11 | | (e) It shall be the responsibility of the pawnbroker and | 12 | | the Secretary-approved qualified training vendor to keep and | 13 | | maintain a personal log of all training hours earned along | 14 | | with sufficient documentation necessary for the Secretary to | 15 | | verify the annual training completed for at least 5 years. The | 16 | | personal training log and documentation shall be provided to | 17 | | the Secretary in the same manner as other documentation and | 18 | | records required under this Act. | 19 | | (f) Notwithstanding any other professional license a | 20 | | pawnbroker holds under this Act, no more than 8 hours of annual | 21 | | training shall be required for any one year. | 22 | | (g) The license of a pawnbroker whose managers or | 23 | | employees fail to comply with this Section may be suspended or | 24 | | revoked or may face other disciplinary action. | 25 | | (h) The regulation of pawnbroker employee training is an | 26 | | exclusive power and function of the State. A home rule unit may |
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| 1 | | not regulate pawnbroker employee training or require a | 2 | | pawnbroker that is licensed by the State under this Act, or its | 3 | | employees, to maintain licenses in addition to licensure under | 4 | | the Act, to operate. This subsection is a denial and | 5 | | limitation of home rule powers and functions under subsection | 6 | | (h) of Section 6 of Article VII of the Illinois Constitution. | 7 | | (i) Persons seeking the Secretary's approval to offer the | 8 | | training required by subsection (b) may apply for such | 9 | | approval between August 1 and August 31 every 4 years in a | 10 | | manner prescribed by the Secretary. | 11 | | (j) Persons seeking the Secretary's approval to offer the | 12 | | training required by subsection (b) shall submit a | 13 | | nonrefundable application fee of $2,000 or a fee set by rule, | 14 | | to be deposited into the Pawnbroker Regulation Fund. Any | 15 | | changes made to the training module shall be approved by the | 16 | | Secretary. | 17 | | (k) The Secretary shall not unreasonably deny approval of | 18 | | a training module, whether in-person or online, that meets all | 19 | | the requirements of subsection (b). A denial of approval shall | 20 | | include a detailed description of the reasons for the denial. | 21 | | (l) A person approved to provide the training required by | 22 | | subsection (b) shall submit an application for re-approval | 23 | | between August 1 and August 31 of each even-numbered year and | 24 | | include a nonrefundable application fee of $2,000 or a fee set | 25 | | by rule, to be deposited into the Pawnbroker Regulation Fund. |
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| 1 | | Section 10-70. 10-70. Rules and regulations. | 2 | | (a) In addition to such powers as may be prescribed by this | 3 | | Act, the Department is hereby authorized and empowered to | 4 | | adopt rules consistent with the purposes of this Act, | 5 | | including, but not limited to: | 6 | | (1) rules in connection with the activities of | 7 | | licensees as may be necessary and appropriate for the | 8 | | protection of consumers in this State; | 9 | | (2) rules as may be necessary and appropriate to | 10 | | define improper or fraudulent business practices in | 11 | | connection with the activities of licensees in operating | 12 | | as a pawnbroker; | 13 | | (3) rules that define the terms used in this Act and as | 14 | | may be necessary and appropriate to interpret and | 15 | | implement the provisions of this Act; and | 16 | | (4) rules as may be necessary for the enforcement of | 17 | | this Act. | 18 | | (b) The Secretary is hereby authorized and empowered to | 19 | | make specific rulings, demands, and findings that he or she | 20 | | deems necessary for the proper conduct of the pawnbroker | 21 | | industry. | 22 | | (c) A person or entity may make a written application to | 23 | | the Department for a written interpretation of this Act. The | 24 | | Department may then, in its sole discretion, choose to issue a | 25 | | written interpretation. To be valid, a written interpretation | 26 | | must be signed by the Secretary, or his or her designee, and |
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| 1 | | the Department's general counsel or his or her designee. A | 2 | | written interpretation expires 2 years after the date that it | 3 | | was issued. | 4 | | (d) No provision in this Act that imposes liability or | 5 | | establishes violations shall apply to any act taken by a | 6 | | person or entity in conformity with a written interpretation | 7 | | of this Act that is in effect at the time the act is taken, | 8 | | notwithstanding whether the written interpretation is later | 9 | | amended, rescinded, or determined by judicial or other | 10 | | authority to be invalid for any reason. | 11 | | Section 10-75. Appeal and review. | 12 | | (a) Any person or entity affected by a decision of the | 13 | | Secretary under any provision of this Act may obtain review of | 14 | | that decision within the Department. | 15 | | (b) The Department may, in accordance with the Illinois | 16 | | Administrative Procedure Act, adopt rules to provide for | 17 | | review within the Department of the Secretary's decisions | 18 | | affecting the rights of entities under this Act. The review | 19 | | shall provide for, at a minimum: | 20 | | (1) appointment of a hearing officer other than a | 21 | | regular employee of the Division of Banking; | 22 | | (2) appropriate procedural rules, specific deadlines | 23 | | for filings, and standards of evidence and of proof; and | 24 | | (3) provision for apportioning costs among parties to | 25 | | the appeal. |
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| 1 | | (c) All final agency determinations of appeals to | 2 | | decisions of the Secretary may be reviewed in accordance with | 3 | | and under the provisions of the Administrative Review Law. | 4 | | Appeals from all final orders and judgments entered by a court | 5 | | in review of any final administrative decision of the | 6 | | Secretary or of any final agency review of a decision of the | 7 | | Secretary may be taken as in other civil cases. | 8 | | Section 10-80. Violations of this Act; Secretary's orders. | 9 | | (a) If the Secretary finds, as the result of examination, | 10 | | investigation, or review of reports submitted by a licensee, | 11 | | that the business and affairs of a licensee are not being | 12 | | conducted in accordance with this Act, the Secretary shall | 13 | | notify the licensee of the correction necessary. If a licensee | 14 | | fails to correct such violations, the Secretary shall issue an | 15 | | order requiring immediate correction and compliance with this | 16 | | Act, specifying a reasonable date for performance. | 17 | | (b) The Department may adopt rules to provide for an | 18 | | orderly and timely appeal of all orders within the Department. | 19 | | The rules may include provision for assessment of fees and | 20 | | costs. | 21 | | Section 10-85. Collection of compensation. Unless exempt | 22 | | from licensure under this Act, no person engaged in or | 23 | | offering to engage in any act or service for which a license | 24 | | under this Act is required may bring or maintain any action in |
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| 1 | | any court of this State to collect compensation for the | 2 | | performance of the licensable services without alleging and | 3 | | proving that he or she was the holder of a valid pawnbroker | 4 | | license under this Act at all times during the performance of | 5 | | those services. | 6 | | Section 10-90. Injunction. The Secretary, through the | 7 | | Attorney General, may maintain an action in the name of the | 8 | | People of the State of Illinois and may apply for an injunction | 9 | | in the circuit court to enjoin a person from engaging in | 10 | | unlicensed pawnbroker activity, to restrain any person from | 11 | | violating or continuing to violate any of the provisions of | 12 | | this Act, or to file a complaint to take possession and control | 13 | | of a pawnshop for the purpose of examination, reorganization, | 14 | | or liquidation through receivership and to appoint a receiver, | 15 | | which may be the Secretary, a pawnshop, or another suitable | 16 | | person | 17 | | Article 15. Pawn Customer Bill of Rights | 18 | | Section 15-5. General provisions. | 19 | | (a) It is unlawful for an individual or business entity to | 20 | | conduct business in this State using the word "pawn", | 21 | | "pawnshop", or "pawnbroker" in connection with the business or | 22 | | to transact business in this State in a manner that has a | 23 | | substantial likelihood of misleading the public by implying |
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| 1 | | that the business is a pawnshop, without first obtaining a | 2 | | license from the Secretary. It shall be unlawful for any | 3 | | business to advertise in a pawnbroker category, digitally or | 4 | | in print without including that business's pawnbroker and | 5 | | Nationwide Multistate Licensing System and Registry license | 6 | | number. | 7 | | (b) It is unlawful for an entity licensed under this Act to | 8 | | do any of the following: | 9 | | (1) Engage, have engaged, or propose to engage in any | 10 | | unlawful, unfair, deceptive, or abusive act or practice | 11 | | with respect to financial products or services. | 12 | | (2) Offer or provide to a consumer any financial | 13 | | product or service not in conformity with this Act or | 14 | | otherwise commit any act or omission in violation of a | 15 | | financial law. | 16 | | (3) Fail or refuse, as required by this Act or any rule | 17 | | or order issued by the Department hereunder, to do any of | 18 | | the following: | 19 | | (A) Permit the Department to access or copy | 20 | | records. | 21 | | (B) Establish or maintain records. | 22 | | (C) Make reports or provide information to the | 23 | | Department. | 24 | | Section 15-10. Fees. | 25 | | (a) It is unlawful for any pawnbroker to charge or collect |
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| 1 | | a greater benefit or percentage upon money advanced, and for | 2 | | the use and forbearance thereof, than the amount specified in | 3 | | subsection (c). Nothing in this Section shall be construed to | 4 | | conflict with the law pertaining to usury and the person | 5 | | receiving money so advanced may hold the moneys to pay any fees | 6 | | in addition to interest. | 7 | | (b) Each pawnbroker, when making a pawn under this | 8 | | Section, must disclose in printed form on the pawn contract | 9 | | the following information to the persons receiving the pawn: | 10 | | (1) the amount of money advanced, which must be | 11 | | designated as the amount pawned; | 12 | | (2) the maturity date of the pawn, which must be at | 13 | | least 30 days after the originating date of the pawn; | 14 | | (3) the total pawn interest and service charge payable | 15 | | on the maturity date, which must be designated as the | 16 | | finance charge; | 17 | | (4) the total of payments that must be paid to redeem | 18 | | the pledged goods on the maturity date, which must be | 19 | | designated as the total of payments; and | 20 | | (5) the annual percentage rate, computed according to | 21 | | the regulations adopted by the Consumer Financial | 22 | | Protection Bureau under the federal Truth in Lending Act. | 23 | | (c) Each pawnbroker may contract for and receive a monthly | 24 | | finance charge, including interest and fees not to exceed | 25 | | one-fifth of the pawn amount for pawns under $500; one-sixth | 26 | | of the pawn amount for pawns $500 or more and $1,500 or less; |
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| 1 | | one-eighth of the pawn amount for pawns of over $1,500 and | 2 | | $5,000 or less; and one-twentieth of the pawn amount for pawns | 3 | | of over $5,000, pursuant to Section 15-30, for appraising, | 4 | | investigating title, storing, insuring the pledged property, | 5 | | making daily reports to local law enforcement including | 6 | | enhanced computerized reporting, and complying with regulatory | 7 | | requirements. Such fees, when made and collected, shall not be | 8 | | deemed interest for any purpose of law. A pawnbroker shall not | 9 | | require a customer to pay such fees by means of an electronic | 10 | | fund transfer, as that term is defined in Section 10 of the | 11 | | Electronic Fund Transfer Act, including through the use of an | 12 | | automated clearinghouse system. | 13 | | (d) Notwithstanding any inconsistent provision of law, a | 14 | | pawn transaction made pursuant to this Act shall be exempt | 15 | | from the provisions of the Predatory Loan Prevention Act. | 16 | | Section 15-15. Display of fee provision. Every pawnbroker | 17 | | shall at all times have and keep Section 15-10 printed in the | 18 | | English and Spanish languages and framed and posted in a | 19 | | prominent and conspicuous position in its place of business, | 20 | | so that the same shall be plainly legible and visible to all | 21 | | persons depositing or pledging property with such pawnbroker. | 22 | | Section 15-20. Disclosure of article description and pawn | 23 | | terms. | 24 | | (a) Every pawnbroker shall, at the time of making any |
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| 1 | | advancement or pawn, deliver to the person pawning or pledging | 2 | | any property, a memorandum, contract, or note signed by the | 3 | | person pawning the property containing an accurate account and | 4 | | description, in the English language, of the following: | 5 | | (1) All the goods, articles or other things pawned or | 6 | | pledged. | 7 | | (2) The amount of money and the time of pledging the | 8 | | same. | 9 | | (3) The rate of interest to be paid on the pawn. | 10 | | (4) The name and residence of the person making the | 11 | | pawn or pledge. | 12 | | (5) The dollar amount of any fees as specified in | 13 | | Section 15-10. | 14 | | (6) A disclosure that by extending the pawn, the fees | 15 | | may exceed the value of the item pawned. | 16 | | (b) The Secretary may adopt rules prescribing the form and | 17 | | content of the disclosures required by subsection (a). | 18 | | Section 15-25. Record requirements. | 19 | | (a) Except in municipalities located in counties having | 20 | | 3,000,000 or more inhabitants, every pawnbroker shall keep a | 21 | | standard record book that has been approved by the sheriff of | 22 | | the county in which the pawnbroker does business. In | 23 | | municipalities in counties with 3,000,000 or more inhabitants, | 24 | | the record book shall be approved by the police department of | 25 | | the municipality in which the pawnbroker does business. At the |
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| 1 | | time of each and every pawn or purchase, an accurate account | 2 | | and description, in the English language, of each of the items | 3 | | listed in subsection (a) of Section 15-20 shall be printed, | 4 | | typed, or written in ink in the record book. Such entry shall | 5 | | include the serial number or identification number of items | 6 | | received that bear such number. Except for items purchased | 7 | | from dealers possessing a federal employee identification | 8 | | number who have provided a receipt to the pawnbroker, every | 9 | | pawnbroker shall also record in his book, an accurate account | 10 | | and description, in the English language, of all goods, | 11 | | articles, and other things purchased or received for the | 12 | | purpose of resale or items pawned by the pawnbroker from any | 13 | | source, including other pawnshop locations owned by the same | 14 | | pawnbroker, not in the course of a pledge or pawn, the time of | 15 | | such purchase or receipt and the name and address of the person | 16 | | or business which sold or delivered such goods, articles, or | 17 | | other things to the pawnbroker. No entry in such book shall be | 18 | | erased, mutilated, or changed. | 19 | | (b) Every pawnbroker shall require identification to be | 20 | | shown by each person selling or pawning any goods, articles, | 21 | | or other things to the pawnbroker. If the identification shown | 22 | | is a driver's license, State identification card, or consular | 23 | | identification card and contains a photograph of the person | 24 | | being identified, only one form of identification must be | 25 | | shown. If the identification shown is not a driver's license, | 26 | | State identification card, or consular identification card or |
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| 1 | | does not contain a photograph, 2 forms of identification must | 2 | | be shown, and one of the 2 forms of identification must include | 3 | | the person's residence address. These forms of identification | 4 | | shall include, but not be limited to, any of the following: | 5 | | passport, driver's license, social security card, utility | 6 | | bill, employee or student identification card, credit card, or | 7 | | a civic, union, or professional association membership card. | 8 | | In addition, in a municipality with a population of 1,000,000 | 9 | | or more inhabitants, if the customer does not have an | 10 | | identification issued by a governmental entity containing a | 11 | | photograph of the person being identified, the pawnbroker | 12 | | shall photograph the customer in color and record the | 13 | | customer's name, residence address, date of birth, gender, | 14 | | height, and weight along with the photograph. | 15 | | (c) A county or municipality, including a home rule unit, | 16 | | may regulate a pawnbroker's identification requirements for | 17 | | persons pledging or pawning goods, articles, or other things | 18 | | to the pawnbroker in a manner that is not less restrictive than | 19 | | the regulation by this State of a pawnbroker's identification | 20 | | requirements for persons pledging or pawning goods, articles, | 21 | | or other things. A home rule unit may not regulate a | 22 | | pawnbroker's identification requirements for persons pledging | 23 | | or pawning goods, articles, or other things to the pawnbroker | 24 | | in a manner less restrictive than the regulation by this State | 25 | | of a pawnbroker's identification requirements for persons | 26 | | selling or pawning goods, articles, or other things. This |
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| 1 | | Section is a limitation under subsection (i) of Section 6 of | 2 | | Article VII of the Illinois Constitution on the concurrent | 3 | | exercise by home rule units of the powers and functions | 4 | | exercised by this State. | 5 | | (d) A pawnbroker may maintain the records required by | 6 | | subsection (a) in computer form if the computer form has been | 7 | | approved by the Secretary or his or her designee, the sheriff | 8 | | of the county in which the shop is located, and the police | 9 | | department of the municipality in which the shop is located. | 10 | | (e) Records, including reports to the Secretary or his or | 11 | | her designee, maintained by pawnbrokers shall be confidential, | 12 | | and no disclosure of pawnbroker records shall be made, except | 13 | | disclosures authorized by this Act or ordered by a court of | 14 | | competent jurisdiction. No record transferred to a | 15 | | governmental official shall be improperly disclosed, however, | 16 | | use of those records as evidence of a felony or misdemeanor | 17 | | shall be a proper purpose. | 18 | | (f) Pawnbrokers and their associations may lawfully give | 19 | | appropriate governmental agencies computer equipment for the | 20 | | purpose of transferring information pursuant to this Act. | 21 | | Section 15-30. Replacement of articles or property; | 22 | | insurance. | 23 | | (a) If any articles or property pledged are lost or | 24 | | rendered inoperable, the pawnbroker shall replace the articles | 25 | | or property with identical articles or property, except that |
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| 1 | | if the pawnbroker cannot reasonably obtain identical articles | 2 | | or property, the pawnbroker shall replace the articles or | 3 | | property with like articles or property. | 4 | | (b) No pawnbroker shall conduct business in this State, | 5 | | unless the pawnbroker maintains insurance coverage covering | 6 | | all hazards equal to at least 2 times the aggregate value of | 7 | | the outstanding pawns for items held in pawn. Such insurance | 8 | | shall be obtained from an insurance company authorized to do | 9 | | business in Illinois. | 10 | | (c) The pawnbroker shall file a copy of proof of insurance | 11 | | coverage with the Secretary. A pawnbroker or an insurance | 12 | | company shall not cancel the insurance coverage, except upon | 13 | | notice to the Secretary by certified mail, return receipt | 14 | | requested. The cancellation is not effective until 30 days | 15 | | after the Secretary receives the notice. | 16 | | Section 15-35. Minors. No pawnbroker shall purchase, take, | 17 | | or receive any pawn, any property of any kind from any minor | 18 | | who is under 18 years of age, or the ownership of which is in, | 19 | | or which is claimed by, any such minor, or which may be in the | 20 | | possession or under the control of any such minor. | 21 | | Section 15-40. Intoxicated persons; persons convicted of | 22 | | theft. No pawnbroker shall knowingly or recklessly purchase or | 23 | | take any article in pawn or purchase from any person appearing | 24 | | to be intoxicated, nor from any person known to have been |
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| 1 | | convicted of theft. A law enforcement officer may provide such | 2 | | criminal conviction information to a pawnbroker. Such | 3 | | information must be provided in writing. | 4 | | Section 15-45. Altered property; serial number and | 5 | | manufacturer's identification number. | 6 | | (a) No pawnbroker shall receive or purchase any article if | 7 | | the manufacturer's make, model, or serial number, personal | 8 | | identification number, or identifying marks engraved or etched | 9 | | upon an item of personal property has been removed, altered, | 10 | | or obliterated. | 11 | | (b) The prohibition in subsection (a) does not apply if | 12 | | the article's manufacturer's make, model, or serial number, | 13 | | personal identification number, or identifying marks have been | 14 | | worn in the ordinary course of use. However, no article | 15 | | described in this subsection (b) shall be sold or transferred | 16 | | to another pawnshop location of such pawnbroker for a period | 17 | | of 15 days after the delivery of the copy and statement | 18 | | required by subsection (b) of Section 10-25 required to be | 19 | | delivered to the officer or officers named therein. | 20 | | Section 15-50. Sale of property. | 21 | | (a) No personal property pledged or received on deposit by | 22 | | any pawnbroker shall be permitted to be redeemed from such | 23 | | pawnbroker for a period of 48 hours after the delivery of the | 24 | | copy and statement required by subsection (b) of Section 10-25 |
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| 1 | | to be delivered to the officer or officers named therein. | 2 | | (b) No personal property purchased by any pawnbroker shall | 3 | | be sold or removed from the place of business or transferred to | 4 | | another pawnshop location of such pawnbroker for a period of | 5 | | 10 days after the delivery of the copy and statement required | 6 | | by subsection (b) of Section 10-25 to be delivered to the | 7 | | officer or officers named therein. | 8 | | (c) If the pawner fails to repay or extend the pawn during | 9 | | the period specified on the pawn ticket, the pawnbroker shall | 10 | | automatically extend a grace period of 30 days after the | 11 | | default date on the pawn during which the pawnbroker shall not | 12 | | dispose of or sell the personal property pawned. The parties | 13 | | may agree to extend or renew a pawn upon terms agreed upon by | 14 | | the parties, if the terms comply with the requirements of this | 15 | | Act. Title to the pledged property transfers to the pawnbroker | 16 | | after the default date grace period expires or upon expiration | 17 | | of an agreed extension. | 18 | | (d) A county or municipality, including a home rule unit, | 19 | | may regulate holding periods in a manner that is more | 20 | | restrictive than the regulation provided in this Section. | 21 | | (e) A home rule unit may not regulate the holding periods | 22 | | in this Section in a manner less restrictive than the | 23 | | regulation by this State. This Section is a limitation under | 24 | | subsection (i) of Section 6 of Article VII of the Illinois | 25 | | Constitution on the concurrent exercise by home rule units of | 26 | | the powers and functions exercised by this State. |
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| 1 | | Section 15-55. Hold order. | 2 | | (a) For the purposes of this Section, "hold order" means a | 3 | | written legal instrument issued to a pawnbroker by a law | 4 | | enforcement officer commissioned by the law enforcement agency | 5 | | of the municipality or county that licenses and regulates the | 6 | | pawnbroker, evidencing a criminal law enforcement | 7 | | investigation, and ordering the pawnbroker to retain physical | 8 | | possession of pawned goods in the possession of the pawnbroker | 9 | | or property purchased by and in the possession of the | 10 | | pawnbroker and to not return, sell, or otherwise dispose of | 11 | | such property as such property is believed to be | 12 | | misappropriated goods. | 13 | | (b) Upon written notice from a law enforcement officer | 14 | | indicating that property in the possession of a pawnbroker and | 15 | | subject to a hold order is needed for the purpose of furthering | 16 | | a criminal investigation and prosecution, the pawnbroker shall | 17 | | release the property subject to the hold order to the custody | 18 | | of the law enforcement officer for such purpose and the law | 19 | | enforcement officer shall provide a written acknowledgment | 20 | | that the property has been released to the officer. The | 21 | | release of the property to the custody of the law enforcement | 22 | | officer shall not be considered a waiver or release of the | 23 | | pawnbroker's property rights or interest in the property. Upon | 24 | | completion of the criminal investigation, the property shall | 25 | | be returned to the pawnbroker who consented to its release; |
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| 1 | | except that: | 2 | | (1) if the criminal investigation took place within a | 3 | | county or counties with a population of less than 300,000 | 4 | | and that investigation: | 5 | | (A) has determined that the property is stolen | 6 | | property, | 7 | | (B) has determined that the fair market value of | 8 | | the stolen property is $500 or less, | 9 | | (C) has identified the rightful owner of the | 10 | | stolen property, and | 11 | | (D) contains a court-admissible sworn statement by | 12 | | the rightful owner that they are the true owners of the | 13 | | stolen property, then law enforcement shall return the | 14 | | property to that owner without the payment of the | 15 | | money advanced by the pawnbroker or any costs or | 16 | | charges of any kind that the pawnbroker may have | 17 | | placed upon the same; or | 18 | | (2) if the criminal investigation took place within a | 19 | | county or counties with a population of more than 300,000 | 20 | | and that investigation: | 21 | | (A) has determined that the property is stolen | 22 | | property, | 23 | | (B) has determined that the then-fair market value | 24 | | of the stolen property is $1,000 or less, | 25 | | (C) has identified the rightful owner of the | 26 | | stolen property, and |
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| 1 | | (D) contains a court-admissible sworn statement by | 2 | | the rightful owner that they are the true owners of the | 3 | | stolen property, then law enforcement shall return the | 4 | | property to that owner without the payment of the | 5 | | money advanced by the pawnbroker or any costs or | 6 | | charges of any kind that the pawnbroker may have | 7 | | placed upon the same. | 8 | | (c) After the return of said property, the pawnbroker | 9 | | shall not be liable to any private person or government entity | 10 | | for any further claims on the returned property. Law | 11 | | enforcement shall provide all information related to such | 12 | | persons involved in the investigation to the pawnbroker, | 13 | | including the investigative report, without the need for a | 14 | | subpoena, court order, or further legal action of government | 15 | | filing. The hold order shall expire on the 120th day after it | 16 | | is issued, at which time the pawnbroker may exercise its | 17 | | rights under any applicable pawn ticket or extension. If the | 18 | | law enforcement officer has not completed the criminal | 19 | | investigation within 120 days after the issuance of the hold | 20 | | order, the officer shall immediately return any property in | 21 | | law enforcement custody to the pawnbroker or obtain and | 22 | | furnish to the pawnbroker a warrant for a maximum 120-day hold | 23 | | order extension and, as applicable, continued law enforcement | 24 | | custody of the property. | 25 | | The pawnbroker shall not release or dispose of the | 26 | | property, except pursuant to a court order or the expiration |
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| 1 | | of the holding period of the hold order, including all | 2 | | extensions. | 3 | | In cases where criminal charges have been filed and the | 4 | | property may be needed as evidence, the prosecuting attorney | 5 | | shall notify the pawnbroker in writing. The notice shall | 6 | | contain the case number, the style of the case, and a | 7 | | description of the property. The pawnbroker shall hold the | 8 | | property until receiving notice of the disposition of the case | 9 | | from the prosecuting attorney. The prosecuting attorney shall | 10 | | notify the pawnbroker and claimant in writing within 15 days | 11 | | after the disposition of the case. | 12 | | (d) A hold order, and a foregoing notice of criminal | 13 | | charges, must specify: | 14 | | (1) the name and address of the pawnbroker; | 15 | | (2) the law enforcement investigation number, the | 16 | | name, title, and identification number of the law | 17 | | enforcement officer placing the hold order or the court | 18 | | placing the hold order; | 19 | | (3) a complete description of the property to be held, | 20 | | including model number and serial number if available, to | 21 | | law enforcement; | 22 | | (4) the name of the alleged owner or person reporting | 23 | | the alleged misappropriated property, unless otherwise | 24 | | prohibited by law; | 25 | | (5) the mailing address of the pawnbroker where the | 26 | | property is held; and |
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| 1 | | (6) the issuance and expiration date of the holding | 2 | | period. | 3 | | (e) The pawnbroker or the pawnbroker's representative must | 4 | | sign and date a copy of the hold order as evidence of receipt | 5 | | of the hold order and the beginning of the 120-day holding | 6 | | period. | 7 | | Article 20. Consumer Fraud Protections | 8 | | Section 20-5. Enforcement; Consumer Fraud and Deceptive | 9 | | Business Practices Act. The Attorney General may enforce a | 10 | | violation of Article 15 of this Act as an unlawful practice | 11 | | under the Consumer Fraud and Deceptive Business Practices Act. | 12 | | Article 25. Transition provisions | 13 | | Section 25-5. Savings provisions.
| 14 | | (a) This Act is intended to replace the Pawnbroker | 15 | | Regulation Act
in all respects.
| 16 | | (b) Beginning on the effective date of this Act, the | 17 | | rights, powers, and duties exercised by
the
Department of | 18 | | Financial and
Professional Regulation under the Pawnbroker | 19 | | Regulation Act shall continue to be
vested in, to be the | 20 | | obligation of,
and to be exercised by the Department of | 21 | | Financial and Professional Regulation under the provisions
of | 22 | | this Act.
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| 1 | | (c) This Act does not affect any act done, ratified, or | 2 | | cancelled, any
right occurring or established,
or any action | 3 | | or proceeding commenced in an administrative, civil, or | 4 | | criminal
cause before the effective date of this Act by the | 5 | | Department of Financial and Professional Regulation under the | 6 | | Pawnbroker Regulation Act. Those
actions or proceedings may be | 7 | | prosecuted and continued by the Department of Financial and | 8 | | Professional Regulation under
this Act.
| 9 | | (d) This Act does not affect any license, certificate, | 10 | | permit, or other form
of licensure
issued by the Department of | 11 | | Financial and
Professional Regulation under the Pawnbroker | 12 | | Regulation Act. All such
licenses, certificates, permits, or | 13 | | other form of licensure
shall continue to be valid under
the | 14 | | terms and conditions of this Act.
| 15 | | (e) The rules adopted by the Department of Financial and
| 16 | | Professional Regulation relating to the
Pawnbroker Regulation | 17 | | Act, unless inconsistent with the provisions of this Act, are | 18 | | not
affected by this Act, and on
the effective date of this | 19 | | Act, those rules become rules under this Act.
| 20 | | (f) This Act does not affect any discipline, suspension, | 21 | | or termination
that has occurred under the
Pawnbroker | 22 | | Regulation Act or other predecessor Act. Any action for
| 23 | | discipline, suspension, or
termination instituted under the | 24 | | Pawnbroker Regulation Act shall be
continued under this Act. | 25 | | Article 90. Amendatory Provisions |
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| 1 | | Section 90-5. The Division of Banking Act is amended by | 2 | | changing Sections 2.5 and 5 as follows:
| 3 | | (20 ILCS 3205/2.5)
| 4 | | Sec. 2.5. Prohibited activities.
| 5 | | (a) For the purposes of this Section, "regulated entity" | 6 | | means any person,
business, company, corporation, institution, | 7 | | or other entity who is subject to
regulation by the Office of | 8 | | Banks and Real Estate under Sections 3 and 46 of the Illinois | 9 | | Banking
Act, Section 1-5 of the Illinois Savings and Loan Act | 10 | | of 1985, Section 1004 of the Savings Bank Act, Section 1-3 of | 11 | | the Residential
Mortgage License Act of 1987, Section 2-4 of | 12 | | the Corporate Fiduciary Act, Section 3.02 of the Illinois Bank
| 13 | | Holding Company Act of 1957, the Savings and Loan Share and | 14 | | Account Act, Section 1.5 of the Pawnbroker Regulation Act of | 15 | | 2023 , Section 3 of the Foreign Banking Office Act, or Section | 16 | | 30 of the Electronic
Fund Transfer Act.
| 17 | | (b) The Commissioner and the deputy commissioners shall | 18 | | not be an officer,
director, employee, or agent of a regulated | 19 | | entity or of a corporation or
company that owns or controls a | 20 | | regulated entity.
| 21 | | The Commissioner and the deputy commissioners shall not | 22 | | own shares of
stock or hold any other equity interest in a | 23 | | regulated entity or in a
corporation or company that owns or | 24 | | controls a regulated entity. If the
Commissioner or a deputy |
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| 1 | | commissioner owns shares of stock or holds an equity
interest | 2 | | in a regulated entity at the time of appointment, he or she | 3 | | shall
dispose of such shares or other equity interest within | 4 | | 120 days from the date
of appointment.
| 5 | | The Commissioner and the deputy commissioners shall not | 6 | | directly or
indirectly obtain a loan from a regulated entity | 7 | | or accept a gratuity from a
regulated entity that is intended | 8 | | to influence the performance of official
duties.
| 9 | | (c) Employees of the Office of Banks and Real Estate shall | 10 | | not be officers,
directors, employees, or agents of a | 11 | | regulated entity or of a corporation
or company that owns or | 12 | | controls a regulated entity.
| 13 | | Except as provided by standards which the Office of Banks | 14 | | and Real Estate may
establish, employees of the Office of | 15 | | Banks and Real Estate shall not own
shares of stock or hold any | 16 | | other equity interest in a regulated entity or in
a | 17 | | corporation or company that owns or controls a regulated | 18 | | entity, or
directly or indirectly obtain a loan from a | 19 | | regulated entity, or accept a
gratuity from a regulated entity | 20 | | that is intended to influence the performance
of official | 21 | | duties. However, in no case shall an employee of the Office of
| 22 | | Banks and Real Estate participate in any manner in the | 23 | | examination or direct
regulation of a regulated entity in | 24 | | which the employee owns shares of stock or
holds any other | 25 | | equity interest, or which is servicing a loan to which the
| 26 | | employee is an obligor.
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| 1 | | (d) If the Commissioner, a deputy commissioner, or any | 2 | | employee of the
Office of Banks and Real Estate properly | 3 | | obtains a loan or extension of credit
from an entity that is | 4 | | not a regulated entity, and the loan or extension of
credit is | 5 | | subsequently acquired by a regulated entity or the entity | 6 | | converts to
become a regulated entity after the loan is made, | 7 | | such purchase by or
conversion to a regulated entity shall not | 8 | | cause the loan or extension of
credit to be deemed a violation | 9 | | of this Section.
| 10 | | Nothing in this Section shall be deemed to prevent
the | 11 | | ownership of a checking account, a savings deposit account, a | 12 | | money market
account, a certificate of deposit, a credit or | 13 | | debit card account, or shares in
open-end investment companies | 14 | | registered with the Securities and Exchange
Commission | 15 | | pursuant to the federal Investment Company Act of 1940 and the
| 16 | | Securities Act of 1933 (commonly referred to as mutual or | 17 | | money market
funds).
| 18 | | (e) No Commissioner, deputy commissioner, employee, or | 19 | | agent of the
Office of Banks and Real Estate shall, either | 20 | | during or after the holding of
his or her term of office or | 21 | | employment, disclose confidential information
concerning any | 22 | | regulated entity or person except as authorized by law or
| 23 | | prescribed by rule. "Confidential information", as used in | 24 | | this Section, means
any information that the person or officer | 25 | | obtained during his or her term of
office or employment that is | 26 | | not available from the Office of Banks and Real
Estate |
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| 1 | | pursuant to a request under the Freedom of Information Act.
| 2 | | (Source: P.A. 97-492, eff. 1-1-12.)
| 3 | | (20 ILCS 3205/5) (from Ch. 17, par. 455)
| 4 | | Sec. 5. Powers. In addition to all the other powers and | 5 | | duties provided
by law, the Commissioner shall have the | 6 | | following powers:
| 7 | | (a) To exercise the rights, powers and duties formerly | 8 | | vested by law in
the Director of Financial Institutions under | 9 | | the Illinois Banking Act.
| 10 | | (b) To exercise the rights, powers and duties formerly | 11 | | vested by law in
the Department of Financial Institutions | 12 | | under "An act to provide for and
regulate the administration | 13 | | of trusts by trust companies", approved June 15,
1887, as | 14 | | amended.
| 15 | | (c) To exercise the rights, powers and duties formerly | 16 | | vested by law in
the Director of Financial Institutions under | 17 | | "An act authorizing foreign
corporations, including banks and | 18 | | national banking associations domiciled in
other states, to | 19 | | act in a fiduciary capacity in this state upon certain
| 20 | | conditions herein set forth", approved July 13, 1953, as | 21 | | amended.
| 22 | | (c-5) To exercise all of the rights, powers, and duties | 23 | | granted to the Director or Secretary under the Illinois | 24 | | Banking Act, the Corporate Fiduciary Act, the Electronic Fund | 25 | | Transfer Act, the Illinois Bank Holding Company Act of 1957, |
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| 1 | | the Savings Bank Act, the Illinois Savings and Loan Act of | 2 | | 1985, the Savings and Loan Share and Account Act, the | 3 | | Residential Mortgage License Act of 1987, and the Pawnbroker | 4 | | Regulation Act of 2023 . | 5 | | (c-15) To enter into cooperative agreements with | 6 | | appropriate federal and out-of-state state regulatory agencies | 7 | | to conduct and otherwise perform any examination of a | 8 | | regulated entity as authorized under the Illinois Banking Act, | 9 | | the Corporate Fiduciary Act, the Electronic Fund Transfer Act, | 10 | | the Illinois Bank Holding Company Act of 1957, the Savings | 11 | | Bank Act, the Illinois Savings and Loan Act of 1985, the | 12 | | Residential Mortgage License Act of 1987, and the Pawnbroker | 13 | | Regulation Act of 2023 . | 14 | | (d) Whenever the Commissioner is authorized or required by | 15 | | law to consider
or to make findings regarding the character of | 16 | | incorporators, directors,
management personnel, or other | 17 | | relevant individuals under the Illinois Banking
Act,
the | 18 | | Corporate Fiduciary Act, the Pawnbroker Regulation Act of | 19 | | 2023 , or at other
times as the Commissioner deems necessary | 20 | | for the purpose of carrying out the
Commissioner's statutory | 21 | | powers
and responsibilities, the Commissioner shall consider | 22 | | criminal
history record information, including nonconviction | 23 | | information, pursuant to
the Criminal Identification Act. The | 24 | | Commissioner shall, in the
form and manner required by
the | 25 | | Illinois State Police and the Federal Bureau of Investigation, | 26 | | cause
to be conducted a criminal history record investigation |
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| 1 | | to obtain
information currently contained in the files of the | 2 | | Illinois State Police
or the Federal Bureau of Investigation, | 3 | | provided that the Commissioner need
not cause additional | 4 | | criminal history record investigations to be conducted
on | 5 | | individuals for whom the Commissioner, a federal bank | 6 | | regulatory
agency, or any other government agency has caused | 7 | | such investigations to
have been conducted previously unless | 8 | | such additional investigations are
otherwise required by law | 9 | | or unless the Commissioner deems such additional
| 10 | | investigations to be necessary for the purposes of
carrying | 11 | | out the Commissioner's statutory powers and responsibilities.
| 12 | | The Illinois State Police shall
provide, on the Commissioner's | 13 | | request, information concerning criminal
charges and their | 14 | | disposition currently on file with respect to a relevant
| 15 | | individual. Information obtained as a result
of an | 16 | | investigation under this Section shall be used in determining | 17 | | eligibility
to be an incorporator, director, management | 18 | | personnel, or other relevant
individual in relation to a | 19 | | financial institution or other entity
supervised by the | 20 | | Commissioner. Upon request and payment of fees in
conformance | 21 | | with the
requirements of Section 2605-400 of the Illinois | 22 | | State Police Law, the Illinois State Police is authorized
to | 23 | | furnish, pursuant to positive identification, such information | 24 | | contained in
State files as is necessary to fulfill the | 25 | | request.
| 26 | | (e) When issuing charters, permits, licenses, or other |
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| 1 | | authorizations,
the Commissioner may impose such terms and | 2 | | conditions on the issuance
as he deems necessary or | 3 | | appropriate. Failure to
abide by those terms and conditions | 4 | | may result in the revocation of the
issuance, the imposition | 5 | | of corrective orders, or the imposition of civil
money | 6 | | penalties.
| 7 | | (f) If the Commissioner has reasonable cause to believe | 8 | | that any entity
that has not submitted an application for | 9 | | authorization or licensure is
conducting any activity that | 10 | | would otherwise require authorization or
licensure by the | 11 | | Commissioner, the Commissioner shall have the power to
| 12 | | subpoena witnesses, to compel their attendance, to require the | 13 | | production
of any relevant books, papers, accounts, and | 14 | | documents, and to conduct an examination of the entity in | 15 | | order to determine
whether the entity is subject to | 16 | | authorization or licensure by the
Commissioner or the | 17 | | Division. If the Secretary determines that the entity is | 18 | | subject to authorization or licensure by the Secretary, then | 19 | | the Secretary shall have the power to issue orders against or | 20 | | take any other action, including initiating a receivership | 21 | | against the unauthorized or unlicensed entity.
| 22 | | (g) The Commissioner may, through the Attorney General, | 23 | | request
the circuit court of any county to issue an injunction | 24 | | to restrain any person
from violating the provisions of any | 25 | | Act administered by the Commissioner.
| 26 | | (h) Whenever the Commissioner is authorized to take any |
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| 1 | | action or
required by law to consider or make findings, the | 2 | | Commissioner may delegate
or appoint, in writing, an officer | 3 | | or employee of the Division to
take that action or make that | 4 | | finding.
| 5 | | (i) Whenever the Secretary determines that it is in the | 6 | | public's interest, he or she may publish any cease and desist | 7 | | order or other enforcement action issued by the Division. | 8 | | (Source: P.A. 102-538, eff. 8-20-21.)
| 9 | | (205 ILCS 510/Act rep.)
| 10 | | Section 90-10. The Pawnbroker Regulation Act is repealed. | 11 | | Section 90-15. The Uniform Commercial Code is amended by | 12 | | changing Section 9-201 as follows:
| 13 | | (810 ILCS 5/9-201) (from Ch. 26, par. 9-201)
| 14 | | Sec. 9-201. General effectiveness of security agreement.
| 15 | | (a) General effectiveness. Except as otherwise provided in | 16 | | the Uniform
Commercial Code, a security agreement is effective | 17 | | according to its terms
between
the parties, against purchasers | 18 | | of the collateral, and against creditors.
| 19 | | (b) Applicable consumer laws and other law. A transaction | 20 | | subject to
this Article is subject to any applicable rule of | 21 | | law, statute, or regulation
which establishes a
different
rule | 22 | | for
consumers, including:
| 23 | | (1) the Retail Installment Sales Act;
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| 1 | | (2) the Motor Vehicle Retail Installment Sales Act;
| 2 | | (3) Article II of Chapter 3 of the Illinois Vehicle | 3 | | Code;
| 4 | | (4) Article IIIB of the Boat Registration and Safety | 5 | | Act;
| 6 | | (5) the Pawnbroker Regulation Act of 2023 ;
| 7 | | (6) the Motor Vehicle Leasing Act;
| 8 | | (7) the Consumer Installment Loan Act; and
| 9 | | (8) the Consumer Deposit Security Act of 1987.
| 10 | | (c) Other applicable law controls. In case of conflict | 11 | | between this Article
and a rule of law, statute, or regulation | 12 | | described in subsection
(b), the rule
of law,
statute, or | 13 | | regulation controls. Failure to comply with a rule of law,
| 14 | | statute, or
regulation
described in subsection (b) has only | 15 | | the effect such rule of law, statute, or
regulation
specifies.
| 16 | | (d) Further deference to other applicable law. This | 17 | | Article does not:
| 18 | | (1) validate any rate, charge, agreement, or practice | 19 | | that violates a rule
of law, statute, or regulation | 20 | | described in subsection (b); or
| 21 | | (2) extend the application of the rule of law, | 22 | | statute, or regulation to a
transaction not otherwise | 23 | | subject to it.
| 24 | | (Source: P.A. 91-893, eff. 7-1-01.)
| 25 | | Section 90-20. The Consumer Fraud and Deceptive Business |
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| 1 | | Practices Act is amended by adding Section 2BBBB as follows: | 2 | | (815 ILCS 505/2BBBB new) | 3 | | Sec. 2BBBB. Violations of the Pawnbroker Regulation Act of | 4 | | 2023. Any person who violates Article 15 of the Pawnbroker | 5 | | Regulation Act of 2023 commits an unlawful practice within the | 6 | | meaning of this Act. | 7 | | Article 99. Severability; Effective Date | 8 | | Section 99-97. Severability. The provisions of this Act | 9 | | are severable under Section 1.31 of the Statute on Statutes. | 10 | | Section 99-99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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