Full Text of HB3059 102nd General Assembly
HB3059 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3059 Introduced 2/19/2021, by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Credit Union Act, the Transmitters of Money Act, the Sales Finance Agency Act, the Debt Management Service Act, the Consumer Installment Loan Act, the Debt Settlement Consumer Protection Act, and the Payday Loan Reform Act. Requires applicants for a license or renewal of a license to operate a credit union, operate as a transmitter of money, engage in the business of a sales finance agency, engage in a debt management service, make consumer installment loans, operate as a debt settlement provider, or operate as a lender of payday loans to provide an email address of record to the Department of Financial and Professional Regulation. In provisions concerning service of certain notices and orders, allows service by email to the email address of record. Provides that service to an email address of record is deemed complete when sent. Provides that service by certified mail shall be deemed completed when the notice is deposited in the United States mail. Defines the term "email address of record". Makes other changes.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Credit Union Act is amended by | 5 | | changing Sections 1.1, 2, 8, 21, and 61 as follows:
| 6 | | (205 ILCS 305/1.1) (from Ch. 17, par. 4402)
| 7 | | Sec. 1.1. Definitions.
| 8 | | Credit Union - The term "credit union" means
a | 9 | | cooperative, non-profit association, incorporated under this | 10 | | Act,
under the laws of the United States of America or under | 11 | | the laws
of another state, for the purposes of encouraging | 12 | | thrift among
its members, creating a source of credit at a | 13 | | reasonable rate of
interest, and providing an opportunity for | 14 | | its members to use
and control their own money in order to | 15 | | improve their economic and
social conditions. The membership | 16 | | of a credit union shall consist
of a group or groups each | 17 | | having a common
bond as set forth in this Act.
| 18 | | Common Bond - The term "common bond" refers to groups of | 19 | | people
who meet one of the following qualifications:
| 20 | | (1) Persons belonging to a specific association, group | 21 | | or organization,
such as a church, labor union, club or | 22 | | society and members of their immediate
families which | 23 | | shall include any relative by blood or marriage or foster
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| 1 | | and adopted children.
| 2 | | (2) Persons who reside in a reasonably compact and | 3 | | well defined
neighborhood or community, and
members of | 4 | | their immediate families which shall include any relative
| 5 | | by blood or marriage or foster and adopted children.
| 6 | | (3) Persons who have a common employer or who are | 7 | | members of an
organized labor union or an organized | 8 | | occupational or professional
group within a defined | 9 | | geographical area, and members of their
immediate families | 10 | | which shall include any relative by blood or
marriage or | 11 | | foster and adopted children.
| 12 | | Shares - The term "shares" or "share accounts" means any | 13 | | form of shares
issued by a credit union and established by a | 14 | | member in accordance with
standards specified by a credit | 15 | | union, including but not limited to common
shares, share draft | 16 | | accounts, classes of shares, share certificates,
special | 17 | | purpose share accounts, shares issued in trust, custodial | 18 | | accounts,
and individual retirement accounts or other plans | 19 | | established pursuant to
Section 401(d) or (f) or Section | 20 | | 408(a) of the Internal Revenue Code, as now
or hereafter | 21 | | amended, or similar provisions of any tax laws of the United
| 22 | | States that may hereafter exist.
| 23 | | Credit Union Organization - The term "credit union | 24 | | organization" means
any organization established to serve the | 25 | | needs of credit unions, the business
of which relates to the | 26 | | daily operations of credit unions.
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| 1 | | Department - The term "Department" means the Illinois | 2 | | Department of Financial and Professional Regulation.
| 3 | | Email address of record – The term "email address of | 4 | | record" means an accurate and current email address designated | 5 | | by a credit union and recorded by the Division of Financial | 6 | | Institutions in the credit union's file maintained by the | 7 | | Division of Financial Institutions. | 8 | | Secretary - The term "Secretary" means the Secretary
of | 9 | | Financial and Professional Regulation or a person authorized | 10 | | by the Secretary or this Act to act in the Secretary's stead.
| 11 | | Division of Financial Institutions - The term "Division of | 12 | | Financial Institutions" means the Division of Financial | 13 | | Institutions of the Department of Financial and Professional | 14 | | Regulation. | 15 | | Director - The term "Director of Financial Institutions" | 16 | | means the Director of the Division of Financial Institutions | 17 | | of the Department of Financial and Professional Regulation. | 18 | | Office - The term "office" means the Division of Financial | 19 | | Institutions of the Department of Financial and Professional | 20 | | Regulation. | 21 | | NCUA - The term "NCUA" means the National Credit Union | 22 | | Administration, an
agency of the United States Government | 23 | | charged with the supervision of
credit unions chartered under | 24 | | the laws of the United States of America.
| 25 | | Central Credit Union - The term "central credit union" | 26 | | means a credit union
incorporated primarily to receive shares |
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| 1 | | from and make loans to credit unions
and directors, officers, | 2 | | committee members and employees of credit unions.
A central | 3 | | credit union may also accept as members persons who were | 4 | | members
of credit unions which were liquidated and persons | 5 | | from occupational groups
not otherwise served by another | 6 | | credit union.
| 7 | | Corporate Credit Union - The term "corporate credit union" | 8 | | means a credit
union which is a cooperative, non-profit | 9 | | association, the membership of
which is limited primarily to | 10 | | other credit unions.
| 11 | | Insolvent - "Insolvent" means the condition that results | 12 | | when
the total of all liabilities and shares exceeds net | 13 | | assets of the credit union.
| 14 | | Danger of insolvency - For purposes of Section 61, a | 15 | | credit union is in
"danger of insolvency" if its net worth to
| 16 | | asset ratio falls below 2%. In calculating the danger of | 17 | | insolvency ratio,
secondary
capital shall be excluded. For | 18 | | purposes of Section 61, a credit union is also
in "danger of
| 19 | | insolvency" if the Department is unable to
ascertain, upon | 20 | | examination, the true financial
condition of the credit union.
| 21 | | Net Worth - "Net worth" means the retained earnings | 22 | | balance of the credit
union, as determined under generally | 23 | | accepted accounting principles, and forms
of secondary capital | 24 | | approved by the Secretary and the Director pursuant to | 25 | | rulemaking.
| 26 | | Charitable Donation Account - The term "charitable |
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| 1 | | donation account" means an account owned by a credit union | 2 | | that is held in a segregated custodial account or special | 3 | | purpose entity and specifically identified as a charitable | 4 | | donation account whereby, no less frequently than every 5 | 5 | | years and upon termination of the account, at least 51% of the | 6 | | total return on assets in the account is distributed to one or | 7 | | more charitable organizations or non-profit entities. | 8 | | (Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14.)
| 9 | | (205 ILCS 305/2) (from Ch. 17, par. 4403)
| 10 | | Sec. 2. Organization procedure. | 11 | | (1) Any 9 or more persons of legal age,
the majority of | 12 | | whom shall be residents of the State of Illinois, who have
a | 13 | | common bond referred to in Section 1.1 may organize a credit | 14 | | union or
a central credit union by complying with this | 15 | | Section.
| 16 | | (2) The subscribers shall execute in duplicate Articles of | 17 | | Incorporation
and agree to the terms thereof, which Articles | 18 | | shall state:
| 19 | | (a) The name, which shall include the words "credit | 20 | | union" and which shall
not be the same as that of any other | 21 | | existing credit union in this state,
and the location | 22 | | where the proposed credit union is to have its principal
| 23 | | place of business;
| 24 | | (b) The common bond of the members of the credit | 25 | | union;
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| 1 | | (c) The par value of the shares of the credit union, | 2 | | which must be at least $1;
| 3 | | (d) The names, addresses and Social Security numbers | 4 | | of the subscribers to
the Articles of Incorporation, and | 5 | | the number and the value of shares subscribed
to by each;
| 6 | | (e) That the credit union may exercise such incidental | 7 | | powers as are necessary
or requisite to enable it to carry | 8 | | on effectively the purposes for which
it is incorporated, | 9 | | and those powers which are inherent in the credit union
as | 10 | | a legal entity;
| 11 | | (f) That the existence of the credit union shall be | 12 | | perpetual.
| 13 | | (3) The subscribers shall prepare and adopt bylaws for the | 14 | | general government
of the credit union, consistent with this | 15 | | Act, and execute same in duplicate.
| 16 | | (4) The subscribers shall forward the articles of | 17 | | incorporation and the
bylaws to the Secretary in duplicate, | 18 | | along with the required charter fee.
If they conform to the | 19 | | law, and such rules and regulations as the Secretary and the | 20 | | Director
may prescribe, if the Secretary determines that a | 21 | | common bond exists, and
that it is economically advisable to | 22 | | organize the credit union, he or she shall
within 60 days issue | 23 | | a certificate of approval attached to the articles of | 24 | | incorporation
and return a copy of the bylaws
and the articles | 25 | | of incorporation to the applicants or their representative, | 26 | | which shall
be preserved in the permanent files of the credit |
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| 1 | | union. The subscribers
shall file the certificate of approval, | 2 | | with the articles of incorporation
attached, in the office of | 3 | | the recorder (or, if
there is no recorder, in the office of the | 4 | | county
clerk) of the county in which the
credit union is to | 5 | | locate its principal place of business. The
recorder or the | 6 | | county
clerk, as the case may be, shall accept
and record the | 7 | | documents if they are accompanied by the proper fee. When the | 8 | | documents
are so recorded, the credit union is incorporated | 9 | | under this Act.
| 10 | | (5) The subscribers for a credit union charter shall not | 11 | | transact any
business until the certificate of approval has | 12 | | been received.
| 13 | | (6) At the time of executing the articles of | 14 | | incorporation, the subscribers shall provide an email address | 15 | | of record. | 16 | | (Source: P.A. 100-361, eff. 8-25-17.)
| 17 | | (205 ILCS 305/8) (from Ch. 17, par. 4409)
| 18 | | Sec. 8. Secretary's powers and duties. Credit unions are | 19 | | regulated by the
Department. The Secretary in executing the | 20 | | powers and discharging the duties
vested by law in the | 21 | | Department has the following powers and duties:
| 22 | | (1) To exercise the rights, powers and duties set | 23 | | forth in this Act or
any related Act. The Director shall | 24 | | oversee the functions of the Division and report to the | 25 | | Secretary, with respect to the Director's exercise of any |
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| 1 | | of the rights, powers, and duties vested by law in the | 2 | | Secretary under this Act. All references in this Act to | 3 | | the Secretary shall be deemed to include the Director, as | 4 | | a person authorized by the Secretary or this Act to assume | 5 | | responsibility for the oversight of the functions of the | 6 | | Department relating to the regulatory supervision of | 7 | | credit unions under this Act.
| 8 | | (2) To prescribe rules and regulations for the | 9 | | administration of this
Act. The provisions of the Illinois | 10 | | Administrative Procedure Act are hereby
expressly adopted | 11 | | and incorporated herein
as though a part of this Act, and | 12 | | shall apply to all administrative rules
and procedures of | 13 | | the Department under this Act.
| 14 | | (3) To direct and supervise all the administrative and | 15 | | technical
activities
of the Department including the | 16 | | employment of a Credit Union Supervisor
who shall have | 17 | | knowledge in the theory and practice of, or experience in, | 18 | | the
operations or supervision of financial institutions, | 19 | | preferably credit unions,
and such other persons as are | 20 | | necessary to carry out his functions. The Secretary shall | 21 | | ensure that all examiners appointed or assigned to examine | 22 | | the affairs of State-chartered credit unions possess the | 23 | | necessary training and continuing education to effectively | 24 | | execute their jobs.
| 25 | | (4) To issue cease and desist orders when in the | 26 | | opinion of the Secretary,
a credit union is engaged or has |
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| 1 | | engaged, or the Secretary has reasonable
cause to believe | 2 | | the credit union is about to engage, in an unsafe or | 3 | | unsound
practice, or is violating or has violated or the | 4 | | Secretary has reasonable
cause to believe is about to | 5 | | violate a law, rule or regulation or any condition
imposed | 6 | | in writing by the Department.
| 7 | | (5) To suspend from office and to prohibit from | 8 | | further participation
in any manner in the conduct of the | 9 | | affairs of his credit union any director,
officer or | 10 | | committee member who has committed any violation of a law, | 11 | | rule,
regulation or of a cease and desist order or who has | 12 | | engaged or participated
in any unsafe or unsound practice | 13 | | in connection with the credit union or
who has committed | 14 | | or engaged in any act, omission, or practice which
| 15 | | constitutes a breach of his fiduciary duty as such | 16 | | director, officer or
committee member, when the Secretary | 17 | | has determined that such action or actions
have resulted | 18 | | or will result in substantial financial loss or other | 19 | | damage that
seriously prejudices the interests of the | 20 | | members.
| 21 | | (6) To assess a civil penalty against a credit union | 22 | | provided that: | 23 | | (A) the Secretary reasonably determines, based on | 24 | | objective facts and an accurate assessment of | 25 | | applicable legal standards, that the credit union has: | 26 | | (i) committed a violation of this Act, any |
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| 1 | | rule adopted in accordance with this Act, or any | 2 | | order of the Secretary issued pursuant to his or | 3 | | her authority under this Act; or | 4 | | (ii) engaged or participated in any unsafe or | 5 | | unsound practice; | 6 | | (B) before a civil penalty is assessed under this | 7 | | item (6), the Secretary must make the further | 8 | | reasonable determination, based on objective facts and | 9 | | an accurate assessment of applicable legal standards, | 10 | | that the credit union's action constituting a | 11 | | violation under subparagraph (i) of paragraph (A) of | 12 | | item (6) or an unsafe and unsound practice under | 13 | | subparagraph (ii) of paragraph (A) of item (6): | 14 | | (i) directly resulted in a substantial and | 15 | | material financial loss or created a reasonable | 16 | | probability that a substantial and material | 17 | | financial loss will directly result; or | 18 | | (ii) constituted willful misconduct or a | 19 | | material breach of fiduciary duty of any director, | 20 | | officer, or committee member of the credit union; | 21 | | Material financial loss, as referenced in this | 22 | | paragraph (B), shall be assessed in light of | 23 | | surrounding circumstances and the relative size and | 24 | | nature of the financial loss or probable financial | 25 | | loss. Certain benchmarks shall be used in determining | 26 | | whether financial loss is material, such as a |
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| 1 | | percentage of total assets or total gross income for | 2 | | the immediately preceding 12-month period. Absent | 3 | | compelling and extraordinary circumstances, no civil | 4 | | penalty shall be assessed, unless the financial loss | 5 | | or probable financial loss is equal to or greater than | 6 | | either 1% of the credit union's total assets for the | 7 | | immediately preceding 12-month period, or 1% of the | 8 | | credit union's total gross income for the immediately | 9 | | preceding 12-month period, whichever is less; | 10 | | (C) before a civil penalty is assessed under this | 11 | | item (6), the credit union must be expressly advised | 12 | | in writing of the: | 13 | | (i) specific violation that could subject it | 14 | | to a penalty under this item (6); and | 15 | | (ii) specific remedial action to be taken | 16 | | within a specific and reasonable time frame to | 17 | | avoid imposition of the penalty; | 18 | | (D) Civil penalties assessed under this item (6) | 19 | | shall be remedial, not punitive, and reasonably | 20 | | tailored to ensure future compliance by the credit | 21 | | union with the provisions of this Act and any rules | 22 | | adopted pursuant to this Act; | 23 | | (E) a credit union's failure to take timely | 24 | | remedial action with respect to the specific violation | 25 | | may result in the issuance of an order assessing a | 26 | | civil penalty up to the following maximum amount, |
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| 1 | | based upon the total assets of the credit union: | 2 | | (i) Credit unions with assets of less than $10 | 3 | | million ................................................$1,000 | 4 | | (ii) Credit unions with assets of at least $10 | 5 | | million and less than $50 million ......................$2,500 | 6 | | (iii) Credit unions with assets of at least | 7 | | $50 million and less than $100 million .................$5,000 | 8 | | (iv) Credit unions with assets of at least | 9 | | $100 million and less than $500 million ...............$10,000 | 10 | | (v) Credit unions with assets of at least $500 | 11 | | million and less than $1 billion ......................$25,000 | 12 | | (vi) Credit unions with assets of $1 billion | 13 | | and greater .....................................$50,000; and | 14 | | (F) an order assessing a civil penalty under this | 15 | | item (6) shall be served by certified mail or email to | 16 | | the email address of record and take effect upon | 17 | | service of the order, unless the credit union makes a | 18 | | written request for a hearing under 38 IL. Adm. Code | 19 | | 190.20 of the Department's rules for credit unions | 20 | | within 90 days after issuance of the order; in that | 21 | | event, the order shall be stayed until a final | 22 | | administrative order is entered. Service by certified | 23 | | mail shall be deemed completed when the notice is | 24 | | deposited in the United States mail. Service to the | 25 | | email address of record shall be deemed completed when | 26 | | sent. |
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| 1 | | This item (6) shall not apply to violations separately | 2 | | addressed in rules as authorized under item (7) of this | 3 | | Section. | 4 | | (7) Except for the fees established in this Act, to | 5 | | prescribe, by rule
and regulation, fees and penalties for | 6 | | preparing, approving, and filing
reports and other | 7 | | documents; furnishing
transcripts; holding hearings; | 8 | | investigating applications
for permission to
organize, | 9 | | merge, or convert; failure to maintain accurate books and | 10 | | records
to enable the Department to conduct an | 11 | | examination; and taking supervisory
actions.
| 12 | | (8) To destroy, in his discretion, any or all books | 13 | | and records of any
credit union in his possession or under | 14 | | his control after the expiration
of three years from the | 15 | | date of cancellation of the charter of such credit
unions.
| 16 | | (9) To make investigations and to conduct research and | 17 | | studies and to
publish some of the problems of persons in | 18 | | obtaining credit at reasonable
rates of interest and of | 19 | | the methods and benefits of cooperative saving
and lending | 20 | | for such persons.
| 21 | | (10) To authorize, foster or establish experimental, | 22 | | developmental,
demonstration or pilot projects by public | 23 | | or private organizations including
credit unions which:
| 24 | | (a) promote more effective operation of credit | 25 | | unions so as to provide
members an opportunity to use | 26 | | and control their own money to improve their
economic |
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| 1 | | and social conditions; or
| 2 | | (b) are in the best interests of credit unions, | 3 | | their members and the
people of the State of Illinois.
| 4 | | (11) To cooperate in studies, training or other | 5 | | administrative activities
with, but not limited to, the | 6 | | NCUA, other state credit union regulatory
agencies and | 7 | | industry trade associations in order to promote more | 8 | | effective
and efficient supervision of Illinois chartered | 9 | | credit unions.
| 10 | | (12) Notwithstanding the provisions of this Section, | 11 | | the Secretary shall not: | 12 | | (1) issue an order against a credit union | 13 | | organized under this Act for unsafe or unsound banking | 14 | | practices solely because the entity provides or has | 15 | | provided financial services to a cannabis-related | 16 | | legitimate business; | 17 | | (2) prohibit, penalize, or otherwise discourage a | 18 | | credit union from providing financial services to a | 19 | | cannabis-related legitimate business solely because | 20 | | the entity provides or has provided financial services | 21 | | to a cannabis-related legitimate business; | 22 | | (3) recommend, incentivize, or encourage a credit | 23 | | union not to offer financial services to an account | 24 | | holder or to downgrade or cancel the financial | 25 | | services offered to an account holder solely because: | 26 | | (A) the account holder is a manufacturer or |
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| 1 | | producer, or is the owner, operator, or employee | 2 | | of a cannabis-related legitimate business; | 3 | | (B) the account holder later becomes an owner | 4 | | or operator of a cannabis-related legitimate | 5 | | business; or | 6 | | (C) the credit union was not aware that the | 7 | | account holder is the owner or operator of a | 8 | | cannabis-related legitimate business; and | 9 | | (4) take any adverse or corrective supervisory | 10 | | action on a loan made to an owner or operator of: | 11 | | (A) a cannabis-related legitimate business | 12 | | solely because the owner or operator owns or | 13 | | operates a cannabis-related legitimate business; | 14 | | or | 15 | | (B) real estate or equipment that is leased to | 16 | | a cannabis-related legitimate business solely | 17 | | because the owner or operator of the real estate | 18 | | or equipment leased the equipment or real estate | 19 | | to a cannabis-related legitimate business. | 20 | | (Source: P.A. 101-27, eff. 6-25-19.)
| 21 | | (205 ILCS 305/21) (from Ch. 17, par. 4422)
| 22 | | Sec. 21. Record of board and committee members. Within 30 | 23 | | days after
election or appointment, the names and addresses of | 24 | | the members of the board of directors, committees and all | 25 | | officers of the credit union shall be filed
with the |
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| 1 | | Department on forms provided by the Department. The form shall | 2 | | also include the email address of record of the credit union.
| 3 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 4 | | (205 ILCS 305/61) (from Ch. 17, par. 4462)
| 5 | | Sec. 61. Suspension.
| 6 | | (1) If the Secretary determines that any credit
union is | 7 | | bankrupt, insolvent, impaired or that it has violated
this | 8 | | Act, or is operating in an unsafe or unsound manner, he shall | 9 | | issue
an order temporarily suspending the credit union's | 10 | | operations for not more than
60 days. The board of directors | 11 | | shall be given notice by
registered or certified mail , or by | 12 | | email to the email address of record, of such suspension, | 13 | | which notice shall include
the reasons for such suspension and | 14 | | a list of specific violations of the
Act. Service by certified | 15 | | mail shall be deemed completed when the notice is deposited in | 16 | | the United States mail. Service to the email address of record | 17 | | shall be deemed completed when sent. The Secretary shall also | 18 | | notify
the members of the credit union board of advisors of any | 19 | | suspension. The
Director may assess to the credit union a | 20 | | penalty, not to exceed the
regulatory fee as set forth in this | 21 | | Act, to
offset costs incurred in determining the condition of | 22 | | the credit union's
books and records.
| 23 | | (2) Upon receipt of such suspension notice, the credit | 24 | | union shall cease
all operations, except those authorized by | 25 | | the Secretary, or the Secretary may
appoint a manager-trustee |
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| 1 | | to operate the credit union during the suspension
period. The | 2 | | board of directors
shall, within 10 days of the receipt of the | 3 | | suspension notice,
file with the Secretary a
reply to the | 4 | | suspension notice by
submitting a corrective plan of action or | 5 | | a
request for formal hearing on said action pursuant to the | 6 | | Department's
rules and regulations.
| 7 | | (3) Upon receipt from the suspended credit union of | 8 | | evidence that the
conditions causing the order of suspension | 9 | | have been corrected, and after
determining that the proposed | 10 | | corrective plan of action submitted is
factual, the Secretary | 11 | | shall revoke
the suspension notice, permit the credit union to | 12 | | resume normal operations,
and notify the board of credit union | 13 | | advisors of such action.
| 14 | | (4) If the Secretary determines that the proposed | 15 | | corrective plan of action
will
not correct such conditions,
he | 16 | | may take possession and control of the credit union. The | 17 | | Secretary
may permit the credit union to operate under his | 18 | | direction and
control and may appoint a manager-trustee to | 19 | | manage its affairs until such
time as the condition requiring | 20 | | such action has been remedied, or in the case
of insolvency or | 21 | | danger of insolvency where an emergency requiring expeditious
| 22 | | action exists, the Secretary may involuntarily merge the | 23 | | credit union without
the
vote of the suspended credit union's | 24 | | board of directors or members (hereafter
involuntary merger)
| 25 | | subject
to rules promulgated by the Secretary. No
credit union | 26 | | shall be required to serve as a surviving credit union in any
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| 1 | | involuntary merger. Upon the request of the Secretary, a | 2 | | credit union by a vote
of a majority of its board of directors | 3 | | may elect to serve as a surviving
credit union in an | 4 | | involuntary merger. If the Secretary
determines
that
the | 5 | | suspended
credit union should be liquidated, he may appoint a | 6 | | liquidating
agent and require of that person such bond and | 7 | | security as he considers proper.
| 8 | | (5) Upon receipt of a request for a formal hearing, the | 9 | | Secretary shall
conduct proceedings pursuant to rules and | 10 | | regulations of the Department. The credit union may request | 11 | | the appropriate court
to stay execution of such action. | 12 | | Involuntary liquidation or involuntary
merger may not be | 13 | | ordered
prior to the conclusion of suspension procedures | 14 | | outlined in this Section.
| 15 | | (6) If, within the suspension period, the credit union | 16 | | fails to answer
the suspension notice or fails to request a | 17 | | formal hearing, or both,
the Secretary may then (i) | 18 | | involuntarily merge the credit union if the credit
union is | 19 | | insolvent or in danger of insolvency and an emergency
| 20 | | requiring expeditious action exists or (ii) revoke
the credit | 21 | | union's charter, appoint a liquidating
agent and liquidate the
| 22 | | credit union.
| 23 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 24 | | Section 10. The Transmitters of Money Act is amended by | 25 | | changing Sections 5, 25, 40, 80, 90, and 100 as follows:
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| 1 | | (205 ILCS 657/5)
| 2 | | Sec. 5. Definitions. As used in this Act, unless the | 3 | | context otherwise
requires, the words and phrases defined in | 4 | | this Section have the meanings
set forth in this Section.
| 5 | | "Authorized seller" means a person not an employee of a | 6 | | licensee who
engages in the business regulated by this Act on | 7 | | behalf of a licensee under
a contract between that person and | 8 | | the licensee.
| 9 | | "Bill payment service" means the business of transmitting | 10 | | money on behalf
of an Illinois resident for the purpose of | 11 | | paying the resident's bills.
| 12 | | "Controlling person" means a person owning or holding the | 13 | | power to vote
25% or more of the outstanding voting securities | 14 | | of a licensee or the power to
vote the securities of another | 15 | | controlling person of the licensee. For
purposes of | 16 | | determining the percentage of a licensee controlled by a
| 17 | | controlling person,
the person's interest shall be combined | 18 | | with the interest of any other
person controlled, directly or | 19 | | indirectly, by that person
or by a spouse, parent, or child of | 20 | | that person.
| 21 | | "Department" means the Department of Financial and | 22 | | Professional Regulation Institutions .
| 23 | | "Director" means the Director of Financial Institutions.
| 24 | | "Division of Financial Institutions" means the Division of | 25 | | Financial Institutions of the Department of Financial and |
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| 1 | | Professional Regulation. | 2 | | "Email address of record" means the designated email | 3 | | address recorded by the Division of Financial Institutions in | 4 | | the applicant's applicant file or the licensee's license file, | 5 | | as maintained by the Division of Financial Institutions' | 6 | | licensure unit. | 7 | | "Licensee" means a person licensed under this Act.
| 8 | | "Location" means a place of business at which activity | 9 | | regulated by this Act
occurs.
| 10 | | "Material litigation" means any litigation that, according | 11 | | to generally
accepted accounting principles, is deemed | 12 | | significant to a licensee's financial
health and would be | 13 | | required to be referenced in a licensee's annual audited
| 14 | | financial statements, reports to shareholders, or similar | 15 | | documents.
| 16 | | "Money" means a medium of exchange that is authorized or | 17 | | adopted by a
domestic or foreign government as a part of its | 18 | | currency and that is
customarily used and accepted as a medium | 19 | | of exchange in the country of
issuance.
| 20 | | "Money transmitter" means a person
who is located in or | 21 | | doing business in this State and who directly or through
| 22 | | authorized sellers does any of the
following in this State:
| 23 | | (1) Sells or issues payment instruments.
| 24 | | (2) Engages in the business of receiving money for | 25 | | transmission or
transmitting money.
| 26 | | (3) Engages in the business of exchanging, for |
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| 1 | | compensation, money of the
United States Government or a | 2 | | foreign government to or from money of another
government.
| 3 | | "Outstanding payment instrument" means, unless otherwise | 4 | | treated by or
accounted for under generally accepted | 5 | | accounting principles on the books of
the licensee, a payment | 6 | | instrument issued by the
licensee that has been sold in the | 7 | | United States directly by the licensee
or
has been sold in the | 8 | | United States by an
authorized seller of the licensee and | 9 | | reported
to the licensee as having been sold, but has not been | 10 | | paid by or for
the licensee.
| 11 | | "Payment instrument" means a check, draft, money order, | 12 | | traveler's check,
stored value card, or
other instrument or | 13 | | memorandum, written order or written receipt for the
| 14 | | transmission or payment of money sold or issued to one or more | 15 | | persons whether
or not that instrument or order is negotiable. | 16 | | Payment instrument does not
include an instrument that is | 17 | | redeemable by the issuer in merchandise or
service, a credit | 18 | | card voucher, or a letter of credit. A written order for the
| 19 | | transmission or payment of money that results in the issuance | 20 | | of a check,
draft, money order, traveler's check, or other | 21 | | instrument or memorandum is not
a
payment instrument.
| 22 | | "Person" means an individual, partnership, association, | 23 | | joint stock
association, corporation, or any other form of | 24 | | business organization.
| 25 | | "Stored value card" means any magnetic stripe card or | 26 | | other electronic
payment instrument given in exchange for
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| 1 | | money and other similar consideration, including but not | 2 | | limited to
checks, debit payments, money orders, drafts, | 3 | | credit payments, and traveler's
checks,
where the card
or | 4 | | other
electronic payment instrument represents a dollar value | 5 | | that the
consumer can either use or give to another
| 6 | | individual.
| 7 | | "Transmitting money" means the transmission of money by | 8 | | any means, including
transmissions to or from locations within | 9 | | the United States or to and from
locations outside of the | 10 | | United States by payment instrument, facsimile or
electronic | 11 | | transfer, or otherwise, and includes bill payment
services.
| 12 | | (Source: P.A. 92-400, eff. 1-1-02; 93-535, eff. 1-1-04.)
| 13 | | (205 ILCS 657/25)
| 14 | | Sec. 25. Application for license.
| 15 | | (a) An application for a license must
be
in writing, under | 16 | | oath, and in the form the Director prescribes. At the time of | 17 | | application, each applicant shall provide an email address of | 18 | | record. The
application must contain or be accompanied by all | 19 | | of the following:
| 20 | | (1) The name of the applicant and the address of the | 21 | | principal place of
business of the applicant and the | 22 | | address of all locations and proposed
locations of the | 23 | | applicant in
this State.
| 24 | | (2) The form of business organization of the | 25 | | applicant, including:
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| 1 | | (A) a copy of its articles of incorporation and | 2 | | amendments thereto and a
copy of its bylaws, certified | 3 | | by its
secretary, if the applicant is a corporation;
| 4 | | (B) a copy of its partnership agreement, certified | 5 | | by a partner, if the
applicant is a partnership; or
| 6 | | (C) a copy of the documents that control its | 7 | | organizational structure,
certified by a managing | 8 | | official, if the applicant is organized in some other
| 9 | | form.
| 10 | | (3) The name, business and home address, and a | 11 | | chronological summary of
the business experience, material | 12 | | litigation history, and felony convictions
over the | 13 | | preceding 10 years of:
| 14 | | (A) the proprietor, if the applicant is an | 15 | | individual;
| 16 | | (B) every partner, if the applicant is a | 17 | | partnership;
| 18 | | (C) each officer, director, and controlling | 19 | | person, if the
applicant is a corporation; and
| 20 | | (D) each person in a position to exercise control | 21 | | over, or direction of,
the business of the applicant, | 22 | | regardless of the form of organization of the
| 23 | | applicant.
| 24 | | (4) Financial statements, not more than one year old, | 25 | | prepared in
accordance with generally accepted
accounting | 26 | | principles and audited by a licensed public accountant or |
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| 1 | | certified
public accountant showing the financial | 2 | | condition
of the applicant and an unaudited balance sheet | 3 | | and statement of operation as
of the most recent quarterly | 4 | | report before the date of the application,
certified by | 5 | | the applicant or an officer or partner thereof. If the
| 6 | | applicant is a wholly owned subsidiary or is eligible to | 7 | | file consolidated
federal income tax returns with its | 8 | | parent, however, unaudited financial
statements for
the | 9 | | preceding year along with the unaudited financial | 10 | | statements for the most
recent quarter may be submitted if | 11 | | accompanied by the audited financial
statements of the | 12 | | parent company for the preceding year along with the
| 13 | | unaudited financial statement for the most recent quarter.
| 14 | | (5) Filings of the applicant with the Securities and | 15 | | Exchange Commission
or
similar foreign governmental entity | 16 | | (English translation), if any.
| 17 | | (6) A list of all other states in which the applicant | 18 | | is licensed as a
money
transmitter and whether the license | 19 | | of the applicant for those purposes has
ever
been | 20 | | withdrawn, refused, canceled, or suspended in any other | 21 | | state, with full
details.
| 22 | | (7) A list of all money transmitter locations and | 23 | | proposed locations in
this State.
| 24 | | (8) A sample of the contract for authorized sellers.
| 25 | | (9) A sample form of the proposed payment instruments | 26 | | to be used in this
State.
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| 1 | | (10) The name and business address of the clearing | 2 | | banks through which the
applicant intends to conduct any | 3 | | business regulated under this Act.
| 4 | | (11) A surety bond as required by Section 30 of this
| 5 | | Act.
| 6 | | (12) The applicable fees as required by Section 45 of | 7 | | this Act.
| 8 | | (13) A written consent to service of process as | 9 | | provided by Section 100 of
this Act.
| 10 | | (14) A written statement that the applicant is in full | 11 | | compliance with and
agrees to continue to fully comply | 12 | | with
all state and federal statutes and regulations | 13 | | relating to money laundering.
| 14 | | (15) All additional information the Director considers | 15 | | necessary in order
to determine whether or not to issue | 16 | | the applicant a license under
this Act.
| 17 | | (a-5) The proprietor, partner, officer, director, and | 18 | | controlling person of the applicant shall submit their | 19 | | fingerprints to the Department of State Police in an | 20 | | electronic format that complies with the form and manner for | 21 | | requesting and furnishing criminal history record information | 22 | | as prescribed by the Department of State Police. These | 23 | | fingerprints shall be retained and checked against the | 24 | | Department of State Police and Federal Bureau of Investigation | 25 | | criminal history record databases now and hereafter filed, | 26 | | including latent fingerprint searches. The Department of State |
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| 1 | | Police shall charge applicants a fee for conducting the | 2 | | criminal history records check, which shall be deposited into | 3 | | the State Police Services Fund and shall not exceed the actual | 4 | | cost of the records check. The Department of State Police | 5 | | shall furnish records of Illinois convictions to the | 6 | | Department pursuant to positive identification and shall | 7 | | forward the national criminal history record information to | 8 | | the Department. The Department may require applicants to pay a | 9 | | separate fingerprinting fee, either to the Department or to a | 10 | | Department-designated or Department-approved vendor. The | 11 | | Department, in its discretion, may allow a proprietor, | 12 | | partner, officer, director, or controlling person of an | 13 | | applicant who does not have reasonable access to a designated | 14 | | vendor to provide his or her fingerprints in an alternative | 15 | | manner. The Department, in its discretion, may also use other | 16 | | procedures in performing or obtaining criminal background | 17 | | checks of applicants. Instead of submitting his or her | 18 | | fingerprints, an individual may submit proof that is | 19 | | satisfactory to the Department that an equivalent security | 20 | | clearance has been conducted. The Department may adopt any | 21 | | rules necessary to implement this subsection. | 22 | | (b) The Director may, for good cause shown, waive, in | 23 | | part, any
of the requirements of this Section.
| 24 | | (Source: P.A. 100-979, eff. 8-19-18.)
| 25 | | (205 ILCS 657/40)
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| 1 | | Sec. 40. Renewals of license. As a condition for renewal | 2 | | of a license,
a
licensee must submit to the Director, and the | 3 | | Director must receive, on or
before December 1 of each year, an
| 4 | | application for renewal made in writing and under oath on a | 5 | | form
prescribed by the
Director. At the time of renewal, each | 6 | | licensee shall provide an email address of record. A licensee | 7 | | whose application for
renewal is not received by the | 8 | | Department on or
before December 31 shall not have its license | 9 | | renewed and
shall be required to submit to the Director an | 10 | | application for a new license in
accordance with Section 25. | 11 | | Upon a showing of good cause, the Director may
extend the | 12 | | deadline for the filing of an application for renewal. The
| 13 | | application for renewal of a license shall contain or be | 14 | | accompanied by all of
the
following:
| 15 | | (1) The name of the licensee and the address of the | 16 | | principal place of
business of the licensee.
| 17 | | (2) A list of all locations where the licensee is | 18 | | conducting business
under its license and a list of all | 19 | | authorized sellers through whom the
licensee is conducting | 20 | | business under its license, including the name and
| 21 | | business address of each authorized seller.
| 22 | | (3) Audited financial statements covering the past | 23 | | year of operations,
prepared in accordance with generally | 24 | | accepted accounting principles, showing
the financial | 25 | | condition of the licensee. The licensee shall submit the | 26 | | audited
financial statement after the application for
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| 1 | | renewal has been approved. The audited financial statement | 2 | | must be received
by the Department no later than 120 days | 3 | | after the end of the licensee's fiscal
year. If the | 4 | | licensee is a wholly owned subsidiary or is eligible to
| 5 | | file consolidated federal income tax returns with its | 6 | | parent, the licensee may
submit unaudited financial | 7 | | statements if accompanied by the audited financial
| 8 | | statements of the parent company for its most recently | 9 | | ended year.
| 10 | | (4) A statement of the dollar amount and number of | 11 | | money transmissions and
payment
instruments sold, issued, | 12 | | exchanged, or transmitted in this State by the
licensee | 13 | | and
its authorized sellers for the past year.
| 14 | | (5) A statement of the dollar amount of uncompleted | 15 | | money transmissions
and
payment
instruments outstanding or | 16 | | in transit, in this State, as of the most recent
quarter | 17 | | available.
| 18 | | (6) The annual license renewal fees and any penalty | 19 | | fees as provided by
Section 45 of this Act.
| 20 | | (7) Evidence sufficient to prove to the satisfaction | 21 | | of the Director that
the licensee has complied with all | 22 | | requirements under Section 20 relating to
its net worth,
| 23 | | under Section 30 relating to its surety bond or other | 24 | | security,
and under Section 50 relating to permissible | 25 | | investments.
| 26 | | (8) A statement of a change in information provided by |
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| 1 | | the licensee in its
application for a license or its | 2 | | previous applications for renewal including,
but not | 3 | | limited to, new directors, officers, authorized sellers, | 4 | | or clearing
banks and material changes in the operation of | 5 | | the licensee's business.
| 6 | | (Source: P.A. 92-400, eff. 1-1-02.)
| 7 | | (205 ILCS 657/80)
| 8 | | Sec. 80. Revocation or suspension of licenses.
| 9 | | (a) The Director may suspend or revoke a license
if the | 10 | | Director finds any of the following:
| 11 | | (1) The licensee has knowingly made a material | 12 | | misstatement or suppressed
or
withheld
information on an | 13 | | application for a license or a document required to be
| 14 | | filed with the Director.
| 15 | | (2) A fact or condition exists that, if it had existed | 16 | | or had been known
at the time the licensee applied for its | 17 | | license, would have been grounds for
denying the | 18 | | application.
| 19 | | (3) The licensee is insolvent.
| 20 | | (4) The licensee has knowingly violated a material | 21 | | provision of this Act
or rules
adopted under this Act or an | 22 | | order of the Director.
| 23 | | (5) The licensee refuses to permit the Director to | 24 | | make an examination
at reasonable times as authorized by | 25 | | this Act.
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| 1 | | (6) The licensee knowingly fails to make a report | 2 | | required by this Act.
| 3 | | (7) The licensee fails to pay a judgment entered in | 4 | | favor of a claimant,
plaintiff, or creditor in an action | 5 | | arising out of the licensee's business
regulated under | 6 | | this Act within 30 days after the judgment becomes final | 7 | | or
within 30 days after expiration or termination of a | 8 | | stay of execution.
| 9 | | (8) The licensee has been convicted under the laws of | 10 | | this State,
another state, or the United States of a | 11 | | felony or of a crime involving a
breach of trust or | 12 | | dishonesty.
| 13 | | (9) The licensee has failed to suspend or terminate | 14 | | its authorized
seller's authority to act on its behalf | 15 | | when the licensee knew
its authorized seller was violating | 16 | | or had violated
a material provision of this Act or rules | 17 | | adopted under this Act
or
an order of the Director.
| 18 | | (b) In every case in which a license is suspended or | 19 | | revoked or an
application
for a license or renewal of a license | 20 | | is denied, the Director shall serve
notice
of his action, | 21 | | including a statement of the reasons for his action, either
| 22 | | personally , to the email address of record, or by certified | 23 | | mail, return receipt requested.
Service by certified mail | 24 | | shall be deemed completed if the notice is deposited in the | 25 | | United States mail
post office, postage paid, addressed to the | 26 | | last known address specified in the
application for a license . |
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| 1 | | Service to the email address of record shall be deemed | 2 | | completed when sent.
| 3 | | (c) In the case of denial of an application for a license | 4 | | or renewal of a
license, the applicant or licensee may request | 5 | | in writing, within 30 days after
the date of service, a | 6 | | hearing. In the case of a denial of an application for
renewal | 7 | | of a license, the expiring license shall be deemed to continue | 8 | | in force
until 30 days after the service of the notice of | 9 | | denial or, if a hearing is
requested during that period, until | 10 | | a final order is entered pursuant to a
hearing.
| 11 | | (d) The order of suspension or revocation of a license | 12 | | shall take effect
upon service of the order. The holder of any | 13 | | suspended or revoked
license may request in writing, within 30 | 14 | | days after the date of service, a
hearing. In
the event a | 15 | | hearing is requested, the order shall remain temporary until a
| 16 | | final order is entered pursuant to the hearing.
| 17 | | (e) The hearing shall be held at the time and place | 18 | | designated by
the Director in either the City of Springfield | 19 | | or the City of Chicago. The
Director and any administrative | 20 | | law judge designated by him shall have the
power to administer | 21 | | oaths and affirmations, subpoena witnesses and compel their
| 22 | | attendance, take evidence, authorize the taking of | 23 | | depositions, and require the
production of books, papers, | 24 | | correspondence, and other records or
information that he | 25 | | considers relevant or material to the inquiry.
| 26 | | (f) The Director may issue an order of suspension or |
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| 1 | | revocation of a license
that takes effect upon service of the | 2 | | order and remains in
effect regardless of a request for a | 3 | | hearing when the Director finds that
the public welfare will | 4 | | be endangered if the licensee is permitted to continue
to | 5 | | operate the business regulated by this Act.
| 6 | | (g) The decision of the Director to deny any application | 7 | | for a license or
renewal of a license or to suspend or revoke a | 8 | | license is subject to
judicial review under the Administrative | 9 | | Review Law.
| 10 | | (h) The costs for administrative hearing shall be set by | 11 | | rule.
| 12 | | (i) Appeals from all final orders and judgments entered by | 13 | | the circuit court
under this Section in review of a decision of | 14 | | the Director may be taken as in
other civil actions by any | 15 | | party to the proceeding.
| 16 | | (Source: P.A. 88-643, eff. 1-1-95.)
| 17 | | (205 ILCS 657/90)
| 18 | | Sec. 90. Enforcement.
| 19 | | (a) If it appears to the Director that a person
has | 20 | | committed or is about to commit a violation of this Act,
a rule | 21 | | promulgated under this Act, or an order of the Director, the | 22 | | Director
may apply to the circuit court for an order enjoining | 23 | | the person from violating
or continuing to violate this Act, | 24 | | the rule, or order and for
injunctive or other relief that the | 25 | | nature of the case may require and may,
in addition, request |
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| 1 | | the court to assess a civil penalty up to $1,000
along with | 2 | | costs and attorney fees.
| 3 | | (b) If the Director finds, after an investigation that he | 4 | | considers
appropriate, that a licensee or other person is | 5 | | engaged in practices
contrary to this Act or to the rules | 6 | | promulgated under this Act, the Director
may issue an order | 7 | | directing the licensee or person to cease and desist the
| 8 | | violation. The Director may, in addition to or without the | 9 | | issuance of a cease
and desist order, assess an administrative | 10 | | penalty up to
$1,000 against a licensee for each violation of | 11 | | this Act or the rules
promulgated under this Act.
The issuance | 12 | | of an order under this Section shall not be a prerequisite to | 13 | | the
taking of any action by the Director under this or any | 14 | | other Section of this
Act. The Director shall serve notice of | 15 | | his action, including a statement of
the reasons for his | 16 | | actions, either personally , to the email address of record, or | 17 | | by certified mail, return
receipt requested. Service by | 18 | | certified mail shall be deemed completed if the notice is
| 19 | | deposited in the United States mail post office, postage paid, | 20 | | addressed to the last known address
for a license . Service to | 21 | | the email address of record shall be deemed completed when | 22 | | sent.
| 23 | | (c) In the case of the issuance of a cease and desist order | 24 | | or assessment
order, a hearing may be requested in writing | 25 | | within 30 days after the date of
service. The hearing shall be | 26 | | held at the time and place designated
by the Director in either |
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| 1 | | the City of Springfield or the City of Chicago. The
Director | 2 | | and any administrative law judge designated by him shall have | 3 | | the
power to administer oaths and affirmations, subpoena | 4 | | witnesses and compel their
attendance, take evidence, | 5 | | authorize the taking of depositions, and require the
| 6 | | production of books, papers, correspondence, and other records | 7 | | or
information that he considers relevant or material to the | 8 | | inquiry.
| 9 | | (d) After the Director's final determination under a | 10 | | hearing under
this Section, a party to the proceedings whose | 11 | | interests are
affected by the Director's final determination | 12 | | shall be entitled to judicial
review of that final | 13 | | determination under the Administrative Review Law.
| 14 | | (e) The costs for administrative hearings shall be set by | 15 | | rule.
| 16 | | (f) Except as otherwise provided in this Act, a violation | 17 | | of
this Act shall subject the party violating it to a fine of | 18 | | $1,000 for
each offense.
| 19 | | (g) Each transaction in violation of this Act or the rules | 20 | | promulgated
under this Act and each day that a violation | 21 | | continues shall be a separate
offense.
| 22 | | (h) A person who engages in conduct requiring a license | 23 | | under this Act and
fails to obtain a license from the Director | 24 | | or knowingly makes a false
statement, misrepresentation, or | 25 | | false certification in an application,
financial statement, | 26 | | account record, report, or other document filed or
required to |
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| 1 | | be maintained or filed under this Act or who knowingly makes a
| 2 | | false entry or omits a material entry in a document is guilty | 3 | | of a Class
3 felony.
| 4 | | (i) The Director is authorized to compromise, settle, and | 5 | | collect civil
penalties and administrative penalties, as set | 6 | | by rule, with any person for
violations of this Act or of any | 7 | | rule or order issued or
promulgated under this Act.
Any person | 8 | | who, without the required license, engages in conduct | 9 | | requiring a
license
under this Act shall be liable to the | 10 | | Department in an
amount equal to
the greater of (i) $5,000 or | 11 | | (ii) an amount of money accepted for transmission
plus an
| 12 | | amount equal to 3 times
the
amount accepted for transmission. | 13 | | The Department shall cause any funds so
recovered to be | 14 | | deposited in the TOMA Consumer Protection Fund.
| 15 | | (j) The Director may enter into consent orders at any time | 16 | | with a person
to resolve a matter arising under this Act. A | 17 | | consent order must be signed
by the person to whom it is issued | 18 | | and must indicate agreement to the terms
contained in it. A | 19 | | consent order need not constitute an admission by a
person | 20 | | that this Act or a rule or order issued or
promulgated under | 21 | | this Act has been violated, nor need it constitute a finding
by | 22 | | the Director that the person has violated this Act or a rule
or | 23 | | order promulgated under this Act.
| 24 | | (k) Notwithstanding the issuance of a consent order, the | 25 | | Director may seek
civil or criminal penalties or compromise | 26 | | civil penalties concerning matter
encompassed by the consent |
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| 1 | | order unless the consent order by its terms
expressly | 2 | | precludes the Director from doing so.
| 3 | | (l) Appeals from all final orders and judgments entered by | 4 | | the circuit
court
under this Section in review of a decision of | 5 | | the Director may be taken as in
other civil actions by any | 6 | | party to the proceeding.
| 7 | | (Source: P.A. 100-201, eff. 8-18-17.)
| 8 | | (205 ILCS 657/100)
| 9 | | Sec. 100. Consent to service of process.
| 10 | | (a) A licensee, before doing business in this State, shall | 11 | | appoint the
Director its true and lawful attorney-in-fact upon | 12 | | whom all lawful process in
any action or legal proceeding | 13 | | against it may be served and shall agree that
any lawful | 14 | | process against it that may be served upon its attorney shall | 15 | | be of
the same force and validity as if served on itself. The | 16 | | consent to the
service of process shall be in the form | 17 | | prescribed by the Director, shall be
irrevocable, and shall | 18 | | provide that actions or proceedings arising out of or
founded | 19 | | upon the conduct of the licensee's business may be commenced | 20 | | against
the licensee
in any court of competent jurisdiction | 21 | | and proper venue within this State by
the service of process or | 22 | | other notice of the institution of proceedings on the
| 23 | | Director.
| 24 | | (b) Service of process or other notice, accompanied by the | 25 | | fee
provided in Section 45, shall be by duplicate copies, one |
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| 1 | | of which shall
be filed with the Director and the other | 2 | | forwarded by the Director within
5 business days by certified | 3 | | mail with a return receipt to the licensee against
whom the | 4 | | process or other notice is directed at its latest address on | 5 | | file
with the Department or to the email address of record. | 6 | | Service by certified mail shall be deemed completed when the | 7 | | notice is deposited in the United States mail. Service to the | 8 | | email address of record shall be deemed completed when sent .
| 9 | | (c) No judgment shall be entered against a licensee | 10 | | pursuant to service
upon the Director until at least 30 days | 11 | | have elapsed after process or
notice has been served on the | 12 | | Director.
| 13 | | (Source: P.A. 88-643, eff. 1-1-95.)
| 14 | | Section 15. The Sales Finance Agency Act is amended by | 15 | | changing Sections 2, 6, 10, and 16.5 as follows:
| 16 | | (205 ILCS 660/2) (from Ch. 17, par. 5202)
| 17 | | Sec. 2. Definitions. In this Act, unless the context | 18 | | otherwise requires:
| 19 | | "Sales finance agency" means a person, irrespective of his | 20 | | or her state of
domicile or place of business, engaged in this | 21 | | State, in
whole or in part, in the business of purchasing, or | 22 | | making loans secured
by, retail installment contracts, retail | 23 | | charge agreements or the
outstanding balances under such | 24 | | contracts or agreements entered into in this
State.
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| 1 | | "Holder" of a retail installment contract or a retail | 2 | | charge
agreement means the retail seller of the goods or | 3 | | services under the
contract or charge agreement, or if the | 4 | | outstanding balances thereunder are
purchased by or | 5 | | transferred as security to a sales finance agency or other
| 6 | | assignee, the sales finance agency or other assignee.
| 7 | | "Person" means an individual, corporation, partnership, | 8 | | limited liability
company, joint venture, or any other form of | 9 | | business association.
| 10 | | "Department" means the Department of Financial and | 11 | | Professional Regulation Institutions .
| 12 | | "Director" means the Director of Financial Institutions.
| 13 | | "Division of Financial Institutions" means the Division of | 14 | | Financial Institutions of the Department of Financial and | 15 | | Professional Regulation. | 16 | | "Email address of record" means the designated email | 17 | | address recorded by the Division of Financial Institutions in | 18 | | the applicant's applicant file or the licensee's license file, | 19 | | as maintained by the Division of Financial Institutions' | 20 | | licensure unit. | 21 | | "Motor Vehicle Retail Installment Sales Act" and "Retail
| 22 | | Installment Sales Act" refer to the Acts having those titles | 23 | | enacted by
the 75th General Assembly.
| 24 | | "Retail installment contract" and "retail charge | 25 | | agreement" have the
meanings ascribed to them in the Motor | 26 | | Vehicle Retail Installment Sales Act
and the Retail |
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| 1 | | Installment Sales Act.
| 2 | | "Special purpose vehicle" means an entity that, in | 3 | | connection with a
securitization, private placement, or | 4 | | similar type of investment transaction,
is
administered by a | 5 | | State or national bank under a management agreement for the
| 6 | | purpose of purchasing, making loans against, or in pools of, | 7 | | receivables,
general intangibles, and other financial assets | 8 | | including retail installment
contracts, retail charge | 9 | | agreements, or the outstanding balances or any
portion of the | 10 | | outstanding balances under those
contracts or agreements.
| 11 | | "Net Worth" means total assets minus total liabilities.
| 12 | | (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)
| 13 | | (205 ILCS 660/6) (from Ch. 17, par. 5206)
| 14 | | Sec. 6.
A license fee of $300 for the applicant's | 15 | | principal place of
business and $100 for each additional place | 16 | | of business for which a license is
sought must be submitted | 17 | | with an application for license made before July 1 of
any year. | 18 | | If application for a license is made on July 1 or thereafter, a
| 19 | | license fee of $150 for the principal place of business and of | 20 | | $50 for each
additional place of business must accompany the | 21 | | application. Each license
remains in force until surrendered, | 22 | | suspended, or revoked. If the application
for license is | 23 | | denied, the original license fee shall be retained by the | 24 | | State
in reimbursement of its costs of investigating that | 25 | | application.
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| 1 | | Before the license is granted, the applicant shall prove | 2 | | in form satisfactory
to the Director, that the applicant has a | 3 | | positive net worth of a minimum of
$30,000. At the time of | 4 | | application, each applicant shall provide an email address of | 5 | | record.
| 6 | | A licensee must pay to the Department, and the Department | 7 | | must receive,
by December 1 of each year, the renewal license | 8 | | application on forms
prescribed by the Director and
$300 for | 9 | | the license for his principal place of business and $100 for | 10 | | each
additional license held as a renewal license fee for the | 11 | | succeeding
calendar year.
| 12 | | (Source: P.A. 92-398, eff. 1-1-02.)
| 13 | | (205 ILCS 660/10) (from Ch. 17, par. 5223)
| 14 | | Sec. 10. Denial, revocation, fine, or suspension of | 15 | | license.
| 16 | | (a) The Director may revoke or suspend a license or fine a
| 17 | | licensee if the licensee violates
any provisions of this Act.
| 18 | | (b) In every case in which a license is revoked or | 19 | | suspended, a licensee
is fined, or an
application for a | 20 | | license or renewal of a license is denied, the Director shall
| 21 | | serve notice of his or her action, including a statement of the | 22 | | reasons for the
action
either personally , to the email address | 23 | | of record, or by certified mail, return receipt requested. | 24 | | Service by
certified mail shall be deemed completed when the | 25 | | notice is deposited in the
United States U.S. mail. Service to |
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| 1 | | the email address of record shall be deemed completed when | 2 | | sent.
| 3 | | (c) An order revoking or suspending a license or an order | 4 | | denying renewal of
a license shall take effect upon service of | 5 | | the order, unless the licensee
requests, in writing, within 10 | 6 | | days after the date of service, a hearing. In
the event a | 7 | | hearing is requested, the order shall be stayed until a final
| 8 | | administrative order is entered.
| 9 | | (d) If the licensee requests a hearing, the Director shall | 10 | | schedule a
hearing within 30 days after the request for a | 11 | | hearing unless otherwise agreed
to by the parties.
| 12 | | (e) The hearing shall be held at the time and place | 13 | | designated by the
Director. The Director and any | 14 | | administrative law judge designated by him or
her shall have | 15 | | the power to administer oaths and affirmations, subpoena
| 16 | | witnesses and compel their attendance, take evidence, and | 17 | | require the
production of books, papers, correspondence, and | 18 | | other records or information
that he or she considers relevant | 19 | | or material to the inquiry.
| 20 | | (f) The costs for the administrative hearing shall be set | 21 | | by rule.
| 22 | | (g) The Director shall have the authority to prescribe | 23 | | rules for the
administration of this Section.
| 24 | | (Source: P.A. 92-398, eff. 1-1-02.)
| 25 | | (205 ILCS 660/16.5)
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| 1 | | Sec. 16.5. Cease and desist orders.
| 2 | | (a) The Director may issue a cease and desist order to a | 3 | | sales finance
agency or other person doing business without | 4 | | the required license when, in the
opinion of the director, the | 5 | | licensee or other person is violating or is
about to violate | 6 | | any provision of this Act or any law, rule,
or requirement | 7 | | imposed in writing by the Department.
| 8 | | (b) The Director may issue a cease and desist order prior | 9 | | to a hearing.
| 10 | | (c) The Director shall serve notice of his or her action, | 11 | | designated as a
cease and
desist order made pursuant to this | 12 | | Section, including a statement of the
reasons for the action, | 13 | | either personally , to the email address of record, or by | 14 | | certified mail, return
receipt requested. Service by certified | 15 | | mail shall be deemed completed when
the notice is deposited in | 16 | | the United States U.S. mail. Service to the email address of | 17 | | record shall be deemed completed when sent.
| 18 | | (d) Within 15 days of service of the cease and desist | 19 | | order, the sales
finance agency or other person may request, | 20 | | in writing, a hearing.
| 21 | | (e) The Director shall schedule a hearing within 30 days | 22 | | after the request
for a hearing unless otherwise agreed to by | 23 | | the parties.
| 24 | | (f) The Director shall have the authority to prescribe | 25 | | rules for the
administration of this Section.
| 26 | | (g) If it is determined that the Director had the |
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| 1 | | authority to issue the
cease and desist order, he or she may | 2 | | issue such orders as may be reasonably
necessary to correct, | 3 | | eliminate, or remedy such conduct.
| 4 | | (h) The powers vested in the Director by this Section are | 5 | | additional to any
and all other powers and remedies vested in | 6 | | the Director by law, and nothing in
this Section shall be | 7 | | construed as requiring that the Director shall employ the
| 8 | | powers conferred in this Section instead of or as a condition | 9 | | precedent to the
exercise of any other power or remedy vested | 10 | | in the Director.
| 11 | | (i) The cost for the administrative hearing shall be set | 12 | | by rule.
| 13 | | (Source: P.A. 90-437, eff. 1-1-98.)
| 14 | | Section 20. The Debt Management Service Act is amended by | 15 | | changing Sections 2, 4, 10, and 20 as follows:
| 16 | | (205 ILCS 665/2) (from Ch. 17, par. 5302)
| 17 | | Sec. 2. Definitions. As used in this Act:
| 18 | | "Credit counselor" means an individual, corporation, or | 19 | | other entity that is not a debt management service that | 20 | | provides (1) guidance, educational programs, or advice for the | 21 | | purpose of addressing budgeting, personal finance, financial | 22 | | literacy, saving and spending practices, or the sound use of | 23 | | consumer credit; or (2) assistance or offers to assist | 24 | | individuals and families with financial problems by providing |
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| 1 | | counseling; or (3) a combination of the activities described | 2 | | in items (1) and (2) of this definition. | 3 | | "Debt management
service" means
the planning and | 4 | | management of the financial affairs of
a debtor for a fee and | 5 | | the receiving
of money
from the debtor for the purpose
of | 6 | | distributing it to the debtor's creditors in payment or | 7 | | partial payment of
the debtor's obligations or soliciting | 8 | | financial contributions from creditors.
The business of debt | 9 | | management is conducted in this State if the debt
management | 10 | | business, its employees, or its agents are located in this | 11 | | State or
if the
debt management business solicits or contracts | 12 | | with debtors located in this
State. "Debt management service" | 13 | | does not include "debt settlement service" as defined in the | 14 | | Debt Settlement Consumer Protection Act.
| 15 | | This term shall not include the following when engaged in
| 16 | | the regular course of their respective businesses and | 17 | | professions:
| 18 | | (a) Attorneys at law licensed, or otherwise authorized | 19 | | to practice, in Illinois who are engaged in the practice | 20 | | of law.
| 21 | | (b) Banks, operating subsidiaries of banks, affiliates | 22 | | of banks, fiduciaries, credit unions, savings and loan | 23 | | associations,
and savings banks as duly
authorized and | 24 | | admitted to transact business in the State of Illinois and
| 25 | | performing credit and financial adjusting service in the | 26 | | regular course of
their principal business.
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| 1 | | (c) Title insurers, title agents, independent | 2 | | escrowees, and abstract companies, while doing an escrow
| 3 | | business.
| 4 | | (d) Judicial officers or others acting pursuant to | 5 | | court
order.
| 6 | | (e) Employers for their employees, except that no | 7 | | employer shall retain the services of an outside debt | 8 | | management service to perform this service unless the debt | 9 | | management service is licensed pursuant to this Act.
| 10 | | (f) Bill payment services, as defined in the | 11 | | Transmitters of Money Act.
| 12 | | (g) Credit counselors, only when providing services | 13 | | described in the definition of credit counselor in this | 14 | | Section.
| 15 | | "Debtor" means the person or persons for whom the debt
| 16 | | management service is performed.
| 17 | | "Department" means the Department of Financial and | 18 | | Professional Regulation. | 19 | | "Director" means the Director of Financial Institutions. | 20 | | "Division of Financial Institutions" means the Division of | 21 | | Financial Institutions of the Department of Financial and | 22 | | Professional Regulation. | 23 | | "Email address of record" means the designated email | 24 | | address recorded by the Division of Financial Institutions in | 25 | | the applicant's applicant file or the licensee's license file, | 26 | | as maintained by the Division of Financial Institutions' |
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| 1 | | licensure unit. | 2 | | "Person" means an individual, firm, partnership,
| 3 | | association, limited liability company,
corporation, or | 4 | | not-for-profit corporation.
| 5 | | "Licensee" means a person licensed under this Act.
| 6 | | "Secretary" means the Secretary of Financial and | 7 | | Professional Regulation or a person authorized by the | 8 | | Secretary to act in the Secretary's stead . | 9 | | (Source: P.A. 100-201, eff. 8-18-17.)
| 10 | | (205 ILCS 665/4) (from Ch. 17, par. 5304)
| 11 | | Sec. 4. Application for license. Application for a license | 12 | | to engage in the debt
management
service
business in this | 13 | | State shall be made to the Secretary and shall
be in writing, | 14 | | under oath, and in the form prescribed by the Secretary. Each | 15 | | applicant shall provide an email address of record.
| 16 | | Each applicant, at the time of making such application, | 17 | | shall pay to the
Secretary the sum of $30.00 as a fee for | 18 | | investigation of the applicant, and
the additional sum of | 19 | | $100.00 as a license fee.
| 20 | | Every applicant shall submit to the Secretary, at the time | 21 | | of the
application for a license, a bond to be approved by the | 22 | | Secretary in which
the applicant shall be the obligor, in the | 23 | | sum of $25,000 or
such additional amount as required by the | 24 | | Secretary based on the amount of
disbursements made by the
| 25 | | licensee in the
previous year, and in which an
insurance |
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| 1 | | company, which is duly authorized by the State of Illinois, to
| 2 | | transact the business of fidelity and surety insurance shall | 3 | | be a surety.
| 4 | | The bond shall run to the Secretary for the use of
the | 5 | | Department or
of any person or persons who may have a cause of | 6 | | action against the obligor
in said bond arising out
of any | 7 | | violation of this
Act or rules by a license.
Such
bond
shall be | 8 | | conditioned that the obligor will faithfully conform to
and | 9 | | abide
by the provisions of this Act and of all rules, | 10 | | regulations and directions
lawfully made by the Secretary and | 11 | | will pay to the Secretary or to
any person or persons any and | 12 | | all money that may become due or owing
to the State or to such | 13 | | person or persons, from said obligor under and by
virtue of the | 14 | | provisions of this Act.
| 15 | | (Source: P.A. 96-1420, eff. 8-3-10.)
| 16 | | (205 ILCS 665/10) (from Ch. 17, par. 5310)
| 17 | | Sec. 10. Revocation, suspension, or refusal to renew | 18 | | license.
| 19 | | (a) The Secretary may revoke or suspend or refuse to renew | 20 | | any license if he finds that:
| 21 | | (1) any licensee has failed to pay the annual license | 22 | | fee, or to maintain
in
effect the bond required under the | 23 | | provisions of this Act;
| 24 | | (2) the licensee
has violated any
provisions
of this | 25 | | Act or any rule, lawfully made by the Secretary within
the |
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| 1 | | authority of this Act;
| 2 | | (3) any fact or condition exists
which, if it had | 3 | | existed at the time of the original application for a
| 4 | | license, would have warranted the Secretary in refusing | 5 | | its issuance; or
| 6 | | (4) any applicant has made any false
statement or | 7 | | representation to the Secretary in applying for a license
| 8 | | hereunder.
| 9 | | (b) In every case in which a license is suspended or | 10 | | revoked or an
application for a license or renewal of a license | 11 | | is denied, the Secretary shall
serve notice of his action, | 12 | | including a statement of the reasons for his
actions, either | 13 | | personally , to the email address of record, or by certified | 14 | | mail, return receipt requested.
Service by mail shall be | 15 | | deemed completed if the notice is deposited in the United | 16 | | States mail
U.S. Mail . Service to the email address of record | 17 | | shall be deemed completed when sent.
| 18 | | (c) In the case of a denial of an application or renewal of | 19 | | a license,
the applicant or licensee may request in writing, | 20 | | within
30 days after the date of service, a hearing. In the | 21 | | case of a denial of a
renewal of a license, the license shall | 22 | | be deemed to continue in force until 30
days after the service | 23 | | of the notice of denial, or if a hearing is requested
during | 24 | | that period, until a final administrative order is entered.
| 25 | | (d) An order of revocation or suspension of a license | 26 | | shall take effect upon
service of the order unless the |
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| 1 | | licensee requests, in writing, within 10 days
after the date | 2 | | of service, a hearing. In the event a hearing is requested, the
| 3 | | order shall be stayed until a final administrative order is | 4 | | entered.
| 5 | | (e) If the licensee requests a hearing, the Secretary | 6 | | shall schedule either a status date or a
hearing within 30 days | 7 | | after the request for a hearing unless otherwise agreed
to by | 8 | | the parties.
| 9 | | (f) The hearing shall be held at the time and place | 10 | | designated by the
Secretary. The Secretary and any | 11 | | administrative law judge designated by him have
the power to | 12 | | administer oaths and affirmations, subpoena witnesses and | 13 | | compel
their attendance, take evidence, and require the | 14 | | production of books, papers,
correspondence, and other records | 15 | | or information that he considers relevant or
material to the | 16 | | injury.
| 17 | | (g) The costs for the administrative hearing shall be set | 18 | | by rule and shall be borne by the respondent.
| 19 | | (Source: P.A. 96-1420, eff. 8-3-10.)
| 20 | | (205 ILCS 665/20) (from Ch. 17, par. 5323)
| 21 | | Sec. 20. Cease and desist orders.
| 22 | | (a) The Secretary may issue a cease and desist order to any
| 23 | | licensee, or other person doing business without the required | 24 | | license, when in
the opinion of the Secretary, the licensee, | 25 | | or other person, is violating or is
about to violate any |
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| 1 | | provision of the Act or any rule or condition imposed in
| 2 | | writing by the Department.
| 3 | | (b) The Secretary may issue a cease and desist order prior | 4 | | to a hearing.
| 5 | | (c) The Secretary shall serve notice of his action, | 6 | | including a statement of
the reasons for his action either | 7 | | personally , to the email address of record, or by certified | 8 | | mail, return
receipt requested. Service by mail shall be | 9 | | deemed completed if the notice is
deposited in the U.S. Mail. | 10 | | Service to the email address of record shall be deemed | 11 | | completed when sent.
| 12 | | (d) Within 10 days
after
service of the cease and desist | 13 | | order, the licensee or
other person may request, in writing, a | 14 | | hearing.
| 15 | | (e) The Secretary shall schedule either a status date or a | 16 | | hearing within 30 days after the request
for a hearing unless | 17 | | otherwise agreed to by the parties.
| 18 | | (g) If it is determined that the Secretary had the | 19 | | authority to issue the
cease and desist order, he may issue | 20 | | such orders as may be reasonably necessary
to correct, | 21 | | eliminate, or remedy such conduct.
| 22 | | (h) The powers vested in the Secretary by this Section are | 23 | | additional
to any and all other powers and remedies vested in | 24 | | the Secretary by law, and
nothing in this Section shall be | 25 | | construed as requiring that the Secretary shall
employ the | 26 | | power conferred in this Section instead of
or
as a condition |
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| 1 | | precedent
to the exercise of any other power or remedy vested | 2 | | in the Secretary.
| 3 | | (i) The cost for the administrative hearing shall be set | 4 | | by rule and shall be borne by the respondent.
| 5 | | (Source: P.A. 96-1420, eff. 8-3-10.)
| 6 | | Section 25. The Consumer Installment Loan Act is amended | 7 | | by changing Sections 2, 3, 8, 9, and 20.5 and by adding Section | 8 | | 0.5 as follows: | 9 | | (205 ILCS 670/0.5 new) | 10 | | Sec. 0.5. Definitions. As used in this Act: | 11 | | "Department" means the Department of Financial and | 12 | | Professional Regulation. | 13 | | "Director" means the Director of the Division of Financial | 14 | | Institutions. | 15 | | "Division of Financial Institutions" means the Division of | 16 | | Financial Institutions of the Department of Financial and | 17 | | Professional Regulation. | 18 | | "Email address of record" means the designated email | 19 | | address recorded by the Division of Financial Institutions in | 20 | | the applicant's applicant file or the licensee's license file, | 21 | | as maintained by the Division of Financial Institutions' | 22 | | licensure unit. | 23 | | "Secretary" means the Secretary of Financial and | 24 | | Professional Regulation or a person authorized by the |
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| 1 | | Secretary to act in the Secretary's stead.
| 2 | | (205 ILCS 670/2) (from Ch. 17, par. 5402)
| 3 | | Sec. 2. Application; fees; positive net worth. Application | 4 | | for such license shall be in writing, and in the
form | 5 | | prescribed by the Director. Such
applicant at the time of | 6 | | making such application shall pay to the
Director the sum of | 7 | | $300 as an application fee and the additional
sum of $450
as an | 8 | | annual license
fee, for a period terminating on the last day of | 9 | | the current
calendar year; provided that if the application is | 10 | | filed after June 30th
in any year, such license fee shall be | 11 | | 1/2 of the annual license fee
for such year. At the time of | 12 | | application, each applicant shall provide an email address of | 13 | | record.
| 14 | | Before the license is granted, every applicant shall prove | 15 | | in form
satisfactory to the Director that the applicant has | 16 | | and will maintain a
positive net
worth of a minimum of $30,000. | 17 | | Every applicant and licensee shall maintain
a surety bond in
| 18 | | the
principal sum of $25,000 issued by a bonding company | 19 | | authorized
to do
business in this State and which shall be | 20 | | approved by the Director. Such
bond shall run to the Director | 21 | | and shall be for the benefit of any consumer
who incurs damages | 22 | | as a result of any violation of the Act or rules by a
licensee. | 23 | | If
the Director finds at any time that a bond is of | 24 | | insufficient size, is
insecure, exhausted, or otherwise | 25 | | doubtful, an additional bond in such
amount as determined by |
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| 1 | | the Director shall be filed by the licensee within
30 days | 2 | | after written demand therefor by the Director.
"Net worth" | 3 | | means total assets minus total liabilities.
| 4 | | (Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)
| 5 | | (205 ILCS 670/3) (from Ch. 17, par. 5403)
| 6 | | Sec. 3. Appointment of attorney-in-fact for service of | 7 | | process. Every licensee shall appoint, in writing, the | 8 | | Director of Financial
Institutions (hereinafter called | 9 | | Director) and his successors in office or
any official who | 10 | | shall hereafter be charged with the administration of this
| 11 | | Act, as attorney-in-fact upon whom all lawful process against | 12 | | such licensee
may be served with the same legal force and | 13 | | validity as if served on such
licensee. A copy of such written | 14 | | appointment, duly certified, shall be
filed in the office of | 15 | | the Director; and a copy thereof certified by him
shall be | 16 | | sufficient evidence. This appointment shall remain in effect | 17 | | while
any liability remains outstanding in this State against | 18 | | the licensee. When
summons is served upon the Director as | 19 | | attorney-in-fact for such licensee,
the Director shall | 20 | | immediately notify the licensee by certified registered mail, | 21 | | return receipt requested, or by email to the email address of | 22 | | record,
enclosing the summons and specifying the hour and day | 23 | | of service. Service by certified mail shall be deemed | 24 | | completed when the notice is deposited in the United States | 25 | | mail. Service to the email address of record shall be deemed |
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| 1 | | completed when sent.
| 2 | | (Source: Laws 1963, p. 3526.)
| 3 | | (205 ILCS 670/8) (from Ch. 17, par. 5408)
| 4 | | Sec. 8. Annual license fee; expenses fee - Expenses . | 5 | | Before the 1st day of each December, a
licensee must pay to
the | 6 | | Director, and the Department must receive, the annual license | 7 | | fee
required by Section 2 for the next
succeeding calendar | 8 | | year. The license shall expire on the first of January
unless | 9 | | the license fee has been paid prior thereto. At the time of | 10 | | renewal, each licensee shall provide an email address of | 11 | | record.
| 12 | | In addition to such license fee, the reasonable expense of | 13 | | any
examination, investigation or custody by the Director | 14 | | under any
provisions of this Act shall be borne by the | 15 | | licensee.
| 16 | | If a licensee fails to renew his or her license by the 31st | 17 | | day of
December, it shall automatically expire and the | 18 | | licensee is not entitled to a
hearing; however, the Director, | 19 | | in his or her discretion, may reinstate an
expired
license | 20 | | upon payment of the annual renewal fee and proof of good cause | 21 | | for
failure to renew.
| 22 | | (Source: P.A. 100-958, eff. 8-19-18.)
| 23 | | (205 ILCS 670/9) (from Ch. 17, par. 5409)
| 24 | | Sec. 9. Fines ; suspension or revocation , Suspension or |
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| 1 | | Revocation of license.
| 2 | | (a) The Director may, after 10 days notice by certified | 3 | | registered mail to the
licensee at the address set forth in the | 4 | | license, or by email to the email address of record, stating | 5 | | the contemplated
action and in general the grounds therefor, | 6 | | fine such licensee an
amount not exceeding $10,000 per | 7 | | violation, or revoke or suspend any
license issued hereunder | 8 | | if he or she finds that:
| 9 | | (1) The licensee has failed to comply with any | 10 | | provision of this Act or
any order, decision, finding, | 11 | | rule, regulation or direction of the
Director lawfully | 12 | | made pursuant to the authority of this Act; or
| 13 | | (2) Any fact or condition exists which, if it had | 14 | | existed at the time of
the original application for the | 15 | | license, clearly would have warranted the
Director in | 16 | | refusing to issue the license.
| 17 | | Service by certified mail shall be deemed completed when | 18 | | the notice is deposited in the United States mail. Service to | 19 | | the email address of record shall be deemed completed when | 20 | | sent. | 21 | | (b) The Director may fine, suspend, or revoke only the | 22 | | particular
license with respect to which grounds for the fine, | 23 | | revocation or
suspension occur or exist, but if the Director | 24 | | shall find that grounds for
revocation are of general | 25 | | application to all offices or to more than one
office of the | 26 | | licensee, the Director shall fine, suspend, or revoke every
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| 1 | | license to which such grounds apply.
| 2 | | (c) (Blank).
| 3 | | (d) No revocation, suspension, or surrender of any license | 4 | | shall
impair or affect the obligation of any pre-existing | 5 | | lawful contract between
the licensee and any obligor.
| 6 | | (e) The Director may issue a new license to a licensee | 7 | | whose license
has been revoked when facts or conditions which | 8 | | clearly would have warranted
the Director in refusing | 9 | | originally to issue the license no longer exist.
| 10 | | (f) (Blank).
| 11 | | (g) In every case in which a license is suspended or | 12 | | revoked or an
application for a license or renewal of a license | 13 | | is denied, the Director shall
serve the licensee with notice | 14 | | of his or her action, including a statement of
the reasons for | 15 | | his or her actions, either personally, to the email address of | 16 | | record, or by certified mail,
return receipt requested. | 17 | | Service by certified mail shall be deemed completed
when the | 18 | | notice is deposited in the United States mail U.S. Mail . | 19 | | Service to the email address of record shall be deemed | 20 | | completed when sent.
| 21 | | (h) An order assessing a fine, an order revoking or | 22 | | suspending a license or,
an order denying renewal of a license | 23 | | shall take effect upon service of the
order unless the | 24 | | licensee requests, in writing, within 10 days after the date
| 25 | | of service, a hearing. In the event a hearing is requested, the | 26 | | order shall be
stayed until a final administrative order is |
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| 1 | | entered.
| 2 | | (i) If the licensee requests a hearing, the Director shall | 3 | | schedule a
hearing within 30 days after the request for a | 4 | | hearing unless otherwise agreed
to by the parties.
| 5 | | (j) The hearing shall be held at the time and place | 6 | | designated by the
Director. The Director and any | 7 | | administrative law judge designated by him or
her shall have | 8 | | the power to administer oaths and affirmations, subpoena
| 9 | | witnesses
and compel their attendance, take evidence, and | 10 | | require the production of
books, papers, correspondence, and | 11 | | other records or information that he or she
considers relevant | 12 | | or material to the inquiry.
| 13 | | (k) The costs for the administrative hearing shall be set | 14 | | by rule.
| 15 | | (l) The Director shall have the authority to prescribe | 16 | | rules for the
administration of this Section.
| 17 | | (m) The Department shall establish by rule and publish a | 18 | | schedule of fines that are reasonably tailored to ensure | 19 | | compliance with the provisions of this Act and which include | 20 | | remedial measures intended to improve licensee compliance. | 21 | | Such rules shall set forth the standards and procedures to be | 22 | | used in imposing any such fines and remedies. | 23 | | (Source: P.A. 98-209, eff. 1-1-14.)
| 24 | | (205 ILCS 670/20.5)
| 25 | | Sec. 20.5. Cease and desist.
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| 1 | | (a) The Director may issue a cease and desist order to any | 2 | | licensee, or
other person doing business without the required | 3 | | license, when in the opinion
of the Director, the licensee, or | 4 | | other person, is violating or is about to
violate any | 5 | | provision of this Act or any rule or requirement imposed in | 6 | | writing
by the Department as a condition of granting any | 7 | | authorization permitted by
this Act.
| 8 | | (b) The Director may issue a cease and desist order prior | 9 | | to a hearing.
| 10 | | (c) The Director shall serve notice of his or her action, | 11 | | designated as a
cease and
desist order made pursuant to this | 12 | | Section, including a statement of the
reasons
for the action, | 13 | | either personally , to the email address of record, or by | 14 | | certified mail, return receipt
requested. Service by certified | 15 | | mail shall be deemed completed when the
notice is deposited in | 16 | | the United States U.S. mail. Service to the email address of | 17 | | record shall be deemed completed when sent.
| 18 | | (d) Within 15 days of service of the cease and desist | 19 | | order, the licensee or
other person may request, in writing, a | 20 | | hearing.
| 21 | | (e) The Director shall schedule a hearing within 30 days | 22 | | after the request
for a hearing unless otherwise agreed to by | 23 | | the parties.
| 24 | | (f) The Director shall have the authority to prescribe | 25 | | rules for the
administration of this Section.
| 26 | | (g) If it is determined that the Director had the |
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| 1 | | authority to issue the
cease and desist order, he or she may | 2 | | issue such orders as may be reasonably
necessary to correct, | 3 | | eliminate, or remedy such conduct.
| 4 | | (h) The powers vested in the Director by this Section are | 5 | | additional to any
and all other powers and remedies vested in | 6 | | the Director by law, and nothing in
this Section shall be | 7 | | construed as requiring that the Director shall employ the
| 8 | | power conferred in this Section instead of or as a condition | 9 | | precedent to the
exercise of any other power or remedy vested | 10 | | in the Director.
| 11 | | (i) The cost for the administrative hearing shall be set | 12 | | by rule.
| 13 | | (Source: P.A. 90-437, eff. 1-1-98.)
| 14 | | Section 30. The Debt Settlement Consumer Protection Act is | 15 | | amended by changing Sections 10, 20, 50, 80, and 95 as follows: | 16 | | (225 ILCS 429/10)
| 17 | | Sec. 10. Definitions. As used in this Act: | 18 | | "Consumer" means any person who purchases or contracts for | 19 | | the purchase of debt settlement services. | 20 | | "Consumer settlement account" means any account or other | 21 | | means or device in which payments, deposits, or other | 22 | | transfers from a consumer are arranged, held, or transferred | 23 | | by or to a debt settlement provider for the accumulation of the | 24 | | consumer's funds in anticipation of proffering an adjustment |
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| 1 | | or settlement of a debt or obligation of the consumer to a | 2 | | creditor on behalf of the consumer. | 3 | | "Debt settlement provider" means any person or entity | 4 | | engaging in, or holding itself out as engaging in, the | 5 | | business of providing debt settlement service in exchange for | 6 | | any fee or compensation, or any person who solicits for or acts | 7 | | on behalf of any person or entity engaging in, or holding | 8 | | itself out as engaging in, the business of providing debt | 9 | | settlement service in exchange for any fee or compensation. | 10 | | "Debt settlement provider" does not include: | 11 | | (1) attorneys licensed, or otherwise authorized, to | 12 | | practice in Illinois who are engaged in the practice of | 13 | | law;
| 14 | | (2) escrow agents, accountants, broker dealers in | 15 | | securities, or investment advisors in securities, when | 16 | | acting in the ordinary practice of their professions and | 17 | | through the entity used in the ordinary practice of their | 18 | | profession;
| 19 | | (3) any bank, agent of a bank, operating subsidiary of | 20 | | a bank, affiliate of a bank, trust company, savings and | 21 | | loan association, savings bank, credit union, crop credit | 22 | | association, development credit corporation, industrial | 23 | | development corporation, title insurance company, title | 24 | | insurance agent, independent escrowee or insurance company | 25 | | operating or organized under the laws of a state or the | 26 | | United States, or any other person authorized to make |
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| 1 | | loans under State law while acting in the ordinary | 2 | | practice of that business;
| 3 | | (4) any person who performs credit services for his or | 4 | | her employer while receiving a regular salary or wage when | 5 | | the employer is not engaged in the business of offering or | 6 | | providing debt settlement service;
| 7 | | (5) a collection agency licensed pursuant to the | 8 | | Collection Agency Act that is collecting a debt on its own | 9 | | behalf or on behalf of a third party; | 10 | | (6) an organization that is described in Section | 11 | | 501(c)(3) and subject to Section 501(q) of Title 26 of the | 12 | | United States Code and exempt from tax under Section | 13 | | 501(a) of Title 26 of the United States Code and governed | 14 | | by the Debt Management Service Act;
| 15 | | (7) public officers while acting in their official | 16 | | capacities and persons acting under court order;
| 17 | | (8) any person while performing services incidental to | 18 | | the dissolution, winding up, or liquidating of a | 19 | | partnership, corporation, or other business enterprise; or | 20 | | (9) persons licensed under the Real Estate License Act | 21 | | of 2000 when acting in the ordinary practice of their | 22 | | profession and not holding themselves out as debt | 23 | | settlement providers. | 24 | | "Debt settlement service" means:
| 25 | | (1) offering to provide advice or service, or acting | 26 | | as an intermediary between or on behalf of a consumer and |
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| 1 | | one or more of a consumer's creditors, where the primary | 2 | | purpose of the advice, service, or action is to obtain a | 3 | | settlement, adjustment, or satisfaction of the consumer's | 4 | | unsecured debt to a creditor in an amount less than the | 5 | | full amount of the principal amount of the debt or in an | 6 | | amount less than the current outstanding balance of the | 7 | | debt; or
| 8 | | (2) offering to provide services related to or | 9 | | providing services advising, encouraging, assisting, or | 10 | | counseling a consumer to accumulate funds for the primary | 11 | | purpose of proposing or obtaining or seeking to obtain a | 12 | | settlement, adjustment, or satisfaction of the consumer's | 13 | | unsecured debt to a creditor in an amount less than the | 14 | | full amount of the principal amount of the debt or in an | 15 | | amount less than the current outstanding balance of the | 16 | | debt. | 17 | | "Debt settlement service" does not include (A) the | 18 | | services of attorneys licensed, or otherwise authorized, to | 19 | | practice in Illinois who are engaged in the practice of law or | 20 | | (B) debt management service as defined in the Debt Management | 21 | | Service Act. | 22 | | "Department" means the Department of Financial and | 23 | | Professional Regulation. | 24 | | "Director" means the Director of the Division of Financial | 25 | | Institutions. | 26 | | "Division of Financial Institutions" means the Division of |
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| 1 | | Financial Institutions of the Department of Financial and | 2 | | Professional Regulation. | 3 | | "Email address of record" means the designated email | 4 | | address recorded by the Division of Financial Institutions in | 5 | | the applicant's applicant file or the licensee's license file, | 6 | | as maintained by the Division of Financial Institutions' | 7 | | licensure unit. | 8 | | "Enrollment or set up fee" means any fee, obligation, or | 9 | | compensation paid or to be paid by the consumer to a debt | 10 | | settlement provider in consideration of or in connection with | 11 | | establishing a contract or other agreement with a consumer | 12 | | related to the provision of debt settlement service. | 13 | | "Maintenance fee" means any fee, obligation, or | 14 | | compensation paid or to be paid by the consumer on a periodic | 15 | | basis to a debt settlement provider in consideration of | 16 | | maintaining the relationship and services to be provided by a | 17 | | debt settlement provider in accordance with a contract with a | 18 | | consumer related to the provision of debt settlement service. | 19 | | "Principal amount of the debt" means the total amount or | 20 | | outstanding balance owed by a consumer to one or more | 21 | | creditors for a debt that is included in a contract for debt | 22 | | settlement service at the time when the consumer enters into a | 23 | | contract for debt settlement service. | 24 | | "Savings" means the difference between the principal | 25 | | amount of the debt and the amount paid by the debt settlement | 26 | | provider to the creditor or negotiated by the debt settlement |
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| 1 | | provider and paid by the consumer to the creditor pursuant to a | 2 | | settlement negotiated by the debt settlement provider on | 3 | | behalf of the consumer as full and complete satisfaction of | 4 | | the creditor's claim with regard to that debt. | 5 | | "Secretary" means the Secretary of Financial and | 6 | | Professional Regulation or a person authorized by the | 7 | | Secretary to act in the Secretary's stead . | 8 | | "Settlement fee" means any fee, obligation, or | 9 | | compensation paid or to be paid by the consumer to a debt | 10 | | settlement provider in consideration of or in connection with | 11 | | a completed agreement or other arrangement on the part of a | 12 | | creditor to accept less than the principal amount of the debt | 13 | | as satisfaction of the creditor's claim against the consumer.
| 14 | | (Source: P.A. 96-1420, eff. 8-3-10.) | 15 | | (225 ILCS 429/20)
| 16 | | Sec. 20. Application for license. An application for a | 17 | | license to operate as a debt settlement provider in this State | 18 | | shall be made to the Secretary and shall be in writing, under | 19 | | oath, and in the form prescribed by the Secretary. Each | 20 | | applicant shall provide an email address of record. | 21 | | Each applicant, at the time of making such application, | 22 | | shall pay to the Secretary the required fee as set by rule.
| 23 | | Every applicant shall submit to the Secretary, at the time | 24 | | of the application for a license, a
bond to be approved by the | 25 | | Secretary in which the applicant shall be the obligor, in the |
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| 1 | | sum of $100,000 or an additional amount as required by the | 2 | | Secretary, and in which an insurance company, which is duly | 3 | | authorized by the State of Illinois to transact the business | 4 | | of fidelity and surety insurance, shall be a surety.
| 5 | | The bond shall run to the Secretary for the use of the | 6 | | Department or of any person or persons
who may have a cause of | 7 | | action against the obligor in said bond arising out of any | 8 | | violation of this Act or rules by a debt settlement provider. | 9 | | Such bond shall be conditioned that the obligor must | 10 | | faithfully conform to and abide by the provisions of this Act | 11 | | and of all rules, regulations, and directions lawfully made by | 12 | | the Secretary and pay to the Secretary or to any person or | 13 | | persons any and all money that may become due or owing to the | 14 | | State or to such person or persons, from the obligor under and | 15 | | by virtue of the provisions of this Act.
| 16 | | (Source: P.A. 96-1420, eff. 8-3-10.) | 17 | | (225 ILCS 429/50)
| 18 | | Sec. 50. Revocation or suspension of license.
| 19 | | (a) The Secretary may revoke or suspend any license if he | 20 | | or she finds that:
| 21 | | (1) any debt settlement provider has failed to pay the | 22 | | annual
license fee or to maintain in effect the bond | 23 | | required under the provisions of this Act;
| 24 | | (2) the debt settlement provider has violated any | 25 | | provisions of this
Act or any rule lawfully made by the |
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| 1 | | Secretary under the authority of this Act;
| 2 | | (3) any fact or condition exists that, if it had | 3 | | existed at the time of the original application for a | 4 | | license, would have warranted the Secretary in refusing | 5 | | its issuance; or
| 6 | | (4) any applicant has made any false statement or | 7 | | representation to the Secretary in applying for a license | 8 | | under this Act.
| 9 | | (b) In every case in which a license is suspended or | 10 | | revoked or an application for a license or renewal of a license | 11 | | is denied, the Secretary shall serve notice of his or her | 12 | | action, including a statement of the reasons for his or her | 13 | | actions, either personally , to the email address of record, or | 14 | | by certified mail, return receipt requested. Service by mail | 15 | | shall be deemed completed if the notice is deposited in the | 16 | | United States mail U.S. Mail .
Service to the email address of | 17 | | record shall be deemed completed when sent. | 18 | | (c) In the case of a denial of an application or renewal of | 19 | | a license, the applicant or
debt settlement provider may | 20 | | request, in writing, a hearing within 30 days after the date of | 21 | | service. In the case of a denial of a renewal of a license, the | 22 | | license shall be deemed to continue in force until 30 days | 23 | | after the service of the notice of denial, or if a hearing is | 24 | | requested during that period, until a final administrative | 25 | | order is entered.
| 26 | | (d) An order of revocation or suspension of a license |
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| 1 | | shall take effect upon service of the
order unless the debt | 2 | | settlement provider requests, in writing, a hearing within 10 | 3 | | days after the date of service. In the event a hearing is | 4 | | requested, the order shall be stayed until a final | 5 | | administrative order is entered.
| 6 | | (e) If the debt settlement provider requests a hearing, | 7 | | then the Secretary shall schedule the hearing within 30
days | 8 | | after the request for a hearing unless otherwise agreed to by | 9 | | the parties.
| 10 | | (f) The hearing shall be held at the time and place | 11 | | designated by the Secretary. The
Secretary and any | 12 | | administrative law judge designated by the Secretary have the | 13 | | power to administer oaths and affirmations, subpoena witnesses | 14 | | and compel their attendance, take evidence, and require the | 15 | | production of books, papers, correspondence, and other records | 16 | | or information that the Secretary considers relevant or | 17 | | material to the injury.
| 18 | | (g) The costs for the administrative hearing shall be set | 19 | | by rule.
| 20 | | (Source: P.A. 96-1420, eff. 8-3-10.) | 21 | | (225 ILCS 429/80)
| 22 | | Sec. 80. Penalties.
| 23 | | (a) Any person who operates as a debt settlement provider | 24 | | without a license
shall be guilty of a Class 4 felony.
| 25 | | (b) Any contract of debt settlement service as defined in |
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| 1 | | this Act made by an
unlicensed person shall be null and void | 2 | | and of no legal effect.
| 3 | | (c) The Secretary may, after 10 days notice by certified | 4 | | registered mail to the debt settlement service provider at the | 5 | | address on the license or unlicensed entity engaging in the | 6 | | debt settlement service business, or by email to the email | 7 | | address of record, stating the contemplated action and in | 8 | | general the grounds therefore, fine such debt settlement | 9 | | service provider or unlicensed entity an amount not exceeding | 10 | | $10,000 per violation, and revoke or suspend any license | 11 | | issued hereunder if he or she finds that: | 12 | | (1) The debt settlement service provider has failed to | 13 | | comply with any provision of this Act or any order, | 14 | | decision, finding, rule, regulation or direction of the | 15 | | Secretary lawfully made pursuant to the authority of this | 16 | | Act; or | 17 | | (2) Any fact or condition exists which, if it had | 18 | | existed at the time of the original application for the | 19 | | license, clearly would have warranted the Secretary in | 20 | | refusing to issue the license.
| 21 | | Service by certified mail shall be deemed completed when | 22 | | the notice is deposited in the United States mail. Service to | 23 | | the email address of record shall be deemed completed when | 24 | | sent. | 25 | | (Source: P.A. 96-1420, eff. 8-3-10.) |
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| 1 | | (225 ILCS 429/95)
| 2 | | Sec. 95. Cease and desist orders.
| 3 | | (a) The Secretary may issue a cease and desist order to any | 4 | | debt settlement provider or other person doing
business | 5 | | without the required license when, in the opinion of the | 6 | | Secretary, the debt settlement provider or other person is | 7 | | violating or is about to violate any provision of the Act or | 8 | | any rule or condition imposed in writing by the Department.
| 9 | | (b) The Secretary may issue a cease and desist order prior | 10 | | to a hearing.
| 11 | | (c) The Secretary shall serve notice of his or her action, | 12 | | including a statement of the reasons for
his or her action | 13 | | either personally , to the email address of record, or by | 14 | | certified mail, return receipt requested. Service by mail | 15 | | shall be deemed completed if the notice is deposited in the | 16 | | United States mail U.S. Mail .
Service to the email address of | 17 | | record shall be deemed completed when sent. | 18 | | (d) Within 10 days after service of the cease and desist | 19 | | order, the licensee or other person
may request, in writing, a | 20 | | hearing.
| 21 | | (e) The Secretary shall schedule a hearing within 30 days | 22 | | after the request for a hearing
unless otherwise agreed to by | 23 | | the parties.
| 24 | | (f) If it is determined that the Secretary had the | 25 | | authority to issue the cease and desist
order, then he or she | 26 | | may issue such orders as may be reasonably necessary to |
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| 1 | | correct, eliminate, or remedy that conduct.
| 2 | | (g) The powers vested in the Secretary by this Section are | 3 | | additional to any and all other
powers and remedies vested in | 4 | | the Secretary by law, and nothing in this Section shall be | 5 | | construed as requiring that the Secretary shall employ the | 6 | | power conferred in this Section instead of or as a condition | 7 | | precedent to the exercise of any other power or remedy vested | 8 | | in the Secretary.
| 9 | | (h) The cost for the administrative hearing shall be set | 10 | | by rule.
| 11 | | (Source: P.A. 96-1420, eff. 8-3-10.) | 12 | | Section 35. The Payday Loan Reform Act is amended by | 13 | | changing Sections 1-10, 3-5, and 4-10 as follows: | 14 | | (815 ILCS 122/1-10)
| 15 | | Sec. 1-10. Definitions. As used in this Act: | 16 | | "Check" means a "negotiable instrument", as defined in | 17 | | Article 3 of the Uniform Commercial Code, that is drawn on a | 18 | | financial institution. | 19 | | "Commercially reasonable method of verification" or | 20 | | "certified database" means a consumer reporting service | 21 | | database certified by the Department as effective in verifying | 22 | | that a proposed loan agreement is permissible under this Act, | 23 | | or, in the absence of the Department's certification, any | 24 | | reasonably reliable written verification by the consumer |
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| 1 | | concerning (i) whether the consumer has any outstanding payday | 2 | | loans, (ii) the principal amount of those outstanding payday | 3 | | loans, and (iii) whether any payday loans have been paid in | 4 | | full by the consumer in the preceding 7 days. | 5 | | "Consumer" means any natural person who, singly or jointly | 6 | | with another consumer, enters into a loan. | 7 | | "Consumer reporting service" means an entity that provides | 8 | | a database certified by the Department. | 9 | | "Department" means the Department of Financial and | 10 | | Professional Regulation. | 11 | | "Director" means the Director of the Division of Financial | 12 | | Institutions. | 13 | | "Division of Financial Institutions" means the Division of | 14 | | Financial Institutions of the Department of Financial and | 15 | | Professional Regulation. | 16 | | "Email address of record" means the designated email | 17 | | address recorded by the Division of Financial Institutions in | 18 | | the applicant's applicant file or the licensee's license file, | 19 | | as maintained by the Division of Financial Institutions' | 20 | | licensure unit. | 21 | | "Secretary" means the Secretary of Financial and | 22 | | Professional Regulation or a person authorized by the | 23 | | Secretary to act in the Secretary's stead . | 24 | | "Gross monthly income" means monthly income as | 25 | | demonstrated by official documentation of the income, | 26 | | including, but not limited to, a pay stub or a receipt |
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| 1 | | reflecting payment of government benefits, for the period 30 | 2 | | days prior to the date on which the loan is made. | 3 | | "Lender" and "licensee" mean any person or entity, | 4 | | including any affiliate or subsidiary of a lender or licensee, | 5 | | that offers or makes a payday loan, buys a whole or partial | 6 | | interest in a payday loan, arranges a payday loan for a third | 7 | | party, or acts as an agent for a third party in making a payday | 8 | | loan, regardless of whether approval, acceptance, or | 9 | | ratification by the third party is necessary to create a legal | 10 | | obligation for the third party, and includes any other person | 11 | | or entity if the Department determines that the person or | 12 | | entity is engaged in a transaction that is in substance a | 13 | | disguised payday loan or a subterfuge for the purpose of | 14 | | avoiding this Act. | 15 | | "Loan agreement" means a written agreement between a | 16 | | lender and consumer to make a loan to the consumer, regardless | 17 | | of whether any loan proceeds are actually paid to the consumer | 18 | | on the date on which the loan agreement is made. | 19 | | "Member of the military" means a person serving in the | 20 | | armed forces of the United States, the Illinois National | 21 | | Guard, or any reserve component of the armed forces of the | 22 | | United States. "Member of the military" includes those persons | 23 | | engaged in (i) active duty, (ii) training or education under | 24 | | the supervision of the United States preliminary to induction | 25 | | into military service, or (iii) a period of active duty with | 26 | | the State of Illinois under Title 10 or Title 32 of the United |
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| 1 | | States Code pursuant to order of the President or the Governor | 2 | | of the State of Illinois. | 3 | | "Outstanding balance" means the total amount owed by the | 4 | | consumer on a loan to a lender, including all principal, | 5 | | finance charges, fees, and charges of every kind. | 6 | | "Payday loan" or "loan" means a loan with a finance charge | 7 | | exceeding an annual percentage rate of 36% and with a term that | 8 | | does not exceed 120 days, including any transaction conducted | 9 | | via any medium whatsoever, including, but not limited to, | 10 | | paper, facsimile, Internet, or telephone, in which: | 11 | | (1) A lender accepts one or more checks dated on the | 12 | | date written and agrees to hold them for a period of days | 13 | | before deposit or presentment, or accepts one or more | 14 | | checks dated subsequent to the date written and agrees to | 15 | | hold them for deposit; or | 16 | | (2) A lender accepts one or more authorizations to | 17 | | debit a consumer's bank account; or | 18 | | (3) A lender accepts an interest in a consumer's | 19 | | wages, including, but not limited to, a wage assignment. | 20 | | The term "payday loan" includes "installment payday loan", | 21 | | unless otherwise specified in
this Act. | 22 | | "Principal amount" means the amount received by the | 23 | | consumer from the lender due and owing on a loan, excluding any | 24 | | finance charges, interest, fees, or other loan-related | 25 | | charges. | 26 | | "Rollover" means to refinance, renew, amend, or extend a |
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| 1 | | loan beyond its original term.
| 2 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 3 | | (815 ILCS 122/3-5)
| 4 | | Sec. 3-5. Licensure. | 5 | | (a) A license to make a payday loan shall state the | 6 | | address,
including city and state, at which
the business is to | 7 | | be conducted and shall state fully the name of the licensee.
| 8 | | The license shall be conspicuously posted in the place of | 9 | | business of the
licensee and shall not be transferable or | 10 | | assignable.
| 11 | | (b) An application for a license shall be in writing and in | 12 | | a form
prescribed by the Secretary. Each applicant shall | 13 | | provide an email address of record. The Secretary may not | 14 | | issue a payday loan
license unless and until the following | 15 | | findings are made:
| 16 | | (1) that the financial responsibility, experience, | 17 | | character, and general
fitness of the applicant are such | 18 | | as to command the confidence of the public
and to warrant | 19 | | the belief that the business will be operated lawfully and
| 20 | | fairly and within the provisions and purposes of this Act; | 21 | | and
| 22 | | (2) that the applicant has submitted such other | 23 | | information as the
Secretary may deem necessary.
| 24 | | (c) A license shall be issued for no longer than one year, | 25 | | and no renewal
of a license may be provided if a licensee has |
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| 1 | | substantially violated this
Act and has not cured the | 2 | | violation to the satisfaction of the Department.
| 3 | | (d) A licensee shall appoint, in writing, the Secretary as | 4 | | attorney-in-fact
upon whom all lawful process against the | 5 | | licensee may be served with the
same legal force and validity | 6 | | as if served on the licensee. A copy of the
written | 7 | | appointment, duly certified, shall be filed in the office of | 8 | | the
Secretary, and a copy thereof certified by the Secretary | 9 | | shall be sufficient
evidence to subject a licensee to | 10 | | jurisdiction in a court of law. This appointment shall remain | 11 | | in effect while any liability remains
outstanding in this | 12 | | State against the licensee. When summons is served upon
the | 13 | | Secretary as attorney-in-fact for a licensee, the Secretary | 14 | | shall immediately
notify the licensee by certified registered | 15 | | mail, return receipt requested, or to the email address of | 16 | | record, enclosing the summons and specifying
the hour and day | 17 | | of service. Service by certified mail shall be deemed | 18 | | completed when the notice is deposited in the United States | 19 | | mail. Service to the email address of record shall be deemed | 20 | | completed when sent.
| 21 | | (e) A licensee must pay an annual fee of $1,000. In | 22 | | addition to the
license fee, the reasonable expense of any | 23 | | examination or hearing
by the Secretary under any provisions | 24 | | of this Act shall be borne by
the licensee. If a licensee fails | 25 | | to renew its license by December 1,
its license
shall | 26 | | automatically expire; however, the Secretary, in his or her |
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| 1 | | discretion,
may reinstate an expired license upon:
| 2 | | (1) payment of the annual fee within 30 days of the | 3 | | date of
expiration; and
| 4 | | (2) proof of good cause for failure to renew.
| 5 | | (f) Not more than one place of business shall be | 6 | | maintained under the
same license, but the Secretary may issue | 7 | | more than one license to the same
licensee upon compliance | 8 | | with all the provisions of this Act governing
issuance of a | 9 | | single license. The location, except those locations already | 10 | | in
existence as of June 1, 2005, may not be within one mile of | 11 | | a
horse race track subject to the Illinois Horse Racing Act of | 12 | | 1975,
within one mile of a facility at which gambling is | 13 | | conducted under the Illinois
Gambling Act, within one mile of | 14 | | the location at which a
riverboat subject to the Illinois | 15 | | Gambling Act docks, or within one mile of
any State of Illinois | 16 | | or United States military base or naval installation.
| 17 | | (g) No licensee shall conduct the business of making loans | 18 | | under this
Act within any office, suite, room, or place of | 19 | | business in which (1) any loans are offered or made under the | 20 | | Consumer Installment Loan Act other than title secured loans | 21 | | as defined in subsection (a) of Section 15 of the Consumer | 22 | | Installment Loan Act and governed by Title 38, Section 110.330 | 23 | | of the Illinois Administrative Code or (2) any other
business | 24 | | is solicited or engaged in unless the other business is | 25 | | licensed by the Department or, in the opinion of the | 26 | | Secretary, the
other business would not be contrary to the |
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| 1 | | best interests of consumers and
is authorized by the Secretary | 2 | | in writing.
| 3 | | (g-5) Notwithstanding subsection (g) of this Section, a | 4 | | licensee may obtain a license under the Consumer Installment | 5 | | Loan Act (CILA) for the exclusive purpose and use of making | 6 | | title secured loans, as defined in subsection (a) of Section | 7 | | 15 of CILA and governed by Title 38, Section 110.300 of the | 8 | | Illinois Administrative Code. A licensee may continue to | 9 | | service Consumer Installment Loan Act loans that were | 10 | | outstanding as of the effective date of this amendatory Act of | 11 | | the 96th General Assembly. | 12 | | (h) The Secretary shall maintain a list of licensees that | 13 | | shall be
available to interested consumers and lenders and the | 14 | | public. The Secretary
shall maintain a toll-free number | 15 | | whereby consumers may obtain
information about licensees. The | 16 | | Secretary shall also establish a complaint
process under which | 17 | | an aggrieved consumer
may file a complaint against a licensee | 18 | | or non-licensee who violates any
provision of this Act.
| 19 | | (Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.) | 20 | | (815 ILCS 122/4-10)
| 21 | | Sec. 4-10. Enforcement and remedies. | 22 | | (a) The remedies provided in this Act are cumulative and | 23 | | apply to persons
or entities subject to this Act.
| 24 | | (b) Any material violation of this Act, including the | 25 | | commission of an act prohibited under Section 4-5, constitutes |
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| 1 | | a violation of the Consumer Fraud
and Deceptive Business | 2 | | Practices Act.
| 3 | | (c) If any provision of the written agreement described in | 4 | | subsection (b) of
Section 2-20 violates this Act, then that | 5 | | provision is unenforceable against the consumer. | 6 | | (d) Subject to the Illinois Administrative Procedure Act, | 7 | | the Secretary may hold hearings, make findings of fact, | 8 | | conclusions of law, issue cease
and desist orders, have the | 9 | | power to issue fines of up to $10,000 per violation, refer the | 10 | | matter to the appropriate law enforcement agency
for | 11 | | prosecution under this Act, and suspend or revoke a license | 12 | | granted
under this Act. All proceedings shall be open to the | 13 | | public. | 14 | | (e) The Secretary may issue a cease and desist order to any | 15 | | licensee or other person doing business without the required | 16 | | license, when in the opinion of the Secretary the licensee or | 17 | | other person is violating or is about to violate any provision | 18 | | of this Act or any rule or requirement imposed in writing by | 19 | | the Department as a condition of granting any authorization | 20 | | permitted by this Act. The cease and desist order permitted by | 21 | | this subsection (e) may be issued prior to a hearing. | 22 | | The Secretary shall serve notice of his or her action, | 23 | | including, but not limited to, a statement of the reasons for | 24 | | the action, either personally , to the email address of record, | 25 | | or by certified mail, return receipt requested. Service by | 26 | | certified mail shall be deemed completed when the notice is |
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| 1 | | deposited in the United States mail U.S. Mail . Service to the | 2 | | email address of record shall be deemed completed when sent. | 3 | | Within 10 days of service of the cease and desist order, | 4 | | the licensee or other person may request a hearing in writing.
| 5 | | The Secretary shall schedule a hearing within 30 days after | 6 | | the request for a hearing unless otherwise agreed to by the | 7 | | parties. | 8 | | If it is determined that the Secretary had the authority | 9 | | to issue the cease and desist order, he or she may issue such | 10 | | orders as may be reasonably necessary to correct, eliminate, | 11 | | or remedy the conduct. | 12 | | The powers vested in the Secretary by this subsection (e) | 13 | | are additional to any and all other powers and remedies vested | 14 | | in the Secretary by law, and nothing in this subsection (e) | 15 | | shall be construed as requiring that the Secretary shall | 16 | | employ the power conferred in this subsection instead of or as | 17 | | a condition precedent to the exercise of any other power or | 18 | | remedy vested in the Secretary. | 19 | | (f) The Secretary may, after 10 days notice by certified | 20 | | registered mail to the licensee at the address set forth in the | 21 | | license , or by email to the email address of record, stating | 22 | | the contemplated action and in general the grounds therefore, | 23 | | fine the licensee an amount not exceeding $10,000 per | 24 | | violation, or revoke or suspend any license issued hereunder | 25 | | if he or she finds that: | 26 | | (1) the licensee has failed to comply with any |
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| 1 | | provision of this Act or any order, decision, finding, | 2 | | rule, regulation, or direction of the Secretary lawfully | 3 | | made pursuant to the authority of this Act; or | 4 | | (2) any fact or condition exists which, if it had | 5 | | existed at the time of the original application for the | 6 | | license, clearly would have warranted the Secretary in | 7 | | refusing to issue the license. | 8 | | The Secretary may fine, suspend, or revoke only the | 9 | | particular license with respect to which grounds for the fine, | 10 | | revocation, or suspension occur or exist, but if the Secretary | 11 | | finds that grounds for revocation are of general application | 12 | | to all offices or to more than one office of the licensee, the | 13 | | Secretary shall fine, suspend, or revoke every license to | 14 | | which the grounds apply. | 15 | | The Department shall establish by rule and publish a | 16 | | schedule of fines that are reasonably tailored to ensure | 17 | | compliance with the provisions of this Act and which include | 18 | | remedial measures intended to improve licensee compliance. | 19 | | Such rules shall set forth the standards and procedures to be | 20 | | used in imposing any such fines and remedies. | 21 | | No revocation, suspension, or surrender of any license | 22 | | shall impair or affect the obligation of any pre-existing | 23 | | lawful contract between the licensee and any obligor. | 24 | | The Secretary may issue a new license to a licensee whose | 25 | | license has been revoked when facts or conditions which | 26 | | clearly would have warranted the Secretary in refusing |
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| 1 | | originally to issue the license no longer exist. | 2 | | In every case in which a license is suspended or revoked or | 3 | | an application for a license or renewal of a license is denied, | 4 | | the Secretary shall serve the licensee with notice of his or | 5 | | her action, including a statement of the reasons for his or her | 6 | | actions, either personally, to the email address of record, or | 7 | | by certified mail, return receipt requested. Service by | 8 | | certified mail shall be deemed completed when the notice is | 9 | | deposited in the United States mail U.S. Mail . Service to the | 10 | | email address of record shall be deemed completed when sent. | 11 | | An order assessing a fine, an order revoking or suspending | 12 | | a license, or an order denying renewal of a license shall take | 13 | | effect upon service of the order unless the licensee requests | 14 | | a hearing, in writing, within 10 days after the date of | 15 | | service. In the event a hearing is requested, the order shall | 16 | | be stayed until a final administrative order is entered. | 17 | | If the licensee requests a hearing, the Secretary shall | 18 | | schedule a hearing within 30 days after the request for a | 19 | | hearing unless otherwise agreed to by the parties. | 20 | | The hearing shall be held at the time and place designated | 21 | | by the Secretary. The Secretary and any administrative law | 22 | | judge designated by him or her shall have the power to | 23 | | administer oaths and affirmations, subpoena witnesses and | 24 | | compel their attendance, take evidence, and require the | 25 | | production of books, papers, correspondence, and other records | 26 | | or information that he or she considers relevant or material |
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| 1 | | to the inquiry. | 2 | | (g) The costs of administrative hearings conducted | 3 | | pursuant to this Section shall be paid by the licensee.
| 4 | | (h) Notwithstanding any other provision of this Section, | 5 | | if a lender who does not have a license issued under this Act | 6 | | makes a loan pursuant to this Act to an Illinois consumer, then | 7 | | the loan shall be null and void and the lender who made the | 8 | | loan shall have no right to collect, receive, or retain any | 9 | | principal, interest, or charges related to the loan. | 10 | | (Source: P.A. 97-1039, eff. 1-1-13; 98-209, eff. 1-1-14.)
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 205 ILCS 305/1.1 | from Ch. 17, par. 4402 | | 4 | | 205 ILCS 305/2 | from Ch. 17, par. 4403 | | 5 | | 205 ILCS 305/8 | from Ch. 17, par. 4409 | | 6 | | 205 ILCS 305/21 | from Ch. 17, par. 4422 | | 7 | | 205 ILCS 305/61 | from Ch. 17, par. 4462 | | 8 | | 205 ILCS 657/5 | | | 9 | | 205 ILCS 657/25 | | | 10 | | 205 ILCS 657/40 | | | 11 | | 205 ILCS 657/80 | | | 12 | | 205 ILCS 657/90 | | | 13 | | 205 ILCS 657/100 | | | 14 | | 205 ILCS 660/2 | from Ch. 17, par. 5202 | | 15 | | 205 ILCS 660/6 | from Ch. 17, par. 5206 | | 16 | | 205 ILCS 660/10 | from Ch. 17, par. 5223 | | 17 | | 205 ILCS 660/16.5 | | | 18 | | 205 ILCS 665/2 | from Ch. 17, par. 5302 | | 19 | | 205 ILCS 665/4 | from Ch. 17, par. 5304 | | 20 | | 205 ILCS 665/10 | from Ch. 17, par. 5310 | | 21 | | 205 ILCS 665/20 | from Ch. 17, par. 5323 | | 22 | | 205 ILCS 670/0.5 new | | | 23 | | 205 ILCS 670/2 | from Ch. 17, par. 5402 | | 24 | | 205 ILCS 670/3 | from Ch. 17, par. 5403 | | 25 | | 205 ILCS 670/8 | from Ch. 17, par. 5408 | |
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| 1 | | 205 ILCS 670/9 | from Ch. 17, par. 5409 | | 2 | | 205 ILCS 670/20.5 | | | 3 | | 225 ILCS 429/10 | | | 4 | | 225 ILCS 429/20 | | | 5 | | 225 ILCS 429/50 | | | 6 | | 225 ILCS 429/80 | | | 7 | | 225 ILCS 429/95 | | | 8 | | 815 ILCS 122/1-10 | | | 9 | | 815 ILCS 122/3-5 | | | 10 | | 815 ILCS 122/4-10 | |
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