Full Text of HB5148 97th General Assembly
HB5148 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5148 Introduced 2/8/2012, by Rep. Jim Sacia SYNOPSIS AS INTRODUCED: |
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625 ILCS 5/5-101 | from Ch. 95 1/2, par. 5-101 |
625 ILCS 5/5-102 | from Ch. 95 1/2, par. 5-102 |
625 ILCS 5/5-102.7 | |
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Amends the Illinois Vehicle Code. Changes the fees charged for inclusion in the Dealer Recovery Trust Fund to $50 (instead of $500 for the applicant's established place of business, and $50 for each additional place of business, if any, and half those amounts if the application is made after June 15 of any year). Provides that in any year for which the balance in the Fund as of August 31st is greater than $1,500,000 (instead of $3,500,000), the Fund Administrator shall notify the Secretary of State and the Secretary shall suspend collection of the fee for the following year for any dealer who meets certain criteria. Provides that no award for a claim from the Fund shall exceed $25,000 (instead of $35,000).
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning transportation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Vehicle Code is amended by changing | 5 | | Sections 5-101, 5-102, and 5-102.7 as follows:
| 6 | | (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
| 7 | | Sec. 5-101. New vehicle dealers must be licensed.
| 8 | | (a) No person shall engage in this State in the business of | 9 | | selling
or dealing in, on consignment or otherwise, new | 10 | | vehicles of any make, or
act as an intermediary or agent or | 11 | | broker for any licensed dealer or
vehicle purchaser other than | 12 | | as a salesperson, or represent or advertise
that he is so | 13 | | engaged or intends to so engage in such business unless
| 14 | | licensed to do so in writing by the Secretary of State under | 15 | | the
provisions of this Section.
| 16 | | (b) An application for a new vehicle dealer's license shall | 17 | | be filed
with the Secretary of State, duly verified by oath, on | 18 | | such form as the
Secretary of State may by rule or regulation | 19 | | prescribe and shall contain:
| 20 | | 1. The name and type of business organization of the | 21 | | applicant and
his established and additional places of | 22 | | business, if any, in this State.
| 23 | | 2. If the applicant is a corporation, a list of its |
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| 1 | | officers,
directors, and shareholders having a ten percent | 2 | | or greater ownership
interest in the corporation, setting | 3 | | forth the residence address of
each; if the applicant is a | 4 | | sole proprietorship, a partnership, an
unincorporated | 5 | | association, a trust, or any similar form of business
| 6 | | organization, the name and residence address of the | 7 | | proprietor or of
each partner, member, officer, director, | 8 | | trustee, or manager.
| 9 | | 3. The make or makes of new vehicles which the | 10 | | applicant will offer
for sale at retail in this State.
| 11 | | 4. The name of each manufacturer or franchised | 12 | | distributor, if any,
of new vehicles with whom the | 13 | | applicant has contracted for the sale of
such new vehicles. | 14 | | As evidence of this fact, the application shall be
| 15 | | accompanied by a signed statement from each such | 16 | | manufacturer or
franchised distributor. If the applicant | 17 | | is in the business of
offering for sale new conversion | 18 | | vehicles, trucks or vans, except for
trucks modified to | 19 | | serve a special purpose which includes but is not
limited | 20 | | to the following vehicles: street sweepers, fertilizer | 21 | | spreaders,
emergency vehicles, implements of husbandry or | 22 | | maintenance type vehicles,
he must furnish evidence of a | 23 | | sales and service agreement from both the
chassis | 24 | | manufacturer and second stage manufacturer.
| 25 | | 5. A statement that the applicant has been approved for | 26 | | registration
under the Retailers' Occupation Tax Act by the |
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| 1 | | Department of Revenue:
Provided that this requirement does | 2 | | not apply to a dealer who is already
licensed hereunder | 3 | | with the Secretary of State, and who is merely applying
for | 4 | | a renewal of his license. As evidence of this fact, the | 5 | | application
shall be accompanied by a certification from | 6 | | the Department of Revenue
showing that that Department has | 7 | | approved the applicant for registration
under the | 8 | | Retailers' Occupation Tax Act.
| 9 | | 6. A statement that the applicant has complied with the | 10 | | appropriate
liability insurance requirement. A Certificate | 11 | | of Insurance in a solvent
company authorized to do business | 12 | | in the State of Illinois shall be included
with each | 13 | | application covering each location at which he proposes to | 14 | | act
as a new vehicle dealer. The policy must provide | 15 | | liability coverage in
the minimum amounts of $100,000 for | 16 | | bodily injury to, or death of, any person,
$300,000 for | 17 | | bodily injury to, or death of, two or more persons in any | 18 | | one
accident, and $50,000 for damage to property. Such | 19 | | policy shall expire
not sooner than December 31 of the year | 20 | | for which the license was issued
or renewed. The expiration | 21 | | of the insurance policy shall not terminate
the liability | 22 | | under the policy arising during the period for which the
| 23 | | policy was filed. Trailer and mobile home dealers are | 24 | | exempt from this
requirement.
| 25 | | If the permitted user has a liability insurance policy | 26 | | that provides
automobile
liability insurance coverage of |
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| 1 | | at least $100,000 for bodily injury to or the
death of any
| 2 | | person, $300,000 for bodily injury to or the death of any 2 | 3 | | or more persons in
any one
accident, and $50,000 for damage | 4 | | to property,
then the permitted user's insurer shall be the | 5 | | primary
insurer and the
dealer's insurer shall be the | 6 | | secondary insurer. If the permitted user does not
have a | 7 | | liability
insurance policy that provides automobile | 8 | | liability insurance coverage of at
least
$100,000 for | 9 | | bodily injury to or the death of any person, $300,000 for | 10 | | bodily
injury to or the death of any 2 or more persons in | 11 | | any one accident, and
$50,000 for damage to property, or | 12 | | does not have any insurance at all,
then the dealer's | 13 | | insurer shall be the primary insurer and the permitted | 14 | | user's
insurer shall be the secondary
insurer.
| 15 | | When a permitted user is "test driving" a new vehicle | 16 | | dealer's automobile,
the new vehicle dealer's insurance | 17 | | shall be primary and the permitted user's
insurance shall | 18 | | be secondary.
| 19 | | As used in this paragraph 6, a "permitted user" is a | 20 | | person who, with the
permission of the new vehicle dealer | 21 | | or an employee of the new vehicle dealer,
drives a vehicle | 22 | | owned and held for sale or lease by the new vehicle dealer
| 23 | | which the person is considering
to purchase or lease, in | 24 | | order to evaluate the performance, reliability, or
| 25 | | condition of the vehicle.
The term "permitted user" also | 26 | | includes a person who, with the permission of
the new
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| 1 | | vehicle dealer, drives a vehicle owned or held for sale or | 2 | | lease by the new
vehicle dealer
for loaner purposes while | 3 | | the user's vehicle is being repaired or evaluated.
| 4 | | As used in this paragraph 6, "test driving" occurs when | 5 | | a permitted user
who,
with the permission of the new | 6 | | vehicle dealer or an employee of the new vehicle
dealer, | 7 | | drives a vehicle owned and held for sale or lease by a new | 8 | | vehicle
dealer that the person is considering to purchase | 9 | | or lease, in order to
evaluate the performance, | 10 | | reliability, or condition of the
vehicle.
| 11 | | As used in this paragraph 6, "loaner purposes" means | 12 | | when a person who,
with the permission of the new vehicle | 13 | | dealer, drives a vehicle owned or held
for sale or lease by | 14 | | the new vehicle dealer while the
user's vehicle is being | 15 | | repaired or evaluated.
| 16 | | 7. (A) An application for a new motor vehicle dealer's | 17 | | license shall be
accompanied by the following license fees:
| 18 | | (i) $1,000 for applicant's established place of | 19 | | business, and
$100 for each
additional place of | 20 | | business, if any, to which the application
pertains; | 21 | | but if the application is made after June 15 of any | 22 | | year, the license
fee shall be $500 for applicant's | 23 | | established place of business
plus
$50 for each | 24 | | additional place of business, if any, to which the
| 25 | | application pertains. License fees shall be returnable | 26 | | only in the event that
the application is denied by the |
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| 1 | | Secretary of State.
All moneys received by the | 2 | | Secretary of State as license fees under this | 3 | | subparagraph (i) prior to applications for the 2004
| 4 | | licensing year
shall be
deposited into the Motor | 5 | | Vehicle Review Board Fund and shall
be used to | 6 | | administer the Motor Vehicle Review Board under the | 7 | | Motor Vehicle
Franchise Act. Of the money received by | 8 | | the Secretary of State as license
fees under this | 9 | | subparagraph (i) for the 2004
licensing year and
| 10 | | thereafter, 10% shall
be deposited into the Motor | 11 | | Vehicle Review Board Fund and shall be used to
| 12 | | administer the Motor Vehicle Review Board under the | 13 | | Motor Vehicle Franchise Act
and 90% shall be deposited | 14 | | into the General Revenue Fund.
| 15 | | (ii) Except as provided in subsection (h) of | 16 | | Section 5-102.7 of this Code, an Annual Dealer Recovery | 17 | | Fund Fee in the amount of $50 $500 for the applicant's | 18 | | established place of business, and $50 for each | 19 | | additional place of business, if any, to which the | 20 | | application pertains; but if the application is made | 21 | | after June 15 of any year, the fee shall be $250 for | 22 | | the applicant's established place of business plus $25 | 23 | | for each additional place of business, if any, to which | 24 | | the application pertains . License fees shall be | 25 | | returnable only in the event that the application is | 26 | | denied by the Secretary of State. Moneys received under |
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| 1 | | this subparagraph (ii) shall be deposited into the | 2 | | Dealer Recovery Trust Fund.
| 3 | | (B) An application for a new vehicle dealer's license, | 4 | | other than for
a new motor vehicle dealer's license, shall | 5 | | be accompanied by the following
license fees:
| 6 | | (i) $1,000 for applicant's established place of | 7 | | business, and
$50 for each
additional place of | 8 | | business, if any, to which the application pertains; | 9 | | but if
the application is made after June 15 of any | 10 | | year, the license fee shall be
$500
for applicant's | 11 | | established place of business plus $25 for each
| 12 | | additional
place of business, if any, to which the | 13 | | application pertains. License fees
shall be returnable | 14 | | only in the event that the application is denied by the
| 15 | | Secretary of State. Of the money received by the | 16 | | Secretary of State as
license fees under this | 17 | | subparagraph (i) for the 2004 licensing year and | 18 | | thereafter,
95% shall be deposited into the General | 19 | | Revenue Fund.
| 20 | | (ii) Except as provided in subsection (h) of | 21 | | Section 5-102.7 of this Code, an Annual Dealer Recovery | 22 | | Fund Fee in the amount of $50 $500 for the applicant's | 23 | | established place of business, and $50 for each | 24 | | additional place of business, if any, to which the | 25 | | application pertains; but if the application is made | 26 | | after June 15 of any year, the fee shall be $250 for |
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| 1 | | the applicant's established place of business plus $25 | 2 | | for each additional place of business, if any, to which | 3 | | the application pertains . License fees shall be | 4 | | returnable only in the event that the application is | 5 | | denied by the Secretary of State. Moneys received under | 6 | | this subparagraph (ii) shall be deposited into the | 7 | | Dealer Recovery Trust Fund.
| 8 | | 8. A statement that the applicant's officers, | 9 | | directors,
shareholders having a 10% or greater ownership | 10 | | interest
therein, proprietor, a partner, member, officer, | 11 | | director, trustee, manager
or other principals in the | 12 | | business have not committed in the past 3
years any one | 13 | | violation as determined in any civil, criminal or
| 14 | | administrative proceedings of any one of the following | 15 | | Acts:
| 16 | | (A) The Anti Theft Laws of the Illinois Vehicle | 17 | | Code;
| 18 | | (B) The Certificate of Title Laws of the Illinois | 19 | | Vehicle Code;
| 20 | | (C) The Offenses against Registration and | 21 | | Certificates of Title
Laws of the Illinois Vehicle | 22 | | Code;
| 23 | | (D) The Dealers, Transporters, Wreckers and | 24 | | Rebuilders
Laws of the Illinois Vehicle Code;
| 25 | | (E) Section 21-2 of the Criminal Code of 1961, | 26 | | Criminal Trespass to
Vehicles; or
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| 1 | | (F) The Retailers' Occupation Tax Act.
| 2 | | 9. A statement that the applicant's officers, | 3 | | directors,
shareholders having a 10% or greater ownership | 4 | | interest
therein, proprietor, partner, member, officer, | 5 | | director, trustee, manager
or other principals in the | 6 | | business have not committed in any calendar year
3 or more | 7 | | violations, as determined in any civil, criminal or
| 8 | | administrative proceedings, of any one or more of the | 9 | | following Acts:
| 10 | | (A) The Consumer Finance Act;
| 11 | | (B) The Consumer Installment Loan Act;
| 12 | | (C) The Retail Installment Sales Act;
| 13 | | (D) The Motor Vehicle Retail Installment Sales | 14 | | Act;
| 15 | | (E) The Interest Act;
| 16 | | (F) The Illinois Wage Assignment Act;
| 17 | | (G) Part 8 of Article XII of the Code of Civil | 18 | | Procedure; or
| 19 | | (H) The Consumer Fraud Act.
| 20 | | 10. A bond or certificate of deposit in the amount of | 21 | | $20,000 for
each location at which the applicant intends to | 22 | | act as a new vehicle
dealer. The bond shall be for the term | 23 | | of the license, or its renewal, for
which application is | 24 | | made, and shall expire not sooner than
December 31 of the | 25 | | year for which the license was issued or renewed. The bond
| 26 | | shall run to the People of the State of Illinois, with |
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| 1 | | surety by a bonding or
insurance company authorized to do | 2 | | business in this State. It shall be
conditioned upon the | 3 | | proper transmittal of all title and registration fees and
| 4 | | taxes (excluding taxes under the Retailers' Occupation Tax | 5 | | Act) accepted by the
applicant as a new vehicle dealer.
| 6 | | 11. Such other information concerning the business of | 7 | | the applicant as
the Secretary of State may by rule or | 8 | | regulation prescribe.
| 9 | | 12. A statement that the applicant understands Chapter | 10 | | One through
Chapter Five of this Code.
| 11 | | (c) Any change which renders no longer accurate any | 12 | | information
contained in any application for a new vehicle | 13 | | dealer's license shall be
amended within 30 days after the | 14 | | occurrence of such change on such form
as the Secretary of | 15 | | State may prescribe by rule or regulation,
accompanied by an | 16 | | amendatory fee of $2.
| 17 | | (d) Anything in this Chapter 5 to the contrary | 18 | | notwithstanding no
person shall be licensed as a new vehicle | 19 | | dealer unless:
| 20 | | 1. He is authorized by contract in writing between | 21 | | himself and the
manufacturer or franchised distributor of | 22 | | such make of vehicle to so
sell the same in this State, and
| 23 | | 2. Such person shall maintain an established place of | 24 | | business as
defined in this Act.
| 25 | | (e) The Secretary of State shall, within a reasonable time | 26 | | after
receipt, examine an application submitted to him under |
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| 1 | | this Section and
unless he makes a determination that the | 2 | | application submitted to him
does not conform with the | 3 | | requirements of this Section or that grounds
exist for a denial | 4 | | of the application, under Section 5-501 of this
Chapter, grant | 5 | | the applicant an original new vehicle dealer's license in
| 6 | | writing for his established place of business and a | 7 | | supplemental license
in writing for each additional place of | 8 | | business in such form as he may
prescribe by rule or regulation | 9 | | which shall include the following:
| 10 | | 1. The name of the person licensed;
| 11 | | 2. If a corporation, the name and address of its | 12 | | officers or if a
sole proprietorship, a partnership, an | 13 | | unincorporated association or any
similar form of business | 14 | | organization, the name and address of the
proprietor or of | 15 | | each partner, member, officer, director, trustee or
| 16 | | manager;
| 17 | | 3. In the case of an original license, the established | 18 | | place of
business of the licensee;
| 19 | | 4. In the case of a supplemental license, the | 20 | | established place of
business of the licensee and the | 21 | | additional place of business to which such
supplemental | 22 | | license pertains;
| 23 | | 5. The make or makes of new vehicles which the licensee | 24 | | is licensed
to sell.
| 25 | | (f) The appropriate instrument evidencing the license or a | 26 | | certified
copy thereof, provided by the Secretary of State, |
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| 1 | | shall be kept posted
conspicuously in the established place of | 2 | | business of the licensee and
in each additional place of | 3 | | business, if any, maintained by such
licensee.
| 4 | | (g) Except as provided in subsection (h) hereof, all new | 5 | | vehicle
dealer's licenses granted under this Section shall | 6 | | expire by operation
of law on December 31 of the calendar year | 7 | | for which they are granted
unless sooner revoked or cancelled | 8 | | under the provisions of Section 5-501
of this Chapter.
| 9 | | (h) A new vehicle dealer's license may be renewed upon | 10 | | application
and payment of the fee required herein, and | 11 | | submission of proof of
coverage under an approved bond under | 12 | | the "Retailers' Occupation Tax
Act" or proof that applicant is | 13 | | not subject to such bonding
requirements, as in the case of an | 14 | | original license, but in case an
application for the renewal of | 15 | | an effective license is made during the
month of December, the | 16 | | effective license shall remain in force until the
application | 17 | | is granted or denied by the Secretary of State.
| 18 | | (i) All persons licensed as a new vehicle dealer are | 19 | | required to
furnish each purchaser of a motor vehicle:
| 20 | | 1. In the case of a new vehicle a manufacturer's | 21 | | statement of origin
and in the case of a used motor vehicle | 22 | | a certificate of title, in
either case properly assigned to | 23 | | the purchaser;
| 24 | | 2. A statement verified under oath that all identifying | 25 | | numbers on
the vehicle agree with those on the certificate | 26 | | of title or
manufacturer's statement of origin;
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| 1 | | 3. A bill of sale properly executed on behalf of such | 2 | | person;
| 3 | | 4. A copy of the Uniform Invoice-transaction reporting | 4 | | return
referred to in Section 5-402 hereof;
| 5 | | 5. In the case of a rebuilt vehicle, a copy of the | 6 | | Disclosure of Rebuilt
Vehicle Status; and
| 7 | | 6. In the case of a vehicle for which the warranty has | 8 | | been reinstated, a
copy of the warranty.
| 9 | | (j) Except at the time of sale or repossession of the | 10 | | vehicle, no person
licensed as a new vehicle dealer may issue | 11 | | any other person a newly created
key to a vehicle unless the | 12 | | new vehicle dealer makes a copy of the driver's
license or | 13 | | State identification card of the person requesting or obtaining | 14 | | the
newly created key. The new vehicle dealer must retain the | 15 | | copy for 30 days.
| 16 | | A new vehicle dealer who violates this subsection (j) is | 17 | | guilty of a
petty offense. Violation of this subsection (j) is | 18 | | not cause to suspend,
revoke,
cancel, or deny renewal of the | 19 | | new vehicle dealer's license.
| 20 | | This amendatory Act of 1983 shall be applicable to the 1984 | 21 | | registration
year and thereafter.
| 22 | | (Source: P.A. 97-480, eff. 10-1-11.)
| 23 | | (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
| 24 | | Sec. 5-102. Used vehicle dealers must be licensed.
| 25 | | (a) No person, other than a licensed new vehicle dealer, |
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| 1 | | shall engage in
the business of selling or dealing in, on | 2 | | consignment or otherwise, 5 or
more used vehicles of any make | 3 | | during the year (except house trailers as
authorized by | 4 | | paragraph (j) of this Section and rebuilt salvage vehicles
sold | 5 | | by their rebuilders to persons licensed under this Chapter), or | 6 | | act as
an intermediary, agent or broker for any licensed dealer | 7 | | or vehicle
purchaser (other than as a salesperson) or represent | 8 | | or advertise that he
is so engaged or intends to so engage in | 9 | | such business unless licensed to
do so by the Secretary of | 10 | | State under the provisions of this Section.
| 11 | | (b) An application for a used vehicle dealer's license | 12 | | shall be
filed with the Secretary of State, duly verified by | 13 | | oath, in such form
as the Secretary of State may by rule or | 14 | | regulation prescribe and shall
contain:
| 15 | | 1. The name and type of business organization | 16 | | established and additional
places of business, if any, in | 17 | | this State.
| 18 | | 2. If the applicant is a corporation, a list of its | 19 | | officers,
directors, and shareholders having a ten percent | 20 | | or greater ownership
interest in the corporation, setting | 21 | | forth the residence address of
each; if the applicant is a | 22 | | sole proprietorship, a partnership, an
unincorporated | 23 | | association, a trust, or any similar form of business
| 24 | | organization, the names and residence address of the | 25 | | proprietor or of
each partner, member, officer, director, | 26 | | trustee or manager.
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| 1 | | 3. A statement that the applicant has been approved for | 2 | | registration
under the Retailers' Occupation Tax Act by the | 3 | | Department of Revenue. However,
this requirement does not | 4 | | apply to a dealer who is already licensed
hereunder with | 5 | | the Secretary of State, and who is merely applying for a
| 6 | | renewal of his license. As evidence of this fact, the | 7 | | application shall be
accompanied by a certification from | 8 | | the Department of Revenue showing that
the Department has | 9 | | approved the applicant for registration under the
| 10 | | Retailers' Occupation Tax Act.
| 11 | | 4. A statement that the applicant has complied with the | 12 | | appropriate
liability insurance requirement. A Certificate | 13 | | of Insurance in a solvent
company authorized to do business | 14 | | in the State of Illinois shall be included
with each | 15 | | application covering each location at which he proposes to | 16 | | act
as a used vehicle dealer. The policy must provide | 17 | | liability coverage in
the minimum amounts of $100,000 for | 18 | | bodily injury to, or death of, any person,
$300,000 for | 19 | | bodily injury to, or death of, two or more persons in any | 20 | | one
accident, and $50,000 for damage to property. Such | 21 | | policy shall expire
not sooner than December 31 of the year | 22 | | for which the license was issued
or renewed. The expiration | 23 | | of the insurance policy shall not terminate
the liability | 24 | | under the policy arising during the period for which the | 25 | | policy
was filed. Trailer and mobile home dealers are | 26 | | exempt from this requirement.
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| 1 | | If the permitted user has a liability insurance policy | 2 | | that provides
automobile
liability insurance coverage of | 3 | | at least $100,000 for bodily injury to or the
death of any
| 4 | | person, $300,000 for bodily injury to or the death of any 2 | 5 | | or more persons in
any one
accident, and $50,000 for damage | 6 | | to property,
then the permitted user's insurer shall be the | 7 | | primary
insurer and the
dealer's insurer shall be the | 8 | | secondary insurer. If the permitted user does not
have a | 9 | | liability
insurance policy that provides automobile | 10 | | liability insurance coverage of at
least
$100,000 for | 11 | | bodily injury to or the death of any person, $300,000 for | 12 | | bodily
injury to or
the death of any 2 or more persons in | 13 | | any one accident, and $50,000 for damage
to
property, or | 14 | | does not have any insurance at all,
then the
dealer's
| 15 | | insurer shall be the primary insurer and the permitted | 16 | | user's insurer shall be
the secondary
insurer.
| 17 | | When a permitted user is "test driving" a used vehicle | 18 | | dealer's automobile,
the used vehicle dealer's insurance | 19 | | shall be primary and the permitted user's
insurance shall | 20 | | be secondary.
| 21 | | As used in this paragraph 4, a "permitted user" is a | 22 | | person who, with the
permission of the used vehicle dealer | 23 | | or an employee of the used vehicle
dealer, drives a vehicle | 24 | | owned and held for sale or lease by the used vehicle
dealer | 25 | | which the person is considering to purchase or lease, in | 26 | | order to
evaluate the performance, reliability, or |
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| 1 | | condition of the vehicle.
The term "permitted user" also | 2 | | includes a person who, with the permission of
the used
| 3 | | vehicle dealer, drives a vehicle owned or held for sale or | 4 | | lease by the used
vehicle dealer
for loaner purposes while | 5 | | the user's vehicle is being repaired or evaluated.
| 6 | | As used in this paragraph 4, "test driving" occurs when | 7 | | a permitted user
who,
with the permission of the used | 8 | | vehicle dealer or an employee of the used
vehicle
dealer, | 9 | | drives a vehicle owned and held for sale or lease by a used | 10 | | vehicle
dealer that the person is considering to purchase | 11 | | or lease, in order to
evaluate the performance, | 12 | | reliability, or condition of the
vehicle.
| 13 | | As used in this paragraph 4, "loaner purposes" means | 14 | | when a person who,
with the permission of the used vehicle | 15 | | dealer, drives a vehicle owned or held
for sale or lease by | 16 | | the used vehicle dealer while the
user's vehicle is being | 17 | | repaired or evaluated.
| 18 | | 5. An application for a used vehicle dealer's license | 19 | | shall be
accompanied by the following license fees:
| 20 | | (A) $1,000 for applicant's established place of | 21 | | business, and
$50 for
each additional place of | 22 | | business, if any, to which the application
pertains; | 23 | | however, if the application is made after June 15 of | 24 | | any
year, the license fee shall be $500 for applicant's | 25 | | established
place of
business plus $25 for each | 26 | | additional place of business, if any,
to
which the |
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| 1 | | application pertains. License fees shall be returnable | 2 | | only in
the event that the application is denied by
the | 3 | | Secretary of State. Of the money received by the | 4 | | Secretary of State as
license fees under this | 5 | | subparagraph (A) for the 2004 licensing year and | 6 | | thereafter, 95%
shall be deposited into the General | 7 | | Revenue Fund.
| 8 | | (B) Except as provided in subsection (h) of Section | 9 | | 5-102.7 of this Code, an Annual Dealer Recovery Fund | 10 | | Fee in the amount of $50 $500 for the applicant's | 11 | | established place of business, and $50 for each | 12 | | additional place of business, if any, to which the | 13 | | application pertains; but if the application is made | 14 | | after June 15 of any year, the fee shall be $250 for | 15 | | the applicant's established place of business plus $25 | 16 | | for each additional place of business, if any, to which | 17 | | the application pertains . License fees shall be | 18 | | returnable only in the event that the application is | 19 | | denied by the Secretary of State. Moneys received under | 20 | | this subparagraph (B) shall be deposited into the | 21 | | Dealer Recovery Trust Fund.
| 22 | | 6. A statement that the applicant's officers, | 23 | | directors, shareholders
having a 10% or greater ownership | 24 | | interest therein, proprietor, partner,
member, officer, | 25 | | director, trustee, manager or other principals in the
| 26 | | business have not committed in the past 3 years any one |
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| 1 | | violation as
determined in any civil, criminal or | 2 | | administrative proceedings of any one
of the following | 3 | | Acts:
| 4 | | (A) The Anti Theft Laws of the Illinois Vehicle | 5 | | Code;
| 6 | | (B) The Certificate of Title Laws of the Illinois | 7 | | Vehicle Code;
| 8 | | (C) The Offenses against Registration and | 9 | | Certificates of Title
Laws of the Illinois Vehicle | 10 | | Code;
| 11 | | (D) The Dealers, Transporters, Wreckers and | 12 | | Rebuilders Laws of the
Illinois Vehicle Code;
| 13 | | (E) Section 21-2 of the Illinois Criminal Code of | 14 | | 1961, Criminal
Trespass to Vehicles; or
| 15 | | (F) The Retailers' Occupation Tax Act.
| 16 | | 7. A statement that the applicant's officers, | 17 | | directors,
shareholders having a 10% or greater ownership | 18 | | interest therein,
proprietor, partner, member, officer, | 19 | | director, trustee, manager or
other principals in the | 20 | | business have not committed in any calendar year
3 or more | 21 | | violations, as determined in any civil or criminal or
| 22 | | administrative proceedings, of any one or more of the | 23 | | following Acts:
| 24 | | (A) The Consumer Finance Act;
| 25 | | (B) The Consumer Installment Loan Act;
| 26 | | (C) The Retail Installment Sales Act;
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| 1 | | (D) The Motor Vehicle Retail Installment Sales | 2 | | Act;
| 3 | | (E) The Interest Act;
| 4 | | (F) The Illinois Wage Assignment Act;
| 5 | | (G) Part 8 of Article XII of the Code of Civil | 6 | | Procedure; or
| 7 | | (H) The Consumer Fraud Act.
| 8 | | 8. A bond or Certificate of Deposit in the amount of | 9 | | $20,000 for
each location at which the applicant intends to | 10 | | act as a used vehicle
dealer. The bond shall be for the | 11 | | term of the license, or its renewal, for
which application | 12 | | is made, and shall expire not sooner than December 31 of
| 13 | | the year for which the license was issued or renewed. The | 14 | | bond shall run
to the People of the State of Illinois, with | 15 | | surety by a bonding or
insurance company authorized to do | 16 | | business in this State. It shall be
conditioned upon the | 17 | | proper transmittal of all title and registration fees
and | 18 | | taxes (excluding taxes under the Retailers' Occupation Tax | 19 | | Act) accepted
by the applicant as a used vehicle dealer.
| 20 | | 9. Such other information concerning the business of | 21 | | the applicant as
the Secretary of State may by rule or | 22 | | regulation prescribe.
| 23 | | 10. A statement that the applicant understands Chapter | 24 | | 1 through
Chapter 5 of this Code.
| 25 | | 11. A copy of the certification from the prelicensing | 26 | | education
program. |
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| 1 | | (c) Any change which renders no longer accurate any | 2 | | information
contained in any application for a used vehicle | 3 | | dealer's license shall
be amended within 30 days after the | 4 | | occurrence of each change on such
form as the Secretary of | 5 | | State may prescribe by rule or regulation,
accompanied by an | 6 | | amendatory fee of $2.
| 7 | | (d) Anything in this Chapter to the contrary | 8 | | notwithstanding, no
person shall be licensed as a used vehicle | 9 | | dealer unless such person
maintains an established place of | 10 | | business as
defined in this Chapter.
| 11 | | (e) The Secretary of State shall, within a reasonable time | 12 | | after
receipt, examine an application submitted to him under | 13 | | this Section.
Unless the Secretary makes a determination that | 14 | | the application
submitted to him does not conform to this | 15 | | Section or that grounds exist
for a denial of the application | 16 | | under Section 5-501 of this Chapter, he
must grant the | 17 | | applicant an original used vehicle dealer's license in
writing | 18 | | for his established place of business and a supplemental | 19 | | license
in writing for each additional place of business in | 20 | | such form as he may
prescribe by rule or regulation which shall | 21 | | include the following:
| 22 | | 1. The name of the person licensed;
| 23 | | 2. If a corporation, the name and address of its | 24 | | officers or if a
sole proprietorship, a partnership, an | 25 | | unincorporated association or any
similar form of business | 26 | | organization, the name and address of the
proprietor or of |
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| 1 | | each partner, member, officer, director, trustee or
| 2 | | manager;
| 3 | | 3. In case of an original license, the established | 4 | | place of business
of the licensee;
| 5 | | 4. In the case of a supplemental license, the | 6 | | established place of
business of the licensee and the | 7 | | additional place of business to which such
supplemental | 8 | | license pertains.
| 9 | | (f) The appropriate instrument evidencing the license or a | 10 | | certified
copy thereof, provided by the Secretary of State | 11 | | shall be kept posted,
conspicuously, in the established place | 12 | | of business of the licensee and
in each additional place of | 13 | | business, if any, maintained by such
licensee.
| 14 | | (g) Except as provided in subsection (h) of this Section, | 15 | | all used
vehicle dealer's licenses granted under this Section | 16 | | expire by operation
of law on December 31 of the calendar year | 17 | | for which they are granted
unless sooner revoked or cancelled | 18 | | under Section 5-501 of this Chapter.
| 19 | | (h) A used vehicle dealer's license may be renewed upon | 20 | | application
and payment of the fee required herein, and | 21 | | submission of proof of
coverage by an approved bond under the | 22 | | "Retailers' Occupation Tax Act"
or proof that applicant is not | 23 | | subject to such bonding requirements, as
in the case of an | 24 | | original license, but in case an application for the
renewal of | 25 | | an effective license is made during the month of December,
the | 26 | | effective license shall remain in force until the application |
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| 1 | | for
renewal is granted or denied by the Secretary of State.
| 2 | | (i) All persons licensed as a used vehicle dealer are | 3 | | required to
furnish each purchaser of a motor vehicle:
| 4 | | 1. A certificate of title properly assigned to the | 5 | | purchaser;
| 6 | | 2. A statement verified under oath that all identifying | 7 | | numbers on
the vehicle agree with those on the certificate | 8 | | of title;
| 9 | | 3. A bill of sale properly executed on behalf of such | 10 | | person;
| 11 | | 4. A copy of the Uniform Invoice-transaction reporting | 12 | | return
referred to in Section 5-402 of this Chapter;
| 13 | | 5. In the case of a rebuilt vehicle, a copy of the | 14 | | Disclosure of Rebuilt
Vehicle Status; and
| 15 | | 6. In the case of a vehicle for which the warranty has | 16 | | been reinstated, a
copy of the warranty.
| 17 | | (j) A real estate broker holding a valid certificate of | 18 | | registration issued
pursuant to "The Real Estate Brokers and | 19 | | Salesmen License Act" may engage
in the business of selling or | 20 | | dealing in house trailers not his own without
being licensed as | 21 | | a used vehicle dealer under this Section; however such
broker | 22 | | shall maintain a record of the transaction including the | 23 | | following:
| 24 | | (1) the name and address of the buyer and seller,
| 25 | | (2) the date of sale,
| 26 | | (3) a description of the mobile home, including the |
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| 1 | | vehicle identification
number, make, model, and year, and
| 2 | | (4) the Illinois certificate of title number.
| 3 | | The foregoing records shall be available for inspection by | 4 | | any officer
of the Secretary of State's Office at any | 5 | | reasonable hour.
| 6 | | (k) Except at the time of sale or repossession of the | 7 | | vehicle, no
person licensed as a used vehicle dealer may issue | 8 | | any other person a newly
created key to a vehicle unless the | 9 | | used vehicle dealer makes a copy of the
driver's license or | 10 | | State identification card of the person requesting or
obtaining | 11 | | the newly created key. The used vehicle dealer must retain the
| 12 | | copy for 30 days.
| 13 | | A used vehicle dealer who violates this subsection (k) is | 14 | | guilty of a
petty offense. Violation of this subsection (k) is | 15 | | not cause to suspend,
revoke, cancel, or deny renewal of the | 16 | | used vehicle dealer's license. | 17 | | (l) Used vehicle dealers licensed under this Section shall | 18 | | provide the Secretary of State a register for the sale at | 19 | | auction of each salvage or junk certificate vehicle. Each | 20 | | register shall include the following information: | 21 | | 1. The year, make, model, style and color of the | 22 | | vehicle; | 23 | | 2. The vehicle's manufacturer's identification number | 24 | | or, if applicable, the Secretary of State or Illinois | 25 | | Department of State Police identification number; | 26 | | 3. The date of acquisition of the vehicle; |
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| 1 | | 4. The name and address of the person from whom the | 2 | | vehicle was acquired; | 3 | | 5. The name and address of the person to whom any | 4 | | vehicle was disposed, the person's Illinois license number | 5 | | or if the person is an out-of-state salvage vehicle buyer, | 6 | | the license number from the state or jurisdiction where the | 7 | | buyer is licensed; and | 8 | | 6. The purchase price of the vehicle. | 9 | | The register shall be submitted to the Secretary of State | 10 | | via written or electronic means within 10 calendar days from | 11 | | the date of the auction.
| 12 | | (Source: P.A. 96-678, eff. 8-25-09; 97-480, eff. 10-1-11.)
| 13 | | (625 ILCS 5/5-102.7) | 14 | | Sec. 5-102.7. Dealer Recovery Trust Fund. | 15 | | (a) The General Assembly finds that motor vehicle dealers | 16 | | that go out of business without fulfilling agreements to pay | 17 | | off the balance of their customers' liens on traded-in vehicles | 18 | | cause financial harm to those customers by leaving those | 19 | | customers liable for multiple vehicle loans and cause harm to | 20 | | the integrity of the motor vehicle retailing industry. It is | 21 | | the intent of the General Assembly to protect vehicle | 22 | | purchasers by creating a Dealer Recovery Trust Fund to | 23 | | reimburse these consumers. | 24 | | (b) The Dealer Recovery Trust Fund shall be used solely for | 25 | | the limited purpose of
helping victims of dealership closings. |
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| 1 | | Any interest accrued by moneys in the Fund shall be
deposited | 2 | | and become part of the Dealer Recovery Trust Fund and its | 3 | | purpose. The sole beneficiaries of the Dealer Recovery Trust | 4 | | Fund are victims of
dealership closings. | 5 | | (c) Except where the context otherwise requires, the | 6 | | following words and phrases, when used in this Section, have | 7 | | the meanings ascribed to them in this subsection (c): | 8 | | "Applicant" means a person who applies for reimbursement | 9 | | from the Dealer Recovery Trust Fund Board. | 10 | | "Board" means the Dealer Recovery Trust Fund Board created | 11 | | under this Section. | 12 | | "Dealer" means a new vehicle dealer licensed under Section | 13 | | 5-101 or a used vehicle dealer licensed under Section 5-102, | 14 | | excepting a dealer who primarily sells mobile homes, | 15 | | recreational vehicles, or trailers or any dealer who sells 25 | 16 | | vehicles or fewer per calendar year. | 17 | | "Fund" means the Dealer Recovery Trust Fund created under | 18 | | this Section. | 19 | | "Fund Administrator" means the private entity, which shall | 20 | | be appointed by the Board, that administers the Dealer Recovery | 21 | | Trust Fund. | 22 | | (d) Beginning October 1, 2011, each application or renewal | 23 | | for a new vehicle dealer's license and each application or | 24 | | renewal for a used vehicle dealer's license shall be | 25 | | accompanied by the applicable Annual Dealer Recovery Fund Fee | 26 | | under Section 5-101 or 5-102 of this Code. The fee shall be in |
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| 1 | | addition to any other fees imposed under this Article, shall be | 2 | | submitted at the same time an application or renewal for a new | 3 | | vehicle dealer's license or used vehicle dealer's license is | 4 | | submitted, and shall be made payable to and remitted directly | 5 | | to the Dealer Recovery Trust Fund, a trust fund outside of the | 6 | | State Treasury which is hereby created. In addition, the Dealer | 7 | | Recovery Trust Fund may accept any federal, State, or private | 8 | | moneys for deposit into the Fund. | 9 | | (e) The Fund Administrator shall maintain a list of all | 10 | | dealers who have paid the fee under subsection (d) of this | 11 | | Section for the current year, which shall be available to the | 12 | | Secretary of State and the Board. The Secretary of State shall | 13 | | revoke the dealer license of any dealer who does not pay the | 14 | | fee imposed under subsection (d) of this Section. The Secretary | 15 | | of State and the Fund Administrator may enter into information | 16 | | sharing agreements as needed to implement this Section. | 17 | | (f) The Fund shall be audited annually by an independent | 18 | | auditor who is a certified public accountant and who has been | 19 | | selected by the Board. The independent auditor shall compile an | 20 | | annual report, which shall be filed with the Board and shall be | 21 | | a public record. The auditor shall be paid by the Fund, | 22 | | pursuant to an order of the Board. | 23 | | (g) The Fund shall be maintained by the Fund Administrator, | 24 | | who shall keep current records of the amounts deposited into | 25 | | the Fund and the amounts paid out of the Fund pursuant to an | 26 | | order of the Board. These records shall be made available to |
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| 1 | | all members of the Board upon reasonable request during normal | 2 | | business hours. The Fund Administrator shall report the balance | 3 | | in the Fund to the Board monthly, by the 15th day of each | 4 | | month. For purposes of determining the amount available to pay | 5 | | claims under this Section at any meeting of the Board, the | 6 | | Board shall use the Fund Administrator's most recent monthly | 7 | | report. The Fund Administrator shall purchase liability | 8 | | insurance to cover management of the Fund at a cost not to | 9 | | exceed 2% of the balance in the Fund as of January 15th of that | 10 | | year. | 11 | | (h) In any year for which the balance in the Fund as of | 12 | | August 31st is greater than $1,500,000 $3,500,000 , the Fund | 13 | | Administrator shall notify the Secretary of State and the | 14 | | Secretary of State shall suspend collection of the fee for the | 15 | | following year for any dealer who has not had a claim paid from | 16 | | the Fund, has not had his or her license suspended or revoked, | 17 | | and has not been assessed any civil penalties under this Code | 18 | | during the 3 previous years. | 19 | | (i) Moneys in the Dealer Recovery Trust Fund may be paid | 20 | | from the Fund only as directed by a written order of the Board | 21 | | and used only for the following purposes: | 22 | | (i) to pay claims under a written order of the Board as | 23 | | provided in this Section; or | 24 | | (ii) to reimburse the Fund Administrator for its | 25 | | expenses related to the administration of the Fund, | 26 | | provided that the reimbursement to the Fund Administrator |
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| 1 | | in any year shall not exceed 2% of the balance in the Fund | 2 | | as of January 15th of that year. | 3 | | (j) The Dealer Recovery Trust Fund Board is hereby created. | 4 | | The Board shall consist of the Secretary of State, or his or | 5 | | her designee, who shall serve as chair, the Attorney General, | 6 | | or his or her designee, who shall serve as secretary, and one | 7 | | person alternatively representing new and independent Illinois | 8 | | automobile dealers, selected collectively by the Attorney | 9 | | General, or his or her designee, and the Secretary of State, or | 10 | | his or her designee. The Secretary of State may propose | 11 | | procedures and employ personnel as necessary to implement this | 12 | | Section. The Board shall meet quarterly, and as needed, as | 13 | | directed by the chair. The Board may not pay out any claims | 14 | | before the balance deposited into the Fund exceeds $500,000. | 15 | | Board meetings shall be open to the public. The Board has the | 16 | | authority to take any action by at least a two-thirds majority | 17 | | vote. | 18 | | (k) The following persons may apply to the Board for | 19 | | reimbursement from the Dealer Recovery Trust Fund: | 20 | | (i) A retail customer who, on or after October 1, 2011, | 21 | | purchases a vehicle from a dealer who subsequently files | 22 | | for bankruptcy or whose vehicle dealer's license is | 23 | | subsequently revoked by the Secretary of State or otherwise | 24 | | terminated and, as part of the purchase transaction, trades | 25 | | in a vehicle with an outstanding lien to the dealer if lien | 26 | | satisfaction was a condition of the purchase agreement and |
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| 1 | | the retail customer determines that the lien has not been | 2 | | satisfied; | 3 | | (ii) A retail customer who, on or after October 1, | 4 | | 2011, purchases a vehicle with an undisclosed lien from a | 5 | | dealer who subsequently files for bankruptcy or whose | 6 | | vehicle dealer's license is subsequently revoked by the | 7 | | Secretary of State or otherwise terminated; | 8 | | (iii) A dealer who, on or after October 1, 2011, | 9 | | purchases a vehicle with an undisclosed lien from another | 10 | | dealer who subsequently files for bankruptcy or whose | 11 | | vehicle dealer's license is subsequently revoked by the | 12 | | Secretary of State or otherwise terminated. | 13 | | (l) To be considered by the Board, an applicant must submit | 14 | | his or her claim to the Board within 9 months after the date of | 15 | | the transaction that gave rise to the claim. | 16 | | (m) At each meeting of the Board, it shall consider all | 17 | | claims that are properly submitted to it on forms prescribed by | 18 | | the Secretary of State at least 30 days before the date of the | 19 | | Board's meeting. Before the Board may consider a claim against | 20 | | a dealer, it must make a written determination that the dealer | 21 | | has filed for bankruptcy under the provisions of 11 U.S.C. | 22 | | Chapter 7; that the Secretary of State has revoked his or her | 23 | | dealer's license; or that the license has been otherwise | 24 | | terminated. Once the Board has made this determination, it may | 25 | | consider the applicant's claim against the dealer. If a | 26 | | two-thirds majority of the Board determines that the dealer has |
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| 1 | | committed a violation under subsection (k), it shall grant the | 2 | | applicant's claim. Except as otherwise provided in this | 3 | | Section, the maximum amount of any award for a claim under | 4 | | paragraph (i) of subsection (k) of this Section shall be equal | 5 | | to the amount of the unpaid balance of the lien that the dealer | 6 | | agreed to pay off on behalf of the applicant as shown on the | 7 | | bill of sale or the retail installment sales contract. The | 8 | | maximum amount of any claim under paragraph (ii) or (iii) of | 9 | | subsection (k) of this Section shall be equal to the amount of | 10 | | the undisclosed lien. However, no award for a claim under | 11 | | subsection (k) of this Section shall exceed $25,000 $35,000 . | 12 | | (n) If the balance in the Fund at the time of any Board | 13 | | meeting is less than the amount of the total amount of all | 14 | | claims awarded at that meeting, then all awards made at that | 15 | | meeting shall be reduced, pro rata, so that the amount of | 16 | | claims does not exceed the balance in the Fund. Before it | 17 | | reviews new claims, the Board shall issue written orders to pay | 18 | | the remaining portion of any claims that were so reduced, | 19 | | provided that the balance in the Fund is sufficient to pay | 20 | | those claims. | 21 | | (o) Whenever the balance of the Fund falls below $500,000, | 22 | | the Board may charge dealers
an additional assessment of up to | 23 | | $50 to bring the balance to at least $500,000.
Not more than | 24 | | one additional assessment may be made against a dealer in any | 25 | | 12-month period. | 26 | | (p) If the total amount of claims awarded against any |
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| 1 | | dealer exceeds 33% of the balance in the Fund, the Board may | 2 | | permanently reduce the amount of those claims, pro rata, so | 3 | | that those claims do not exceed 33% of the balance in the Fund. | 4 | | (q) The Board shall issue a written order directing the | 5 | | Fund Administrator to pay an applicant's claim to a secured | 6 | | party where the Board has received a signed agreement between | 7 | | the applicant and the secured party holding the lien. The | 8 | | agreement must (i) state that the applicant and the secured | 9 | | party agree to accept payment from the Fund to the secured | 10 | | party as settlement in full of all claims against the dealer; | 11 | | and (ii) release the lien and the title, if applicable, to the | 12 | | vehicle that was the subject of the claim. The written order | 13 | | shall state the amount of the claim and the name and address of | 14 | | the secured party to whom the claim shall be paid. The Fund | 15 | | Administrator shall pay the claim within 30 days after it | 16 | | receives the Board's order. | 17 | | (r) No dealer or principal associated with a dealer's | 18 | | license is eligible for licensure, renewal or relicensure until | 19 | | the full amount of reimbursement for an unpaid claim, plus | 20 | | interest as determined by the Board, is paid to the Fund. | 21 | | Nothing in this Section shall limit the authority of the | 22 | | Secretary of State to suspend, revoke, or levy civil penalties | 23 | | against a dealer, nor shall full repayment of the amount owed | 24 | | to the Fund nullify or modify the effect of any action by the | 25 | | Secretary. | 26 | | (s) Nothing in this Section shall limit the right of any |
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| 1 | | person to seek relief though civil action against any other | 2 | | person as an alternative to seeking reimbursement from the | 3 | | Fund.
| 4 | | (Source: P.A. 97-480, eff. 10-1-11.)
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