(205 ILCS 657/92) (Section scheduled to be repealed on January 1, 2026) Sec. 92. Receivership. (a) If the Director determines that a licensee is insolvent or is violating
this Act, he or she may appoint a receiver. Under the direction of the
Director, the receiver shall, for the purpose of receivership, take possession
of and title to the books, records, and assets of the licensee. The Director
may require the receiver to provide security in an amount the Director deems
proper. Upon appointment of the receiver, the Director shall have published,
once each week for 4 consecutive weeks in a newspaper having a general
circulation in the community, a notice informing all persons who have claims
against the licensee to present them to the receiver. Within 10 days after
the receiver takes possession, the licensee may apply to the Circuit Court of
Sangamon County to enjoin further proceedings. The receiver may operate the
business until the Director determines that possession should be restored to
the licensee or that the business should be liquidated. (b) If the Director determines that a business in receivership should be
liquidated, he or she shall direct the Attorney General to file a complaint in
the Circuit Court of the county in which the business is located, in the name
of the People of the State of Illinois, for the orderly liquidation and
dissolution of the business and for an injunction restraining the licensee and
its officers and directors from continuing the operation of the business.
Within 30 days after the day the Director determines that the business should
be liquidated, the receiver shall file with the Director and with the clerk of
the court that has charge of the liquidation a correct list of all creditors,
as shown by the licensee's books and records, who have not presented their
claims. The list shall state the amount of the claim after allowing all just
credits, deductions, and set-offs as shown by the licensee's books. These
claims shall be deemed proven unless some interested party files an objection
within the time fixed by the Director or court that has charge of the
liquidation. (c) The General Assembly finds and declares that transmitters of money provide important and vital services to Illinois
citizens. It is therefore declared to be the policy of this State that
customers who receive these services must be protected from interruptions of
services. To carry out this policy and to insure that customers of a licensee
are protected if it is determined that a business in receivership should be
liquidated, the Director shall make a distribution of moneys collected by the
receiver in the following order of priority: (1) Allowed claims for the actual necessary expenses |
The Director shall pay all claims of equal priority according to the schedule
established in this subsection and shall not pay claims of lower priority until
all higher priority claims are satisfied. If insufficient assets are available
to meet all claims of equal priority, those assets shall be distributed pro
rata among those claims. All unclaimed assets of a licensee and the licensee's
business shall be deposited with the Director to be paid out when proper
claims are presented to the Director.
(d) Upon the order of the circuit court of the county in which the business
being liquidated is located, the receiver may sell or compound any bad or
doubtful debt, and on like order may sell the personal property of the business
on such terms as the court approves. The receiver shall succeed to whatever
rights or remedies the unsecured creditors of the business may have against
the owner or owners, operators, stockholders, directors, members, managers,
or officers, arising out of their claims against the licensee's business, but
nothing contained in this Section shall prevent those creditors from filing
their claims in the liquidation proceeding. The receiver may enforce those
rights or remedies in any court of competent jurisdiction.
(e) At the close of a receivership, the receiver shall turn over to the
Director all books of account and ledgers of the business for preservation.
The Director shall hold all records of receiverships received at any time for
a period of 2 years after the close of the receivership. The records may be
destroyed at the termination of the 2-year period. All expenses of the
receivership including, but not limited to, reasonable receiver's and
attorney's fees approved by the Director, all expenses of any preliminary
or other examinations into the condition of the licensee's business or the
receivership, and all expenses incident to the possession and control of any
property or records of the business incurred by the Director shall be paid out
of the assets of the licensee's business. These expenses shall be paid before
all other claims.
(f) Upon the filing of a complaint by the Attorney General for the orderly
liquidation and dissolution of a licensee's business, as provided in this Act,
all pending suits and actions upon unsecured claims against the business shall
abate. Nothing contained in this Act, however, prevents these claimants from
filing their claims in the liquidation proceeding. If a suit or an action is
instituted or maintained by the receiver on any bond or policy of insurance
issued pursuant to the requirements of this Act, the bonding or insurance
company sued shall not have the right to interpose or maintain any counterclaim
based upon subrogation, upon any express or implied agreement of, or right to,
indemnity or exoneration, or upon any other express or implied agreement with,
or right against, the licensee's business. Nothing contained in this Act
prevents the bonding or insurance company from filing this type of claim in
the liquidation proceeding.
(g) A licensee may not terminate its affairs and close up its business
unless it has first deposited with the Director an amount of money equal to all
of its debts, liabilities, and lawful demands against it including the costs
and expenses of a proceeding under this Section, surrendered to the Director
its license, and filed with the Director a statement of termination signed by
the licensee containing a pronouncement of intent to close up its business and
liquidate its liabilities and containing a sworn list itemizing in full all of
its debts, liabilities, and lawful demands against it. Corporate licensees
must attach to, and make a part of the statement of termination, a copy of a
resolution providing for the termination and closing up of the licensee's
affairs, certified by the secretary of the licensee and duly adopted at a
shareholders' meeting by the holders of at least two-thirds of the outstanding
shares entitled to vote at the meeting. Upon the filing with the Director of a
statement of termination, the Director shall cause notice of that action to be
published once each week for 3 consecutive weeks in a public newspaper of
general circulation published in the city or village where the business is
located, and if no newspaper is published in that place, then in a public
newspaper of general circulation nearest to that city or village. The
publication shall give notice that the debts, liabilities, and lawful demands
against the business will be redeemed by the Director upon demand in writing
made by the owner thereof, at any time within 3 years after the date of first
publication. After the expiration of the 3-year period, the Director shall
return to the person or persons designated in the statement of termination to
receive repayment, and in the proportion specified in that statement, any
balance of money remaining in his or her possession after first deducting all
unpaid costs and expenses incurred in connection with a proceeding under this
Section. The Director shall receive for his or her services, exclusive of costs
and expenses, 2% of any amount up to $5,000 and 1% of any amount in excess of
$5,000 deposited with him or her under this Section by any business. Nothing
contained in this Section shall affect or impair the liability of any bonding
or insurance company on any bond or insurance policy issued under this Act
relating to the business.
(Source: P.A. 92-400, eff. 1-1-02; 92-651, eff. 7-11-02. Repealed by P.A. 103-991, eff. 1-1-26.)
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