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(625 ILCS 5/5-501)
(from Ch. 95 1/2, par. 5-501)
Denial, suspension or revocation or cancellation of a license.
(a) The license of a person issued under this Chapter may be denied,
revoked or suspended if the Secretary of State finds that the applicant,
or the officer, director, shareholder having a ten percent or
greater ownership interest in the corporation, owner, partner, trustee,
manager, employee or the licensee
1. Violated this Act;
2. Made any material misrepresentation to the
Secretary of State in connection with an application for a license, junking certificate, salvage certificate, title or registration;
3. Committed a fraudulent act in connection with
selling, bartering, exchanging, offering for sale or otherwise dealing in vehicles, chassis, essential parts, or vehicle shells;
4. As a new vehicle dealer has no contract with a
manufacturer or enfranchised distributor to sell that new vehicle in this State;
5. Not maintained an established place of business as
6. Failed to file or produce for the Secretary of
State any application, report, document or other pertinent books, records, documents, letters, contracts, required to be filed or produced under this Code or any rule or regulation made by the Secretary of State pursuant to this Code;
7. Previously had, within 3 years, such a license
denied, suspended, revoked, or cancelled under the provisions of subsection (c)(2) of this Section;
8. Has committed in any calendar year 3 or more
violations, as determined in any civil or criminal proceeding, of any one or more of the following Acts:
a. the "Consumer Finance Act";
b. the "Consumer Installment Loan Act";
c. the "Retail Installment Sales Act";
d. the "Motor Vehicle Retail Installment Sales
e. "An Act in relation to the rate of interest
and other charges in connection with sales on credit and the lending of money", approved May 24, 1879, as amended;
f. "An Act to promote the welfare of wage-earners
by regulating the assignment of wages, and prescribing a penalty for the violation thereof", approved July 1, 1935, as amended;
g. Part 8 of Article XII of the Code of Civil
h. the "Consumer Fraud Act";
9. Failed to pay any fees or taxes due under this
Act, or has failed to transmit any fees or taxes received by him for transmittal by him to the Secretary of State or the State of Illinois;
10. Converted an abandoned vehicle;
11. Used a vehicle identification plate or number
assigned to a vehicle other than the one to which originally assigned;
12. Violated the provisions of Chapter 5 of this Act,
13. Violated the provisions of Chapter 4 of this Act,
14. Violated the provisions of Chapter 3 of this Act,
15. Violated Section 21-2 of the Criminal Code of
1961 or the Criminal Code of 2012, Criminal Trespass to Vehicles;
16. Made or concealed a material fact in connection
with his application for a license;
17. Acted in the capacity of a person licensed or
acted as a licensee under this Chapter without having a license therefor;
18. Failed to pay, within 90 days after a final
judgment, any fines assessed against the licensee pursuant to an action brought under Section 5-404;
19. Failed to pay the Dealer Recovery Trust Fund fee
under Section 5-102.7 of this Code;
20. Failed to pay, within 90 days after notice has
been given, any fine or fee owed as a result of an administrative citation issued by the Secretary under this Code;
21. Violated Article 16 or 17 of the Criminal Code of
22. Was convicted of a forcible felony under either
the Criminal Code of 1961 or Criminal Code of 2012 or convicted of a similar out-of-state offense.
(b) In addition to other grounds specified in this Chapter, the
Secretary of State, on complaint of the Department of Revenue, shall
refuse the issuance or renewal of a license, or suspend or revoke such
license, for any of the following violations of the "Retailers'
Occupation Tax Act", the tax imposed on corporations under subsection (b) of Section 201 of the Illinois Income Tax Act, the Personal Property Tax Replacement Income Tax imposed under subsections (c) and (d) of Section 201 of the Illinois Income Tax Act, or the tax imposed under Section 704A of the Illinois Income Tax Act:
1. Failure to make a tax return;
2. The filing of a fraudulent return;
3. Failure to pay all or part of any tax or penalty
finally determined to be due;
4. Failure to comply with the bonding requirements of
the "Retailers' Occupation Tax Act".
(b-1) In addition to other grounds specified in this Chapter, the
Secretary of State, on complaint of the Motor Vehicle Review Board, shall
refuse the issuance or renewal of a license, or suspend or revoke that
license, if costs or fees assessed under Section 29 or Section 30 of the Motor Vehicle Franchise Act have remained unpaid for a period in excess of 90 days after the licensee received from the Motor Vehicle Board a second notice and demand for the costs or fees. The Motor Vehicle Review Board must send the licensee written notice and demand for payment of the fees or costs at least 2 times, and the second notice and demand must be sent by certified mail.
(c) Cancellation of a license.
1. The license of a person issued under this Chapter
may be cancelled by the Secretary of State prior to its expiration in any of the following situations:
A. When a license is voluntarily surrendered, by
B. If the business enterprise is a sole
proprietorship, which is not a franchised dealership, when the sole proprietor dies or is imprisoned for any period of time exceeding 30 days; or
C. If the license was issued to the wrong person
or corporation, or contains an error on its face. If any person above whose license has been cancelled wishes to apply for another license, whether during the same license year or any other year, that person shall be treated as any other new applicant and the cancellation of the person's prior license shall not, in and of itself, be a bar to the issuance of a new license.
2. The license of a person issued under this Chapter
may be cancelled without a hearing when the Secretary of State is notified that the applicant, or any officer, director, shareholder having a 10 per cent or greater ownership interest in the corporation, owner, partner, trustee, manager, employee or member of the applicant or the licensee has been convicted of any felony involving the selling, bartering, exchanging, offering for sale, or otherwise dealing in vehicles, chassis, essential parts, vehicle shells, or ownership documents relating to any of the above items.
(Source: P.A. 101-505, eff. 1-1-20