(110 ILCS 992/20-5)
Sec. 20-5. Functions; powers; duties. The functions, powers, and duties of the Secretary shall include the following: (1) to issue or refuse to issue any license as |
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(2) to revoke or suspend for cause any license issued
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(3) to keep records of all licenses issued under this
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(4) to receive, consider, investigate, and act upon
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| complaints made by any person in connection with any student loan servicing licensee in this State;
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(5) to prescribe the forms of and receive:
(A) applications for licenses; and
(B) all reports and all books and records
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| required to be made by any licensee under this Act, including annual audited financial statements and annual reports of student loan activity;
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(6) to adopt rules necessary and proper for the
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| administration of this Act;
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(7) to subpoena documents and witnesses and compel
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| their attendance and production, to administer oaths, and to require the production of any books, papers, or other materials relevant to any inquiry authorized by this Act;
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(8) to issue orders against any person if the
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| Secretary has reasonable cause to believe that an unsafe, unsound, or unlawful practice has occurred, is occurring, or is about to occur; if any person has violated, is violating, or is about to violate any law, rule, or written agreement with the Secretary; or for the purpose of administering the provisions of this Act and any rule adopted in accordance with this Act;
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(9) to address any inquiries to any licensee, or
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| the officers thereof, in relation to its activities and conditions, or any other matter connected with its affairs, and it shall be the duty of any licensee or person so addressed to promptly reply in writing to those inquiries; the Secretary may also require reports from any licensee at any time the Secretary may deem desirable;
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(10) to examine the books and records of every
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(11) to enforce provisions of this Act;
(12) to levy fees, fines, and charges for services
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| performed in administering this Act; the aggregate of all fees collected by the Secretary on and after the effective date of this Act shall be paid promptly after receipt, accompanied by a detailed statement thereof, into the Bank and Trust Company Fund under Section 20-10; the amounts deposited into that Fund shall be used for the ordinary and contingent expenses of the Department; nothing in this Act shall prevent the continuation of the practice of paying expenses involving salaries, retirement, social security, and State-paid insurance of State officers by appropriation from the General Revenue Fund;
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(13) to appoint examiners, supervisors, experts, and
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| special assistants as needed to effectively and efficiently administer this Act;
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(14) to conduct hearings for the purpose of:
(A) appeals of orders of the Secretary;
(B) suspensions or revocations of licenses, or
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(C) investigating:
(i) complaints against licensees; or
(ii) annual gross delinquency rates; and
(D) carrying out the purposes of this Act;
(15) to exercise exclusive visitorial power over a
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| licensee unless otherwise authorized by this Act or as vested in the courts, or upon prior consultation with the Secretary, a foreign student loan servicing regulator with an appropriate supervisory interest in the parent or affiliate of a licensee;
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(16) to enter into cooperative agreements with state
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| regulatory authorities of other states to provide for examination of corporate offices or branches of those states and to accept reports of such examinations;
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(17) to assign an examiner or examiners to monitor
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| the affairs of a licensee with whatever frequency the Secretary determines appropriate and to charge the licensee for reasonable and necessary expenses of the Secretary if in the opinion of the Secretary an emergency exists or appears likely to occur;
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(18) to impose civil penalties of up to $50 per day
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| against a licensee for failing to respond to a regulatory request or reporting requirement; and
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(19) to enter into agreements in connection with the
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| Nationwide Multistate Licensing System and Registry.
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(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)
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(110 ILCS 992/20-20)
Sec. 20-20. Subpoena power of the Secretary. (a) The Secretary shall have the power to issue and to serve subpoenas and subpoenas duces tecum to compel the attendance of witnesses and the production of all books, accounts, records, and other documents and materials relevant to an examination or investigation. The Secretary, or his or her duly authorized representative, shall have power to administer oaths and affirmations to any person. (b) In the event of noncompliance with a subpoena or subpoena duces tecum issued or caused to be issued by the Secretary, the Secretary may, through the Attorney General, petition the circuit court of the county in which the person subpoenaed resides or has its principal place of business for an order requiring the subpoenaed person to appear and testify and to produce such books, accounts, records, and other documents as are specified in the subpoena duces tecum. The court may grant injunctive relief restraining the person from advertising, promoting, soliciting, entering into, offering to enter into, continuing, or completing any student loan servicing transaction. The court may grant other relief, including, but not limited to, the restraint, by injunction or appointment of a receiver, of any transfer, pledge, assignment, or other disposition of the person's assets or any concealment, alteration, destruction, or other disposition of books, accounts, records, or other documents and materials as the court deems appropriate, until the person has fully complied with the subpoena or subpoena duces tecum and the Secretary has completed an investigation or examination. (c) If it appears to the Secretary that the compliance with a subpoena or subpoena duces tecum issued or caused to be issued by the Secretary pursuant to this Section is essential to an investigation or examination, the Secretary, in addition to the other remedies provided for in this Act, may, through the Attorney General, apply for relief to the circuit court of the county in which the subpoenaed person resides or has its principal place of business. The court shall thereupon direct the issuance of an order against the subpoenaed person requiring sufficient bond conditioned on compliance with the subpoena or subpoena duces tecum. The court shall cause to be endorsed on the order a suitable amount of bond or payment pursuant to which the person named in the order shall be freed, having a due regard to the nature of the case. (d) In addition, the Secretary may, through the Attorney General, seek a writ of attachment or an equivalent order from the circuit court having jurisdiction over the person who has refused to obey a subpoena, who has refused to give testimony, or who has refused to produce the matters described in the subpoena duces tecum.
(Source: P.A. 100-540, eff. 12-31-18 .) |
(110 ILCS 992/20-30)
Sec. 20-30. Suspension; revocation of licenses; fines. (a) Upon written notice to a licensee, the Secretary may suspend or revoke any license issued pursuant to this Act if, in the notice, he or she makes a finding of one or more of the following: (1) that through separate acts or an act or a course |
| of conduct, the licensee has violated any provisions of this Act, any rule adopted by the Secretary, or any other law, rule, or regulation of this State or the United States;
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(2) that any fact or condition exists that, if it had
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| existed at the time of the original application for the license, would have warranted the Secretary in refusing originally to issue the license; or
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(3) that if a licensee is other than an individual,
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| any ultimate equitable owner, officer, director, or member of the licensed partnership, association, corporation, or other entity has acted or failed to act in a way that would be cause for suspending or revoking a license to that party as an individual.
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(b) No license shall be suspended or revoked, except as provided in this Section, nor shall any licensee be fined without notice of his or her right to a hearing as provided in Section 20-65 of this Act.
(c) The Secretary, on good cause shown that an emergency exists, may suspend any license for a period not exceeding 180 days, pending investigation.
(d) The provisions of subsection (d) of Section 15-40 of this Act shall not affect a licensee's civil or criminal liability for acts committed prior to surrender of a license.
(e) No revocation, suspension, or surrender of any license shall impair or affect the obligation of any pre-existing lawful contract between the licensee and any person.
(f) Every license issued under this Act shall remain in force and effect until the license expires without renewal, is surrendered, is revoked, or is suspended in accordance with the provisions of this Act, but the Secretary shall have authority to reinstate a suspended license or to issue a new license to a licensee whose license has been revoked if no fact or condition then exists which would have warranted the Secretary in refusing originally to issue that license under this Act.
(g) Whenever the Secretary revokes or suspends a license issued pursuant to this Act or fines a licensee under this Act, he or she shall execute a written order to that effect. The Secretary shall post notice of the order on an agency Internet site maintained by the Secretary or on the Nationwide Multistate Licensing System and Registry and shall serve a copy of the order upon the licensee. Any such order may be reviewed in the manner provided by Section 20-65 of this Act.
(h) If the Secretary finds any person in violation of the grounds set forth in subsection (i), he or she may enter an order imposing one or more of the following penalties:
(1) revocation of license;
(2) suspension of a license subject to reinstatement
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| upon satisfying all reasonable conditions the Secretary may specify;
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(3) placement of the licensee or applicant on
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| probation for a period of time and subject to all reasonable conditions as the Secretary may specify;
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(4) issuance of a reprimand;
(5) imposition of a fine not to exceed $25,000 for
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| each count of separate offense; except that a fine may be imposed not to exceed $75,000 for each separate count of offense of paragraph (2) of subsection (i) of this Section; or
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(6) denial of a license.
(i) The following acts shall constitute grounds for which the disciplinary actions specified in subsection (h) may be taken:
(1) being convicted or found guilty, regardless of
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| pendency of an appeal, of a crime in any jurisdiction that involves fraud, dishonest dealing, or any other act of moral turpitude;
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(2) fraud, misrepresentation, deceit, or negligence
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| in any student loan transaction;
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(3) a material or intentional misstatement of fact on
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| an initial or renewal application;
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(4) insolvency or filing under any provision of the
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| federal Bankruptcy Code as a debtor;
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(5) failure to account or deliver to any person any
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| property, such as any money, fund, deposit, check, draft, or other document or thing of value, that has come into his or her hands and that is not his or her property or that he or she is not in law or equity entitled to retain, under the circumstances and at the time which has been agreed upon or is required by law or, in the absence of a fixed time, upon demand of the person entitled to such accounting and delivery;
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(6) failure to disburse funds in accordance with
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(7) having a license, or the equivalent, to practice
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| any profession or occupation revoked, suspended, or otherwise acted against, including the denial of licensure by a licensing authority of this State or another state, territory, or country for fraud, dishonest dealing, or any other act of moral turpitude;
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(8) failure to comply with an order of the
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| Secretary or rule made or issued under the provisions of this Act;
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(9) engaging in activities regulated by this Act
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| without a current, active license unless specifically exempted by this Act;
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(10) failure to pay in a timely manner any fee,
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| charge, or fine under this Act;
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(11) failure to maintain, preserve, and keep
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| available for examination all books, accounts, or other documents required by the provisions of this Act and the rules of the Secretary;
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(12) refusing, obstructing, evading, or unreasonably
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| delaying an investigation, information request, or examination authorized under this Act, or refusing, obstructing, evading, or unreasonably delaying compliance with the Secretary's subpoena or subpoena duces tecum; and
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(13) failure to comply with or a violation of any
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(j) A licensee shall be subject to the disciplinary actions specified in this Act for violations of subsection (i) by any officer, director, shareholder, joint venture, partner, ultimate equitable owner, or employee of the licensee.
(k) A licensee shall be subject to suspension or revocation for unauthorized employee actions only if there is a pattern of repeated violations by employees or the licensee has knowledge of the violations or there is substantial harm to a consumer.
(l) Procedures for surrender of a license include the following:
(1) The Secretary may, after 10 days' notice by
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| certified mail to the licensee at the address set forth on the license, stating the contemplated action and in general the grounds for the contemplated action and the date, time, and place of a hearing thereon, and after providing the licensee with a reasonable opportunity to be heard prior to such action, fine such licensee an amount not exceeding $25,000 per violation, or revoke or suspend any license issued under this Act if he or she finds that:
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(i) the licensee has failed to comply with any
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| provision of this Act or any order, decision, finding, rule, regulation, or direction of the Secretary lawfully made pursuant to the authority of this Act; or
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(ii) any fact or condition exists that, if it
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| had existed at the time of the original application for the license, clearly would have warranted the Secretary in refusing to issue the license.
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(2) Any licensee may submit an application to
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| surrender a license, but, upon the Secretary approving the surrender, it shall not affect the licensee's civil or criminal liability for acts committed prior to surrender or entitle the licensee to a return of any part of the license fee.
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(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)
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(110 ILCS 992/20-40)
Sec. 20-40. Additional investigation and examination authority. In addition to any authority allowed under this Act, the Secretary shall have the authority to conduct investigations and examinations as follows: (1) For purposes of initial licensing, license |
| renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with this Act, the Secretary shall have the authority to access, receive, and use any books, accounts, records, files, documents, information, or evidence, including, but not limited to, the following:
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(A) criminal, civil, and administrative history
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| information, including nonconviction data as specified in the Criminal Code of 2012;
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(B) personal history and experience information,
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| including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act; and
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(C) any other documents, information, or evidence
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| the Secretary deems relevant to the inquiry or investigation, regardless of the location, possession, control, or custody of the documents, information, or evidence.
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(2) For the purposes of investigating violations or
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| complaints arising under this Act or for the purposes of examination, the Secretary may review, investigate, or examine any licensee, individual, or person subject to this Act as often as necessary in order to carry out the purposes of this Act. The Secretary may direct, subpoena, or order the attendance of and examine under oath all persons whose testimony may be required about the loans or the business or subject matter of any such examination or investigation, and may direct, subpoena, or order the person to produce books, accounts, records, files, and any other documents the Secretary deems relevant to the inquiry.
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(3) Each licensee, individual, or person subject to
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| this Act shall make available to the Secretary upon request the books and records relating to the operations of the licensee, individual, or person subject to this Act. The Secretary shall have access to those books and records and interview the officers, principals, employees, independent contractors, agents, and customers of the licensee, individual, or person subject to this Act concerning their business.
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(4) Each licensee, individual, or person subject to
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| this Act shall make or compile reports or prepare other information as directed by the Secretary in order to carry out the purposes of this Section, including, but not limited to:
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(A) accounting compilations;
(B) information lists and data concerning loan
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| transactions in a format prescribed by the Secretary; or
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(C) other information deemed necessary to carry
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| out the purposes of this Section.
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(5) In making any examination or investigation
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| authorized by this Act, the Secretary may control access to any documents and records of the licensee or person under examination or investigation. The Secretary may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no person shall remove or attempt to remove any of the documents or records, except pursuant to a court order or with the consent of the Secretary. Unless the Secretary has reasonable grounds to believe the documents or records of the licensee have been, or are at risk of being altered or destroyed for purposes of concealing a violation of this Act, the licensee or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.
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(6) In order to carry out the purposes of this
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| Section, the Secretary may:
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(A) retain attorneys, accountants, or other
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| professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
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(B) enter into agreements or relationships with
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| other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this Section;
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(C) use, hire, contract, or employ public or
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| privately available analytical systems, methods, or software to examine or investigate the licensee, individual, or person subject to this Act;
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(D) accept and rely on examination or
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| investigation reports made by other government officials, within or outside this State; or
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(E) accept audit reports made by an independent
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| certified public accountant for the licensee, individual, or person subject to this Act in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of the examination, report of investigation, or other writing of the Secretary.
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(7) The authority of this Section shall remain in
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| effect, whether such a licensee, individual, or person subject to this Act acts or claims to act under any licensing or registration law of this State or claims to act without the authority.
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(8) No licensee, individual, or person subject to
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| investigation or examination under this Section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.
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(Source: P.A. 100-540, eff. 12-31-18 .)
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