91st General Assembly
Status of SB1275
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 Full Text  Bill Summary
O'MALLEY-SIEBEN.

   New Act                                                                     

        Creates the Short-term Loan Act.  Provides for the Department  of      
   Financial  Institutions  to  license  and regulate short-term lenders.      
   Establishes minimum net worth requirements.  Prohibits  these  lenders      
   from  locating  within  one mile of gambling establishments or college      
   campuses.  Requires lenders to make disclosures  regarding  borrowers'      
   rights.   Authorizes  counties  and  municipalities  to  prohibit  the      
   operation  of  short-term  lenders  and  require  the  business  to be      
   conducted within a  specific  geographic  zone  and  to  require  that      
   disclosures  be  made  in  languages  other  than  English.  Effective      
   immediately.                                                                
        SENATE AMENDMENT NO. 1.                                                
          Adds reference to:                                                   
          815 ILCS 205/4                  from Ch. 17, par. 6404               
        Adjusts net worth and bond  requirements  for  multiple  licensed      
   locations.   Requires  disclosures regarding repossession of vehicles.      
   Limits the manner  in  which  vehicles  may  be  repossessed.   Allows      
   binding  arbitration  if required by court rule. Requires licensees to      
   disclose when renewing the license the number of loans made secured by      
   title to a motor vehicle, the number  of  vehicle  repossessions,  the      
   number  of loans secured by post-dated checks, and the number of loans      
   secured by post-dated checks that were defaulted.  Provides  that  the      
   appraisal  of  motor  vehicles  that  secure  loans may not exceed the      
   vehicle's "blue book" value. Prohibits additional charges for  cashing      
   instruments issued by the licensee. Imposes limits on origination fees      
   for  loans. Authorizes a borrower to make partial payments at any time      
   without charge. Provides that with respect  to  a  check  received  as      
   payment  for  a  loan  that is returned for nonpayment, a licensee may      
   assess a fee only once regardless of  how  many  times  the  check  is      
   redeposited and that the fee is the exclusive charge for late payment.      
   Amends  the  Interest  Act  to  provide  that  charges  made under the      
   Short-term Loan  Act  do  not  violate  the  Interest  Act.  Effective      
   September 1, 2000.                                                          
        SENATE AMENDMENT NO. 2.                                                
        Replaces the title and  everything  after  the  enacting  clause.      
   Inserts  and  modifies  the  bill as introduced. Adjusts net worth and      
   bond  requirements  for   multiple   licensed   locations.    Requires      
   disclosures  regarding repossession of vehicles.  Limits the manner in      
   which vehicles may be  repossessed.   Allows  binding  arbitration  if      
   required  by  court rule. Requires licensees to disclose when renewing      
   the license the number of loans made  secured  by  title  to  a  motor      
   vehicle,  the  number  of  vehicle  repossessions, the number of loans      
   secured by post-dated checks, and  the  number  of  loans  secured  by      
   post-dated  checks that were defaulted. Provides that the appraisal of      
   motor vehicles that secure loans may not exceed  the  vehicle's  "blue      
   book"  value.  Prohibits  additional  charges  for cashing instruments      
   issued by the licensee. Requires lenders to notify  borrowers  of  the      
   availability  of  debt  management services.  Authorizes a borrower to      
   make partial payments at any time without charge. Provides  that  with      
   respect to a check received as payment for a loan that is returned for      
   nonpayment,  a  licensee  may assess a fee only once regardless of how      
   many times the check is redeposited and that the fee is the  exclusive      
   charge  for  late  payment.  Amends  the  Interest Act to provide that      
   charges made under the Short-term Loan Act do not violate the Interest      
   Act. Effective September 1, 2000.                                           
          FISCAL NOTE, S-AM 1,2,6 (Dept. of Financial Institutions)            
          The total cost to the Department for additional staff and            
          related expenses is $543,429 and total revenue is $589,700,          
          for an overall increase of $46,272 in gross revenue.                 
        SENATE AMENDMENT NO. 6.                                                
        Provides that  net  worth  requirements  for  licensed  locations      
   established  before  the effective date of this Act are the greater of      
   $75,000 or 15% of all loans outstanding at all locations plus  $30,000      
   for  each  additional  location.    Provides  that a licensee that has      
   established 2 or more licensed locations before January  1,  2000  may      
   aggregate  and  attribute  the net worth of all licensed locations for      
   the purpose of meeting the $75,000 net worth requirement.  Provides an      
   exemption for currency exchanges.                                           
   99-11-16  S  FIRST READING                                                  
   99-11-16  S  REFERRED TO SENATE RULES COMMITTEE       RULES                 
   99-12-02  S  ADDED AS A CO-SPONSOR                    LIGHTFORD             
   00-01-12  S       ASSIGNED TO COMMITTEE               FIN INST              
   00-01-12  S  ADDED AS A CHIEF CO-SPONSOR              SIEBEN                
   00-02-02  S                             AMENDMENT NO. 01-FINANC. INST. S    
   00-02-02  S                                   ADOPTED                       
   00-02-10  S                             AMENDMENT NO. 02-FINANC. INST. S    
   00-02-10  S                                   ADOPTED                       
   00-02-10  S                             AMENDMENT NO. 03-FINANC. INST. S    
   00-02-10  S                                           TO SUB-COMMITTEE      
   00-02-10  S       DO PASS AS AMENDED                  005-000-004   SFIC    
   00-02-10  S  PLACED ON CALENDAR ORDER OF 2ND READING  00-02-15              
   00-02-15  S  SECOND READING                                                 
   00-02-15  S  PLACED ON CALENDAR ORDER OF 3RD READING  00-02-16              
   00-02-23  S  FILED WITH SECRETARY                                           
   00-02-23  S                             AMENDMENT NO. 04-O'MALLEY           
   00-02-23  S                     AMENDMENT REFERRED TO SRUL                  
   00-02-23  S  FILED WITH SECRETARY                                           
   00-02-23  S                             AMENDMENT NO. 05-O'MALLEY           
   00-02-23  S                     AMENDMENT REFERRED TO SRUL                  
   00-02-23  S  FILED WITH SECRETARY                                           
   00-02-23  S                             AMENDMENT NO. 06-O'MALLEY           
   00-02-23  S                     AMENDMENT REFERRED TO SRUL                  
   00-02-23  S                             AMENDMENT NO. 06-O'MALLEY           
   00-02-23  S                           RULES REFERS TO SFIC                  
   00-02-24  S                             AMENDMENT NO. 06-O'MALLEY           
   00-02-24  S                                BE ADOPTED SFIC/006-000-001      
   00-02-24  S  FISCAL NOTE REQUESTED AS AMENDED         MITCHELL              
   00-02-24  S  FISCAL NOTE FILED AS AMENDED             SA'S 01,02,06         
   00-02-24  S  RECALLED TO SECOND READING                                     
   00-02-24  S                             AMENDMENT NO. 06-O'MALLEY           
   00-02-24  S                                   ADOPTED                       
   00-02-24  S  PLACED ON CALENDAR ORDER OF 3RD READING  00-02-25              
   00-02-24  S  SPONSOR REMOVED                          LIGHTFORD             
   00-02-24  S  ADDED AS A CHIEF CO-SPONSOR              TROTTER               
   00-02-24  S  SPONSOR REMOVED                          TROTTER               
   00-02-24  S  THIRD READING - CONSIDERATION POSTPONED                        
   00-02-24  S  TABLED PURSUANT TO RULE                  5-4(A) SA'S 03,04,    
   00-02-24  S  TABLED PURSUANT TO RULE                  5-4(A) SA 05          
   00-02-24  S  THIRD READING - CONSIDERATION POSTPONED                        
   00-02-24  S  PLACED CALENDAR-CONSIDERATION POSTPONED  00-02-25              
   00-05-16  S  REFER TO RULES/PURSUANT SEN RULE 3-9 (B) RULES         SRUL    
   01-01-09  S  SESSION SINE DIE                                               

   END OF INQUIRY 



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