State of Illinois
92nd General Assembly
Legislation

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92_SB0862

 
                                              LRB9203379JScsA

 1        AN  ACT  concerning  the  regulation of certain financial
 2    activities.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The  Currency  Exchange  Act  is  amended by
 6    changing Sections 4 and 16 as follows:

 7        (205 ILCS 405/4) (from Ch. 17, par. 4808)
 8        Sec. 4. License application; contents; fees.  Application
 9    for such license shall be in writing under oath  and  in  the
10    form   prescribed   and   furnished  by  the  Director.  Each
11    application shall contain the following:
12        (a)  The full name and address  (both  of  residence  and
13    place  of business) of the applicant, and if the applicant is
14    a partnership, limited liability company, or association,  of
15    every  member  thereof,  and the name and business address if
16    the applicant is a corporation;
17        (b)  The county and municipality, with street and number,
18    if any, where  the  community  currency  exchange  is  to  be
19    conducted,  if  the  application  is for a community currency
20    exchange license;
21        (c)  If the application is  for  an  ambulatory  currency
22    exchange  license,  the  name  and address of the employer at
23    each location to be served by it; and
24        (d)  The applicant's occupation or profession; a detailed
25    statement  of  his  business  experience  for  the  10  years
26    immediately preceding his application; a  detailed  statement
27    of  his finances; his present or previous connection with any
28    other currency exchange; whether he has ever been involved in
29    any civil or criminal  litigation,  and  the  material  facts
30    pertaining thereto; whether he has ever been committed to any
31    penal  institution or admitted to an institution for the care
 
                            -2-               LRB9203379JScsA
 1    and treatment of mentally ill  persons;  and  the  nature  of
 2    applicant's  occupancy  of  the premises to be licensed where
 3    the application is for a community currency exchange license.
 4    If the applicant is a partnership, the information  specified
 5    herein shall be required of each partner. If the applicant is
 6    a corporation, the said information shall be required of each
 7    officer,   director   and   stockholder  thereof  along  with
 8    disclosure of their ownership interests. If the applicant  is
 9    a limited liability company, the information required by this
10    Section  shall  be  provided  with respect to each member and
11    manager along with disclosure of their ownership interests.
12        A community currency exchange license  application  shall
13    be accompanied by a fee of $150 on the effective date of this
14    amendatory Act of 1987 and until January 1, 1989, and $180 on
15    January  1,  1989  and until January 1, 1990, and $500 on and
16    after January 1, 1990 which fee shall  be  for  the  cost  of
17    investigating  the  applicant. If the ownership of a licensee
18    changes, in whole or in part, a new application must be filed
19    pursuant to this  Section  along  with  a  $500  fee  if  the
20    licensee's  ownership interests have been transferred or sold
21    to a new person or entity or a fee of $300 if the  licensee's
22    ownership  interests  have  been  transferred  or  sold  to a
23    current  holder  or  holders  of  the  licensee's   ownership
24    interests.  When  the  application  for  a community currency
25    exchange license has been approved by the  Director  and  the
26    applicant  so  advised,  an  additional  sum  of  $150 on the
27    effective date of this  amendatory  Act  of  1987  and  until
28    January  1,  1989,  and  $180  on  January  1, 1989 and until
29    January 1, 1990, and $200 on and after January 1, 1990 as  an
30    annual  license  fee for a period terminating on the last day
31    of the current calendar year shall be paid to the Director by
32    the  applicant;  provided,  that  the  license  fee  for   an
33    applicant  applying  for such a license after July 1st of any
34    year shall be $75 on the effective date  of  this  amendatory
 
                            -3-               LRB9203379JScsA
 1    Act  of  1987 and until July 1, 1988, and $90 on July 1, 1988
 2    and until July 1, 1989, and $100 on and after  July  1,  1989
 3    for the balance of such year.
 4        An   application  for  an  ambulatory  currency  exchange
 5    license shall be accompanied by a  fee  of  $100,  which  fee
 6    shall  be  for  the  cost of investigating the applicant.  An
 7    approved applicant shall not be required to pay  the  initial
 8    investigation  fee  of  $100  more  than  once.     When  the
 9    application  for  an ambulatory currency exchange license has
10    been approved by the Director, and such applicant so advised,
11    such applicant shall pay an annual license  fee  of  $25  for
12    each  and  every  location  to  be  served by such applicant;
13    provided that such license  fee  for  an  approved  applicant
14    applying  for such a license after July 1st of any year shall
15    be $12 for the balance  of  such  year  for  each  and  every
16    location  to  be  served  by such applicant. Such an approved
17    applicant for an ambulatory currency exchange  license,  when
18    applying for a license with respect to a particular location,
19    shall  file  with  the  Director,  at  the  time of filing an
20    application, a  letter  of  memorandum,  which  shall  be  in
21    writing  and  under  oath,  signed by the owner or authorized
22    representative of the business  whose  employees  are  to  be
23    served;  such  letter or memorandum shall contain a statement
24    that such service is desired, and that the person signing the
25    same is authorized so to do.  The  Director  shall  thereupon
26    verify  the  authenticity of the letter or memorandum and the
27    authority of the person who executed it, to do so.
28    (Source: P.A. 90-545, eff. 1-1-98.)

29        (205 ILCS 405/16) (from Ch. 17, par. 4832)
30        Sec.  16.  Annual  report;  investigation;  costs.   Each
31    licensee shall annually, on or before the 1st day  of  March,
32    file  a report with the Director for the calendar year period
33    from January 1st  through  December  31st,  except  that  the
 
                            -4-               LRB9203379JScsA
 1    report  filed  on  or  before  March 15, 1990 shall cover the
 2    period from October 1, 1988 through December 31, 1989, (which
 3    shall be used only for the official purposes of the Director)
 4    giving  such  relevant  information  as  the   Director   may
 5    reasonably   require  concerning,  and  for  the  purpose  of
 6    examining, the business and operations during  the  preceding
 7    fiscal   year  period  of  each  licensed  currency  exchange
 8    conducted by such licensee  within  the  State.  Such  report
 9    shall  be made under oath and shall be in the form prescribed
10    by the Director and the Director may at any time and shall at
11    least once in each year  investigate  the  currency  exchange
12    business  of  any  licensee and of every person, partnership,
13    association, limited liability company, and  corporation  who
14    or  which  shall  be  engaged  in the business of operating a
15    currency exchange. For that purpose, the Director shall  have
16    free access to the offices and places of business and to such
17    records   of   all   such   persons,   firms,   partnerships,
18    associations,   limited   liability   companies  and  members
19    thereof, and corporations and to the officers  and  directors
20    thereof that shall relate to such currency exchange business.
21    The  investigation  may  be  conducted  in  conjunction  with
22    representatives  of  other  State  agencies  or  agencies  of
23    another  state  or  of the United States as determined by the
24    Director. The Director may at any time inspect the  locations
25    served by an ambulatory currency exchange, for the purpose of
26    determining  whether such currency exchange is complying with
27    the provisions of this  Act  at  each  location  served.  The
28    Director  may  require  by  subpoena  the  attendance  of and
29    examine under oath all persons whose testimony he may require
30    relative to such business, and in such cases the Director, or
31    any  qualified  representative  of  the  Director  whom   the
32    Director  may  designate,  may  administer  oaths to all such
33    persons called as witnesses, and the Director,  or  any  such
34    qualified  representative  of  the Director, may conduct such
 
                            -5-               LRB9203379JScsA
 1    examinations, and there shall be paid  to  the  Director  for
 2    each  such  examination  a  fee  of $150 for each day or part
 3    thereof for  each  qualified  representative  designated  and
 4    required  to conduct the examination; provided, however, that
 5    in the case of an  ambulatory  currency  exchange,  such  fee
 6    shall  be  $75  for each day or part thereof and shall not be
 7    increased by reason of the number of locations served by it.
 8    (Source: P.A. 90-545, eff. 1-1-98.)

 9        Section 10.  The Sales Finance Agency Act is  amended  by
10    changing Sections 6 and 10 as follows:

11        (205 ILCS 660/6) (from Ch. 17, par. 5206)
12        Sec.  6.  A  license  fee  of  $300  for  the applicant's
13    principal place of business  and  $100  for  each  additional
14    place  of  business  for  which  a  license is sought must be
15    submitted with an application for license made before July  1
16    of  any year.  If application for a license is made on July 1
17    or thereafter, a license fee of $150 for the principal  place
18    of  business and of $50 for each additional place of business
19    must accompany the  application.   Each  license  remains  in
20    force  until  surrendered,  suspended,  or  revoked.   If the
21    application for license is denied, the original  license  fee
22    shall  be retained by the State in reimbursement of its costs
23    of investigating that application.
24        Before the license is granted, the applicant shall  prove
25    in  form satisfactory to the Director, that the applicant has
26    a positive net worth of a minimum of $30,000.
27        A licensee must pay to the Department, and the Department
28    must receive, by December 1 of each year, the renewal license
29    application on forms prescribed by the Director and $300  for
30    the  license for his principal place of business and $100 for
31    each additional license held as a renewal license fee for the
32    succeeding calendar year. Failure  to  pay  the  license  fee
 
                            -6-               LRB9203379JScsA
 1    within  the  time prescribed automatically revokes renewal of
 2    the license.
 3    (Source: P.A. 90-437, eff. 1-1-98.)

 4        (205 ILCS 660/10) (from Ch. 17, par. 5223)
 5        Sec. 10.  Denial,  revocation,  fine,  or  suspension  of
 6    license.
 7        (a)  The Director may revoke or suspend a license or fine
 8    a  licensee  if  the licensee violates any provisions of this
 9    Act.
10        (b)  In every case in  which  a  license  is  revoked  or
11    suspended,  a  licensee  is  fined,  or  an application for a
12    license or renewal of a license is denied, the Director shall
13    serve notice of his or her action, including a  statement  of
14    the  reasons for the action either personally or by certified
15    mail, return receipt requested.  Service  by  certified  mail
16    shall be deemed completed when the notice is deposited in the
17    U.S. mail.
18        (c)  An  order  revoking  or  suspending  a license or an
19    order denying renewal of a license  shall  take  effect  upon
20    service  of  the  order,  unless  the  licensee  requests, in
21    writing, within 10 days after the date of service, a hearing.
22    In the event a hearing  is  requested,  the  order  shall  be
23    stayed until a final administrative order is entered.
24        (d)  If  the  licensee  requests  a hearing, the Director
25    shall schedule a hearing within 30 days after the request for
26    a hearing unless otherwise agreed to by the parties.
27        (e)  The hearing shall be held  at  the  time  and  place
28    designated   by   the   Director.    The   Director  and  any
29    administrative law judge designated by him or her shall  have
30    the  power  to  administer  oaths  and affirmations, subpoena
31    witnesses and compel their  attendance,  take  evidence,  and
32    require  the production of books, papers, correspondence, and
33    other  records  or  information  that  he  or  she  considers
 
                            -7-               LRB9203379JScsA
 1    relevant or material to the inquiry.
 2        (f)  The costs for the administrative  hearing  shall  be
 3    set by rule.
 4        (g)  The  Director  shall have the authority to prescribe
 5    rules for the administration of this Section.
 6    (Source: P.A. 90-437, eff. 1-1-98.)

 7        Section 15.  The Consumer Installment Loan Act is amended
 8    by changing Sections 2, 8, and 11 as follows:

 9        (205 ILCS 670/2) (from Ch. 17, par. 5402)
10        Sec.  2.   Application;   fees;   positive   net   worth.
11    Application  for such license shall be in writing, and in the
12    form prescribed by the Director. Such applicant at  the  time
13    of  making such application shall pay to the Director the sum
14    of $300 as an application fee and the additional sum of  $300
15    as  an  annual  license  fee, for a period terminating on the
16    last day of the current calendar year; provided that  if  the
17    application  is  filed  after  June  30th  in  any year, such
18    license fee shall be 1/2 of the annual license fee  for  such
19    year.
20        Before  the  license  is  granted,  every applicant shall
21    prove in form satisfactory to the Director that the applicant
22    has and will maintain a positive net worth of  a  minimum  of
23    $30,000.   Every  applicant  and  licensee  shall  maintain a
24    surety bond in the principal sum of $25,000 $1,000 issued  by
25    a bonding company authorized to do business in this State and
26    which shall be approved by the Director.  Such bond shall run
27    to  the Director and shall be for the benefit of any consumer
28    person who incurs damages as a result of any violation of the
29    Act or rules by the actions of a licensee and who is lawfully
30    awarded such damages pursuant to an appropriate court  order.
31    If  the  Director  finds  at  any  time  that  a  bond  is of
32    insufficient  size,  is  insecure,  exhausted,  or  otherwise
 
                            -8-               LRB9203379JScsA
 1    doubtful, an additional bond in such amount as determined  by
 2    the  Director  shall  be filed by the licensee within 30 days
 3    after written demand therefor by the  Director.  "Net  worth"
 4    means total assets minus total liabilities.
 5    (Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.)

 6        (205 ILCS 670/8) (from Ch. 17, par. 5408)
 7        Sec.  8.  Annual  license  fee - Expenses. Every licensee
 8    shall, on or Before the 15th day of each December, a licensee
 9    must pay to the Director, and the  Department  must  receive,
10    the  annual  license  fee  required by Section 2 for the next
11    succeeding calendar year. The license  shall  expire  on  the
12    first  of  January unless the license fee has been paid prior
13    thereto.
14        In addition to such license fee, the  reasonable  expense
15    of  any examination, investigation or custody by the Director
16    under any provisions of  this  Act  shall  be  borne  by  the
17    licensee.
18        If  a  licensee  fails to renew his or her license by the
19    31st day of December, it shall automatically expire  and  the
20    licensee is not entitled to a hearing; however, the Director,
21    in  his  or  her discretion, may reinstate an expired license
22    upon payment of the annual renewal  fee  and  proof  of  good
23    cause for failure to renew.
24    (Source: P.A. 90-437, eff. 1-1-98.)

25        (205 ILCS 670/11) (from Ch. 17, par. 5411)
26        Sec. 11. Books and records - Reports.
27        (a)  Every  licensee shall retain and use in his business
28    or at another location approved by the Director such  records
29    as  are  required  by  the Director to enable the Director to
30    determine  whether  the  licensee  is  complying   with   the
31    provisions   of  this  Act  and  the  rules  and  regulations
32    promulgated  pursuant  to  this  Act.  Every  licensee  shall
 
                            -9-               LRB9203379JScsA
 1    preserve the records of any loan for at least 2  years  after
 2    making  the  final  entry  for  such loan. Accounting systems
 3    maintained in whole or in part by  mechanical  or  electronic
 4    data  processing methods which provide information equivalent
 5    to that otherwise  required  and  follow  generally  accepted
 6    accounting  principles  are  acceptable  for that purpose, if
 7    approved by the Director in writing.
 8        (b)  Each licensee shall annually, on or before the first
 9    day of March, file a report with  the  Director  giving  such
10    relevant  information  as the Director may reasonably require
11    concerning the business and operations during  the  preceding
12    calendar year of each licensed place of business conducted by
13    the  licensee.  The report must be received by the Department
14    on or before March 1.  The report shall be  made  under  oath
15    and in a form prescribed by the Director. Whenever a licensee
16    operates  2  or  more  licensed offices or whenever 2 or more
17    affiliated licensees operate licensed  offices,  a  composite
18    report of such group of licensed offices may be filed in lieu
19    of  individual  reports.  The  Director  may make and publish
20    annually an analysis and recapitulation of such reports.  The
21    Director may fine each licensee $25 for each day beyond March
22    1 such report is filed.
23    (Source: P.A. 90-437, eff. 1-1-98.)

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