Public Act 90-0477
HB2215 Enrolled LRB9004318JSgc
AN ACT concerning pawnbrokers, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Pawnbroker Regulation Act is amended by
changing Sections 2, 5, 6, 7, 10, and 11 and adding Sections
0.05 and 7.5 as follows:
(205 ILCS 510/0.05 new)
Sec. 0.05. Administration of Act.
(a) This Act shall be administered by the Commissioner
of Banks and Real Estate who shall have all of the following
powers and duties in administering this Act:
(1) To promulgate reasonable rules for the purpose
of administering the provisions of this Act.
(2) To issue orders for the purpose of
administering the provisions of this Act and any rule
promulgated in accordance with this Act.
(3) To appoint hearing officers and to hire
employees or to contract with appropriate persons to
execute any of the powers granted to the Commissioner
under this Section for the purpose of administering this
Act and any rule promulgated in accordance with this Act.
(4) To subpoena witnesses, to compel their
attendance, to administer an oath, to examine any person
under oath, and to require the production of any relevant
books, papers, accounts, and documents in the course of
and pursuant to any investigation being conducted, or any
action being taken, by the Commissioner in respect of any
matter relating to the duties imposed upon, or the powers
vested in, the Commissioner under the provisions of this
Act or any rule promulgated in accordance with this Act.
(5) To conduct hearings.
(6) To impose civil penalties graduated up to
$1,000 against any person for each violation of any
provision of this Act or any rule promulgated in
accordance with this Act based upon the seriousness of
(7) To issue a cease and desist order and, for
violations of this Act or any rule promulgated in
accordance with this Act, to suspend a license issued
under this Act for up to 30 days, and for a continued
pattern of violations to revoke a license issued under
(b) After consultation with local law enforcement
officers, the Attorney General, and the industry, the
Commissioner may by rule require that pawnbrokers operate
video camera surveillance systems to record photographic
representations of customers and retain the tapes produced
for up to 30 days.
(c) Pursuant to rule, the Commissioner shall issue
licenses on an annual or multi-year basis for operating a
pawn shop. Any person currently operating or who has operated
a pawnshop in this State during the 2 years preceding the
effective date of this amendatory Act of 1997 shall be issued
a license upon payment of the fee required under this Act.
New applicants shall meet standards for a license as
established by the Commissioner. The Commissioner shall
establish license fees. The fees shall not exceed the amount
reasonably required for administration of this Act. It shall
be unlawful to operate a pawn shop without a license.
(d) The Pawnbroker Regulation Fund is established as a
special fund in the State treasury. Moneys collected under
this Act shall be deposited into the Fund and used for the
administration of this Act. In the event that General
Revenue Funds are appropriated to the Office of the
Commissioner of Banks and Real Estate for the initial
implementation of this Act, the Governor may direct the
repayment from the Pawnbroker Regulation Fund to the General
Revenue Fund of such advance in an amount not to exceed
$30,000. The Governor may direct this interfund transfer at
such time as he deems appropriate by giving appropriate
(e) All final administrative decisions of the
Commissioner under this Act shall be subject to judicial
review pursuant to the provisions of the Administrative
Review Law. For matters involving administrative review,
venue shall be in either Sangamon County or Cook County.
(205 ILCS 510/2) (from Ch. 17, par. 4652)
Sec. 2. It shall be unlawful for any pawnbroker to charge
or collect a greater benefit or percentage upon money
advanced, and for the use and forbearance thereof, than the
rate of 3% per month. Nothing in this Section shall be
construed so as to conflict with the law pertaining to usury
and the person receiving money so advanced may hold such
moneys to pay any fees in addition to interest as herein
Each pawnbroker, when making a loan under this Section,
must disclose in printed form on the pawn contract the
following information to the persons receiving the loan:
(1) the amount of money advanced, which must be
designated as the amount financed;
(2) the maturity date of the pawn, which must be at
least 30 days after the date of the pawn;
(3) the total pawn interest and service charge
payable on the maturity date, which must be designated as
the finance charge;
(4) the total of payments that must be paid to
redeem the pledged goods on the maturity date, which must
be designated as the total of payments; and
(5) the annual percentage rate, computed according
to the regulations adopted by the Board of Governors of
the Federal Reserve System under the Federal Truth in
Each pawnbroker may contract for and receive a monthly
finance charge including interest and fees not to exceed
one-fifth of the loan amount
such fees in addition to
interest authorized by this Section, as set forth herein, for
appraising, investigating title, storing storage, and
insuring the collateral, closing the loan, making daily
reports to local law enforcement officers including enhanced
computerized reporting, complying with regulatory
requirements, and for other expenses and losses of every
nature whatsoever and for all other services. Such fees, when
made and collected, shall not be deemed interest for any
purpose of law.
Every pawnbroker, when making a loan under this Section,
shall be entitled to charge and collect a one-time fee for
each loan for services rendered as set forth in the following
(a) For loans not exceeding $100 a fee not to
(b) For loans exceeding $100 but not exceeding $250
a fee not to exceed $25;
(c) For loans exceeding $250 but not exceeding $500
a fee not to exceed $35;
(d) For loans exceeding $500 but not exceeding
$1,000 a fee not to exceed $50;
(e) For loans exceeding $1,000 a fee not to exceed
5% of the loan principal.
(Source: P.A. 87-802.)
(205 ILCS 510/5) (from Ch. 17, par. 4655)
Sec. 5. Record requirements.
(a) Every pawn and loan broker shall keep a standard
record book that has been approved by the sheriff of the
county in which the pawnbroker does business, in which shall
be printed, typed, or written in ink, at the time of each and
every loan or taking of a pledge, an accurate account and
description, in the English language, of all the goods,
articles and other things pawned or pledged, the amount of
money, value or thing loaned thereon, the time of pledging
the same, the rate of interest to be paid on such loan, and
the name and residence of the person making such pawn or
pledge. Such entry shall include the serial number or
identification number of items received which are required to
bear such number. Except for items purchased from dealers
possessing a federal employee identification number who have
provided a receipt to the pawnbroker, every pawnbroker shall
also record in his book, an accurate account and description,
in the English language, of all goods, articles and other
things purchased or received for the purpose of resale or
loan collateral by the pawnbroker from any source, not in the
course of a pledge or loan, the time of such purchase or
receipt and the name and address of the person or business
which sold or delivered such goods, articles, or other things
to the pawnbroker. No entry in such book shall be erased,
mutilated or changed.
(b) Every pawnbroker shall require 2 forms of
identification to be shown him by each person pledging or
pawning any goods, articles or other things to the
pawnbroker. One of the two forms of identification must
include his or her residence address. These forms of
identification shall include, but not be limited to, any of
the following: driver's license, social security card,
utility bill, employee or student identification card, credit
card, or a civic, union or professional association
(c) A pawnbroker may maintain the records required by
subsection (a) in computer form if the computer form has been
approved by the Commissioner, the sheriff of the county in
which the shop is located, and the police department of the
municipality in which the shop is located.
(d) Records, including reports to the Commissioner,
maintained by pawnbrokers shall be confidential, and no
disclosure of pawnbroker records shall be made except
disclosures authorized by this Act or ordered by a court of
competent jurisdiction. No record transferred to a
governmental official shall be improperly disclosed, provided
that use of those records as evidence of a felony or
misdemeanor shall be a proper purpose.
(e) Pawnbrokers and their associations may lawfully give
appropriate governmental agencies computer equipment for the
purpose of transferring information pursuant to this Act.
(Source: P.A. 84-1308.)
(205 ILCS 510/6) (from Ch. 17, par. 4656)
Sec. 6. Inspection of records. The said book or computer
records, as well as every article or other thing of value so
pawned or pledged, shall at all times be open to the
inspection of the sheriff of the county, his deputies or any
members of the police force of any city in the county in
which such pawnbroker does business.
(Source: Laws 1909, p. 300.)
(205 ILCS 510/7) (from Ch. 17, par. 4657)
Sec. 7. Daily report.
(a) Except as provided in subsection (b), it shall be
the duty of every pawnbroker to make out and deliver to the
sheriff of the county in which such pawnbroker does business,
on each day before the hours of 12 o'clock noon, a legible
and exact copy from the standard record book, as required in
Section 5 of this Act, that lists all personal property and
any other valuable thing things received on deposit or
purchased during the preceding day, including together with
the exact time when received or purchased, and a description
of the person or person by whom left in pledge, or from whom
the same were purchased; provided, that in cities or towns
having 25,000 twenty-five thousand or more inhabitants, a
copy of the such report shall at the same time also be
delivered to the superintendent of police or the chief police
officer of such city or town. Such report may be made by
computer printout or input memory device if the format has
been approved by the local law enforcement agency.
(b) In counties with more than 3,000,000 inhabitants, a
pawnbroker must provide the daily report to the sheriff only
if the pawnshop is located in an unincorporated area of the
(Source: P.A. 84-479.)
(205 ILCS 510/7.5 new)
Sec. 7.5. Report to the Commissioner.
(a) A licensee shall file a report with the Commissioner
disclosing all of the following information for the preceding
(1) Number of pawns made.
(2) Amount financed on pawn transactions.
(3) Average amount financed.
(4) Number of pawns not redeemed.
(5) Amount of pawns not redeemed.
(6) Average amount of pawns not redeemed.
(7) Number of pawns surrendered to law enforcement.
(8) Amount of pawns surrendered to law enforcement.
(9) Average size of pawns surrendered to law
(10) Number of pawnshop employees as of the end of
the calendar year.
(b) The office of the Commissioner of Banks and Real
Estate shall prescribe the form of the report and establish
the date by which the report must be filed.
(205 ILCS 510/10) (from Ch. 17, par. 4660)
Sec. 10. Sale of property. No personal property received
on deposit or pledge , or purchased by any such pawnbroker ,
shall be sold or permitted to be redeemed or removed from the
place of business of such pawnbroker for the space of 48
twenty-four hours after the delivery of the copy and
statement required by Section 7 of this Act required to be
delivered to the officer or officers named therein. If the
pawner or pledger fails to repay the loan during the period
specified on the pawn ticket, the pawnbroker shall
automatically extend a grace period of 30 days from the
default date on the loan during which the pawnbroker shall
not dispose of or sell the personal property pledged. The
parties may agree to extend or renew a loan upon terms agreed
upon by the parties, provided the terms comply with the
requirements of this Act ; and no personal property pawned or
pledged shall be sold or disposed of by any such pawnbroker
within one year from the time when the pawner or pledger
shall make default in the payment of interest on the money so
advanced by such pawnbroker, unless by the written consent of
such pawner or pledger.
(Source: Laws 1909, p. 300.)
(205 ILCS 510/11) (from Ch. 17, par. 4661)
Sec. 11. Every person pawnbroker who knowingly violates
the provisions of this Act shall, for the first offense, be
guilty of a Class C misdemeanor, and for each subsequent
offense shall be guilty of a Class A misdemeanor, provided,
that this Act shall not be construed as to, in any wise,
impair the power of cities or villages in this State to
license, tax, regulate except as to fee amounts, suppress,
and prohibit pawnbrokers as now provided by law.
(Source: P.A. 84-195.)
Section 10. The State Finance Act is amended by adding
Section 5.449 as follows:
(30 ILCS 105/5.449 new)
Sec. 5.449. The Pawnbroker Regulation Fund.
Section 99. This Act takes effect on July 1, 1998.