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1 | AN ACT concerning financial regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Transmitters of Money Act is amended by | ||||||
5 | changing Sections 40, 45, and 75 as follows:
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6 | (205 ILCS 657/40)
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7 | Sec. 40. Renewals of license.
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8 | (a) As a condition for renewal of a license,
a
licensee | ||||||
9 | must submit to the Director, and the Director must receive, on | ||||||
10 | or
before December 1 of each year, an
application for renewal | ||||||
11 | made in writing and under oath on a form
prescribed by the
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12 | Director. A licensee whose application for
renewal is not | ||||||
13 | received by the Department on or
before December 31 shall not | ||||||
14 | have its license renewed and
shall be required to submit to the | ||||||
15 | Director an application for a new license in
accordance with | ||||||
16 | Section 25. Upon a showing of good cause, the Director may
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17 | extend the deadline for the filing of an application for | ||||||
18 | renewal. The
application for renewal of a license shall contain | ||||||
19 | or be accompanied by all of
the
following:
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20 | (1) The name of the licensee and the address of the | ||||||
21 | principal place of
business of the licensee.
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22 | (2) (Blank)
A list of all locations where the licensee | ||||||
23 | is conducting business
under its license and a list of all | ||||||
24 | authorized sellers through whom the
licensee is conducting | ||||||
25 | business under its license, including the name and
business | ||||||
26 | address of each authorized seller .
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27 | (3) Audited financial statements covering the past | ||||||
28 | year of operations,
prepared in accordance with generally | ||||||
29 | accepted accounting principles, showing
the financial | ||||||
30 | condition of the licensee. The licensee shall submit the | ||||||
31 | audited
financial statement after the application for
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32 | renewal has been approved. The audited financial statement |
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1 | must be received
by the Department no later than 120 days | ||||||
2 | after the end of the licensee's fiscal
year. If the | ||||||
3 | licensee is a wholly owned subsidiary or is eligible to
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4 | file consolidated federal income tax returns with its | ||||||
5 | parent, the licensee may
submit unaudited financial | ||||||
6 | statements if accompanied by the audited financial
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7 | statements of the parent company for its most recently | ||||||
8 | ended year.
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9 | (4) A statement of the dollar amount and number of | ||||||
10 | money transmissions and
payment
instruments sold, issued, | ||||||
11 | exchanged, or transmitted in this State by the
licensee and
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12 | its authorized sellers for the past year.
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13 | (5) A statement of the dollar amount of uncompleted | ||||||
14 | money transmissions
and
payment
instruments outstanding or | ||||||
15 | in transit, in this State, as of the most recent
quarter | ||||||
16 | available.
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17 | (6) The annual license renewal fees and any penalty | ||||||
18 | fees as provided by
Section 45 of this Act.
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19 | (7) Evidence sufficient to prove to the satisfaction of | ||||||
20 | the Director that
the licensee has complied with all | ||||||
21 | requirements under Section 20 relating to
its net worth,
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22 | under Section 30 relating to its surety bond or other | ||||||
23 | security,
and under Section 50 relating to permissible | ||||||
24 | investments.
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25 | (8) A statement of a change in information provided by | ||||||
26 | the licensee in its
application for a license or its | ||||||
27 | previous applications for renewal including,
but not | ||||||
28 | limited to, new directors, officers, authorized sellers, | ||||||
29 | or clearing
banks and material changes in the operation of | ||||||
30 | the licensee's business.
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31 | (b) Each licensee must submit to the Director as of the | ||||||
32 | close of business on December 31 of each year a written | ||||||
33 | description of the licensee's general procedures by which it | ||||||
34 | intends to enter into contracts to engage in money transmission | ||||||
35 | in this State. This description must include the licensee's | ||||||
36 | policies and procedures and other details regarding all of the |
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1 | following matters: | ||||||
2 | (1) The number of authorized sellers and projected | ||||||
3 | sales volume for travelers checks, money orders and all | ||||||
4 | other transmission instruments sold. | ||||||
5 | (2) The procedures for authorized seller selection, | ||||||
6 | including the method of ascertaining the authorized | ||||||
7 | sellers' credit standing. | ||||||
8 | (3) The procedures that authorized sellers shall | ||||||
9 | follow relating to: | ||||||
10 | (A) recordkeeping; | ||||||
11 | (B) safeguarding travelers checks, money orders, | ||||||
12 | and all other instruments or orders for the | ||||||
13 | transmission or payment of money; | ||||||
14 | (C) remittance of proceeds of sales of travelers | ||||||
15 | checks, money orders, and all other instruments or | ||||||
16 | orders for transmission or for payment of money sold to | ||||||
17 | the public, including the time within which such | ||||||
18 | proceeds are required to be remitted to the licensee | ||||||
19 | and remittance procedures; and | ||||||
20 | (D) reporting procedures to be followed by | ||||||
21 | authorized sellers when reporting to the licensee the | ||||||
22 | sale of travelers checks, money orders, and all other | ||||||
23 | instruments or orders for the transmission or payment | ||||||
24 | of money sold to the public, including but not limited | ||||||
25 | to the time within which such sales are to be reported | ||||||
26 | to the licensee, and procedures for reporting such | ||||||
27 | sales. | ||||||
28 | (4) Procedures for distributing policies and | ||||||
29 | procedures pertaining to authorized sellers and the | ||||||
30 | licensee's program to ensure authorized sellers' | ||||||
31 | compliance. | ||||||
32 | (5) The licensee's policy relating to loans to and | ||||||
33 | investment in authorized sellers except loans and | ||||||
34 | investments made by a regulated financial institution in | ||||||
35 | the ordinary course of its business. | ||||||
36 | (6) Such other information and documentation as the |
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1 | Director may require.
Such information shall be provided | ||||||
2 | within 45 days of December 31, and at such other times as | ||||||
3 | the Director may require. | ||||||
4 | In addition, each licensee shall submit to the Director as | ||||||
5 | of the close of business on December 31 of each year a listing | ||||||
6 | in alphabetical order of its authorized sellers in this State | ||||||
7 | showing their full names and addresses and licensee assigned | ||||||
8 | identification number grouped by the category of transmission | ||||||
9 | activity the licensee has authorized the authorized sellers to | ||||||
10 | conduct on its behalf. | ||||||
11 | (c) Where possible, all information required to be provided | ||||||
12 | under this Section must be provided by electronic means.
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13 | (Source: P.A. 92-400, eff. 1-1-02.)
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14 | (205 ILCS 657/45)
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15 | Sec. 45. Fees.
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16 | (a) The Director shall charge and collect fees,
which shall | ||||||
17 | be nonrefundable unless otherwise indicated, in accordance | ||||||
18 | with the
provisions of this Act as follows:
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19 | (1) For applying for a license, an application fee of | ||||||
20 | $100 and a
license
fee, which shall be refunded if the | ||||||
21 | application is denied or withdrawn, of
$100 plus $50
$10
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22 | for each location at which the applicant and its authorized
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23 | sellers are conducting business or propose to conduct | ||||||
24 | business excepting the
applicant's principal place of | ||||||
25 | business.
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26 | (2) For renewal of a license, a fee of $100 plus $50
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27 | $10 for each location at
which the licensee and its | ||||||
28 | authorized sellers are conducting business, except
the | ||||||
29 | licensee's principal place of business.
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30 | (3) For an application to add an authorized seller | ||||||
31 | location, $50
$10 for each
authorized seller location.
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32 | (4) For service of process or other notice upon the | ||||||
33 | Director as provided
by
Section 100, a fee of $10.
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34 | (5) For an application for renewal of a license | ||||||
35 | received by the
Department after
December 1, a penalty fee |
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1 | of $10 per day for each day after December
1 in addition to | ||||||
2 | any other
fees required under this Act unless an extension | ||||||
3 | of time has been granted by
the
Director.
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4 | (6) For failure to submit financial statements as | ||||||
5 | required by Section 40,
a penalty fee of $10 per day for | ||||||
6 | each day the
statement is late
unless an extension of time | ||||||
7 | has been granted by the Director.
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8 | (b) Beginning one year after the effective date of this | ||||||
9 | Act,
the Director may, by rule, amend the fees set forth in | ||||||
10 | this Section.
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11 | (c) All moneys received by the Department under this Act | ||||||
12 | shall be deposited
into the Financial Institutions Fund.
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13 | (Source: P.A. 92-400, eff. 1-1-02.)
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14 | (205 ILCS 657/75)
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15 | Sec. 75. Authorized sellers.
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16 | (a) A licensee may conduct the business regulated
under | ||||||
17 | this Act at one or more locations in this State through | ||||||
18 | authorized
sellers designated by the licensee.
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19 | (b) A licensee shall not allow a person to act as its | ||||||
20 | authorized seller
until all applicable requirements of this Act | ||||||
21 | have been complied with and the
name and address of the person, | ||||||
22 | on a form prescribed by the Director, along
with all applicable | ||||||
23 | fees have been submitted to the Department by the licensee.
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24 | (c) A licensee shall enter into a contract with its | ||||||
25 | authorized
seller detailing the nature and scope of the | ||||||
26 | relationship between the licensee
and the authorized seller. | ||||||
27 | The contract between a licensee and an authorized
seller must | ||||||
28 | require the authorized seller to operate in full compliance | ||||||
29 | with
the laws of this State and of the United States.
The | ||||||
30 | licensee shall provide the Director
with the sample written | ||||||
31 | contract.
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32 | Each written contract between a licensee and an authorized | ||||||
33 | seller entered into or renewed after the effective date of this | ||||||
34 | amendatory Act of the 93rd General Assembly shall provide all | ||||||
35 | of the following: |
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1 | (1) A description of the category or categories of | ||||||
2 | money transmission activity the licensee is authorized to | ||||||
3 | lawfully engage in under its license that it may do through | ||||||
4 | an agent. | ||||||
5 | (2) An acknowledgment that the Director reserves the | ||||||
6 | right to inspect, with or without prior notice to the | ||||||
7 | licensee or the licensee's authorized sellers, the books | ||||||
8 | and records of the authorized sellers of the licensee. | ||||||
9 | (3) That authorized sellers shall not sell any | ||||||
10 | travelers check, money order, or other money transmission | ||||||
11 | instrument in this State unless the name of the licensee | ||||||
12 | shall clearly appear on the face of the instrument and the | ||||||
13 | licensee shall not condition its engagement as obligor | ||||||
14 | under the payment instrument upon the remittance of the | ||||||
15 | proceeds of sale from the authorized seller. | ||||||
16 | (4) That an authorized seller shall not sell any | ||||||
17 | travelers check, money order, or other money transmission | ||||||
18 | instrument in this State unless the authorized seller has | ||||||
19 | provided the Director with a written and irrevocable | ||||||
20 | consent to examine, have access to, and retain copies of | ||||||
21 | all of its books and records, wherever maintained, relating | ||||||
22 | to these activities. | ||||||
23 | (5) That authorized sellers in this State are under a | ||||||
24 | duty to act only as authorized under the agency contract | ||||||
25 | and that an authorized seller that exceeds its authority is | ||||||
26 | subject to cancellation of the agency contract and may | ||||||
27 | result in further disciplinary action against the licensee | ||||||
28 | by the Director. | ||||||
29 | For each contract entered into before the effective date of | ||||||
30 | this amendatory Act of the 93rd General Assembly, a notice | ||||||
31 | containing the information in items (1) through (5) of this | ||||||
32 | subsection shall be sent by each licensee to each of its agents | ||||||
33 | in Illinois within 45 days after the effective date of this | ||||||
34 | amendatory Act of the 93rd General Assembly.
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35 | (d) The financial responsibility of a licensee for the | ||||||
36 | actions of its
authorized seller shall not exceed the amount of |
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1 | funds received by the
authorized seller on behalf of its | ||||||
2 | licensee for transmission.
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3 | (e) An authorized seller has an affirmative duty not to (1) | ||||||
4 | commit fraud or
misrepresentation and (2) submit fraudulent | ||||||
5 | statements to the licensee. A
licensee shall, as soon as | ||||||
6 | practical, report to the Director and to any other
appropriate
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7 | official of this State or of the United States when it has | ||||||
8 | probable cause to
believe an authorized seller has violated the | ||||||
9 | affirmative duty set forth in
this subsection.
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10 | (f) The licensee shall require the authorized seller to | ||||||
11 | hold in trust for
the licensee from the moment of receipt the | ||||||
12 | proceeds of any business transacted
under this Act in an amount | ||||||
13 | equal to the amount of proceeds due the
licensee less the | ||||||
14 | amount due the authorized seller. The funds shall remain
the | ||||||
15 | property of the licensee whether or not commingled by the | ||||||
16 | authorized seller
with its own funds. In the event that the | ||||||
17 | license is revoked by the Director,
all proceeds then held in | ||||||
18 | trust by authorized sellers of that licensee shall be
deemed to | ||||||
19 | have been assigned to the Director. If an
authorized seller | ||||||
20 | fails to remit funds to the licensee in accordance with the
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21 | time
specified in its contract with the licensee, the licensee | ||||||
22 | may bring
a civil action against the authorized seller for 3 | ||||||
23 | times the actual damages.
The Director may provide by rule a | ||||||
24 | maximum remittance time for authorized
sellers.
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25 | (g) A licensee shall, upon discovery, immediately report to | ||||||
26 | the Director,
and an authorized seller, shall upon discovery, | ||||||
27 | immediately report to its
licensee, the
theft or loss of any | ||||||
28 | payment instrument from the licensee or authorized seller
in | ||||||
29 | Illinois, having a value in excess of $100 or an aggregate | ||||||
30 | value of $1,000
in any 3 month period.
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31 | (h) Upon suspension or revocation of a license, the failure | ||||||
32 | of a licensee to
renew its license, or the denial of the | ||||||
33 | renewal of a license, the licensee
shall
notify its authorized | ||||||
34 | sellers of the Director's action and require them
to | ||||||
35 | immediately cease operation as its authorized sellers.
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36 | (i) A licensee shall report the
removal of an authorized |
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1 | seller location or the termination of operations of an
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2 | authorized seller location
to the Director on a quarterly | ||||||
3 | basis.
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4 | (j) No authorized seller shall act outside its scope of | ||||||
5 | authority as defined
by this Act and by its contract with the | ||||||
6 | licensee with regard to any
transaction regulated by this Act.
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7 | (Source: P.A. 88-643, eff. 1-1-95.)
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