Rep. Joseph M. Lyons
Filed: 4/2/2004
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1 | AMENDMENT TO HOUSE BILL 5856
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2 | AMENDMENT NO. ______. Amend House Bill 5856 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Consumer Installment Loan Act is amended by | ||||||
5 | changing Sections 1 and 2 as follows:
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6 | (205 ILCS 670/1) (from Ch. 17, par. 5401)
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7 | Sec. 1. License required to engage in business. No person, | ||||||
8 | partnership, association, limited liability
company, or | ||||||
9 | corporation shall engage in
the business of making loans of | ||||||
10 | money in a principal amount not
exceeding $40,000
$25,000 , and | ||||||
11 | charge, contract for, or receive on any
such loan a
greater | ||||||
12 | rate of interest, discount, or consideration therefor than the
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13 | lender would be permitted by law to charge if he were not a | ||||||
14 | licensee
hereunder, except as authorized by this Act after | ||||||
15 | first obtaining a license
from the Director of Financial | ||||||
16 | Institutions (hereinafter called the Director).
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17 | (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)
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18 | (205 ILCS 670/2) (from Ch. 17, par. 5402)
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19 | Sec. 2. Application; fees; positive net worth. Application | ||||||
20 | for such license shall be in writing, and in the
form | ||||||
21 | prescribed by the Director. Such
applicant at the time of | ||||||
22 | making such application shall pay to the
Director the sum of | ||||||
23 | $300 as an application fee and the additional
sum of $450
as an |
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1 | annual license
fee, for a period terminating on the last day of | ||||||
2 | the current
calendar year; provided that if the application is | ||||||
3 | filed after June 30th
in any year, such license fee shall be | ||||||
4 | 1/2 of the annual license fee
for such year.
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5 | Before the license is granted, every applicant shall prove | ||||||
6 | in form
satisfactory to the Director that the applicant has and | ||||||
7 | will maintain a
positive net
worth of a minimum of $45,000
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8 | $30,000 . Every applicant and licensee shall maintain
a surety | ||||||
9 | bond in
the
principal sum of $40,000
$25,000 issued by a | ||||||
10 | bonding company authorized
to do
business in this State and | ||||||
11 | which shall be approved by the Director. Such
bond shall run to | ||||||
12 | the Director and shall be for the benefit of any consumer
who | ||||||
13 | incurs damages as a result of any violation of the Act or rules | ||||||
14 | by a
licensee. If
the Director finds at any time that a bond is | ||||||
15 | of insufficient size, is
insecure, exhausted, or otherwise | ||||||
16 | doubtful, an additional bond in such
amount as determined by | ||||||
17 | the Director shall be filed by the licensee within
30 days | ||||||
18 | after written demand therefor by the Director.
"Net worth" | ||||||
19 | means total assets minus total liabilities.
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20 | (Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)".
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