HB3049 97TH GENERAL ASSEMBLY

LRB097 08291 CEL 48418 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3049

Introduced 2/23/2011, by Rep. Franco Coladipietro

SYNOPSIS AS INTRODUCED:

See Index

Amends the Currency Exchange Act. Provides additional powers to a community or ambulatory currency exchange. Provides that a currency exchange, a group currency exchange, or an association of currency exchanges shall notify the Secretary of any additional activity, product, or service intended to be offered and the Secretary may charge an investigation fee of $500 to ensure the additional activity, product, or service is consistent with the Act. Increases a community exchange license application fee to $1,500 (up from $500). Provides that the Secretary may determine whether an application for a community exchange license may effect the financial stability of other community exchanges within a 2 mile radius if within the City of Chicago or 4 miles if outside the City of Chicago or any affected community currency exchange that may be serving the community in which the business of the applicant is proposing to be conducted. Provides qualifications for the applicants of a currency exchange license. Increases the amount of a surety bond a currency exchange shall file annually with and have approved by the Secretary to $50,000 (up from $10,000). Provides that an arbitrator shall conduct any hearings as provided for under the Act. Provides that all information collected by the Department under an examination or investigation of an ambulatory or community currency exchange shall be maintained for the confidential use by the Department and shall not be disclosed. Provides that an order issued by the Department against an ambulatory or community currency exchange shall be a public record. Makes other corresponding changes.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The Currency Exchange Act is amended by changing Sections 1, 2, 3, 3.1, 3.2, 3.3, 4, 4.1, 4.2, 4.3, 5, 6, 7, 8, 10.1, 11, 12, 13, 13.1, 14, 15, 15.1, 15.1a, 15.1b, 15.1d, 15.2, 16, 17, 19, 19.3, 19.4, 20, 21, 22.01, 22.03, and 25 and by adding Sections 4.1a, 4.1b, and 29.5 as follows:

(205 ILCS 405/1) (from Ch. 17, par. 4802)

Sec. 1. Definitions; application of Act. For the purposes of this Act:

"Community currency exchange" means any person, firm, association, partnership, limited liability company, or corporation, except an ambulatory currency exchange as hereinafter defined, banks incorporated under the laws of this State and National Banks organized pursuant to the laws of the United States, engaged in the business or service of, and providing facilities for, cashing checks, drafts, money orders or any other evidences of money acceptable to such community currency exchange, for a fee or service charge or other consideration, or engaged in the business of selling or issuing money orders under his or their or its name, or any other money orders (other than United States Post Office money orders, Postal Telegraph Company money orders, or Western Union Telegraph Company money orders), or engaged in both such businesses, or engaged in performing any one or more of the foregoing services.

"Ambulatory Currency Exchange" means any person, firm, association, partnership, limited liability company, or corporation, except banks organized under the laws of this State and National Banks organized pursuant to the laws of the United States, engaged in one or both of the foregoing businesses, or engaged in performing any one or more of the foregoing services, solely on the premises of the employer whose employees are being served.

"Location" when used with reference to an ambulatory currency exchange means the premises of the employer whose employees are or are to be served by an ambulatory currency exchange.

"Secretary" means the Secretary of Financial and Professional Regulation.

"Director" means the Director of Financial Institutions.

Nothing in this Act shall be held to apply to any person, firm, association, partnership, limited liability company, or corporation who is engaged primarily in the business of transporting for hire, bullion, currency, securities, negotiable or non-negotiable documents, jewels or other property of great monetary value and who in the course of such business and only as an incident thereto, cashes checks, drafts, money orders or other evidences of money directly for, or for the employees of and with the funds of and at a cost only to, the person, firm, association, partnership, limited liability company, or corporation for whom he or it is then actually transporting such bullion, currency, securities, negotiable or non-negotiable documents, jewels, or other property of great monetary value, pursuant to a written contract for such transportation and all incidents thereof, nor shall it apply to any merchant as that term is defined under the Check Cashing Act unless specifically provided for in the Act person, firm, association, partnership, limited liability company, or corporation engaged in the business of selling tangible personal property at retail who, in the course of such business and only as an incident thereto, cashes checks, drafts, money orders or other evidences of money.

(Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 405/2) (from Ch. 17, par. 4803)

Sec. 2. License required; violation; injunction. No person, firm, association, partnership, limited liability company, or corporation shall engage in the business of a community currency exchange or in the business of an ambulatory currency exchange without first securing a license to do so from the Secretary Director.

Any person, firm, association, partnership, limited liability company, or corporation issued a license to do so by the Secretary Director shall have authority to operate a community currency exchange or an ambulatory currency exchange, as defined in Section 1 hereof.

Any person, firm, association, partnership, limited liability company, or corporation licensed as and engaged in the business of a community currency exchange shall at a minimum offer the service of cashing checks, or drafts, or money orders, or any other evidences of money acceptable to such currency exchange.

No ambulatory currency exchange and no community currency exchange shall be conducted on any street, sidewalk or highway used by the public, and no license shall be issued therefor. An ambulatory currency exchange shall be required to and shall secure a license or licenses for the conduct of its business at each and every location served by it, as provided in Section 4 hereof, whether the services at any such location are rendered for or without a fee, service charge or other consideration. Each plant or establishment is deemed a separate location. No license issued for the conduct of its business at one location shall authorize the conduct of its business at any other location, nor shall any license authorize the rendering of services by an ambulatory currency exchange to persons other than the employees of the employer named therein. If the employer named in such license shall move his business from the address therein set forth, such license shall thereupon expire, unless the Secretary Director has approved a change of address for such location, as provided in Section 13.

Any person, firm, association, partnership, limited liability company, or corporation that violates this Section shall be guilty of a Class A misdemeanor, and the Attorney General or the State's Attorney of the county in which the violation occurs shall file a complaint in the Circuit Court of the county to restrain the violation.

(Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 405/3) (from Ch. 17, par. 4804)

Sec. 3. Powers of community currency exchanges.

(a) No community or ambulatory currency exchange shall be permitted to accept money or evidences of money as a deposit to be returned to the depositor or upon the depositor's order. No ; and no community or ambulatory currency exchange shall be permitted to act as bailee or agent for persons, firms, partnerships, limited liability companies, associations or corporations to hold money or evidences thereof or the proceeds therefrom for the use and benefit of the owners thereof, and deliver such money or proceeds of evidence of money upon request and direction of such owner or owners. Nothing in this Act shall prevent a currency exchange from accepting a post dated check so long as such check is immediately cashed and deposited in the ordinary course of business. ; provided, that nothing contained herein shall prevent a community or an ambulatory currency exchange from obtaining state automobile and city vehicle licenses for a fee or service charge, or from rendering a photostat service, or from rendering a notary service either by the proprietor of the currency exchange or any one of its employees, authorized by the State of Illinois to act as a notary public, or from selling travelers cheques obtained by the currency exchange from a banking institution under a trust receipt, or from issuing money orders or from accepting for payment utility bills.

(b) A community or ambulatory currency exchange is permitted to engage in, and charge a fee for, the following activities, either directly or as a third party agent: (i) cashing of checks, drafts, money orders, or any other evidences of money acceptable to the currency exchange, (ii) selling or issuing money orders, (iii) obtaining reports, certificates, governmental permits licenses, and vital statistics and the preparation of necessary applications to obtain the same, (iv) the sale and distribution of bond cards, (v) obtaining, distributing, providing or selling: State vehicle registration renewals, title transfers and tax remittance forms, city vehicle licenses, and other governmental services, (vi) photostat and telefacsimile service, (vii) notary service either by the proprietor of the currency exchange or any one of its employees, authorized by the State to act as a notary public, (viii) issuance of travelers checks obtained by the currency exchange from a banking institution under a trust receipt, (ix) accepting for payment utility and other companies' bills, (x) issuance and acceptance of any third party debit, credit or stored value card and loading or unloading and redemption of funds therefrom, (xi) on-premises automated teller machines, (xii) sale of rolled coin and paper money, (xiii) exchange of foreign currency through a third party, (xiv) sale of cards, passes, or tokens for public transit, (xv) providing mail box service, (xvi) sale of phones, phone cards, wireless, Internet, and telecommunication services, (xvii) on-premises public telephone, (xviii) sale of U.S. postage, (xix) money transmission through a licensed third-party money transmitter, (xx) sale of candy, gum, other packaged foods, soft drinks, and other products and services by means of vending machines and kiosks on its premises, (xxi) acquisition and purchase from consumers gold and precious metals, (xxii) advertising on and about the premises for any legal product or service that is not misleading to the public, (xxiii) sale of tangible personal property at retail in the course of such business and only as an incident thereto, (xxiv) participating and facilitating the distribution of funds and benefits through third-party or banking programs, and (xxv) sale of third-party insurance and other financial products and services.

(c) Any community or ambulatory currency exchange may enter into agreements an agreement with any utility and other companies to act as the companies' its agent for the acceptance of payment of utility and other companies' bills without charge to the utility customer and, acting under such agreement, may receipt for payments in the names of the utility and other companies. Any community or ambulatory currency exchange may also receive payment of utility and other companies' bills for remittance to companies with which it has no such agency agreement and may charge a fee for such service but may not, in such cases, issue a receipt for such payment in the names of the utility and other companies. However, funds received by currency exchanges for remittance to utility and other companies with which the currency exchange has no agency agreement shall be forwarded to the appropriate utility and other companies by the currency exchange before the end of the next business day.

For the purposes of this Section "utility and other companies" means any utility company and other company that the currency exchange may or may not have a contractual agreement and for which the currency exchange accepts payments from consumers for remittance to the utility or other company for the payment of bills and financial products.

(Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 405/3.1) (from Ch. 17, par. 4805)

Sec. 3.1. Nothing in this Act shall prevent a currency exchange from rendering State or Federal income tax services service; nor shall the rendering of such services service be considered a violation of this Act if such services are service be rendered either by the proprietor, or any of his or her employees, or a third-party.

For the purposes of this Section, "tax service" does not include making or offering to make a refund anticipation loan as defined by the Tax Refund Anticipation Loan Disclosure Act. Nothing in this Act, however, shall prevent a currency exchange from permitting or contracting with, nor shall it prohibit, a third party tax preparer licensed by the Internal Revenue Service from occupying a portion of a currency exchange's unsecured premises from where it may, and shall be permitted to, render all federally approved income tax services.

(Source: Laws 1949, p. 336.)

(205 ILCS 405/3.2) (from Ch. 17, par. 4806)

Sec. 3.2. Community currency exchanges and ambulatory currency exchanges may engage in the distribution of Supplemental Nutrition Assistance Program (SNAP) benefits or their equivalent food stamps in accordance with such regulations as are made by the Secretary Director.

(Source: P.A. 80-439.)

(205 ILCS 405/3.3) (from Ch. 17, par. 4807)

Sec. 3.3. Additional public services.

(a) Nothing in this Act shall prevent the Director from authorizing currency exchanges from engaging in additional activities or rendering to render additional products and services to the public. In such case, a currency exchange, a group currency exchanges, or an association of currency exchanges shall notify the Secretary in writing of the additional activity, product, or service intended to be offered. The Secretary may charge an investigation fee of $500, and the investigation shall not exceed 45 days after it is discovered whether such additional activity, product, or service is consistent with the provisions of this Act. At the conclusion of the investigation, the Secretary shall promptly notify the requesting party in writing of his or her decision. Any approval under this Section shall be deemed an approval for all currency exchanges. In the event the Secretary finds against allowing any such additional activity, product, or service, the written notice shall be in accordance with subsection (b) of this Section. In the event the Secretary finds any activity, product, or service previously authorized under this Section to no longer be consistent with the provisions of this Act, the Secretary may move to revoke such authorization under this Section on 45 days' written notice to the currency exchanges, such notice to be in accordance with subsection (b) of this Section. If a currency exchange objects to the Secretary's finding against, or revocation of, the activity, product, or service, then the currency exchange may bring the matter to hearing as set forth in Section 10.1 of this Act and in the case of a revocation, the Secretary's revocation shall be stayed. if the services are consistent with the provisions of this Act, are within its meaning, are in the best interest of the public, and benefit the general welfare.

(b) Any notice of denial or revocation under this Section shall contain: (i) a clear and concise description of the activity denied or revoked, (ii) the Secretary's opinion and reasoning as to why the activity should not be permitted, indicating with specificity how the activity is not consistent with the provisions of this Act, (iii) in the case of a revocation, a directive to cease the activity by a date certain, but in no case earlier than 45 days after the date of the notice, and (iv) in the case of a revocation, a statement that the Secretary's directive shall be stayed on receipt of an objection within 30 days after the date of the notice and then until a hearing may be held and the matter adjudicated under Section 10.1 of this Act. Nothing in this Act shall prevent a community currency exchange from selling candy, gum, other packaged foods, and soft drinks by means of vending machines on its premises.

(c) For the purposes of this Section, "consistent with the provisions of this Act" shall mean to have value to the public and demand by the community.

(Source: P.A. 87-258; 88-583, eff. 8-12-94.)

(205 ILCS 405/4) (from Ch. 17, par. 4808)

Sec. 4. License application; contents; fees. Application for such license shall be in writing under oath and in the form prescribed and furnished by the Secretary Director. Each application shall contain the following:

(a) The full name and address (both of residence and place of business) of the applicant, and if the applicant is a partnership, limited liability company, or association, of every member thereof, and the name and business address if the applicant is a corporation;

(b) The county and municipality, with street and number, if any, where the community currency exchange is to be conducted, if the application is for a community currency exchange license;

(c) If the application is for an ambulatory currency exchange license, the name and address of the employer at each location to be served by it; and

(d) The applicant's occupation or profession; a detailed statement of his business experience for the 10 years immediately preceding his application; a detailed statement of his finances; his present or previous connection with any other currency exchange; whether he has ever been involved in any civil or criminal litigation, and the material facts pertaining thereto; whether he has ever been committed to any penal institution or admitted to an institution for the care and treatment of mentally ill persons; and the nature of applicant's occupancy of the premises to be licensed where the application is for a community currency exchange license. If the applicant is a partnership, the information specified herein shall be required of each partner. If the applicant is a corporation, the said information shall be required of each officer, director and stockholder thereof along with disclosure of their ownership interests. If the applicant is a limited liability company, the information required by this Section shall be provided with respect to each member and manager along with disclosure of their ownership interests.

A community currency exchange license application shall be accompanied by a fee of $1,500 $500 for the cost of investigating the applicant. If the ownership of a licensee changes, in whole or in part, a new application must be filed pursuant to this Section along with a $500 fee if the licensee's ownership interests have been transferred or sold to a new person or entity or a fee of $300 if the licensee's ownership interests have been transferred or sold to a current holder or holders of the licensee's ownership interests. When the application for a community currency exchange license has been approved by the Secretary Director and the applicant so advised, an additional sum of $500 $200 as an annual license fee for a period terminating on the last day of the current calendar year shall be paid to the Secretary Director by the applicant; provided, that the license fee for an applicant applying for such a license after July 1st of any year shall be $250 $100 for the balance of such year.

An application for an ambulatory currency exchange license shall be accompanied by a fee of $100, which fee shall be for the cost of investigating the applicant. An approved applicant shall not be required to pay the initial investigation fee of $100 more than once. When the application for an ambulatory currency exchange license has been approved by the Secretary Director, and such applicant so advised, such applicant shall pay an annual license fee of $25 for each and every location to be served by such applicant; provided that such license fee for an approved applicant applying for such a license after July 1st of any year shall be $12 for the balance of such year for each and every location to be served by such applicant. Such an approved applicant for an ambulatory currency exchange license, when applying for a license with respect to a particular location, shall file with the Secretary Director, at the time of filing an application, a letter of memorandum, which shall be in writing and under oath, signed by the owner or authorized representative of the business whose employees are to be served; such letter or memorandum shall contain a statement that such service is desired, and that the person signing the same is authorized so to do. The Secretary Director shall thereupon verify the authenticity of the letter or memorandum and the authority of the person who executed it, to do so.

(Source: P.A. 92-398, eff. 1-1-02.)

(205 ILCS 405/4.1) (from Ch. 17, par. 4809)

Sec. 4.1. Application; investigation; community need.

(a) The General Assembly finds and declares that community currency exchanges provide important and vital services to Illinois citizens, that the number of community currency exchanges should be limited in accordance with the needs of the communities they are to serve, and that it is in the public interest to promote and foster the community currency exchange business and to insure the financial stability thereof.

(b) Upon receipt of an application for a license for a community currency exchange, the Secretary Director shall cause an investigation to determine:

(1) of the need of the community for the establishment of a community currency exchange at the location specified in the application; and

(2) the effect that granting the license will have on the financial stability of other community currency exchanges within a radius from the proposed location of 2 miles if within the City of Chicago or 4 miles if outside the City of Chicago or any affected currency exchange that may be serving the community in which the business of the applicant is proposed to be conducted.

(c) The investigation shall be completed within 60 days after receipt of a completed application. Within 10 business days after receipt of the application, the Secretary shall notify applicant of any deficiency in the application, and request any corrections to be made and submitted within 10 business days or the application may be denied. Unless material to the investigation, no deficiency shall delay the investigation and in the event of a delay, the applicant shall be so notified. Once the investigation is completed, it is final and the Secretary shall notify the applicant within 10 business days. If the application is approved, the applicant may so rely and the license shall be immediately issue upon the submission of any remaining ministerial items required by the Secretary, but by nature could not be available until after the investigation and the application approved.

(d) "Community", as used in this Act, means a locality where there may or can be available to the people thereof the services of a community currency exchange reasonably accessible to them.

(e) "Needs and the convenience and advantage", as used in this Act, means the benefits that a community currency exchange may provide the community.

(f) If the issuance of a license to engage in the community currency exchange business at the location specified will not promote the needs and the convenience and advantage of the community in which the business of the applicant is proposed to be conducted or would have a material and negative effect upon the financial stability of an affected currency exchange as described in item (2) of subsection (b) of this Section, then the application shall be denied.

(g) As a part of the investigation, the Secretary shall, within 10 business days after receipt of an application, notify in writing all affected currency exchanges as described in item (2) of subsection (b) of this Section of the application and the proposed location. Within 10 business days after said notice, any affected currency exchange may notify the Secretary it intends to protest the application and in which case must, within 30 days, provide the Secretary with any information to substantiate that granting the license would have a material and negative effect upon the financial stability of the affected currency exchange. Once the investigation is completed, the Secretary shall, within 10 business days, notify any affected currency exchange of his or her decision, and if approved, along with detail as to how he or she concluded that by granting the license, no affected currency exchange shall sustain a material and negative impact to its financial stability. Any affected currency exchange to have protested an application that the Secretary subsequently approves shall have standing to bring this matter to hearing under Section 10.1 of this Act, during which the granting and issuance of the contested license shall be stayed.

(Source: P.A. 83-652.)

(205 ILCS 405/4.1a new)

Sec. 4.1a. Qualifications of applicant; denial of license; review. The applicant, and its officers, directors, and stockholders, if a corporation, and its managers and members, if a liability company, shall be vouched for by 2 reputable citizens of this State setting forth that the individual mentioned (i) is personally known to them to be trustworthy and reputable, (ii) has business experience qualifying him or her to competently conduct, operate, own, or become associated with a currency exchange, and (iii) has a good business reputation and is worthy of a license. The Secretary shall, on approval of the application filed with him or her, issue to the applicant, qualifying under this Act, a license to operate a currency exchange. If it is a license for a community currency exchange, the same shall be valid only at the place of business specified in the application. If it is a license for an ambulatory currency exchange, it shall entitle the applicant to operate only at the location or locations specified in the application, provided the applicant shall secure separate and additional licenses for each of the locations. The licenses shall remain in full force and effect until they are surrendered by the licensee, or revoked or expire as provided in this Act. If the Secretary shall not so approve, he or she shall not issue such license or licenses and shall notify the applicant of such denial, retaining the full investigation fee to cover the cost of investigating the community currency exchange applicant. The Secretary shall approve or deny every application within 60 days after the filing of the application; except that in respect to an application by an approved ambulatory currency exchange for a license with regard to a particular location to be served by it, the same shall be approved or denied within 20 days after the filing the application. If the application is denied, the Secretary shall send by United States mail notice of such denial to the applicant at the address set forth in the application.

If an application is denied, the applicant may, within 10 days after the date of the notice of denial, make written request to the Secretary for a hearing on the application, and the Secretary shall set a time and place for the hearing. The hearing shall be set for a date after the receipt by the Secretary of the request for hearing, and written notice of the time and place of the hearing shall be mailed to the applicant at least 15 days before the date of the hearing. The applicant shall pay the actual cost of making the transcript of the hearing prior to the Secretary's issuing his or her decision following the hearing. If, following the hearing, the application is denied, the Secretary shall, within 20 days prepare and keep on file in his or her office a written order of denial of the application, which shall contain his or her findings with respect to the application and the reasons supporting the denial, and shall send by United States mail a copy to the applicant at the address set forth in the application, within 5 days after the filing of such order. A review of any such decision may be had as provided in Section 22.01 of this Act.

(205 ILCS 405/4.1b new)

Sec. 4.1b. Licensee address. The applicant for a community currency exchange license shall have a permanent address as evidenced by a lease of at least 6 months duration or other suitable evidence of permanency, and the license issued, pursuant to the application shall be valid only at that address or any new address approved by the Secretary. A letter of intent for a lease shall suffice for inclusion with the application and evidence of an executed lease shall be considered ministerial in nature, to be furnished once the investigation is completed, the approval final, and prior to the issuance of the license.

(205 ILCS 405/4.2) (from Ch. 17, par. 4810)

Sec. 4.2. Whensoever the ownership of any Currency Exchange, theretofore licensed under the provisions of this Act, shall be held or contained in any estate subject to the control and supervision of any Administrator, Executor or Guardian appointed, approved or qualified by any Court of the State of Illinois, having jurisdiction so to do, such Administrator, Executor or Guardian may, upon the entry of an order by such Court granting leave to continue the operation of such Currency Exchange, apply to the Secretary Director of Financial Institutions for a license under the provisions of this Act. When any such Administrator, Executor or Guardian shall apply for a Currency Exchange License pursuant to the provisions of this Section, and shall otherwise fully comply with all of the provisions of this Act relating to the application for a Currency Exchange license, the Secretary Director may issue to such applicant a Currency Exchange license. Any Currency Exchange license theretofore issued to a Currency Exchange, for which an application for a license shall be sought under the provisions of this Section, if not previously surrendered, lapsed, or revoked, shall be surrendered, revoked or otherwise terminated before a license shall be issued pursuant to application made therefor under this Section.

(Source: P.A. 92-16, eff. 6-28-01.)

(205 ILCS 405/4.3) (from Ch. 17, par. 4811)

Sec. 4.3. Upon receipt of an application from an ambulatory currency exchange for the conduct of its business at a location to be served by it, the Secretary Director of Financial Institutions shall cause an investigation to be made to determine whether to issue said license. No fee shall be charged for the investigation of an application for a location license. The Secretary Director shall employ the following criteria in making his determination:

(1) the economic benefit and convenience to the persons to be served at the location for which a license has been requested;

(2) the effect that granting a license will have on the financial stability of community currency exchanges;

(3) safety benefits, if any, which may accrue from the granting of the location license;

(4) the effects, if any, which granting of a license will have on traffic, and traffic congestion in the immediate area of the location to be served;

(5) such other factors as the Secretary Director shall deem proper and relevant.

(Source: P.A. 85-1356.)

(205 ILCS 405/5) (from Ch. 17, par. 4812)

Sec. 5. Bond; condition; amount.

(a) Before any license shall be issued to a community currency exchange the applicant shall file annually with and have approved by the Secretary Director a surety bond, issued by a bonding company authorized to do business in this State in the principal sum of $50,000 $10,000. Such bond shall run to the Secretary Director and shall be for the benefit of any creditors of such currency exchange for any liability incurred by the currency exchange on any money orders, including any fees and penalties not to exceed $25 per money order, incurred by the remitter should the money order be returned unpaid, issued, or sold by the currency exchange and for any liability incurred by the currency exchange for any sum or sums due to any payee or endorsee of any check, draft or money order left with the currency exchange for collection, and for any liability incurred by the currency exchange in connection with the rendering of any of the services referred to in Section 3 of this Act.

From time to time the Secretary Director may determine the amount of liabilities as described herein and shall require the licensee to file a bond in an additional sum if the same is determined to be necessary in accordance with the requirements of this Section. In no case shall the bond be less than the initial $50,000 $10,000, nor more than the outstanding liabilities.

(b) In lieu of the surety bond requirements of subsection (a), a community currency exchange licensee may submit evidence satisfactory to the Secretary Director that the community currency exchange licensee is covered by a blanket bond that covers multiple licensees who are members of a statewide association of community currency exchanges. Such a blanket bond must be issued by a bonding company authorized to do business in this State and in a principal aggregate sum of not less than $2,000,000.

(c) An ambulatory currency exchange may sell or issue money orders at any location with regard to which it is issued a license pursuant to this Act, including existing licensed locations, without the necessity of a further application or hearing and without regard to any exceptions contained in existing licenses, upon the filing with the Secretary Director of a surety bond approved by the Secretary Director and issued by a bonding company or insurance company authorized to do business in Illinois, in the principal sum of $100,000. Such bond may be a blanket bond covering all locations at which the ambulatory currency exchange may sell or issue money orders, and shall run to the Secretary Director for the use and benefit of any creditors of such ambulatory currency exchange for any liability incurred by the ambulatory currency exchange on any money orders issued or sold by it. Such bond shall be renewed annually. If after the expiration of one year from the date of approval of such bond by the Secretary Director, it shall appear that the average amount of such liability during the year has exceeded $100,000, the Secretary Director shall require the licensee to furnish a bond for the ensuing year, to be approved by the Secretary Director, for an additional principal sum of $1,000 for each $1,000 of such liability or fraction thereof in excess of the original $100,000, except that the maximum amount of such bond shall not be required to exceed $250,000.

(Source: P.A. 93-614, eff. 11-18-03.)

(205 ILCS 405/6) (from Ch. 17, par. 4813)

Sec. 6. Insurance against loss.

(a) Every applicant for a license hereunder shall, after his application for a license has been approved, file with and have approved by the Secretary of Financial and Professional Regulation, a policy or policies of insurance issued by an insurance company or indemnity company authorized to do business under the law of this State, which shall insure the applicant against loss by theft, burglary, robbery or forgery in a principal sum as hereinafter provided; if the average amount of cash and liquid funds to be kept on hand in the office of the community currency exchange during the year will not be in excess of $10,000 the policy or policies shall be in the principal sum of $10,000. If such average amount will be in excess of $10,000, the policy or policies shall be for an additional principal sum of $500 for each $1,000 or fraction thereof of such excess over the original $10,000. From time to time, the Secretary may determine the amount of cash and liquid funds on hand in the office of any community currency exchange and shall require the licensee to submit additional policies if the same are determined to be necessary in accordance with the requirements of this Section.

However, any community currency exchange licensed under this Act may meet the insurance bonding requirements of this subsection (a) by submitting evidence satisfactory to the Secretary that the licensee is covered by a blanket insurance policy bond that covers multiple licensees. The blanket insurance policy bond: (i) shall insure the licensee against loss by theft, robbery, or forgery; (ii) shall be issued by an insurance a bonding company authorized to do business in this State; and (iii) shall be in the principal sum of an amount equal to the maximum amount required under this Section for any one licensee covered by the insurance policy bond.

Any such policy or policies, with respect to forgery, may carry a condition that the community currency exchange assumes the first $1,000 of each claim thereunder.

(b) Before an ambulatory currency exchange shall sell or issue money orders, it shall file with and have approved by the Secretary, a policy or policies of insurance issued by an insurance company or indemnity company authorized to do business under the laws of this State, which shall insure such ambulatory currency exchange against loss by theft, burglary, robbery, forgery or embezzlement in the principal sum of not less than $500,000. If the average amount of cash and liquid funds to be kept on hand during the year will exceed $500,000, the policy or policies shall be for an additional principal sum of $500 for each $1,000 or fraction thereof in excess of $500,000. From time to time the Secretary may determine the amount of cash and liquid funds kept on hand by an ambulatory currency exchange and shall require it to submit such additional policies as are determined to be required within the limits of this Section. No ambulatory currency exchange subject to this Section shall be required to furnish more than one policy of insurance if the policy furnished insures it against the foregoing losses at all locations served by it.

Any such policy may contain a condition that the insured assumes a portion of the loss, provided the insured shall file with such policy a sworn financial statement indicating its ability to act as self-insurer in the amount of such deductible portion of the policy without prejudice to the safety of any funds belonging to its customers. If the Secretary is not satisfied as to the financial ability of the ambulatory currency exchange, he may require it to deposit cash or United States Government Bonds in the amount of part or all of the deductible portion of the policy.

(Source: P.A. 94-538, eff. 1-1-06.)

(205 ILCS 405/7) (from Ch. 17, par. 4814)

Sec. 7. Available funds; minimum amount. Each community currency exchange shall have, at all times, a minimum of $10,000 sum of its own cash funds available for the uses and purposes of its business and said minimum sum shall be exclusive of and in addition to funds received for exchange or transfer; and in addition thereto each such licensee shall at all times have on hand an amount of liquid funds sufficient to pay on demand all outstanding money orders issued by it. Prior to January 1, 1979, this minimum sum shall be $4,000. After January 1, 1979, this minimum sum shall be $5,000.

In the event a receiver is appointed in accordance with Section 15.1 of this Act, and the Secretary Director determines that the business of the currency exchange should be liquidated, and if it shall appear that the said minimum sum was not on hand or available at the time of the appointment of the receiver, then the receiver shall have the right to recover in any court of competent jurisdiction from the owner or owners of such currency exchange, or from the stockholders and directors thereof if such currency exchange was operated by a corporation, or from the members if the currency exchange was operated as a limited liability company, said sum or that part thereof which was not on hand or available at the time of the appointment of such receiver. Nothing contained in this Section shall limit or impair the liability of any bonding or insurance company on any bond or insurance policy relating to such community currency exchange issued pursuant to the requirements of this Act, nor shall anything contained herein limit or impair such other rights or remedies as the receiver may otherwise have.

(Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 405/8) (from Ch. 17, par. 4815)

Sec. 8. A community or an ambulatory currency exchange shall not be conducted as a department of another business. It must be an entity, financed and conducted as a separate business unit. This shall not prevent a community or an ambulatory currency exchange from leasing a part of the premises of another business, or a portion of a building, for the conduct of this business on the same premises so long as the secure portion of the currency exchange is inaccessible to the public and employees of another business; provided, that no community currency exchange shall be conducted on the same premises with a business whose chief source of revenue is derived from the sale of alcoholic liquor for consumption on the premises. Nothing in this Act shall prevent a currency exchange from permitting or contracting with, nor shall it prohibit, a third-party from occupying a portion of a currency exchange's unsecured premises from where the third-party may, and shall be permitted to, render financial and related products and services ; provided, further, that no community currency exchange hereafter licensed for the first time shall share any room with any other business, trade or profession nor shall it occupy any room from which there is direct access to a room occupied by any other business, trade or profession.

(Source: Laws 1951, p. 562.)

(205 ILCS 405/10.1) (from Ch. 17, par. 4818)

Sec. 10.1. For the purposes of this Act, the Secretary Director, and the arbitrator hearing officer, as hereinafter provided, shall have power to require by subpoena the attendance and testimony of witnesses, and the production of all documentary evidence relating to any matter under hearing pursuant to this Act, and shall issue such subpoenas at the request of any interested party. The arbitrator hearing officer may sign subpoenas in the name of the Secretary Director.

Any The Director may, in his discretion, direct that any hearing pursuant to this Act, shall be administered through binding arbitration by an arbitrator mutually agreed to by the parties, or failing agreement within 30 days, by an arbitrator chosen in accordance with the rules of the American Arbitration Association. The cost of the hearing shall be paid by the applicant, licensee, or party other than the Secretary, provided, however, that should the applicant, licensee, or other party prevail, he or she shall be entitled to recover from the Secretary the costs of the arbitration held before a competent and qualified agent of the Director, whom the Director shall designate as the hearing officer in such matter. The Secretary Director, and the arbitrator hearing officer, are hereby empowered to, and shall, administer oaths and affirmations to all witnesses appearing before them. The arbitrator hearing officer, upon the conclusion of the hearing before him or her, shall certify the evidence to the Secretary Director. The decision by the arbitrator shall be binding upon the parties.

All arbitrations shall be scheduled within 30 days after the request for a arbitration unless otherwise agreed to by the parties. The arbitration shall be held at the time and place designated by the Secretary.

Any Circuit Court of this State, within the jurisdiction of which such hearing is carried on, may, in case of contumacy, or refusal of a witness to obey a subpoena, issue an order requiring such witness to appear before the Secretary Director, or the hearing officer, or to produce documentary evidence, or to give testimony touching the matter in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof.

(Source: Laws 1957, p. 320.)

(205 ILCS 405/11) (from Ch. 17, par. 4819)

Sec. 11. Such license, if issued for a community currency exchange, shall state the name of the licensee and the address at which the business is to be conducted. Such license, or its annual renewal, shall be kept conspicuously posted in the place of business of the licensee and shall not be transferable or assignable. If issued for an ambulatory currency exchange, it shall so state, and shall state the name and office address of the licensee, and the name and address of the location or locations to be served by the licensee, and shall not be transferable and assignable.

(Source: Laws 1951, p. 562.)

(205 ILCS 405/12) (from Ch. 17, par. 4820)

Sec. 12. If the Secretary Director shall find at any time that the bond required in Section 5 is insecure or exhausted or otherwise doubtful, an additional bond in like amount to be approved by the Secretary Director shall be filed by the licensee within 30 days after written demand therefore therefor upon the licensee by the Secretary Director.

(Source: Laws 1957, p. 320.)

(205 ILCS 405/13) (from Ch. 17, par. 4821)

Sec. 13. No more than one place of business shall be maintained under the same community currency exchange license, but the Secretary Director may issue more than one license to the same licensee upon compliance with the provisions of this Act governing an original issuance of a license, for each new license.

Whenever a community currency exchange or an ambulatory currency exchange shall wish to change its name in its license, it shall file an application for approval thereof with the Secretary Director, and if the change is approved by the Secretary Director he or she shall attach to the license, in writing, a rider stating the licensee's new name.

If an ambulatory currency exchange has serviced a licensed location for 2 years or longer and the employer whose employees are served at that location has moved his or her place of business, the currency exchange may continue its service to the employees of that employer at the new address of that employer's place of business by filing a notice of the change of address with the Secretary Director and by relinquishing its license to conduct its business at the employer's old address upon receipt of a license to conduct its business at the employer's new address. Nothing in this Act shall preclude or prevent an ambulatory currency exchange from filing an application to conduct its business at the old address of an employer who moved his place of business after the ambulatory currency exchange receives a license to conduct its business at the employer's new address through the filing of a notice of its change of address with the Secretary Director and the relinquishing of its license to conduct its business at the employer's old address.

Whenever a currency exchange wishes to make any other change in the address set forth in any of its licenses, it shall apply to the Secretary Director for approval of such change of address. Every application for approval of a change of address shall be treated by the Secretary Director in the same manner as is otherwise provided in this Act for the treatment of proposed places of business or locations as contained in new applications for licenses; and if any fact or condition then exists with respect to the application for change of address, which fact or condition would otherwise authorize denial of a new application for a license because of the address of the proposed location or place of business, then such application for change of address shall not be approved. Whenever a community currency exchange wishes to sell its physical assets, it may do so, however, if the assets are sold with the intention of continuing the operation of a community currency exchange, the purchaser or purchasers must first make application to the Secretary Director for licensure in accordance with Section Sections 4 and 10 of this Act. If the Secretary Director shall not so approve, he or she shall not issue such license and shall notify the applicant or applicants of such denial. The investigation fee for a change of location is $500 shall be $75 on September 22, 1987 and until July 1, 1988, and $125 on July 1, 1988 and until July 1, 1989, and $150 on and after July 1, 1989.

The provisions of Sections 4 and Section 10 with reference to notice, hearing and review apply to applications filed pursuant to this Section.

(Source: P.A. 85-1209.)

(205 ILCS 405/13.1) (from Ch. 17, par. 4822)

Sec. 13.1. Consolidation of business locations. Whenever 2 or more licensees desire to consolidate their places of business, they shall make application for such consolidation to the Secretary Director upon a form provided by him or her. This application shall state: (a) the name to be adopted and the location at which the business is to be located, which name and location shall be the same as one of the consolidating licensees; (b) that the owners or all partners or all stockholders or all members, as the case may be, of the licensees involved in the contemplated consolidation, have approved the application; (c) a certification by the secretary, if any of the licensees be corporations, that the contemplated consolidation has been approved by all of the stockholders at a properly convened stockholders meeting; (d) other relevant information the Secretary Director may require. Simultaneously with the approval of the application by the Secretary Director, the licensee or licensees who will cease doing business shall: (a) surrender their license or licenses to the Secretary Director; (b) transfer all of their assets and liabilities to the licensee continuing to operate by virtue of the application; (c) apply to the Secretary of State, if they be corporations, for surrender of their corporate charter in accordance with the provisions of the Business Corporation Act of 1983.

An application for consolidation shall be approved or rejected by the Secretary Director within 30 days after receipt by him of such application and supporting documents required thereunder. The Secretary may impose a consolidation fee of $100 per application.

Such consolidation shall not affect suits pending in which the surrendering licensees are parties; nor shall such consolidation affect causes of action nor the rights of persons in particular; nor shall suits brought against such licensees in their former names be abated for that cause.

Nothing contained herein shall limit or prohibit any action or remedy available to a licensee or to the Secretary Director under Sections 15, 15.1 to 15.1e or 15.2 of this Act.

(Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 405/14) (from Ch. 17, par. 4823)

Sec. 14. Every licensee, shall, on or before November 15, pay to the Secretary Director the annual license fee or fees for the next succeeding calendar year and shall at the same time file with the Secretary Director the annual report required by Section 16 of this Act, and the annual bond or bonds, and the insurance policy or policies as and if required by this Act. The annual license fee for each community currency exchange is $300 shall be $150 on the effective date of this amendatory Act of 1987 and until January 1, 1989, and $180 on January 1, 1989 and until January 1, 1990, and $200 on and after January 1, 1990. The annual license fee for each location served by an ambulatory currency exchange shall be $25.

(Source: P.A. 85-708.)

(205 ILCS 405/15) (from Ch. 17, par. 4824)

Sec. 15. Fines; suspension; revocation.

(a) The Secretary Director may, upon 10 days notice to the licensee by United States mail directed to the licensee at the address set forth in the license, stating the contemplated action and in general the grounds therefor, and upon reasonable opportunity to be heard prior to such action, fine, suspend or revoke any license issued hereunder if he or she finds shall find that:

(1) the (a) The licensee has failed to pay the annual license fee or to maintain in effect the required bond or bonds or insurance policy or policies or to comply with any order, decision, or finding of the Director made pursuant to this Act; or that

(2) the (b) The licensee has failed to comply with any order, decision, finding, rule, regulation, or direction of the Secretary lawfully made under the authority of this Act;

(3) the licensee has violated any provision of this Act or any regulation or direction made by the Secretary Director under this Act; or that

(4) any (c) Any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the Secretary Director in refusing the issuance of the license; or that

(5) the (d) The licensee has not operated the currency exchange or at the location licensed, for a period of 60 sixty consecutive days, unless the licensee was prevented from operating during such period by reason of events or acts beyond the licensee's control.

(b) The Secretary's authority to fine, suspend, or revoke under this Section is subject to the following:

(1) no less than 15 business days prior to any fine, suspension, or revocation, the Secretary shall send to the licensee a notice in writing, by registered mail at the address set forth in the license or to such other address or by method as previously designated by the licensee, of any contemplated action;

(2) the notice shall state (i) the specific nature and a clear and concise description of the violation, (ii) the Sections or rules that have been violated, (iii) the contemplated fine or action thereof, (iv) that the licensee may, within 15 business days after the date of the notice, request a hearing under Section 10.1 of this Act, (v) that the licensee may, within 15 business days after receiving the notice take corrective action to mitigate any fine or contemplated action, and (vi) the specific corrective action to be taken;

(3) in the event the licensee requests, in writing to the Secretary and within 15 business days after receiving the notice, a hearing on the fine or contemplated action, the matter shall be heard under Section 10.1 of this Act, any fines or contemplated action shall be stayed and no fines shall accrue during the pendency of the hearing; and

(4) in the event the licensee takes the corrective action set forth in the notice within the time specified, the licensee shall so certify in writing to the Secretary that may then confirm the corrective action by conducting a follow-up investigation within 30 days after the date of the certification and if the Secretary confirms the corrective action is complete, the maximum fine assessed shall not exceed $200, provided, however that corrective action taken by a licensee shall not serve to mitigate any contemplated fine or action if such violation is substantially similar to a violation committed by the licensee within the previous 36 months.

(c) Consistent with the provisions of this Act, the Prior to suspension or revocation of the licenses issued hereunder, the Secretary Director may but is not required to fine a licensee up to a maximum of $100 a day.

(d) The Secretary Director may fine, suspend or revoke only the particular license or licenses for particular places of business or locations with respect to which grounds for revocation may occur or exist; except that if he shall find that such grounds for revocation are of general application to all places of business or locations, or that such grounds for fines, suspension or revocation have occurred or exist with respect to a substantial number of places of business or locations, he may fine, suspend or revoke all of the licenses issued to such licensee.

(e) A licensee may surrender any license by delivering to the Secretary Director written notice that he, they or it thereby surrenders such license, but such surrender shall not affect such licensee's civil or criminal liability for acts committed prior to such surrender, or affect the liability on his, their or its bond or bonds, or his, their or its policy or policies of insurance, required by this Act, or entitle such licensee to a return of any part of the annual license fee or fees.

(f) Every license issued hereunder shall remain in force until the same shall expire, or shall have been surrendered, suspended or revoked in accordance with this Act, but the Secretary Director may on his own motion, issue new licenses to a licensee whose license or licenses shall have been revoked if no fact or condition then exists which clearly would have warranted the Secretary Director in refusing originally the issuance of such license under this Act.

(g) No license shall be revoked until the licensee has had notice of a hearing thereon and an opportunity to be heard. When any license is so revoked, the Secretary Director shall within twenty (20) days thereafter, prepare and keep on file in his office, a written order or decision of revocation which shall contain his findings with respect thereto and the reasons supporting the revocation and shall send by United States mail a copy thereof to the licensee at the address set forth in the license within five (5) days after the filing in his office of such order, finding or decision. A review of any such order, finding or decision may be had as provided in Section 22.01 of this Act.

(Source: P.A. 80-1101.)

(205 ILCS 405/15.1) (from Ch. 17, par. 4825)

Sec. 15.1. If the Secretary Director determines that any licensee is insolvent and or is violating this Act, or if the owner, executor, or successor in interest of a currency exchange abandons the currency exchange, time becomes of the essence and he or she shall immediately, and in no case more than 3 business days later, appoint a receiver, who shall, under his or her direction, for the purpose of receivership, take possession of and title to the books, records and assets of every description of the community currency exchange. The Secretary may Director shall require of the receiver such security as he or she deems proper and, upon appointment of the receiver, shall have published, once each week for 4 consecutive weeks in a newspaper having a general circulation in the community, a notice calling on all persons who have claims against the community currency exchange, to present them to the receiver.

Within 10 days after the receiver takes possession of the property, the licensee may apply to the Circuit Court of the county where the community currency exchange is located Sangamon County to enjoin further proceedings in the premises.

The receiver may operate the community currency exchange until the Secretary Director determines that possession should be restored to the licensee or that the business should be liquidated.

(Source: Laws 1961, p. 3522.)

(205 ILCS 405/15.1a) (from Ch. 17, par. 4826)

Sec. 15.1a. If the Secretary Director determines that a business in receivership should be liquidated, he shall direct the Attorney General to file a complaint in the Circuit Court of the county in which such community currency exchange is located, in the name of the People of the State of Illinois, for the orderly liquidation and dissolution of the community currency exchange and for an injunction restraining the licensee or the officers and directors thereof from continuing the operation of the community currency exchange.

The receiver shall, 30 days from the day the Secretary Director determines that the business should be liquidated, file with the Secretary Director and with the clerk of such court as has charge of the liquidation, a correct list of all creditors who have not presented their claims. The list shall show the amount of the claim after allowing all just credits, deductions and set-offs as shown by the books of the currency exchange. These claims shall be deemed proven unless objections are filed by some interested party within the time fixed by the Secretary Director or court that has charge of the liquidation.

(Source: P.A. 79-1361.)

(205 ILCS 405/15.1b) (from Ch. 17, par. 4827)

Sec. 15.1b. Liquidation; distribution; priority. The General Assembly finds and declares that community currency exchanges provide important and vital services to Illinois citizens. The General Assembly also finds that in providing such services, community currency exchanges transact extensive business involving check cashing and the writing of money orders in communities in which banking services are generally unavailable. It is therefore declared to be the policy of this State that customers who receive these services must be protected from insolvencies of currency exchanges and interruptions of services. To carry out this policy and to insure that customers of community currency exchanges are protected in the event it is determined that a community currency exchange in receivership should be liquidated in accordance with Section 15.1a of this Act, the Secretary Director shall make a distribution of moneys collected by the receiver in the following order of priority: First, allowed claims for the actual necessary expenses of the receivership of the community currency exchange being liquidated, including (a) reasonable receiver fees and receiver's attorney's fees approved by the Secretary Director, (b) all expenses of any preliminary or other examinations into the condition of the community currency exchange or receivership, (c) all expenses incurred by the Director which are incident to possession and control of any property or records of the community currency exchange, and (d) reasonable expenses incurred by the Director as the result of business agreements or contractual arrangements necessary to insure that the services of the community currency exchanges are delivered to the community without interruption. Said business agreements or contractual arrangements may include, but are not limited to, agreements made by the Director, or by the Receiver with the approval of the Director, with banks, money order companies, bonding companies and other types of financial institutions; Second, allowed claims by a purchaser of money orders issued on demand of the community currency exchange being liquidated; Third, allowed claims arising by virtue of and to the extent of the amount a utility customer deposits with the community currency exchange being liquidated which are not remitted to the utility company; Fourth, allowed claims arising by virtue of and to the extent of the amount paid by a purchaser of Illinois license plates, vehicle stickers sold for State and municipal governments in Illinois, and temporary Illinois registration permits purchased at the currency exchange being liquidated; Fifth, allowed unsecured claims for wages or salaries, excluding vacation, severance and sick leave pay earned by employee earned within 90 days prior to the appointment of a Receiver; Sixth, secured claims; Seventh, allowed unsecured claims of any tax, and interest and penalty on the tax; Eighth Seventh, allowed unsecured claims other than a kind specified in paragraph one, two and three of this Section, filed with the Secretary Director within the time the Secretary Director fixes for filing claims; Ninth Eighth, allowed unsecured claims, other than a kind specified in paragraphs one, two and three of this Section filed with the Secretary Director after the time fixed for filing claims by the Secretary Director; Tenth Ninth, allowed creditor claims asserted by an owner, member, or stockholder of the community currency exchange in liquidation; Eleventh, (i) all expenses of any preliminary or other examinations into the condition of the community currency exchange or receivership, (ii) all expenses incurred by the Secretary that are incident to possession and control of any property or records of the community currency exchange, and (iii) reasonable expenses incurred by the Secretary as the result of business agreements or contractual arrangements necessary to insure that the services of the community currency exchanges are delivered to the community without interruption. Said business agreements or contractual arrangements may include, but are not limited to, agreements made by the Secretary, or by the receiver with the approval of the Secretary, with banks, money order companies, bonding companies, and other types of financial institutions; Twelfth Tenth, after one year from the final dissolution of the currency exchange, all assets not used to satisfy allowed claims shall be distributed pro rata to the owner, owners, members, or stockholders of the currency exchange.

The Secretary Director shall pay all claims of equal priority according to the schedule set out above, and shall not pay claims of lower priority until all higher priority claims are satisfied. If insufficient assets are available to meet all claims of equal priority, those assets shall be distributed pro rata among those claims. All unclaimed assets of a currency exchange shall be deposited with the Secretary Director to be paid out by him or her when proper claims therefor are presented to the Secretary Director. If there are funds remaining after the conclusion of a receivership of an abandoned currency exchange, the remaining funds shall be considered unclaimed property and remitted to the State Treasurer under the Uniform Disposition of Unclaimed Property Act.

(Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 405/15.1d) (from Ch. 17, par. 4829)

Sec. 15.1d. At the close of a receivership, the receiver shall turn over to the Secretary Director all books of account and ledgers of such currency exchange for preservation. All records of such receiverships heretofore and hereafter received by the Secretary Director shall be held by him or her for a period of 2 years after the close of the receivership and at the termination of the 2 year period may then be destroyed.

All expenses of the receivership, including reasonable receiver's and attorney's fees approved by the Secretary Director, and all expenses of any preliminary or other examinations into the condition of the community currency exchange or receivership, and all expenses incident to the possession and control of any property or records of the community currency exchange incurred by the Secretary Director shall be paid out of the assets of the community currency exchange. The foregoing expenses shall be paid prior to and ahead of all claims.

(Source: P.A. 83-345.)

(205 ILCS 405/15.2) (from Ch. 17, par. 4831)

Sec. 15.2. No community currency exchange shall determine its affairs and close up its business unless it shall first deposit with the Secretary Director an amount of money equal to the whole of its debts, liabilities and lawful demands against it including the costs and expenses of this proceeding, and shall surrender to the Secretary Director its community currency exchange license, and shall file with the Secretary Director a statement of termination signed by the licensee of such community currency exchange, containing a pronouncement of intent to close up its business and liquidate its liabilities, and also containing a sworn list itemizing in full all such debts, liabilities and lawful demands against it. Corporate licensees shall attach to, and make a part of such statement of termination, a copy of a resolution providing for the determination and closing up of the licensee's affairs, certified by the secretary of such licensee and duly adopted at a shareholders' meeting by the holders of at least two-thirds of the outstanding shares entitled to vote at such meeting. Upon the filing with the Secretary Director of a statement of termination the Secretary Director shall cause notice thereof to be published once each week for three consecutive weeks in a public newspaper of general circulation published in the city or village where such community currency exchange is located, and if no newspaper shall be there published, then in a public newspaper of general circulation nearest to said city or village; and such publication shall give notice that the debts, liabilities and lawful demands against such community currency exchange will be redeemed by the Secretary Director on demand in writing made by the owner thereof, at any time within three years from the date of first publication. After the expiration of such three year period, the Secretary Director shall return to the person or persons designated in the statement of termination to receive such repayment and in the proportion therein specified, any balance of money then remaining in his possession, if any there be, after first deducting therefrom all unpaid costs and expenses incurred in connection with this proceeding. The Secretary Director shall receive for his services, exclusive of costs and expenses, two per cent of any amount up to $5,000.00, and one per cent of any amount in excess of $5,000.00, deposited with him hereunder by any one community currency exchange. Nothing contained herein shall affect or impair the liability of any bonding or insurance company on any bond or insurance policy issued under this Act relating to such community currency exchange.

(Source: Laws 1957, p. 320.)

(205 ILCS 405/16) (from Ch. 17, par. 4832)

Sec. 16. Annual report; investigation; costs.

(a) Each licensee shall annually, on or before the 1st day of March, file a report with the Secretary Director for the calendar year period from January 1st through December 31st, except that the report filed on or before March 15, 1990 shall cover the period from October 1, 1988 through December 31, 1989, (which shall be used only for the official purposes of the Director) giving such relevant information as the Secretary Director may reasonably require concerning, and for the purpose of examining, the business and operations during the preceding fiscal year period of each licensed currency exchange conducted by such licensee within the State. Such report shall be made under oath and shall be in the form prescribed by the Secretary. The Secretary Director and the Director may at any time, and shall at least once in each year, investigate the currency exchange business of any licensee and of every person, partnership, association, limited liability company, and corporation who or which shall be engaged in the business of operating a currency exchange. For that purpose, the Secretary Director shall have free access to the offices and places of business and to such records of all such persons, firms, partnerships, associations, limited liability companies and members thereof, and corporations and to the officers and directors thereof that shall relate to such currency exchange business. The investigation may be conducted in conjunction with representatives of other State agencies or agencies of another state or of the United States as determined by the Secretary Director. The Secretary Director may at any time inspect the locations served by an ambulatory currency exchange, for the purpose of determining whether such currency exchange is complying with the provisions of this Act at each location served. The Secretary Director may require by subpoena the attendance of and examine under oath all persons whose testimony he may require relative to such business, and in such cases the Secretary Director, or any qualified representative of the Secretary Director whom the Secretary Director may designate, may administer oaths to all such persons called as witnesses, and the Secretary Director, or any such qualified representative of the Secretary Director, may conduct such examinations, and there shall be paid to the Secretary Director for each such examination a fee of $250 $225 for each day or part thereof for each qualified representative designated and required to conduct the examination; provided, however, that in the case of an ambulatory currency exchange, such fee shall be $150 $75 for each day or part thereof and shall not be increased by reason of the number of locations served by it.

(b) All information collected by the Department under an examination or investigation of an ambulatory or community currency exchange, including, but not limited to, information collected to investigate any complaint against an ambulatory or community currency exchange filed with the Department, shall be maintained for the confidential use of the Department and shall not be disclosed. The Department may not disclose such information to anyone other than the licensee, law enforcement officials, or other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary or to a party presenting a lawful subpoena to the Department. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by the agency for any purpose to any other agency or person. An order issued by the Department against an ambulatory or community currency exchange shall be a public record and any documents produced in discovery, filed with the arbitrator, or introduced at a hearing shall be a public record, except as otherwise prohibited by law.

(Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)

(205 ILCS 405/17) (from Ch. 17, par. 4833)

Sec. 17. A. (a) Every licensee shall keep and use in his or her business such books, accounts and records as will enable the Secretary Director to determine whether such licensee is complying with the provisions of this Act and with the rules, regulations and directions made by the Secretary Director hereunder.

(b) B. Each licensee shall record, electronically or otherwise, or cause to be recorded the following information with respect to each money order it sells or issues: (1) The amount; (2) the month and year of sale or issuance; and (3) the serial number.

Each licensee shall preserve the record required by this subsection for at least 5 17 years or until the money order to which it pertains is returned to the licensee. Each money order returned to the licensee shall be preserved for not less than 3 years from the month and year of sale or issuance by the licensee. The licensee shall keep the record, or an authentic microfilm copy thereof, required to be preserved by this subsection within this State state at a place readily accessible to the Secretary Director and his or her representatives. If a licensee sells or transfers his or her business at a location or an address, his or her obligations under this paragraph devolve upon the successor licensee and subsequent successor licensees, if any, at such location or address. If a licensee ceases to do business in this state, he or she shall deposit the records and money orders he or she is required to preserve, with the Secretary Director.

(Source: Laws 1963, p. 1634.)

(205 ILCS 405/19) (from Ch. 17, par. 4835)

Sec. 19. The Secretary Director may make and enforce such reasonable rules, relevant regulations, directions, orders, decisions, and findings as the execution and enforcement of the provisions of this Act require and as are not inconsistent within this Act may be necessary for the execution and enforcement of this Act and the purposes sought to be attained herein. All such rules regulations, directions, orders, decisions and findings shall be filed and entered by the Secretary Director in an indexed permanent book or record, or electronic record, with the effective date thereof suitably indicated, and such book or record shall be a public document. All rules regulations and directions, which are of a general character, shall be made available in electronic form to all licensees within 10 days after filing and all licenses shall receive by mail notice of any changes printed and copies thereof mailed to all licensees within 10 days after filing as aforesaid. Copies of all findings, orders and decisions shall be mailed to the parties affected thereby by United States mail within 5 days of such filing.

(Source: Laws 1957, p. 320.)

(205 ILCS 405/19.3) (from Ch. 17, par. 4838)

Sec. 19.3. (A) The General Assembly hereby finds and declares that : community currency exchanges and ambulatory currency exchanges provide important and vital services to Illinois citizens. In so doing, they transact extensive business involving check cashing and the writing of money orders in Illinois communities in which banking services are generally unavailable. Customers of currency exchanges who receive these services must be protected from being charged unreasonable and unconscionable rates for cashing checks and purchasing money orders. The Illinois Department of Financial and Professional Regulation Institutions has the responsibility for regulating the operations of currency exchanges and has the expertise to determine reasonable maximum rates to be charged for check cashing and money order purchases. Therefore, it is in the public interest, convenience, welfare and good to have the Department establish reasonable maximum rate schedules for check cashing and the issuance of money orders and to require community and ambulatory currency exchanges to prominently display to the public the fees charged for all services. The Secretary Director shall review, each year, the cost of operation of the Currency Exchange Section Division and the revenue generated from currency exchange examinations and report to the General Assembly if the need exists for an increase in the fees mandated by this Act to maintain the Currency Exchange Section Division at a fiscally self-sufficient level. The Secretary Director shall include in such report the total amount of funds remitted to the State and delivered to the State Treasurer by currency exchanges pursuant to the Uniform Disposition of Unclaimed Property Act.

(B) The Secretary Director shall, by rules adopted in accordance with the Illinois Administrative Procedure Act, expeditiously formulate and issue schedules of reasonable maximum rates which can be charged for check cashing and writing of money orders by community currency exchanges and ambulatory currency exchanges.

(1) In determining the maximum rate schedules for the purposes of this Section the Secretary Director shall take into account:

(a) Rates charged in the past for the cashing of checks and the issuance of money orders by community and ambulatory currency exchanges.

(b) Rates charged by banks or other business entities for rendering the same or similar services and the factors upon which those rates are based.

(c) The income, cost and expense of the operation of currency exchanges.

(d) Rates charged by currency exchanges or other similar entities located in other states for the same or similar services and the factors upon which those rates are based.

(e) Rates charged by the United States Postal Service for the issuing of money orders and the factors upon which those rates are based.

(f) A reasonable profit for a currency exchange operation.

(2) (a) The schedule of reasonable maximum rates established pursuant to this Section may be modified by the Secretary Director from time to time pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act.

(b) Upon the filing of a verified petition setting forth allegations demonstrating reasonable cause to believe that the schedule of maximum rates previously issued and promulgated should be adjusted, the Secretary Director shall expeditiously:

(i) reject the petition if it fails to demonstrate reasonable cause to believe that an adjustment is necessary; or

(ii) conduct such hearings, in accordance with this Section, as may be necessary to determine whether the petition should be granted in whole or in part.

(c) No petition may be filed pursuant to subparagraph (a) of paragraph (2) of subsection (B) unless:

(i) at least nine months have expired since the last promulgation of schedules of maximum rates; and

(ii) at least one-fourth of all community currency exchange licensees join in a petition or, in the case of ambulatory currency exchanges, a licensee or licensees authorized to serve at least 100 locations join in a petition.

(3) Any currency exchange may charge lower fees than those of the applicable maximum fee schedule after filing with the Secretary Director a schedule of fees it proposes to use.

(Source: P.A. 91-16, eff. 7-1-99.)

(205 ILCS 405/19.4) (from Ch. 17, par. 4839)

Sec. 19.4. The fees charged by community and ambulatory currency exchanges for rendering any service authorized by this Act shall be prominently displayed on the premises of the community currency exchange or at the location served by the ambulatory currency exchange in such fashion as shall be required by the Secretary Director.

(Source: P.A. 81-964.)

(205 ILCS 405/20) (from Ch. 17, par. 4840)

Sec. 20. Every person having taken an oath in any proceeding or matter wherein an oath is required by this Act, who shall swear willfully wilfully, corruptly or falsely in a matter material to the issue or point in question, or shall suborn any other person to swear as aforesaid, shall be guilty of perjury or subornation of perjury, as the case may be.

(Source: Laws 1943, vol. 1, p. 233.)

(205 ILCS 405/21) (from Ch. 17, par. 4841)

Sec. 21. Except as otherwise provided for in this Act, whenever the Secretary Director is required to give notice to any applicant or licensee, such requirement shall be complied with if, within the time fixed herein, such notice shall be sent via telefacsimile or enclosed in an envelope plainly addressed to such applicant or licensee, as the case may be, at the telephone number or address set forth in the application or license or as otherwise designated by the licensee, as the case may be, United States postage fully prepaid, and deposited, registered, in the United States mail.

(Source: Laws 1957, p. 320.)

(205 ILCS 405/22.01) (from Ch. 17, par. 4843)

Sec. 22.01. All final administrative decisions of the Secretary Director hereunder shall be subject to judicial review pursuant to the provisions of the Administrative Review Law, and all amendments and modifications thereof, and the rules adopted pursuant thereto. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure. The person seeking judicial review shall pay to the Secretary Director the costs of preparing and certifying the record of proceedings before the Secretary Director.

(Source: P.A. 82-783.)

(205 ILCS 405/22.03) (from Ch. 17, par. 4845)

Sec. 22.03. There shall be a Board of Currency Exchange Advisers composed of 7 members, no more than 4 of whom may be members of the same political party, to be appointed by the Governor as follows: 3 persons who are familiar with and associated in the field of currency exchanges, 2 of whom shall have been actively engaged in the management of currency exchanges for at least 5 years prior to the date of appointment; one person who is a public aid recipient at the time of appointment; and 3 persons who shall represent the public. In making the appointments of the members to represent the public, the Governor shall consider the needs of those people served by currency exchanges. A chairman of the Advisory Board shall be chosen bi-annually from the membership of the Advisory Board by a majority of the members of the Board at the first meeting of the Board in each odd numbered year. Initial members shall be appointed to the Board as follows:

The Governor shall appoint a public aid recipient to the first vacancy among members representing the public that occurs or exists after the effective date of this amendatory Act of 1991.

Two members to serve until the third Monday in January, 1959;

Three members to serve until the third Monday in January, 1961.

As soon as may be practicable after the effective date of this amendatory Act of 1977, 2 persons shall be appointed as members representing the public, one for a term expiring on the third Monday in January, 1979 and one for a term expiring on the third Monday in January, 1981. When the terms of the members serving on the effective date of this amendatory Act expire in 1979 and 1981, one of those appointed as a successor member in each of those years shall be a member representing the public.

As terms of members so appointed expire, their successors shall be appointed for terms to expire the third Monday in January 4 years thereafter. All members shall serve until their respective successors are appointed and qualified.

Meetings of the Advisory Board created in this Act shall be held on the call of the Chairman thereof or upon call signed by any 5 members thereof, or upon call by the Secretary Director. A majority of the members of the Board shall constitute a quorum.

Members of the Advisory Board shall receive no compensation for their services, but shall be reimbursed for necessary expenses.

In addition to the powers and duties created elsewhere in this Act, the Advisory Board shall have the following powers and duties:

(1) To obtain from the Secretary Director such reports concerning the supervision and regulation of currency exchanges as they consider desirable.

(2) To advise the Governor and the Secretary Director on problems concerning currency exchanges.

(3) To foster the interest and cooperation of currency exchanges in improvement of their services to the people of the State of Illinois.

(4) To advise the Governor and the Secretary Director upon appointments and employment of personnel in connection with the supervision and regulation of currency exchanges.

(Source: P.A. 87-258.)

(205 ILCS 405/25) (from Ch. 17, par. 4848)

Sec. 25. Any community currency exchange in existence upon the date of the passage of this Act shall be approved by the Secretary Director as to location, if all other requirements set forth in this Act shall have been complied with.

(Source: Laws 1957, p. 320.)

(205 ILCS 405/29.5 new)

Sec. 29.5. Cease and desist against unlicensed activity. The Secretary may issue a cease and desist order to any person doing business without the required license when, in the opinion of the Secretary, the person is violating or is about to violate any provision of this Act or any rule or requirement imposed in writing by the Department.

The cease and desist order permitted by this Section may be prior to a hearing.

The Secretary shall serve notice of his or her action, including, but not limited to, a statement of reasons for the action, either personally or by certified mail, return receipt requested. Service by certified mail shall be deemed completed when notice is deposited in the U.S. mail.

Within 10 days after service of a cease and desist order under this Section, the person may request, in writing, a hearing under Section 10.1 of this Act. If it is determined that the Secretary has the authority to issue the cease and desist order under this Section, he or she may issue such orders as reasonably necessary to correct, eliminate, or remedy such conduct.

The powers vested in the Secretary by this Section are additional to any and all other powers and remedies vested in the Secretary by law, and nothing in this Section shall be construed as requiring that the Secretary shall employ the power conferred in this Section instead of or as a condition precedent to the exercise of any other power or remedy vested in the Secretary.

Any person doing business without the required license shall pay the actual costs of the hearing.

(205 ILCS 405/9 rep.)

(205 ILCS 405/10 rep.)

(205 ILCS 405/18 rep.)

Section 10. The Currency Exchange Act is amended by repealing Sections 9, 10, and 18.