Sen. Elgie R. Sims, Jr.

Filed: 5/17/2023





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2    AMENDMENT NO. ______. Amend House Bill 779 by replacing
3everything after the enacting clause with the following:
"Article 1. General Provisions

5    Section 1-1. Short title. This Act may be cited as the
6Pawnbroker Regulation Act of 2023.
7    Section 1-5. Definitions.
8    As used in this Act:
9    "Applicant" means a person applying for a license pursuant
10to this Act.
11    "Department" means the Department of Financial and
12Professional Regulation.
13    "Licensee" means a person licensed pursuant to this Act.
14    "Pawn" means the advance of money on the deposit or pledge
15of physically delivered personal property, other than property



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1the ownership of which is subject to a legal dispute or other
2exempt property or instruments.
3    "Pawnbroker" means every individual or business entity
5        (1) advances money on the pledge of tangible personal
6    property, other than securities, printed evidence of
7    indebtedness, or printed evidence of ownership of the
8    personal property; or
9        (2) deals in the purchase of personal property on the
10    condition of selling the property back again at a
11    stipulated price.
12    "Pawn customer" means a person who pawns or pledges and
13physically delivers personal property in exchange for money.
14    "Secretary" means the Secretary of Financial and
15Professional Regulation, or his or her designee, including the
16Director of the Division of Banking of the Department of
17Financial and Professional Regulation.
Article 5. Licensure

19    Section 5-1. Scope; number of pawnbroker licenses.
20    (a) It is unlawful for any person to operate as a
21pawnbroker in Illinois except as authorized by this Act and
22without first having obtained a license in accordance with
23this Act.
24    (b) The business of a pawnbroker does not include advances



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1of money secured by a deposit or pledge of title to personal
2property or motor vehicles.
3    (c) There shall not be more than 250 active pawnbroker
4licenses at any one time within the State of Illinois. There
5shall not be more than 150 active pawnbroker licenses issued
6for the counties of Cook, DuPage, Kane, Lake, McHenry, and
7Will at any one time.
8    Section 5-5. Licensee name.
9    (a) No person, partnership, association, corporation,
10limited liability company, or other entity engaged in the
11business regulated by this Act shall operate the business
12under a name other than the real names of the entity and
13individuals conducting the business. The business may in
14addition operate under an assumed corporate name pursuant to
15the Business Corporation Act of 1983, an assumed limited
16liability company name pursuant to the Limited Liability
17Company Act, or an assumed business name pursuant to the
18Assumed Business Name Act.
19    (b) It is unlawful for an individual or business entity to
20conduct business in this State using the word "pawn",
21"pawnshop", or "pawnbroker" in connection with the business or
22to transact business in this State in a manner that has a
23substantial likelihood of misleading the public by implying
24that the business is a pawnshop, without first obtaining a
25license from the Secretary.



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1    Section 5-10. Application process; investigation; fees.
2    (a) The Secretary shall issue a license upon completion of
3all of the following:
4        (1) The filing of an application for license with the
5    Secretary or the Nationwide Multistate Licensing System
6    and Registry as approved by the Secretary.
7        (2) The filing with the Secretary of a listing of
8    judgments entered against, and bankruptcy petitions by,
9    the license applicant for the preceding 10 years.
10        (3) The payment, in certified funds, of the following
11    investigation and application fees:
12            (A) the fees for licensure shall be a $2,000
13        application fee and an additional $800 fee for
14        investigation. These fees are nonrefundable; and
15            (B) the fee for an application renewal shall be
16        $2,000. The fee is nonrefundable.
17        (4) An investigation of the application, which
18    investigation must allow the Secretary to issue positive
19    findings stating that the financial responsibility,
20    experience, character, and general fitness of the license
21    applicant and of the members thereof if the license
22    applicant is a partnership or association, of the officers
23    and directors thereof if the license applicant is a
24    corporation, and of the managers and members that retain
25    any authority or responsibility under the operating



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1    agreement if the license applicant is a limited liability
2    company, are such as to command the confidence of the
3    community and to warrant belief that the business will be
4    operated honestly, fairly, and efficiently within the
5    purpose of this Act; if the Secretary does not so find, he
6    or she shall not issue the license, and he or she shall
7    notify the license applicant of the denial.
8    The Secretary may impose conditions on a license if the
9Secretary determines that those conditions are necessary or
10appropriate. These conditions shall be imposed in writing and
11shall continue in effect for the period prescribed by the
13    (b) All licenses shall be issued to the license applicant.
14Upon issuance of the license, a pawnbroker licensee shall be
15authorized to engage in the business regulated by this Act.
16The license shall remain in full force and effect until it
17expires without renewal, is surrendered by the licensee, or
18revoked or suspended.
19    Section 5-15. Application form.
20    (a) Application for a pawnbroker license must be made in
21accordance with Section 5-20 and, if applicable, in accordance
22with requirements of the Nationwide Multistate Licensing
23System and Registry. The application shall be in writing,
24under oath or affirmation, and on a form obtained from and
25prescribed by the Secretary, or may be submitted



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1electronically, with attestation, to the Nationwide Multistate
2Licensing System and Registry.
3    (b) The application shall contain the name, complete
4business, and residential address or addresses of the license
5applicant. If the license applicant is a partnership,
6association, corporation, or other form of business
7organization, the application shall contain the names and
8complete business and residential addresses of each member,
9director, and principal officer thereof. The application shall
10also include a description of the activities of the license
11applicant in such detail and for such periods as the Secretary
12may require, including all of the following:
13        (1) an affirmation of financial solvency noting such
14    capitalization requirements as may be required by the
15    Secretary and access to such credit as may be required by
16    the Secretary;
17        (2) an affirmation that the license applicant or its
18    members, directors, or principals, as may be appropriate,
19    are at least 18 years of age;
20        (3) information as to the character, fitness,
21    financial and business responsibility, background,
22    experience, and criminal record of any:
23            (A) person, entity, or ultimate equitable owner
24        that owns or controls, directly or indirectly, 10% or
25        more of any class of stock of the license applicant;
26            (B) person, entity, or ultimate equitable owner



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1        that is not a depository institution, as defined in
2        Section 1007.50 of the Savings Bank Act, that lends,
3        provides, or infuses, directly or indirectly, in any
4        way, funds to or into a license applicant in an amount
5        equal to or more than 10% of the license applicant's
6        net worth;
7            (C) person, entity, or ultimate equitable owner
8        that controls, directly or indirectly, the election of
9        25% or more of the members of the board of directors of
10        a license applicant; or
11            (D) person, entity, or ultimate equitable owner
12        that the Secretary finds influences management of the
13        license applicant; the provisions of this subsection
14        shall not apply to a public official serving on the
15        board of directors of a State guaranty agency;
16        (4) upon written request by the licensee and
17    notwithstanding the provisions of paragraphs (1) and (2)
18    of this subsection, the Secretary may permit the licensee
19    to omit all or part of the information required by those
20    paragraphs if, instead of the omitted information, the
21    licensee submits an affidavit stating that the information
22    submitted on the licensee's previous renewal application
23    is still true and accurate; then the Secretary may adopt
24    rules prescribing the form and content of the affidavit
25    that are necessary to accomplish the purposes of this
26    Section; and



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1        (5) such other information as required by rules of the
2    Secretary.
3    Section 5-20. Pawnbroker license application and issuance.
4    (a) Applicants for a license shall apply in a form
5prescribed by the Secretary. Each form shall contain content
6as set forth by rule, regulation, instruction, or procedure of
7the Department or Secretary and may be changed or updated as
8necessary by the Department or Secretary in order to carry out
9the purposes of this Act.
10    (b) In order to fulfill the purposes of this Act, the
11Secretary is authorized to establish relationships or
12contracts with the Nationwide Multistate Licensing System and
13Registry or other entities designated by the Nationwide
14Multistate Licensing System and Registry to collect and
15maintain records and process transaction fees or other fees
16related to licensees or other persons subject to this Act.
17    (c) In connection with an application for licensing, the
18applicant may be required, at a minimum, to furnish to the
19Nationwide Multistate Licensing System and Registry
20information concerning the applicant's identity, including:
21        (1) fingerprints for submission to the Federal Bureau
22    of Investigation or any governmental agency or entity
23    authorized to receive such information for a State,
24    national, and international criminal history background
25    check; and



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1        (2) personal history and experience in a form
2    prescribed by the Nationwide Multistate Licensing System
3    and Registry, including the submission of authorization
4    for the Nationwide Multistate Licensing System and
5    Registry and the Secretary to obtain:
6            (A) an independent credit report obtained from a
7        consumer reporting agency described in Section 603(p)
8        of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p);
9        and
10            (B) information related to any administrative,
11        civil, or criminal findings by any governmental
12        jurisdiction.
13    (d) For the purposes of this Section, and in order to
14reduce the points of contact that the Federal Bureau of
15Investigation may have to maintain for purposes of subsection
16(c), the Secretary may use the Nationwide Multistate Licensing
17System and Registry as a channeling agent for requesting
18information from and distributing information to the federal
19Department of Justice or any governmental agency.
20    (e) For the purposes of this Section, and in order to
21reduce the points of contact that the Secretary may have to
22maintain for purposes of paragraph (2) of subsection (c), the
23Secretary may use the Nationwide Multistate Licensing System
24and Registry as a channeling agent for requesting and
25distributing information to and from any source as directed by
26the Secretary.



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1    Section 5-25. Prohibited acts and practices for licensees.
2    (a) It is a violation of this Act for a licensee subject to
3this Act to:
4        (1) fail to file with the Secretary or Nationwide
5    Multistate Licensing System and Registry, as applicable,
6    when due, any report or reports that it is required to file
7    under any of the provisions of this Act;
8        (2) commit a crime against the law of this State, any
9    other state, or of the United States involving moral
10    turpitude or fraudulent or dishonest dealing, and that no
11    final judgment has been entered against it in a civil
12    action upon grounds of fraud, misrepresentation, or deceit
13    that has not been previously reported to the Secretary;
14        (3) engage in any conduct that would be cause for
15    denial of a license;
16        (4) become insolvent;
17        (5) submit an application for a license under this Act
18    that contains a material misstatement;
19        (6) demonstrate by course of conduct, negligence, or
20    incompetence in performing any act for which it is
21    required to hold a license under this Act;
22        (7) fail to advise the Secretary in writing or the
23    Nationwide Multistate Licensing System and Registry, as
24    applicable, of any changes to the information submitted on
25    the most recent application for license or averments of



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1    record within 30 days after the change; the written notice
2    must be signed in the same form as the application for the
3    license being amended;
4        (8) fail to comply with the provisions of this Act and
5    with any lawful order, rule, or regulation made or issued
6    under the provisions of this Act;
7        (9) fail to submit to periodic examination by the
8    Secretary as required by this Act; and
9        (10) fail to advise the Secretary in writing of
10    judgments entered against and bankruptcy petitions by the
11    license applicant within 5 days after the occurrence.
12    (b) A licensee who fails to comply with this Section or
13otherwise violates any of the provisions of this Section shall
14be subject to the penalties in Section 30-30.
15    Section 5-30. Refusal to issue license. The Secretary
16shall refuse to issue or renew a license if:
17        (1) it is determined that the applicant is not in
18    compliance with any provisions of this Act;
19        (2) there is substantial continuity between the
20    applicant and any violator of this Act; or
21        (3) the Secretary cannot make the findings specified
22    in subsection (a) of Section 5-10.
23    Section 5-35. License issuance and renewal; fees.
24    (a) Licenses shall be renewed every year using the common



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1renewal date of the Nationwide Multistate Licensing System and
2Registry, as adopted by the Secretary. Properly completed
3renewal application forms and filing fees may be received by
4the Secretary 60 days before the license expiration date, but,
5to be deemed timely, the completed renewal application forms
6and filing fees must be received by the Secretary no later than
730 days before the license expiration date.
8    (b) It shall be the responsibility of each licensee to
9accomplish renewal of its license. Failure by a licensee to
10submit a properly completed renewal application form and fees
11in a timely fashion, absent a written extension from the
12Secretary, shall result in the license becoming inactive.
13    (c) No activity regulated by this Act shall be conducted
14by the licensee when a license becomes inactive. An inactive
15license may be reactivated by the Secretary upon payment of
16the renewal fee and payment of a reactivation fee equal to the
17renewal fee.
18    (d) A licensee ceasing an activity regulated by this Act
19and desiring to no longer be licensed shall so inform the
20Secretary in writing and, at the same time, convey any license
21issued and all other symbols or indicia of licensure. The
22licensee shall include a plan for the withdrawal from
23regulated business, including a timetable for the disposition
24of the business, and comply with the surrender guidelines or
25requirements of the Secretary. Upon receipt of such written
26notice, the Secretary shall post the cancellation or issue a



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1certified statement canceling the license.
2    (e) The expenses of administering this Act, including
3investigations and examinations provided for in this Act,
4shall be borne by and assessed against entities regulated by
5this Act. Subject to the limitations set forth in Section
65-10, the Department shall establish fees by rule in at least
7the following categories:
8            (1) investigation of licensees and license
9        applicant fees;
10            (2) examination fees;
11            (3) contingent fees; and
12            (4) such other categories as may be required to
13        administer this Act.
Article 10. Supervision

15    Section 10-5. Functions; powers; duties.
16    The functions, powers, and duties of the Secretary shall
17include the following:
18        (1) to issue or refuse to issue any license as
19    provided by this Act;
20        (2) to revoke or suspend for cause any license issued
21    under this Act;
22        (3) to keep records of all licenses issued under this
23    Act;
24        (4) to receive, consider, investigate, and act upon



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1    complaints made by any person in connection with any
2    pawnbroker licensee in this State;
3        (5) to prescribe the forms of and receive:
4            (A) applications for licenses; and
5            (B) all reports and all books and records required
6        to be made by any licensee under this Act;
7        (6) to adopt rules necessary and proper for the
8    administration of this Act;
9        (7) to subpoena documents and witnesses and compel
10    their attendance and production, to administer oaths and
11    affirmations, and to require the production of any books,
12    papers, or other materials relevant to any inquiry
13    authorized by this Act;
14        (8) to issue orders against any person, including, but
15    not limited to, any officer, director, employee,
16    prospective employee, or agent of the licensee, if the
17    Secretary has reasonable cause to believe that an unsafe,
18    unsound, or unlawful practice has occurred, is occurring,
19    or is about to occur; if any person has violated, is
20    violating, or is about to violate any law, rule, or
21    written agreement with the Secretary; or for the purpose
22    of administering the provisions of this Act and any rule
23    adopted in accordance with this Act;
24        (9) to address any inquiries to any licensee, or the
25    officers thereof, in relation to its activities and
26    conditions, or any other matter connected with its



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1    affairs, and it shall be the duty of any licensee or person
2    so addressed to promptly reply in writing to those
3    inquiries; the Secretary may also require reports from any
4    licensee at any time the Secretary may deem desirable;
5        (10) to examine the books and records of every
6    licensee under this Act;
7        (11) to enforce provisions of this Act;
8        (12) to levy fees, fines, and charges for services
9    performed in administering this Act; the aggregate of all
10    fees collected by the Secretary on and after the effective
11    date of this Act shall be paid promptly after receipt,
12    accompanied by a detailed statement thereof, into the
13    Pawnbroker Regulation Fund under Section 10-10; the
14    amounts deposited into that Fund shall be used for the
15    ordinary and contingent expenses of the Department;
16    nothing in this Act shall prevent the continuation of the
17    practice of paying expenses involving salaries,
18    retirement, social security, and State-paid insurance of
19    State officers by appropriation from the General Revenue
20    Fund;
21        (13) to appoint examiners, supervisors, experts, and
22    special assistants as needed to effectively and
23    efficiently administer this Act;
24        (14) to conduct hearings for the purpose of:
25            (A) appeals of orders of the Secretary;
26            (B) suspensions or revocations of licenses, or



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1        fining of licensees;
2            (C) investigating complaints against licensees;
3        and
4            (D) carrying out the purposes of this Act;
5        (15) to exercise exclusive visitorial power over a
6    licensee unless otherwise authorized by this Act or as
7    vested in the courts;
8        (16) to assign on an emergency basis an examiner or
9    examiners to monitor the affairs of a licensee with
10    whatever frequency the Secretary determines appropriate
11    and to charge the licensee for reasonable and necessary
12    expenses of the Secretary, if in the opinion of the
13    Secretary an emergency exists or appears likely to occur;
14        (17) to impose civil penalties of up to $50 per day
15    against a licensee for failing to respond to a regulatory
16    request or reporting requirement;
17        (18) to enter into agreements in connection with the
18    Nationwide Multistate Licensing System and Registry; and
19        (19) to perform any other lawful acts necessary or
20    desirable to carry out the purposes and provisions of this
21    Act.
22    Section 10-10. Pawnbroker Regulation Fund. The Pawnbroker
23Regulation Fund, which was established by Public Act 90-477,
24shall continue to be a special fund in the State treasury. All
25moneys received by the Secretary under this Act in conjunction



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1with the provisions relating to pawnbrokers shall be deposited
2into the Pawnbroker Regulation Fund and used for the
3administration of this Act. Moneys in the Pawnbroker
4Regulation Fund may be transferred to the Professions Indirect
5Cost Fund, as authorized under Section 2105-300 of the
6Department of Professional Regulation Law of the Civil
7Administrative Code of Illinois.
8    Section 10-15. Examination; prohibited activities.
9    (a) The business affairs of a licensee under this Act
10shall be examined for compliance with this Act as often as the
11Secretary deems necessary and proper. The Department may adopt
12rules with respect to the frequency and manner of examination.
13The Secretary shall appoint a suitable person to perform such
14examination. The Secretary and his or her appointees may
15examine the entire books, records, documents, and operations
16of each licensee and its subsidiary, affiliate, or agent, and
17may examine any of the licensee's or its subsidiary's,
18affiliate's, or agent's officers, directors, employees, and
19agents under oath or affirmation.
20    (b) The Secretary shall prepare a sufficiently detailed
21report of each licensee's examination, shall issue a copy of
22the report to each licensee's principals, officers, or
23directors, and shall take appropriate steps to ensure
24correction of violations of this Act.
25    (c) Affiliates of a licensee shall be subject to



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1examination by the Secretary on the same terms as the
2licensee, but only if reports from or examination of a
3licensee provides for documented evidence of unlawful activity
4between a licensee and affiliate benefiting, affecting, or
5deriving from the activities regulated by this Act.
6    (d) The expenses of any examination of the licensee and
7affiliates shall be borne by the licensee and assessed by the
8Secretary as may be established by rule.
9    (e) Upon completion of the examination, the Secretary
10shall issue a report to the licensee. All confidential
11supervisory information, including the examination report and
12the work papers of the report, shall belong to the Secretary's
13office and may not be disclosed to anyone other than the
14licensee, law enforcement officials or other regulatory
15agencies that have an appropriate regulatory interest as
16determined by the Secretary, or to a party presenting a lawful
17subpoena to the Department. The Secretary may, through the
18Attorney General, immediately appeal to the court of
19jurisdiction the disclosure of such confidential supervisory
20information and seek a stay of the subpoena pending the
21outcome of the appeal. Reports required of licensees by the
22Secretary under this Act and results of examinations performed
23by the Secretary under this Act shall be the property of only
24the Secretary, but may be shared with the licensee. Access
25under this Act to the books and records of each licensee shall
26be limited to the Secretary and his or her agents as provided



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1in this Act and to the licensee and its authorized agents and
2designees. No other person shall have access to the books and
3records of a licensee under this Act. Any person upon whom a
4demand for production of confidential supervisory information
5is made, whether by subpoena, order, or other judicial or
6administrative process, must withhold production of the
7confidential supervisory information and must notify the
8Secretary of the demand, at which time the Secretary is
9authorized to intervene for the purpose of enforcing the
10limitations of this Section or seeking the withdrawal or
11termination of the attempt to compel production of the
12confidential supervisory information. The Secretary may impose
13any conditions and limitations on the disclosure of
14confidential supervisory information that are necessary to
15protect the confidentiality of that information. Except as
16authorized by the Secretary, no person obtaining access to
17confidential supervisory information may make a copy of the
18confidential supervisory information. The Secretary may
19condition a decision to disclose confidential supervisory
20information on entry of a protective order by the court or
21administrative tribunal presiding in the particular case or on
22a written agreement of confidentiality. In a case in which a
23protective order or agreement has already been entered between
24parties other than the Secretary, the Secretary may
25nevertheless condition approval for release of confidential
26supervisory information upon the inclusion of additional or



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1amended provisions in the protective order. The Secretary may
2authorize a party who obtained the records for use in one case
3to provide them to another party in another case, subject to
4any conditions that the Secretary may impose on either or both
5parties. The requester shall promptly notify other parties to
6a case of the release of confidential supervisory information
7obtained and, upon entry of a protective order, shall provide
8copies of confidential supervisory information to the other
10    (f) The Secretary and employees of the Department shall be
11subject to the restrictions provided in Section 2.5 of the
12Division of Banking Act, including, without limitation, the
13restrictions on:
14        (1) owning shares of stock or holding any other equity
15    interest in an entity regulated under this Act or in any
16    corporation or company that owns or controls an entity
17    regulated under this Act;
18        (2) being an officer, director, employee, or agent of
19    an entity regulated under this Act; and
20        (3) obtaining a pawn or accepting a gratuity from an
21    entity regulated under this Act.
22    Section 10-20. Subpoena power of the Secretary.
23    (a) The Secretary shall have the power to issue and to
24serve subpoenas and subpoenas duces tecum to compel the
25attendance of witnesses and the production of all books,



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1accounts, records, and other documents and materials relevant
2to an examination or investigation. The Secretary, or his or
3her duly authorized representative, shall have power to
4administer oaths and affirmations to any person.
5    (b) In the event of noncompliance with a subpoena or
6subpoena duces tecum issued or caused to be issued by the
7Secretary, the Secretary may, through the Attorney General,
8petition the circuit court of the county in which the person
9subpoenaed resides or has its principal place of business for
10an order requiring the subpoenaed person to appear and testify
11and to produce such books, accounts, records, and other
12documents as are specified in the subpoena duces tecum. The
13court may grant injunctive relief restraining the person from
14advertising, promoting, soliciting, entering into, offering to
15enter into, continuing, or completing any pawn transaction.
16The court may grant other relief, including, but not limited
17to, the restraint, by injunction or appointment of a receiver,
18of any transfer, pledge, assignment, or other disposition of
19the person's assets or any concealment, alteration,
20destruction, or other disposition of books, accounts, records,
21or other documents and materials as the court deems
22appropriate, until the person has fully complied with the
23subpoena or subpoena duces tecum and the Secretary has
24completed an investigation or examination.
25    (c) If it appears to the Secretary that the compliance
26with a subpoena or subpoena duces tecum issued or caused to be



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1issued by the Secretary pursuant to this Section is essential
2to an investigation or examination, the Secretary, in addition
3to the other remedies provided for in this Act, may, through
4the Attorney General, apply for relief to the circuit court of
5the county in which the subpoenaed person resides or has its
6principal place of business. The court shall thereupon direct
7the issuance of an order against the subpoenaed person
8requiring sufficient bond conditioned on compliance with the
9subpoena or subpoena duces tecum. The court shall cause to be
10endorsed on the order a suitable amount of bond or payment
11pursuant to which the person named in the order shall be freed,
12having a due regard to the nature of the case.
13    (d) In addition, the Secretary may, through the Attorney
14General, seek a writ of attachment or an equivalent order from
15the circuit court having jurisdiction over the person who has
16refused to obey a subpoena, who has refused to give testimony,
17or who has refused to produce the matters described in the
18subpoena duces tecum.
19    Section 10-25. Inspection of records and reports required
20of licensee.
21    (a) Inspection of records.
22        (1) The book or computer records, as well as every
23    article or other thing of value so pawned or pledged,
24    shall at all times be open to the inspection of the
25    Secretary, the sheriff of the county, his deputies, or any



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1    members of the police force of any city in the county in
2    which such pawnbroker does business. In addition, the
3    Secretary shall be authorized to inspect the books or
4    records of any business he or she has reasonable cause to
5    believe is conducting pawn transactions and should be
6    licensed under this Act.
7        (2) The book or computer records, pawn tickets, or any
8    other records required by the Secretary under this Act or
9    any rule adopted in accordance with this Act shall be
10    maintained for a period of 3 years after the date on which
11    the record or ticket was prepared. These records and
12    tickets shall be open to inspection of the Secretary at
13    all times during the 3-year period.
14    (b) Daily report.
15        (1) Except as provided in paragraph (2) of this
16    subsection, it shall be the duty of every pawnbroker to
17    make out and deliver to the sheriff of the county in which
18    such pawnbroker does business, on each day before noon, a
19    legible and exact copy from the standard record book, as
20    required in subsection (a) of Section 15-25, that lists
21    all personal property and any other valuable thing
22    received on deposit or purchased during the preceding day,
23    including the exact time when received or purchased, and a
24    description of the person or person by whom left in
25    pledge, or from whom the same were purchased; however, in
26    cities or towns having 25,000 or more inhabitants, a copy



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1    of the report shall at the same time also be delivered to
2    the superintendent of police or the chief police officer
3    of such city or town. The report may be made by computer
4    printout or input memory device if the format has been
5    approved by the local law enforcement agency.
6        (2) In counties with more than 3,000,000 inhabitants,
7    a pawnbroker must provide the daily report to the sheriff
8    only if the pawnshop is located in an unincorporated area
9    of the county. Pawnbrokers located in cities or towns in
10    such counties must deliver such reports to the
11    superintendent of police or the chief police officer of
12    the city or town.
13    (c) Report to the Secretary. The Secretary, as often as
14the Secretary shall deem necessary or proper, may require a
15pawnshop to submit a full and detailed report of its
16operations including, but not limited to, the number of pawns
17made, the amount advanced on pawn transactions, the number and
18amount of pawns surrendered to law enforcement, and any
19information required for purposes of reporting pursuant to
20Section 10-60. The Secretary shall prescribe the form of the
21report and establish the date by which the report must be
23    Section 10-30. Suspension; revocation of licenses; fines.
24    (a) Upon written notice to a licensee, the Secretary may
25suspend or revoke any license issued pursuant to this Act if,



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1in the notice, he or she makes a finding of one or more of the
3        (1) that through separate acts or an act or a course of
4    conduct, the licensee has violated any provisions of this
5    Act, any rule adopted by the Department, or any other law,
6    rule, or regulation of this State or the United States;
7        (2) that any fact or condition exists that, if it had
8    existed at the time of the original application for the
9    license, would have warranted the Secretary in refusing
10    originally to issue the license; or
11        (3) that if a licensee is not an individual, any
12    ultimate equitable owner, officer, director, or member of
13    the licensed partnership, association, corporation, or
14    other entity has acted or failed to act in a way that would
15    be cause for suspending or revoking a license to that
16    party as an individual.
17    (b) No license shall be suspended or revoked, except as
18provided in this Section, nor shall any licensee be fined
19without notice of his or her right to a hearing as provided in
20Section 10-75.
21    (c) The Secretary, on good cause shown that an emergency
22exists, may suspend any license for a period not exceeding 180
23days, pending investigation.
24    (d) The provisions of subsection (d) of Section 5-35 shall
25not affect a licensee's civil or criminal liability for acts
26committed before surrender of a license.



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1    (e) No revocation, suspension, or surrender of any license
2shall impair or affect the obligation of any preexisting
3lawful contract between the licensee and any person.
4    (f) Every license issued under this Act shall remain in
5force and effect until the license expires without renewal, is
6surrendered, is revoked, or is suspended in accordance with
7the provisions of this Act, but the Secretary shall have
8authority to reinstate a suspended license or to issue a new
9license to a licensee whose license has been revoked if no fact
10or condition then exists which would have warranted the
11Secretary in refusing originally to issue that license under
12this Act.
13    (g) Whenever the Secretary revokes or suspends a license
14issued pursuant to this Act or fines a licensee under this Act,
15he or she shall execute a written order to that effect. The
16Secretary shall post notice of the order on an agency website
17maintained by the Secretary or on the Nationwide Multistate
18Licensing System and Registry and shall serve a copy of the
19order upon the licensee. Any such order may be reviewed in the
20manner provided by Section 10-75.
21    (h) If the Secretary finds any person in violation of the
22grounds set forth in subsection (i), he or she may enter an
23order imposing one or more of the following penalties:
24        (1) revocation of license;
25        (2) suspension of a license subject to reinstatement
26    upon satisfying all reasonable conditions the Secretary



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1    may specify;
2        (3) placement of the licensee or applicant on
3    probation for a period of time and subject to all
4    reasonable conditions as the Secretary may specify;
5        (4) issuance of a reprimand;
6        (5) imposition of a fine not to exceed $25,000 for
7    each count of separate offense; except that a fine may be
8    imposed not to exceed $75,000 for each separate count of
9    offense of paragraph (2) of subsection (i); or
10        (6) denial of a license.
11    (i) The following acts shall constitute grounds for which
12the disciplinary actions specified in subsection (h) may be
14        (1) being convicted or found guilty, regardless of
15    pendency of an appeal, of a crime in any jurisdiction that
16    involves fraud, dishonest dealing, or any other act of
17    moral turpitude;
18        (2) fraud, misrepresentation, deceit, or negligence in
19    any pawn transaction;
20        (3) a material or intentional misstatement of fact on
21    an initial or renewal application;
22        (4) insolvency or filing under any provision of the
23    federal Bankruptcy Code as a debtor;
24        (5) failure to account or deliver to any person any
25    property, such as any money, fund, deposit, check, draft,
26    or other document or thing of value, that has come into his



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1    or her hands and that is not his or her property or that he
2    or she is not in law or equity entitled to retain, under
3    the circumstances and at the time which has been agreed
4    upon or is required by law or, in the absence of a fixed
5    time, upon demand of the person entitled to such
6    accounting and delivery;
7        (6) failure to disburse funds in accordance with
8    agreements;
9        (7) having a license, or the equivalent, to practice
10    any profession or occupation revoked, suspended, or
11    otherwise acted against, including the denial of licensure
12    by a licensing authority of this State or another state,
13    territory, or country for fraud, dishonest dealing, or any
14    other act of moral turpitude;
15        (8) failure to comply with an order of the Secretary
16    or rule made or issued under the provisions of this Act;
17        (9) engaging in activities regulated by this Act
18    without a current, active license unless specifically
19    exempted by this Act;
20        (10) failure to pay in a timely manner any fee,
21    charge, or fine under this Act;
22        (11) failure to maintain, preserve, and keep available
23    for examination all books, accounts, or other documents
24    required by the provisions of this Act and the rules of the
25    Secretary;
26        (12) refusing, obstructing, evading, or unreasonably



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1    delaying an investigation, information request, or
2    examination authorized under this Act, or refusing,
3    obstructing, evading, or unreasonably delaying compliance
4    with the Secretary's subpoena or subpoena duces tecum; and
5        (13) failure to comply with or a violation of any
6    provision of this Act.
7    (j) A licensee shall be subject to the disciplinary
8actions specified in this Act for violations of subsection (i)
9by any officer, director, shareholder, joint venture, partner,
10ultimate equitable owner, or employee of the licensee.
11    (k) A licensee shall be subject to suspension or
12revocation for unauthorized employee actions only if there is
13a pattern of repeated violations by employees or the licensee
14has knowledge of the violations or there is substantial harm
15to a consumer.
16    (l) Procedures for surrender of a license include the
18        (1) The Secretary may, after 10 days' notice by
19    certified mail to the licensee at the address set forth on
20    the license, stating the contemplated action and in
21    general the grounds for the contemplated action and the
22    date, time, and place of a hearing thereon, and after
23    providing the licensee with a reasonable opportunity to be
24    heard at the hearing before the action, fine such licensee
25    an amount not exceeding $25,000 per violation, or revoke
26    or suspend any license issued under this Act if he or she



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1    finds that:
2            (A) the licensee has failed to comply with any
3        provision of this Act or any order, decision, finding,
4        rule, regulation, or direction of the Department or
5        Secretary lawfully made pursuant to the authority of
6        this Act; or
7            (B) any fact or condition exists that, if it had
8        existed at the time of the original application for
9        the license, clearly would have warranted the
10        Secretary in refusing to issue the license.
11        (2) Any licensee may submit an application to
12    surrender a license, but, upon the Secretary approving the
13    surrender, it shall not affect the licensee's civil or
14    criminal liability for acts committed before surrender or
15    entitle the licensee to a return of any part of the license
16    fee.
17    Section 10-35. Investigation of complaints. The Secretary
18shall maintain staff and facilities adequate to receive,
19record, and investigate complaints and inquiries made by any
20person concerning this Act and any licensees under this Act.
21Each licensee shall open its books, records, documents, and
22offices wherever situated to the Secretary or his or her
23appointees as needed to facilitate such investigations.
24    Section 10-40. Additional investigation and examination



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1authority. In addition to any authority allowed under this
2Act, the Secretary shall have the authority to conduct
3investigations and examinations as follows:
4        (1) For purposes of initial licensing, license
5    renewal, license discipline, license conditioning, license
6    revocation or termination, or general or specific inquiry
7    or investigation to determine compliance with this Act,
8    the Secretary shall have the authority to access, receive,
9    and use any books, accounts, records, files, documents,
10    information, or evidence, including, but not limited to,
11    the following:
12            (A) criminal, civil, and administrative history
13        information, including nonconviction data as specified
14        in the Criminal Code of 2012;
15            (B) personal history and experience information,
16        including independent credit reports obtained from a
17        consumer reporting agency described in Section 603(p)
18        of the federal Fair Credit Reporting Act; and
19            (C) any other documents, information, or evidence
20        the Secretary deems relevant to the inquiry or
21        investigation, regardless of the location, possession,
22        control, or custody of the documents, information, or
23        evidence.
24        (2) For the purposes of investigating violations or
25    complaints arising under this Act or for the purposes of
26    examination, the Secretary may review, investigate, or



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1    examine any licensee, individual, or person subject to
2    this Act as often as necessary in order to carry out the
3    purposes of this Act. The Secretary may direct, subpoena,
4    or order the attendance of and examine under oath or
5    affirmation all persons whose testimony may be required
6    about the pawn transactions or the business or subject
7    matter of any such examination or investigation, and may
8    direct, subpoena, or order the person to produce books,
9    accounts, records, files, and any other documents the
10    Secretary deems relevant to the inquiry.
11        (3) Each licensee, individual, or person subject to
12    this Act shall make available to the Secretary upon
13    request the books and records relating to the operations
14    of the licensee, individual, or person subject to this
15    Act. The Secretary shall have access to those books and
16    records and interview the officers, principals, employees,
17    independent contractors, agents, and customers of the
18    licensee, individual, or person subject to this Act
19    concerning their business.
20        (4) Each licensee, individual, or person subject to
21    this Act shall make or compile reports or prepare other
22    information as directed by the Secretary in order to carry
23    out the purposes of this Section, including, but not
24    limited to:
25            (A) accounting compilations;
26            (B) information lists and data concerning pawn



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1        transactions in a format prescribed by the Secretary;
2        or
3            (C) other information deemed necessary to carry
4        out the purposes of this Section.
5        (5) In making any examination or investigation
6    authorized by this Act, the Secretary may control access
7    to any documents and records of the licensee or person
8    under examination or investigation. The Secretary may take
9    possession of the documents and records or place a person
10    in exclusive charge of the documents and records in the
11    place where they are usually kept. During the period of
12    control, no person shall remove or attempt to remove any
13    of the documents or records, except pursuant to a court
14    order or with the consent of the Secretary. Unless the
15    Secretary has reasonable grounds to believe the documents
16    or records of the licensee have been, or are at risk of
17    being altered or destroyed for purposes of concealing a
18    violation of this Act, the licensee or owner of the
19    documents and records shall have access to the documents
20    or records as necessary to conduct its ordinary business
21    affairs.
22        (6) In order to carry out the purposes of this
23    Section, the Secretary may:
24            (A) retain attorneys, accountants, or other
25        professionals and specialists as examiners, auditors,
26        or investigators to conduct or assist in the conduct



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1        of examinations or investigations;
2            (B) enter into agreements or relationships with
3        other government officials or regulatory associations
4        in order to improve efficiencies and reduce regulatory
5        burden by sharing resources, standardized or uniform
6        methods or procedures, and documents, records,
7        information, or evidence obtained under this Section;
8            (C) use, hire, contract, or employ public or
9        privately available analytical systems, methods, or
10        software to examine or investigate the licensee,
11        individual, or person subject to this Act;
12            (D) accept and rely on examination or
13        investigation reports made by other government
14        officials, within or outside this State; or
15            (E) accept audit reports made by an independent
16        certified public accountant for the licensee,
17        individual, or person subject to this Act in the
18        course of that part of the examination covering the
19        same general subject matter as the audit and may
20        incorporate the audit report in the report of the
21        examination, report of investigation, or other writing
22        of the Secretary.
23        (7) The authority of this Section shall remain in
24    effect, whether such a licensee, individual, or person
25    subject to this Act acts or claims to act under any
26    licensing or registration law of this State or claims to



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1    act without the authority.
2        (8) No licensee, individual, or person subject to
3    investigation or examination under this Section may
4    knowingly withhold, abstract, remove, mutilate, destroy,
5    or secrete any books, records, computer records, or other
6    information.
7    Section 10-45. Confidential information. In hearings
8conducted under this Act, information presented into evidence
9that was acquired by the licensee when serving any individual
10in connection with a pawn transaction, including all financial
11information of the individual, shall be deemed strictly
12confidential and shall be made available only as part of the
13record of a hearing under this Act or otherwise (i) when the
14record is required, in its entirety, for purposes of judicial
15review or (ii) upon the express written consent of the
16individual served, or in the case of his or her death or
17disability, the consent of his or her personal representative.
18    Section 10-50. Confidentiality.
19    (a) In order to promote more effective regulation and
20reduce regulatory burden through supervisory information
21sharing, except as otherwise provided in 12 U.S.C. Section
225111, the requirements under any federal law or State law
23regarding the privacy or confidentiality of any information or
24material provided to the Nationwide Mortgage Licensing System



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1and Registry, and any privilege arising under federal or State
2law, including the rules of any federal or State court, with
3respect to such information or material, shall continue to
4apply to information or material after the information or
5material has been disclosed to the Nationwide Mortgage
6Licensing System and Registry. The information and material
7may be shared with all State and federal regulatory officials
8with pawnbroker industry oversight authority without the loss
9of privilege or the loss of confidentiality protections
10provided by federal law or State law.
11    (b) In order to promote more effective regulation and
12reduce regulatory burden through supervisory information
13sharing, the Secretary is authorized to enter agreements or
14sharing into arrangements with other governmental agencies,
15the Conference of State Bank Supervisors or other associations
16representing governmental agencies as established by rule,
17regulation, or order of the Secretary. The sharing of
18confidential supervisory information or any information or
19material described in subsection (a) pursuant to an agreement
20or sharing arrangement shall not result in the loss of
21privilege or the loss of confidentiality protections provided
22by federal law or State law.
23    (c) In order to promote more effective regulation and
24reduce regulatory burden through supervisory information
25sharing, information or material that is subject to a
26privilege or confidentiality under subsection (a) shall not be



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1subject to the following:
2        (1) disclosure under any State law governing the
3    disclosure to the public of information held by an officer
4    or an agency of the State; or
5        (2) subpoena, discovery, or admission into evidence,
6    in any private civil action or administrative process,
7    unless with respect to any privilege held by the
8    Nationwide Mortgage Licensing System and Registry with
9    respect to the information or material, the person to whom
10    such information or material pertains waives, in whole or
11    in part, in the discretion of that person, that privilege.
12    (d) In order to promote more effective regulation and
13reduce regulatory burden through supervisory information
14sharing, any other law relating to the disclosure of
15confidential supervisory information or any information or
16material described in subsection (a) that is inconsistent with
17subsection (a) shall be superseded by the requirements of this
18Section to the extent the other law provides less
19confidentiality or a weaker privilege.
20    Section 10-55. Reports of violations. Any person licensed
21under this Act or any other person may report to the Secretary
22any information to show that a person subject to this Act is or
23may be in violation of this Act. A licensee who files a report
24with the Department that another licensee is engaged in one or
25more violations pursuant to this Act shall not be the subject



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1of disciplinary action by the Department, unless the
2Department determines, by a preponderance of the evidence
3available to the Department, that the reporting person
4knowingly or recklessly participated in the violation that was
6    Section 10-60. Pawnbroker annual report. The Department
7shall, in conjunction with advice from a professional
8association that represents 50 or more licensees, issue an
9annual report, via an Internet-based program, of aggregate
10pawnbroker activity within 180 days after the beginning of the
11calendar year. The report shall contain at a minimum:
12        (1) The number of licensed pawnbrokers.
13        (2) The total dollar amount financed.
14        (3) The total number of pawns for each value threshold
15    set forth in subsection (c) of Section 15-10.
16        (4) The total dollar amount of extensions.
17        (5) The total number of extensions for each value
18    threshold set forth in subsection (c) of Section 15-10.
19        (6) The average pawn dollar amount for each value
20    threshold set forth in subsection (c) of Section 15-10.
21        (7) The average monthly finance charge for each value
22    threshold set forth in subsection (c) of Section 15-10.
23        (8) The percentage of pawns surrendered to law
24    enforcement.
25        (9) The percentage of total pawns surrendered to law



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1    enforcement by dollar amount.
2        (10) The percentage of pawns redeemed.
3        (11) The percentage of pawns extended.
4        (12) The total number of pawnbroker employees.
5        (13) The total number of licensees reporting.
6        (14) The total number of complaints received by the
7    Department.
8    Section 10-65. Responsible pawnbroker training; pawnbroker
9managers and employees.
10    (a) A person who manages or is an employee of a pawnbroker
11that provides pawnbroker services and related functions shall
12complete, within 90 days after commencing employment, a
13minimum of 4 hours of training, which may be provided in a
14classroom or seminar setting or via Internet-based online
15learning programs, such training shall be provided at the
16employer's expense and shall be provided by qualified vendor
17approved by the Secretary. The training subjects shall be
18established by rule, and may include the following:
19        (1) federal, State, and local laws, administrative
20    rules, and regulations that pertain to the business of
21    being a licensed pawnbroker under this Act;
22        (2) procedures for identifying possible fraudulent
23    transactions;
24        (3) anti-money laundering;
25        (4) store operations, maintenance of records,



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1    inventory management, recording and reporting of serial
2    numbers;
3        (5) general product knowledge, including, but not
4    limited to, jewelry and firearms;
5        (6) identification, verification, and weighing of
6    precious metals;
7        (7) inspections by State and local licensing and law
8    enforcement authorities, including hold order procedures;
9        (8) the federal Military Lending Act;
10        (9) pawn forfeits; and
11        (10) security, risk, and crisis management.
12    (b) The training may be provided in a classroom or seminar
13setting or via Internet-based online learning programs, as
14established by rule. The substance of the training shall be
15related to the work performed by the registered employee.
16    (c) In addition to the training provided for in
17subsections (a) and (b), registered employees of a pawnbroker
18shall complete an additional 4 hours of refresher training on
19subjects to be determined by the employer each calendar year
20commencing with the calendar year following the employee's
21first employment anniversary date, which refresher training
22may be site-specific and may be conducted on the job.
23    (d) It is the responsibility of the pawnbroker or the
24Secretary-approved qualified vendor to certify, on a form
25prescribed by the Secretary, that the employee has
26successfully completed the basic and refresher training. The



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1original form or a copy shall be a permanent record of training
2completed by the employee and shall be placed in the
3employee's file with the employer for the period the employee
4remains with the employer. The original form or a copy shall be
5given to the employee when his or her employment is
6terminated. Failure to return the original form or a copy to
7the employee is grounds for disciplinary action. The employee
8shall not be required to repeat the required training once the
9employee has been issued the form. An employer may provide or
10require additional training.
11    (e) It shall be the responsibility of the pawnbroker and
12the Secretary-approved qualified training vendor to keep and
13maintain a personal log of all training hours earned along
14with sufficient documentation necessary for the Secretary to
15verify the annual training completed for at least 5 years. The
16personal training log and documentation shall be provided to
17the Secretary in the same manner as other documentation and
18records required under this Act.
19    (f) Notwithstanding any other professional license a
20pawnbroker holds under this Act, no more than 8 hours of annual
21training shall be required for any one year.
22    (g) The license of a pawnbroker whose managers or
23employees fail to comply with this Section may be suspended or
24revoked or may face other disciplinary action.
25    (h) The regulation of pawnbroker employee training is an
26exclusive power and function of the State. A home rule unit may



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1not regulate pawnbroker employee training or require a
2pawnbroker that is licensed by the State under this Act, or its
3employees, to maintain licenses in addition to licensure under
4the Act, to operate. This subsection is a denial and
5limitation of home rule powers and functions under subsection
6(h) of Section 6 of Article VII of the Illinois Constitution.
7    (i) Persons seeking the Secretary's approval to offer the
8training required by subsection (b) may apply for such
9approval between August 1 and August 31 every 4 years in a
10manner prescribed by the Secretary.
11    (j) Persons seeking the Secretary's approval to offer the
12training required by subsection (b) shall submit a
13nonrefundable application fee of $2,000 or a fee set by rule,
14to be deposited into the Pawnbroker Regulation Fund. Any
15changes made to the training module shall be approved by the
17    (k) The Secretary shall not unreasonably deny approval of
18a training module, whether in-person or online, that meets all
19the requirements of subsection (b). A denial of approval shall
20include a detailed description of the reasons for the denial.
21    (l) A person approved to provide the training required by
22subsection (b) shall submit an application for re-approval
23between August 1 and August 31 of each even-numbered year and
24include a nonrefundable application fee of $2,000 or a fee set
25by rule, to be deposited into the Pawnbroker Regulation Fund.



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1    Section 10-70. 10-70. Rules and regulations.
2    (a) In addition to such powers as may be prescribed by this
3Act, the Department is hereby authorized and empowered to
4adopt rules consistent with the purposes of this Act,
5including, but not limited to:
6        (1) rules in connection with the activities of
7    licensees as may be necessary and appropriate for the
8    protection of consumers in this State;
9        (2) rules as may be necessary and appropriate to
10    define improper or fraudulent business practices in
11    connection with the activities of licensees in operating
12    as a pawnbroker;
13        (3) rules that define the terms used in this Act and as
14    may be necessary and appropriate to interpret and
15    implement the provisions of this Act; and
16        (4) rules as may be necessary for the enforcement of
17    this Act.
18    (b) The Secretary is hereby authorized and empowered to
19make specific rulings, demands, and findings that he or she
20deems necessary for the proper conduct of the pawnbroker
22    (c) A person or entity may make a written application to
23the Department for a written interpretation of this Act. The
24Department may then, in its sole discretion, choose to issue a
25written interpretation. To be valid, a written interpretation
26must be signed by the Secretary, or his or her designee, and



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1the Department's general counsel or his or her designee. A
2written interpretation expires 2 years after the date that it
3was issued.
4    (d) No provision in this Act that imposes liability or
5establishes violations shall apply to any act taken by a
6person or entity in conformity with a written interpretation
7of this Act that is in effect at the time the act is taken,
8notwithstanding whether the written interpretation is later
9amended, rescinded, or determined by judicial or other
10authority to be invalid for any reason.
11    Section 10-75. Appeal and review.
12    (a) Any person or entity affected by a decision of the
13Secretary under any provision of this Act may obtain review of
14that decision within the Department.
15    (b) The Department may, in accordance with the Illinois
16Administrative Procedure Act, adopt rules to provide for
17review within the Department of the Secretary's decisions
18affecting the rights of entities under this Act. The review
19shall provide for, at a minimum:
20        (1) appointment of a hearing officer other than a
21    regular employee of the Division of Banking;
22        (2) appropriate procedural rules, specific deadlines
23    for filings, and standards of evidence and of proof; and
24        (3) provision for apportioning costs among parties to
25    the appeal.



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1    (c) All final agency determinations of appeals to
2decisions of the Secretary may be reviewed in accordance with
3and under the provisions of the Administrative Review Law.
4Appeals from all final orders and judgments entered by a court
5in review of any final administrative decision of the
6Secretary or of any final agency review of a decision of the
7Secretary may be taken as in other civil cases.
8    Section 10-80. Violations of this Act; Secretary's orders.
9    (a) If the Secretary finds, as the result of examination,
10investigation, or review of reports submitted by a licensee,
11that the business and affairs of a licensee are not being
12conducted in accordance with this Act, the Secretary shall
13notify the licensee of the correction necessary. If a licensee
14fails to correct such violations, the Secretary shall issue an
15order requiring immediate correction and compliance with this
16Act, specifying a reasonable date for performance.
17    (b) The Department may adopt rules to provide for an
18orderly and timely appeal of all orders within the Department.
19The rules may include provision for assessment of fees and
21    Section 10-85. Collection of compensation. Unless exempt
22from licensure under this Act, no person engaged in or
23offering to engage in any act or service for which a license
24under this Act is required may bring or maintain any action in



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1any court of this State to collect compensation for the
2performance of the licensable services without alleging and
3proving that he or she was the holder of a valid pawnbroker
4license under this Act at all times during the performance of
5those services.
6    Section 10-90. Injunction. The Secretary, through the
7Attorney General, may maintain an action in the name of the
8People of the State of Illinois and may apply for an injunction
9in the circuit court to enjoin a person from engaging in
10unlicensed pawnbroker activity, to restrain any person from
11violating or continuing to violate any of the provisions of
12this Act, or to file a complaint to take possession and control
13of a pawnshop for the purpose of examination, reorganization,
14or liquidation through receivership and to appoint a receiver,
15which may be the Secretary, a pawnshop, or another suitable
Article 15. Pawn Customer Bill of Rights

18    Section 15-5. General provisions.
19    (a) It is unlawful for an individual or business entity to
20conduct business in this State using the word "pawn",
21"pawnshop", or "pawnbroker" in connection with the business or
22to transact business in this State in a manner that has a
23substantial likelihood of misleading the public by implying



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1that the business is a pawnshop, without first obtaining a
2license from the Secretary. It shall be unlawful for any
3business to advertise in a pawnbroker category, digitally or
4in print without including that business's pawnbroker and
5Nationwide Multistate Licensing System and Registry license
7    (b) It is unlawful for an entity licensed under this Act to
8do any of the following:
9        (1) Engage, have engaged, or propose to engage in any
10    unlawful, unfair, deceptive, or abusive act or practice
11    with respect to financial products or services.
12        (2) Offer or provide to a consumer any financial
13    product or service not in conformity with this Act or
14    otherwise commit any act or omission in violation of a
15    financial law.
16        (3) Fail or refuse, as required by this Act or any rule
17    or order issued by the Department hereunder, to do any of
18    the following:
19            (A) Permit the Department to access or copy
20        records.
21            (B) Establish or maintain records.
22            (C) Make reports or provide information to the
23        Department.
24    Section 15-10. Fees.
25    (a) It is unlawful for any pawnbroker to charge or collect



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1a greater benefit or percentage upon money advanced, and for
2the use and forbearance thereof, than the amount specified in
3subsection (c). Nothing in this Section shall be construed to
4conflict with the law pertaining to usury and the person
5receiving money so advanced may hold the moneys to pay any fees
6in addition to interest.
7    (b) Each pawnbroker, when making a pawn under this
8Section, must disclose in printed form on the pawn contract
9the following information to the persons receiving the pawn:
10        (1) the amount of money advanced, which must be
11    designated as the amount pawned;
12        (2) the maturity date of the pawn, which must be at
13    least 30 days after the originating date of the pawn;
14        (3) the total pawn interest and service charge payable
15    on the maturity date, which must be designated as the
16    finance charge;
17        (4) the total of payments that must be paid to redeem
18    the pledged goods on the maturity date, which must be
19    designated as the total of payments; and
20        (5) the annual percentage rate, computed according to
21    the regulations adopted by the Consumer Financial
22    Protection Bureau under the federal Truth in Lending Act.
23    (c) Each pawnbroker may contract for and receive a monthly
24finance charge, including interest and fees not to exceed
25one-fifth of the pawn amount for pawns under $500; one-sixth
26of the pawn amount for pawns $500 or more and $1,500 or less;



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1one-eighth of the pawn amount for pawns of over $1,500 and
2$5,000 or less; and one-twentieth of the pawn amount for pawns
3of over $5,000, pursuant to Section 15-30, for appraising,
4investigating title, storing, insuring the pledged property,
5making daily reports to local law enforcement including
6enhanced computerized reporting, and complying with regulatory
7requirements. Such fees, when made and collected, shall not be
8deemed interest for any purpose of law. A pawnbroker shall not
9require a customer to pay such fees by means of an electronic
10fund transfer, as that term is defined in Section 10 of the
11Electronic Fund Transfer Act, including through the use of an
12automated clearinghouse system.
13    (d) Notwithstanding any inconsistent provision of law, a
14pawn transaction made pursuant to this Act shall be exempt
15from the provisions of the Predatory Loan Prevention Act.
16    Section 15-15. Display of fee provision. Every pawnbroker
17shall at all times have and keep Section 15-10 printed in the
18English and Spanish languages and framed and posted in a
19prominent and conspicuous position in its place of business,
20so that the same shall be plainly legible and visible to all
21persons depositing or pledging property with such pawnbroker.
22    Section 15-20. Disclosure of article description and pawn
24    (a) Every pawnbroker shall, at the time of making any



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1advancement or pawn, deliver to the person pawning or pledging
2any property, a memorandum, contract, or note signed by the
3person pawning the property containing an accurate account and
4description, in the English language, of the following:
5        (1) All the goods, articles or other things pawned or
6    pledged.
7        (2) The amount of money and the time of pledging the
8    same.
9        (3) The rate of interest to be paid on the pawn.
10        (4) The name and residence of the person making the
11    pawn or pledge.
12        (5) The dollar amount of any fees as specified in
13    Section 15-10.
14        (6) A disclosure that by extending the pawn, the fees
15    may exceed the value of the item pawned.
16    (b) The Secretary may adopt rules prescribing the form and
17content of the disclosures required by subsection (a).
18    Section 15-25. Record requirements.
19    (a) Except in municipalities located in counties having
203,000,000 or more inhabitants, every pawnbroker shall keep a
21standard record book that has been approved by the sheriff of
22the county in which the pawnbroker does business. In
23municipalities in counties with 3,000,000 or more inhabitants,
24the record book shall be approved by the police department of
25the municipality in which the pawnbroker does business. At the



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1time of each and every pawn or purchase, an accurate account
2and description, in the English language, of each of the items
3listed in subsection (a) of Section 15-20 shall be printed,
4typed, or written in ink in the record book. Such entry shall
5include the serial number or identification number of items
6received that bear such number. Except for items purchased
7from dealers possessing a federal employee identification
8number who have provided a receipt to the pawnbroker, every
9pawnbroker shall also record in his book, an accurate account
10and description, in the English language, of all goods,
11articles, and other things purchased or received for the
12purpose of resale or items pawned by the pawnbroker from any
13source, including other pawnshop locations owned by the same
14pawnbroker, not in the course of a pledge or pawn, the time of
15such purchase or receipt and the name and address of the person
16or business which sold or delivered such goods, articles, or
17other things to the pawnbroker. No entry in such book shall be
18erased, mutilated, or changed.
19    (b) Every pawnbroker shall require identification to be
20shown by each person selling or pawning any goods, articles,
21or other things to the pawnbroker. If the identification shown
22is a driver's license, State identification card, or consular
23identification card and contains a photograph of the person
24being identified, only one form of identification must be
25shown. If the identification shown is not a driver's license,
26State identification card, or consular identification card or



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1does not contain a photograph, 2 forms of identification must
2be shown, and one of the 2 forms of identification must include
3the person's residence address. These forms of identification
4shall include, but not be limited to, any of the following:
5passport, driver's license, social security card, utility
6bill, employee or student identification card, credit card, or
7a civic, union, or professional association membership card.
8In addition, in a municipality with a population of 1,000,000
9or more inhabitants, if the customer does not have an
10identification issued by a governmental entity containing a
11photograph of the person being identified, the pawnbroker
12shall photograph the customer in color and record the
13customer's name, residence address, date of birth, gender,
14height, and weight along with the photograph.
15    (c) A county or municipality, including a home rule unit,
16may regulate a pawnbroker's identification requirements for
17persons pledging or pawning goods, articles, or other things
18to the pawnbroker in a manner that is not less restrictive than
19the regulation by this State of a pawnbroker's identification
20requirements for persons pledging or pawning goods, articles,
21or other things. A home rule unit may not regulate a
22pawnbroker's identification requirements for persons pledging
23or pawning goods, articles, or other things to the pawnbroker
24in a manner less restrictive than the regulation by this State
25of a pawnbroker's identification requirements for persons
26selling or pawning goods, articles, or other things. This



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1Section is a limitation under subsection (i) of Section 6 of
2Article VII of the Illinois Constitution on the concurrent
3exercise by home rule units of the powers and functions
4exercised by this State.
5    (d) A pawnbroker may maintain the records required by
6subsection (a) in computer form if the computer form has been
7approved by the Secretary or his or her designee, the sheriff
8of the county in which the shop is located, and the police
9department of the municipality in which the shop is located.
10    (e) Records, including reports to the Secretary or his or
11her designee, maintained by pawnbrokers shall be confidential,
12and no disclosure of pawnbroker records shall be made, except
13disclosures authorized by this Act or ordered by a court of
14competent jurisdiction. No record transferred to a
15governmental official shall be improperly disclosed, however,
16use of those records as evidence of a felony or misdemeanor
17shall be a proper purpose.
18    (f) Pawnbrokers and their associations may lawfully give
19appropriate governmental agencies computer equipment for the
20purpose of transferring information pursuant to this Act.
21    Section 15-30. Replacement of articles or property;
23    (a) If any articles or property pledged are lost or
24rendered inoperable, the pawnbroker shall replace the articles
25or property with identical articles or property, except that



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1if the pawnbroker cannot reasonably obtain identical articles
2or property, the pawnbroker shall replace the articles or
3property with like articles or property.
4    (b) No pawnbroker shall conduct business in this State,
5unless the pawnbroker maintains insurance coverage covering
6all hazards equal to at least 2 times the aggregate value of
7the outstanding pawns for items held in pawn. Such insurance
8shall be obtained from an insurance company authorized to do
9business in Illinois.
10    (c) The pawnbroker shall file a copy of proof of insurance
11coverage with the Secretary. A pawnbroker or an insurance
12company shall not cancel the insurance coverage, except upon
13notice to the Secretary by certified mail, return receipt
14requested. The cancellation is not effective until 30 days
15after the Secretary receives the notice.
16    Section 15-35. Minors. No pawnbroker shall purchase, take,
17or receive any pawn, any property of any kind from any minor
18who is under 18 years of age, or the ownership of which is in,
19or which is claimed by, any such minor, or which may be in the
20possession or under the control of any such minor.
21    Section 15-40. Intoxicated persons; persons convicted of
22theft. No pawnbroker shall knowingly or recklessly purchase or
23take any article in pawn or purchase from any person appearing
24to be intoxicated, nor from any person known to have been



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1convicted of theft. A law enforcement officer may provide such
2criminal conviction information to a pawnbroker. Such
3information must be provided in writing.
4    Section 15-45. Altered property; serial number and
5manufacturer's identification number.
6    (a) No pawnbroker shall receive or purchase any article if
7the manufacturer's make, model, or serial number, personal
8identification number, or identifying marks engraved or etched
9upon an item of personal property has been removed, altered,
10or obliterated.
11    (b) The prohibition in subsection (a) does not apply if
12the article's manufacturer's make, model, or serial number,
13personal identification number, or identifying marks have been
14worn in the ordinary course of use. However, no article
15described in this subsection (b) shall be sold or transferred
16to another pawnshop location of such pawnbroker for a period
17of 15 days after the delivery of the copy and statement
18required by subsection (b) of Section 10-25 required to be
19delivered to the officer or officers named therein.
20    Section 15-50. Sale of property.
21    (a) No personal property pledged or received on deposit by
22any pawnbroker shall be permitted to be redeemed from such
23pawnbroker for a period of 48 hours after the delivery of the
24copy and statement required by subsection (b) of Section 10-25



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1to be delivered to the officer or officers named therein.
2    (b) No personal property purchased by any pawnbroker shall
3be sold or removed from the place of business or transferred to
4another pawnshop location of such pawnbroker for a period of
510 days after the delivery of the copy and statement required
6by subsection (b) of Section 10-25 to be delivered to the
7officer or officers named therein.
8    (c) If the pawner fails to repay or extend the pawn during
9the period specified on the pawn ticket, the pawnbroker shall
10automatically extend a grace period of 30 days after the
11default date on the pawn during which the pawnbroker shall not
12dispose of or sell the personal property pawned. The parties
13may agree to extend or renew a pawn upon terms agreed upon by
14the parties, if the terms comply with the requirements of this
15Act. Title to the pledged property transfers to the pawnbroker
16after the default date grace period expires or upon expiration
17of an agreed extension.
18    (d) A county or municipality, including a home rule unit,
19may regulate holding periods in a manner that is more
20restrictive than the regulation provided in this Section.
21    (e) A home rule unit may not regulate the holding periods
22in this Section in a manner less restrictive than the
23regulation by this State. This Section is a limitation under
24subsection (i) of Section 6 of Article VII of the Illinois
25Constitution on the concurrent exercise by home rule units of
26the powers and functions exercised by this State.



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1    Section 15-55. Hold order.
2    (a) For the purposes of this Section, "hold order" means a
3written legal instrument issued to a pawnbroker by a law
4enforcement officer commissioned by the law enforcement agency
5of the municipality or county that licenses and regulates the
6pawnbroker, evidencing a criminal law enforcement
7investigation, and ordering the pawnbroker to retain physical
8possession of pawned goods in the possession of the pawnbroker
9or property purchased by and in the possession of the
10pawnbroker and to not return, sell, or otherwise dispose of
11such property as such property is believed to be
12misappropriated goods.
13    (b) Upon written notice from a law enforcement officer
14indicating that property in the possession of a pawnbroker and
15subject to a hold order is needed for the purpose of furthering
16a criminal investigation and prosecution, the pawnbroker shall
17release the property subject to the hold order to the custody
18of the law enforcement officer for such purpose and the law
19enforcement officer shall provide a written acknowledgment
20that the property has been released to the officer. The
21release of the property to the custody of the law enforcement
22officer shall not be considered a waiver or release of the
23pawnbroker's property rights or interest in the property. Upon
24completion of the criminal investigation, the property shall
25be returned to the pawnbroker who consented to its release;



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1except that:
2        (1) if the criminal investigation took place within a
3    county or counties with a population of less than 300,000
4    and that investigation:
5            (A) has determined that the property is stolen
6        property,
7            (B) has determined that the fair market value of
8        the stolen property is $500 or less,
9            (C) has identified the rightful owner of the
10        stolen property, and
11            (D) contains a court-admissible sworn statement by
12        the rightful owner that they are the true owners of the
13        stolen property, then law enforcement shall return the
14        property to that owner without the payment of the
15        money advanced by the pawnbroker or any costs or
16        charges of any kind that the pawnbroker may have
17        placed upon the same; or
18        (2) if the criminal investigation took place within a
19    county or counties with a population of more than 300,000
20    and that investigation:
21            (A) has determined that the property is stolen
22        property,
23            (B) has determined that the then-fair market value
24        of the stolen property is $1,000 or less,
25            (C) has identified the rightful owner of the
26        stolen property, and



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1            (D) contains a court-admissible sworn statement by
2        the rightful owner that they are the true owners of the
3        stolen property, then law enforcement shall return the
4        property to that owner without the payment of the
5        money advanced by the pawnbroker or any costs or
6        charges of any kind that the pawnbroker may have
7        placed upon the same.
8    (c) After the return of said property, the pawnbroker
9shall not be liable to any private person or government entity
10for any further claims on the returned property. Law
11enforcement shall provide all information related to such
12persons involved in the investigation to the pawnbroker,
13including the investigative report, without the need for a
14subpoena, court order, or further legal action of government
15filing. The hold order shall expire on the 120th day after it
16is issued, at which time the pawnbroker may exercise its
17rights under any applicable pawn ticket or extension. If the
18law enforcement officer has not completed the criminal
19investigation within 120 days after the issuance of the hold
20order, the officer shall immediately return any property in
21law enforcement custody to the pawnbroker or obtain and
22furnish to the pawnbroker a warrant for a maximum 120-day hold
23order extension and, as applicable, continued law enforcement
24custody of the property.
25    The pawnbroker shall not release or dispose of the
26property, except pursuant to a court order or the expiration



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1of the holding period of the hold order, including all
3    In cases where criminal charges have been filed and the
4property may be needed as evidence, the prosecuting attorney
5shall notify the pawnbroker in writing. The notice shall
6contain the case number, the style of the case, and a
7description of the property. The pawnbroker shall hold the
8property until receiving notice of the disposition of the case
9from the prosecuting attorney. The prosecuting attorney shall
10notify the pawnbroker and claimant in writing within 15 days
11after the disposition of the case.
12    (d) A hold order, and a foregoing notice of criminal
13charges, must specify:
14        (1) the name and address of the pawnbroker;
15        (2) the law enforcement investigation number, the
16    name, title, and identification number of the law
17    enforcement officer placing the hold order or the court
18    placing the hold order;
19        (3) a complete description of the property to be held,
20    including model number and serial number if available, to
21    law enforcement;
22        (4) the name of the alleged owner or person reporting
23    the alleged misappropriated property, unless otherwise
24    prohibited by law;
25        (5) the mailing address of the pawnbroker where the
26    property is held; and



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1        (6) the issuance and expiration date of the holding
2    period.
3    (e) The pawnbroker or the pawnbroker's representative must
4sign and date a copy of the hold order as evidence of receipt
5of the hold order and the beginning of the 120-day holding
Article 20. Consumer Fraud Protections

8    Section 20-5. Enforcement; Consumer Fraud and Deceptive
9Business Practices Act. The Attorney General may enforce a
10violation of Article 15 of this Act as an unlawful practice
11under the Consumer Fraud and Deceptive Business Practices Act.
Article 25. Transition provisions

13    Section 25-5. Savings provisions.
14    (a) This Act is intended to replace the Pawnbroker
15Regulation Act in all respects.
16    (b) Beginning on the effective date of this Act, the
17rights, powers, and duties exercised by the Department of
18Financial and Professional Regulation under the Pawnbroker
19Regulation Act shall continue to be vested in, to be the
20obligation of, and to be exercised by the Department of
21Financial and Professional Regulation under the provisions of
22this Act.



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1    (c) This Act does not affect any act done, ratified, or
2cancelled, any right occurring or established, or any action
3or proceeding commenced in an administrative, civil, or
4criminal cause before the effective date of this Act by the
5Department of Financial and Professional Regulation under the
6Pawnbroker Regulation Act. Those actions or proceedings may be
7prosecuted and continued by the Department of Financial and
8Professional Regulation under this Act.
9    (d) This Act does not affect any license, certificate,
10permit, or other form of licensure issued by the Department of
11Financial and Professional Regulation under the Pawnbroker
12Regulation Act. All such licenses, certificates, permits, or
13other form of licensure shall continue to be valid under the
14terms and conditions of this Act.
15    (e) The rules adopted by the Department of Financial and
16Professional Regulation relating to the Pawnbroker Regulation
17Act, unless inconsistent with the provisions of this Act, are
18not affected by this Act, and on the effective date of this
19Act, those rules become rules under this Act.
20    (f) This Act does not affect any discipline, suspension,
21or termination that has occurred under the Pawnbroker
22Regulation Act or other predecessor Act. Any action for
23discipline, suspension, or termination instituted under the
24Pawnbroker Regulation Act shall be continued under this Act.
Article 90. Amendatory Provisions




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1    Section 90-5. The Division of Banking Act is amended by
2changing Sections 2.5 and 5 as follows:
3    (20 ILCS 3205/2.5)
4    Sec. 2.5. Prohibited activities.
5    (a) For the purposes of this Section, "regulated entity"
6means any person, business, company, corporation, institution,
7or other entity who is subject to regulation by the Office of
8Banks and Real Estate under Sections 3 and 46 of the Illinois
9Banking Act, Section 1-5 of the Illinois Savings and Loan Act
10of 1985, Section 1004 of the Savings Bank Act, Section 1-3 of
11the Residential Mortgage License Act of 1987, Section 2-4 of
12the Corporate Fiduciary Act, Section 3.02 of the Illinois Bank
13Holding Company Act of 1957, the Savings and Loan Share and
14Account Act, Section 1.5 of the Pawnbroker Regulation Act of
152023, Section 3 of the Foreign Banking Office Act, or Section
1630 of the Electronic Fund Transfer Act.
17    (b) The Commissioner and the deputy commissioners shall
18not be an officer, director, employee, or agent of a regulated
19entity or of a corporation or company that owns or controls a
20regulated entity.
21    The Commissioner and the deputy commissioners shall not
22own shares of stock or hold any other equity interest in a
23regulated entity or in a corporation or company that owns or
24controls a regulated entity. If the Commissioner or a deputy



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1commissioner owns shares of stock or holds an equity interest
2in a regulated entity at the time of appointment, he or she
3shall dispose of such shares or other equity interest within
4120 days from the date of appointment.
5    The Commissioner and the deputy commissioners shall not
6directly or indirectly obtain a loan from a regulated entity
7or accept a gratuity from a regulated entity that is intended
8to influence the performance of official duties.
9    (c) Employees of the Office of Banks and Real Estate shall
10not be officers, directors, employees, or agents of a
11regulated entity or of a corporation or company that owns or
12controls a regulated entity.
13    Except as provided by standards which the Office of Banks
14and Real Estate may establish, employees of the Office of
15Banks and Real Estate shall not own shares of stock or hold any
16other equity interest in a regulated entity or in a
17corporation or company that owns or controls a regulated
18entity, or directly or indirectly obtain a loan from a
19regulated entity, or accept a gratuity from a regulated entity
20that is intended to influence the performance of official
21duties. However, in no case shall an employee of the Office of
22Banks and Real Estate participate in any manner in the
23examination or direct regulation of a regulated entity in
24which the employee owns shares of stock or holds any other
25equity interest, or which is servicing a loan to which the
26employee is an obligor.



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1    (d) If the Commissioner, a deputy commissioner, or any
2employee of the Office of Banks and Real Estate properly
3obtains a loan or extension of credit from an entity that is
4not a regulated entity, and the loan or extension of credit is
5subsequently acquired by a regulated entity or the entity
6converts to become a regulated entity after the loan is made,
7such purchase by or conversion to a regulated entity shall not
8cause the loan or extension of credit to be deemed a violation
9of this Section.
10    Nothing in this Section shall be deemed to prevent the
11ownership of a checking account, a savings deposit account, a
12money market account, a certificate of deposit, a credit or
13debit card account, or shares in open-end investment companies
14registered with the Securities and Exchange Commission
15pursuant to the federal Investment Company Act of 1940 and the
16Securities Act of 1933 (commonly referred to as mutual or
17money market funds).
18    (e) No Commissioner, deputy commissioner, employee, or
19agent of the Office of Banks and Real Estate shall, either
20during or after the holding of his or her term of office or
21employment, disclose confidential information concerning any
22regulated entity or person except as authorized by law or
23prescribed by rule. "Confidential information", as used in
24this Section, means any information that the person or officer
25obtained during his or her term of office or employment that is
26not available from the Office of Banks and Real Estate



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1pursuant to a request under the Freedom of Information Act.
2(Source: P.A. 97-492, eff. 1-1-12.)
3    (20 ILCS 3205/5)  (from Ch. 17, par. 455)
4    Sec. 5. Powers. In addition to all the other powers and
5duties provided by law, the Commissioner shall have the
6following powers:
7    (a) To exercise the rights, powers and duties formerly
8vested by law in the Director of Financial Institutions under
9the Illinois Banking Act.
10    (b) To exercise the rights, powers and duties formerly
11vested by law in the Department of Financial Institutions
12under "An act to provide for and regulate the administration
13of trusts by trust companies", approved June 15, 1887, as
15    (c) To exercise the rights, powers and duties formerly
16vested by law in the Director of Financial Institutions under
17"An act authorizing foreign corporations, including banks and
18national banking associations domiciled in other states, to
19act in a fiduciary capacity in this state upon certain
20conditions herein set forth", approved July 13, 1953, as
22    (c-5) To exercise all of the rights, powers, and duties
23granted to the Director or Secretary under the Illinois
24Banking Act, the Corporate Fiduciary Act, the Electronic Fund
25Transfer Act, the Illinois Bank Holding Company Act of 1957,



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1the Savings Bank Act, the Illinois Savings and Loan Act of
21985, the Savings and Loan Share and Account Act, the
3Residential Mortgage License Act of 1987, and the Pawnbroker
4Regulation Act of 2023.
5    (c-15) To enter into cooperative agreements with
6appropriate federal and out-of-state state regulatory agencies
7to conduct and otherwise perform any examination of a
8regulated entity as authorized under the Illinois Banking Act,
9the Corporate Fiduciary Act, the Electronic Fund Transfer Act,
10the Illinois Bank Holding Company Act of 1957, the Savings
11Bank Act, the Illinois Savings and Loan Act of 1985, the
12Residential Mortgage License Act of 1987, and the Pawnbroker
13Regulation Act of 2023.
14    (d) Whenever the Commissioner is authorized or required by
15law to consider or to make findings regarding the character of
16incorporators, directors, management personnel, or other
17relevant individuals under the Illinois Banking Act, the
18Corporate Fiduciary Act, the Pawnbroker Regulation Act of
192023, or at other times as the Commissioner deems necessary
20for the purpose of carrying out the Commissioner's statutory
21powers and responsibilities, the Commissioner shall consider
22criminal history record information, including nonconviction
23information, pursuant to the Criminal Identification Act. The
24Commissioner shall, in the form and manner required by the
25Illinois State Police and the Federal Bureau of Investigation,
26cause to be conducted a criminal history record investigation



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1to obtain information currently contained in the files of the
2Illinois State Police or the Federal Bureau of Investigation,
3provided that the Commissioner need not cause additional
4criminal history record investigations to be conducted on
5individuals for whom the Commissioner, a federal bank
6regulatory agency, or any other government agency has caused
7such investigations to have been conducted previously unless
8such additional investigations are otherwise required by law
9or unless the Commissioner deems such additional
10investigations to be necessary for the purposes of carrying
11out the Commissioner's statutory powers and responsibilities.
12The Illinois State Police shall provide, on the Commissioner's
13request, information concerning criminal charges and their
14disposition currently on file with respect to a relevant
15individual. Information obtained as a result of an
16investigation under this Section shall be used in determining
17eligibility to be an incorporator, director, management
18personnel, or other relevant individual in relation to a
19financial institution or other entity supervised by the
20Commissioner. Upon request and payment of fees in conformance
21with the requirements of Section 2605-400 of the Illinois
22State Police Law, the Illinois State Police is authorized to
23furnish, pursuant to positive identification, such information
24contained in State files as is necessary to fulfill the
26    (e) When issuing charters, permits, licenses, or other



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1authorizations, the Commissioner may impose such terms and
2conditions on the issuance as he deems necessary or
3appropriate. Failure to abide by those terms and conditions
4may result in the revocation of the issuance, the imposition
5of corrective orders, or the imposition of civil money
7    (f) If the Commissioner has reasonable cause to believe
8that any entity that has not submitted an application for
9authorization or licensure is conducting any activity that
10would otherwise require authorization or licensure by the
11Commissioner, the Commissioner shall have the power to
12subpoena witnesses, to compel their attendance, to require the
13production of any relevant books, papers, accounts, and
14documents, and to conduct an examination of the entity in
15order to determine whether the entity is subject to
16authorization or licensure by the Commissioner or the
17Division. If the Secretary determines that the entity is
18subject to authorization or licensure by the Secretary, then
19the Secretary shall have the power to issue orders against or
20take any other action, including initiating a receivership
21against the unauthorized or unlicensed entity.
22    (g) The Commissioner may, through the Attorney General,
23request the circuit court of any county to issue an injunction
24to restrain any person from violating the provisions of any
25Act administered by the Commissioner.
26    (h) Whenever the Commissioner is authorized to take any



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1action or required by law to consider or make findings, the
2Commissioner may delegate or appoint, in writing, an officer
3or employee of the Division to take that action or make that
5    (i) Whenever the Secretary determines that it is in the
6public's interest, he or she may publish any cease and desist
7order or other enforcement action issued by the Division.
8(Source: P.A. 102-538, eff. 8-20-21.)
9    (205 ILCS 510/Act rep.)
10    Section 90-10. The Pawnbroker Regulation Act is repealed.
11    Section 90-15. The Uniform Commercial Code is amended by
12changing Section 9-201 as follows:
13    (810 ILCS 5/9-201)  (from Ch. 26, par. 9-201)
14    Sec. 9-201. General effectiveness of security agreement.
15    (a) General effectiveness. Except as otherwise provided in
16the Uniform Commercial Code, a security agreement is effective
17according to its terms between the parties, against purchasers
18of the collateral, and against creditors.
19    (b) Applicable consumer laws and other law. A transaction
20subject to this Article is subject to any applicable rule of
21law, statute, or regulation which establishes a different rule
22for consumers, including:
23        (1) the Retail Installment Sales Act;



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1        (2) the Motor Vehicle Retail Installment Sales Act;
2        (3) Article II of Chapter 3 of the Illinois Vehicle
3    Code;
4        (4) Article IIIB of the Boat Registration and Safety
5    Act;
6        (5) the Pawnbroker Regulation Act of 2023;
7        (6) the Motor Vehicle Leasing Act;
8        (7) the Consumer Installment Loan Act; and
9        (8) the Consumer Deposit Security Act of 1987.
10    (c) Other applicable law controls. In case of conflict
11between this Article and a rule of law, statute, or regulation
12described in subsection (b), the rule of law, statute, or
13regulation controls. Failure to comply with a rule of law,
14statute, or regulation described in subsection (b) has only
15the effect such rule of law, statute, or regulation specifies.
16    (d) Further deference to other applicable law. This
17Article does not:
18        (1) validate any rate, charge, agreement, or practice
19    that violates a rule of law, statute, or regulation
20    described in subsection (b); or
21        (2) extend the application of the rule of law,
22    statute, or regulation to a transaction not otherwise
23    subject to it.
24(Source: P.A. 91-893, eff. 7-1-01.)
25    Section 90-20. The Consumer Fraud and Deceptive Business



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1Practices Act is amended by adding Section 2BBBB as follows:
2    (815 ILCS 505/2BBBB new)
3    Sec. 2BBBB. Violations of the Pawnbroker Regulation Act of
42023. Any person who violates Article 15 of the Pawnbroker
5Regulation Act of 2023 commits an unlawful practice within the
6meaning of this Act.
Article 99. Severability; Effective Date

8    Section 99-97. Severability. The provisions of this Act
9are severable under Section 1.31 of the Statute on Statutes.
10    Section 99-99. Effective date. This Act takes effect upon
11becoming law.".