Full Text of SB3249 97th General Assembly
SB3249eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Collateral Recovery Act is amended by | 5 | | changing Sections 10 and 30 as follows: | 6 | | (225 ILCS 422/10) | 7 | | (This Section may contain text from a Public Act with a | 8 | | delayed effective date )
| 9 | | (Section scheduled to be repealed on January 1, 2022) | 10 | | Sec. 10. Definitions. In this Act: | 11 | | "Assignment" means a written authorization by a legal
| 12 | | owner, lien holder, lessor, lessee, or licensed repossession | 13 | | agency authorized by a legal owner, lien holder, lessor or | 14 | | lessee to locate or
repossess, involuntarily or voluntarily, | 15 | | any collateral, including, but not limited to, collateral
| 16 | | registered under the Illinois Vehicle Code that is subject to a
| 17 | | security agreement that contains a repossession clause or is | 18 | | the subject of a rental or lease agreement. | 19 | | "Assignment" also means a written authorization by an | 20 | | employer
to recover any collateral entrusted to an employee or | 21 | | former
employee if the possessor is wrongfully in the | 22 | | possession of
the collateral. A photocopy, facsimile copy, or | 23 | | electronic copy
of an assignment shall have the same force and |
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| 1 | | effect as an
original written assignment.
| 2 | | "Automobile rental company" means a person or entity whose | 3 | | primary business is renting motor vehicles to the public for 30 | 4 | | days or less. | 5 | | "Branch office" means each additional office and secured | 6 | | storage facility location of a repossession agency (i) located | 7 | | in and conducting business within the State of Illinois and | 8 | | (ii) operating under the same name as the repossession agency | 9 | | where business is actively conducted or is engaged in the | 10 | | business authorized by the licensure. Each branch office must | 11 | | be individually licensed. | 12 | | "Collateral" means any vehicle, boat, recreational
| 13 | | vehicle, motor home, motorcycle, or other property
that is | 14 | | subject to a security, lease, or rental agreement.
| 15 | | "Commission" means the Illinois Commerce Commission. | 16 | | "Debtor" means any person or entity obligated under a | 17 | | lease, rental, or security
agreement. | 18 | | "Financial institution" means a bank, a licensee under the | 19 | | Consumer Installment Loan Act, savings bank, savings and loan | 20 | | association, or credit union organized and operating under the | 21 | | laws of this or any other state or of the United States, and | 22 | | any subsidiary or affiliate thereof. | 23 | | "Legal owner" means a person holding (i) a security
| 24 | | interest in any collateral that is subject to a security
| 25 | | agreement, (ii) a lien against any collateral, or (iii) an
| 26 | | interest in any collateral that is subject to a lease
or rental |
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| 1 | | agreement. | 2 | | "Licensure" means the approval of the required criteria | 3 | | that has been submitted for review in accordance with the | 4 | | provisions of this Act. | 5 | | "Licensed recovery manager" means a person who possesses a
| 6 | | valid license in accordance with the provisions of this Act and | 7 | | is in
control or management of an Illinois repossession agency. | 8 | | "Personal effects" means any property contained within
or | 9 | | on repossessed collateral, or property that is not permanently | 10 | | affixed to the collateral, that is not the property of the | 11 | | legal owner.
| 12 | | "Recovery permit" means a permit issued by the Commission | 13 | | to a repossession agency employee who has met all the | 14 | | requirements under this Act. | 15 | | "Recovery ticket" means a serialized
record obtained from | 16 | | the Commission for any
repossessed vehicle or collateral | 17 | | evidencing that any person, business, financial
institution, | 18 | | automotive dealership, or repossession agency who shows a | 19 | | recovery ticket
has paid the recovery ticket fee to the | 20 | | Commission. | 21 | | "Remote storage location" means a secured storage facility | 22 | | of a licensed repossession agency designated for the storage of | 23 | | collateral that is a secure building or has a perimeter that is | 24 | | secured with a fencing construction that makes the area not | 25 | | accessible to the public. A remote storage location shall not | 26 | | transact business with the public and shall provide evidence of |
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| 1 | | applicable insurance to the Commission that specifies the | 2 | | licensed repossession agency as the primary policy holder. A | 3 | | remote storage location shall be located in a commercially | 4 | | zoned area physically located in Illinois. | 5 | | "Repossession agency" means any person or entity | 6 | | conducting business within the State of
Illinois, that, for any | 7 | | type of consideration, engages in the business
of, accepts | 8 | | employment to furnish, or agrees to provide or provides
| 9 | | property locating services, property recovery,
recovered | 10 | | property transportation, recovered property storage, or all
| 11 | | services relevant to any of the following:
| 12 | | (1) The location, disposition, or recovery of property | 13 | | as
authorized by the self-help provisions of the Uniform
| 14 | | Commercial Code. | 15 | | (2) The location, disposition, or recovery of lost or
| 16 | | stolen property. | 17 | | (3) Securing evidence concerning repossession and | 18 | | recovery
to be used before any court, board, office, or | 19 | | investigating committee. | 20 | | (4) Inventory of property contained in or on the | 21 | | collateral
or recovered property. | 22 | | (5) The possession of collateral. | 23 | | (6) The prevention of the misappropriation or
| 24 | | concealment of chattel, vehicles, goods, objects,
| 25 | | documents, or papers. | 26 | | "Repossession agency" does not include any of the |
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| 1 | | following: | 2 | | (1) An attorney at law who is performing his or her | 3 | | duties
as an attorney at law. | 4 | | (2) The legal owner of collateral that is subject to a | 5 | | security
agreement. | 6 | | (3) An officer or employee of the United States of | 7 | | America or
of this State or a political subdivision of this | 8 | | State while the
officer or employee is engaged in the | 9 | | performance of his or
her official duties. | 10 | | (4) A qualified license or recovery permit holder when
| 11 | | performing services for, or on behalf of, a licensed | 12 | | repossession agency.
| 13 | | (5) A collection agency licensed under the Collection | 14 | | Agency Act when its activities are limited to assisting an | 15 | | owner in the recovery of property that is not collateral, | 16 | | as defined in this Act. | 17 | | "Repossession agency employee" means any person or | 18 | | self-employed independent contractor who is hired by a | 19 | | repossession agency.
| 20 | | "Secured storage facility" means an area located on the | 21 | | same premises as a repossession agency office or branch office | 22 | | that is designated for the storage of collateral and is a | 23 | | secure building or has a perimeter that is secured with a | 24 | | fencing construction that makes the area not accessible to the | 25 | | public. Each repossession agency office or
branch office must | 26 | | maintain a secured storage facility.
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| 1 | | "Security agreement" means an obligation, pledge,
| 2 | | mortgage, chattel mortgage, lease agreement, rental agreement, | 3 | | deposit, or lien,
given by a debtor as security for payment or | 4 | | performance of his
or her debt by furnishing the creditor with | 5 | | a recourse to be
used in case of failure in the principal | 6 | | obligation. "Security
agreement" includes a bailment where an | 7 | | employer-employee
relationship exists or existed between the | 8 | | bailor and the bailee.
| 9 | | (Source: P.A. 97-576, eff. 7-1-12.) | 10 | | (225 ILCS 422/30) | 11 | | (This Section may contain text from a Public Act with a | 12 | | delayed effective date )
| 13 | | (Section scheduled to be repealed on January 1, 2022) | 14 | | Sec. 30. License or registration required. | 15 | | (a) It shall be unlawful for any person or entity to | 16 | | repossess a vehicle or collateral in this State, attempt to | 17 | | repossess a vehicle or collateral in this State, or to hold | 18 | | himself, herself, or itself out to be a repossession agency | 19 | | unless licensed under this Act. | 20 | | (b) It shall be unlawful for any person to repossess a | 21 | | vehicle or collateral in this State, attempt to repossess a | 22 | | vehicle or collateral in this State, or to hold himself or | 23 | | herself out to be a licensed recovery manager unless licensed | 24 | | under this Act. | 25 | | (c) It shall be unlawful for any person to repossess a |
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| 1 | | vehicle or collateral in this State, attempt to repossess a | 2 | | vehicle or collateral in this State, or hold himself or herself | 3 | | out to be a repossession agency employee unless he or she holds | 4 | | a valid recovery permit issued by the Commission under this | 5 | | Act. | 6 | | (d) This Act does not apply to a financial institution or | 7 | | the employee of a financial institution when engaged in an | 8 | | activity otherwise covered by this Act if the activity is | 9 | | conducted by the employee on behalf of that financial | 10 | | institution. | 11 | | (e) This Act does not apply to a towing company or towing | 12 | | operator when an employee or agent of the creditor financial | 13 | | institution is present at the site from which the vehicle is | 14 | | towed.
| 15 | | (f) This Act does not apply to an automobile rental company | 16 | | or the employee of an automobile rental company when engaged in | 17 | | an activity otherwise covered by this Act if the activity is | 18 | | conducted by the employee on behalf of that automobile rental | 19 | | company. | 20 | | (g) This Act does not apply to a towing company or towing | 21 | | operator when an employee or agent of an automobile rental | 22 | | company is present at the site from which the vehicle is towed. | 23 | | (h) This Act does not apply to a retail seller of equipment | 24 | | or an employee of a retail seller of equipment, as equipment is | 25 | | defined in Section 9-102 of the Uniform Commercial Code, and | 26 | | lawn and grounds care consumer goods when engaged in an |
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| 1 | | activity otherwise covered by this Act if the activity is | 2 | | limited to the repossession of the type of goods routinely sold | 3 | | by that retail seller in the manner authorized by Section 9-609 | 4 | | of the Uniform Commercial Code on behalf of the owner of a | 5 | | security interest in that collateral. | 6 | | (i) This Act does not apply to an entity or the employee of | 7 | | an entity that primarily finances wholesale and retail | 8 | | transactions related to the purchase or lease of equipment | 9 | | manufactured by its affiliate when engaged in an activity | 10 | | otherwise covered by this Act if the activity is limited to the | 11 | | repossession of the equipment. | 12 | | (Source: P.A. 97-576, eff. 7-1-12.) | 13 | | Section 95. No acceleration or delay. Where this Act makes | 14 | | changes in a statute that is represented in this Act by text | 15 | | that is not yet or no longer in effect (for example, a Section | 16 | | represented by multiple versions), the use of that text does | 17 | | not accelerate or delay the taking effect of (i) the changes | 18 | | made by this Act or (ii) provisions derived from any other | 19 | | Public Act.
| 20 | | Section 99. Effective date. This Act takes effect July 1, | 21 | | 2012.
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