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90_SB0805
SEE INDEX
Amends the Currency Exchange Act. Provides that the Act
applies to limited liability companies and authorizes limited
liability companies to conduct business as a currency
exchange. Amends the Financial Planning and Management
Service Act. Changes the title of the Act. Changes the
short title to the Debt Management Service Act. Provides
that the Act applies to the business of planning and managing
the financial affairs of a debtor including receiving money
from the debtor to pay debts. Establishes procedures for
revocation and suspension of licenses. Provides for annual
examinations of licensees. Limits fees that may be charged.
Requires client funds to be maintained in trust funds.
Effective January 1, 1998.
LRB9002126JSgc
LRB9002126JSgc
1 AN ACT concerning certain financial services, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Finance Act is amended by changing
6 Section 6z-26 as follows:
7 (30 ILCS 105/6z-26)
8 Sec. 6z-26. The Financial Institution Fund. All moneys
9 received by the Department of Financial Institutions under
10 the Safety Deposit License Act, the Foreign Exchange License
11 Act, the Pawners Societies Act, the Sale of Exchange Act, the
12 Currency Exchange Act, the Sales Finance Agency Act, the Debt
13 Financial Planning and Management Service Act, the Consumer
14 Installment Loan Act, the Consumer Credit Counseling
15 Corporation Act, the Illinois Development Credit Corporation
16 Act, the Title Insurance Act, and any other Act administered
17 by the Department of Financial Institutions now or in the
18 future (unless an Act specifically provides otherwise) shall
19 be deposited in the Financial Institution Fund (hereinafter
20 "Fund"), a special fund that is hereby created in the State
21 Treasury.
22 Moneys in the Fund shall be used by the Department,
23 subject to appropriation, for expenses incurred in
24 administering the above named and referenced Acts.
25 The Comptroller and the State Treasurer shall transfer
26 from the General Revenue Fund to the Fund any monies received
27 by the Department after June 30, 1993, under any of the above
28 named and referenced Acts that have been deposited in the
29 General Revenue Fund.
30 As soon as possible after the end of each calendar year,
31 the Comptroller shall compare the balance in the Fund at the
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1 end of the calendar year with the amount appropriated from
2 the Fund for the fiscal year beginning on July 1 of that
3 calendar year. If the balance in the Fund exceeds the amount
4 appropriated, the Comptroller and the State Treasurer shall
5 transfer from the Fund to the General Revenue Fund an amount
6 equal to the difference between the balance in the Fund and
7 the amount appropriated.
8 Nothing in this Section shall be construed to prohibit
9 appropriations from the General Revenue Fund for expenses
10 incurred in the administration of the above named and
11 referenced Acts.
12 (Source: P.A. 88-13; 88-670, eff. 12-2-94.)
13 Section 10. The Currency Exchange Act is amended by
14 changing Sections 1, 2, 3, 4, 7, 10, 13.1, 15.1b, 15.1c, 16,
15 and 24 as follows:
16 (205 ILCS 405/1) (from Ch. 17, par. 4802)
17 Sec. 1. Definitions; application of Act. For the
18 purposes of this Act: "Community currency exchange" means any
19 person, firm, association, partnership, limited liability
20 company, or corporation, except an ambulatory currency
21 exchange as hereinafter defined, banks incorporated under the
22 laws of this State and National Banks organized pursuant to
23 the laws of the United States, engaged in the business or
24 service of, and providing facilities for, cashing checks,
25 drafts, money orders or any other evidences of money
26 acceptable to such community currency exchange, for a fee or
27 service charge or other consideration, or engaged in the
28 business of selling or issuing money orders under his or
29 their or its name, or any other money orders (other than
30 United States Post Office money orders, Postal Telegraph
31 Company money orders, or Western Union Telegraph Company
32 money orders), or engaged in both such businesses, or engaged
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1 in performing any one or more of the foregoing services.
2 "Ambulatory Currency Exchange" means any person, firm,
3 association, partnership, limited liability company, or
4 corporation, except banks organized under the laws of this
5 State and National Banks organized pursuant to the laws of
6 the United States, engaged in one or both of the foregoing
7 businesses, or engaged in performing any one or more of the
8 foregoing services, solely on the premises of the employer
9 whose employees are being served.
10 "Location" when used with reference to an ambulatory
11 currency exchange means the premises of the employer whose
12 employees are or are to be served by an ambulatory currency
13 exchange.
14 "Director" means the Director of Financial Institutions.
15 Nothing in this Act shall be held to apply to any person,
16 firm, association, partnership, limited liability company, or
17 corporation who is engaged primarily in the business of
18 transporting for hire, bullion, currency, securities,
19 negotiable or non-negotiable documents, jewels or other
20 property of great monetary value and who in the course of
21 such business and only as an incident thereto, cashes checks,
22 drafts, money orders or other evidences of money directly
23 for, or for the employees of and with the funds of and at a
24 cost only to, the person, firm, association, partnership,
25 limited liability company, or corporation for whom he or it
26 is then actually transporting such bullion, currency,
27 securities, negotiable or non-negotiable documents, jewels,
28 or other property of great monetary value, pursuant to a
29 written contract for such transportation and all incidents
30 thereof, nor shall it apply to any person, firm, association,
31 partnership, limited liability company, or corporation
32 engaged in the business of selling tangible personal property
33 at retail who, in the course of such business and only as an
34 incident thereto, cashes checks, drafts, money orders or
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1 other evidences of money.
2 (Source: Laws 1959, p. 2264.)
3 (205 ILCS 405/2) (from Ch. 17, par. 4803)
4 Sec. 2. License required; violation; injunction. No
5 person, firm, association, partnership, limited liability
6 company, or corporation shall engage in the business of a
7 community currency exchange or in the business of an
8 ambulatory currency exchange without first securing a license
9 to do so from the Director.
10 Any person, firm, association, partnership, limited
11 liability company, or corporation issued a license to do so
12 by the Director shall have authority to operate a community
13 currency exchange or an ambulatory currency exchange, as
14 defined in Section 1 hereof.
15 Any person, firm, association, partnership, limited
16 liability company, or corporation licensed as and engaged in
17 the business of a community currency exchange shall at a
18 minimum offer the service of cashing checks, or drafts, or
19 money orders, or any other evidences of money acceptable to
20 such currency exchange.
21 No ambulatory currency exchange and no community currency
22 exchange shall be conducted on any street, sidewalk or
23 highway used by the public, and no license shall be issued
24 therefor. An ambulatory currency exchange shall be required
25 to and shall secure a license or licenses for the conduct of
26 its business at each and every location served by it, as
27 provided in Section 4 hereof, whether the services at any
28 such location are rendered for or without a fee, service
29 charge or other consideration. Each plant or establishment is
30 deemed a separate location. No license issued for the conduct
31 of its business at one location shall authorize the conduct
32 of its business at any other location, nor shall any license
33 authorize the rendering of services by an ambulatory currency
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1 exchange to persons other than the employees of the employer
2 named therein. If the employer named in such license shall
3 move his business from the address therein set forth, such
4 license shall thereupon expire, unless the Director has
5 approved a change of address for such location, as provided
6 in Section 13.
7 Any person, firm, association, partnership, limited
8 liability company, or corporation that violates this Section
9 shall be guilty of a Class A misdemeanor, and the Attorney
10 General or the State's Attorney of the county in which the
11 violation occurs shall file a complaint in the Circuit Court
12 of the county to restrain the violation.
13 (Source: P.A. 84-504.)
14 (205 ILCS 405/3) (from Ch. 17, par. 4804)
15 Sec. 3. Powers of community currency exchanges. No
16 community or ambulatory currency exchange shall be permitted
17 to accept money or evidences of money as a deposit to be
18 returned to the depositor or upon the depositor's order; and
19 no community or ambulatory currency exchange shall be
20 permitted to act as bailee or agent for persons, firms,
21 partnerships, limited liability companies, associations or
22 corporations to hold money or evidences thereof or the
23 proceeds therefrom for the use and benefit of the owners
24 thereof, and deliver such money or proceeds of evidence of
25 money upon request and direction of such owner or owners;
26 provided, that nothing contained herein shall prevent a
27 community or an ambulatory currency exchange from obtaining
28 state automobile and city vehicle licenses for a fee or
29 service charge, or from rendering a photostat service, or
30 from rendering a notary service either by the proprietor of
31 the currency exchange or any one of its employees, authorized
32 by the State of Illinois to act as a notary public, or from
33 selling travelers cheques obtained by the currency exchange
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1 from a banking institution under a trust receipt, or from
2 issuing money orders or from accepting for payment utility
3 bills. Any community or ambulatory currency exchange may
4 enter into an agreement with any utility and other companies
5 to act as its agent for the acceptance of payment of utility
6 and other companies' bills without charge to the utility
7 customer and, acting under such agreement, may receipt for
8 payments in the names of the utility and other companies.
9 Any community or ambulatory currency exchange may also
10 receive payment of utility and other companies' bills for
11 remittance to companies with which it has no such agency
12 agreement and may charge a fee for such service but may not,
13 in such cases, receipt for such payment in the names of the
14 utility and other companies. However, funds received by
15 currency exchanges for remittance to utility and other
16 companies with which the currency exchange has no agency
17 agreement shall be forwarded to the appropriate utility and
18 other companies by the currency exchange before the end of
19 the next business day.
20 (Source: P.A. 80-445.)
21 (205 ILCS 405/4) (from Ch. 17, par. 4808)
22 Sec. 4. License application; contents; fees. Application
23 for such license shall be in writing under oath and in the
24 form prescribed and furnished by the Director. Each
25 application shall contain the following:
26 (a) The full name and address (both of residence and
27 place of business) of the applicant, and if the applicant is
28 a partnership, limited liability company, or association, of
29 every member thereof, and the name and business address if
30 the applicant is a corporation;
31 (b) The county and municipality, with street and number,
32 if any, where the community currency exchange is to be
33 conducted, if the application is for a community currency
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1 exchange license;
2 (c) If the application is for an ambulatory currency
3 exchange license, the name and address of the employer at
4 each location to be served by it; and
5 (d) The applicant's occupation or profession; a detailed
6 statement of his business experience for the 10 years
7 immediately preceding his application; a detailed statement
8 of his finances; his present or previous connection with any
9 other currency exchange; whether he has ever been involved in
10 any civil or criminal litigation, and the material facts
11 pertaining thereto; whether he has ever been committed to any
12 penal institution or admitted to an institution for the care
13 and treatment of mentally ill persons; and the nature of
14 applicant's occupancy of the premises to be licensed where
15 the application is for a community currency exchange license.
16 If the applicant is a partnership, the information specified
17 herein shall be required of each partner. If the applicant is
18 a corporation, the said information shall be required of each
19 officer, director and stockholder thereof. If the applicant
20 is a limited liability company, the information required by
21 this Section shall be provided with respect to each member
22 and manager.
23 A community currency exchange license application shall
24 be accompanied by a fee of $150 on the effective date of this
25 amendatory Act of 1987 and until January 1, 1989, and $180 on
26 January 1, 1989 and until January 1, 1990, and $500 on and
27 after January 1, 1990 which fee shall be for the cost of
28 investigating the applicant. When the application for a
29 community currency exchange license has been approved by the
30 Director and the applicant so advised, an additional sum of
31 $150 on the effective date of this amendatory Act of 1987 and
32 until January 1, 1989, and $180 on January 1, 1989 and until
33 January 1, 1990, and $200 on and after January 1, 1990 as an
34 annual license fee for a period terminating on the last day
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1 of the current calendar year shall be paid to the Director by
2 the applicant; provided, that the license fee for an
3 applicant applying for such a license after July 1st of any
4 year shall be $75 on the effective date of this amendatory
5 Act of 1987 and until July 1, 1988, and $90 on July 1, 1988
6 and until July 1, 1989, and $100 on and after July 1, 1989
7 for the balance of such year.
8 An application for an ambulatory currency exchange
9 license shall be accompanied by a fee of $100, which fee
10 shall be for the cost of investigating the applicant. An
11 approved applicant shall not be required to pay the initial
12 investigation fee of $100 more than once. When the
13 application for an ambulatory currency exchange license has
14 been approved by the Director, and such applicant so advised,
15 such applicant shall pay an annual license fee of $25 for
16 each and every location to be served by such applicant;
17 provided that such license fee for an approved applicant
18 applying for such a license after July 1st of any year shall
19 be $12 for the balance of such year for each and every
20 location to be served by such applicant. Such an approved
21 applicant for an ambulatory currency exchange license, when
22 applying for a license with respect to a particular location,
23 shall file with the Director, at the time of filing an
24 application, a letter of memorandum, which shall be in
25 writing and under oath, signed by the owner or authorized
26 representative of the business whose employees are to be
27 served; such letter or memorandum shall contain a statement
28 that such service is desired, and that the person signing the
29 same is authorized so to do. The Director shall thereupon
30 verify the authenticity of the letter or memorandum and the
31 authority of the person who executed it, to do so.
32 (Source: P.A. 86-432.)
33 (205 ILCS 405/7) (from Ch. 17, par. 4814)
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1 Sec. 7. Available funds; minimum amount. Each community
2 currency exchange shall have, at all times, a minimum sum of
3 its own cash funds available for the uses and purposes of its
4 business and said minimum sum shall be exclusive of and in
5 addition to funds received for exchange or transfer; and in
6 addition thereto each such licensee shall at all times have
7 on hand an amount of liquid funds sufficient to pay on demand
8 all outstanding money orders issued by it. Prior to January
9 1, 1979, this minimum sum shall be $4,000. After January 1,
10 1979, this minimum sum shall be $5,000.
11 In the event a receiver is appointed in accordance with
12 Section 15.1 of this Act, and the Director determines that
13 the business of the currency exchange should be liquidated,
14 and if it shall appear that the said minimum sum was not on
15 hand or available at the time of the appointment of the
16 receiver, then the receiver shall have the right to recover
17 in any court of competent jurisdiction from the owner or
18 owners of such currency exchange, or from the stockholders
19 and directors thereof if such currency exchange was operated
20 by a corporation, or from the members if the currency
21 exchange was operated as a limited liability company, said
22 sum or that part thereof which was not on hand or available
23 at the time of the appointment of such receiver. Nothing
24 contained in this Section shall limit or impair the liability
25 of any bonding or insurance company on any bond or insurance
26 policy relating to such community currency exchange issued
27 pursuant to the requirements of this Act, nor shall anything
28 contained herein limit or impair such other rights or
29 remedies as the receiver may otherwise have.
30 (Source: P.A. 83-345.)
31 (205 ILCS 405/10) (from Ch. 17, par. 4817)
32 Sec. 10. Qualifications of applicant; denial of license;
33 review. The applicant, and its officers, directors and
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1 stockholders, if a corporation, and its managers and members,
2 if a liability company, shall be vouched for by 2 reputable
3 citizens of this State setting forth that the individual
4 mentioned is (a) personally known to them to be trustworthy
5 and reputable, (b) that he has business experience qualifying
6 him to competently conduct, operate, own or become associated
7 with a currency exchange, (c) that he has a good business
8 reputation and is worthy of a license. Thereafter, the
9 Director shall, upon approval of the application filed with
10 him, issue to the applicant, qualifying under this Act, a
11 license to operate a currency exchange. If it is a license
12 for a community currency exchange, the same shall be valid
13 only at the place of business specified in the application.
14 If it is a license for an ambulatory currency exchange, it
15 shall entitle the applicant to operate only at the location
16 or locations specified in the application, provided the
17 applicant shall secure separate and additional licenses for
18 each of such locations. Such licenses shall remain in full
19 force and effect, until they are surrendered by the licensee,
20 or revoked, or expire, as herein provided. If the Director
21 shall not so approve, he shall not issue such license or
22 licenses and shall notify the applicant of such denial,
23 retaining the full investigation fee to cover the cost of
24 investigating the community currency exchange applicant. The
25 Director shall approve or deny every application hereunder
26 within 90 days from the filing thereof; except that in
27 respect to an application by an approved ambulatory currency
28 exchange for a license with regard to a particular location
29 to be served by it, the same shall be approved or denied
30 within 20 days from the filing thereof. If the application is
31 denied, the Director shall send by United States mail notice
32 of such denial to the applicant at the address set forth in
33 the application.
34 If an application is denied, the applicant may, within 10
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1 days from the date of the notice of denial, make written
2 request to the Director for a hearing on the application, and
3 the Director shall set a time and place for the hearing. The
4 hearing shall be set for a date after the receipt by the
5 Director of the request for hearing, and written notice of
6 the time and place of the hearing shall be mailed to the
7 applicant at least 15 days before the date of the hearing.
8 The applicant shall pay the actual cost of making the
9 transcript of the hearing prior to the Director's issuing his
10 decision following the hearing. If, following the hearing,
11 the application is denied, the Director shall, within 20 days
12 thereafter prepare and keep on file in his office a written
13 order of denial thereof, which shall contain his findings
14 with respect thereto and the reasons supporting the denial,
15 and shall send by United States Mail a copy thereof to the
16 applicant at the address set forth in the application, within
17 5 days after the filing of such order. A review of any such
18 decision may be had as provided in Section 22.01 of this Act.
19 (Source: P.A. 85-1356.)
20 (205 ILCS 405/13.1) (from Ch. 17, par. 4822)
21 Sec. 13.1. Consolidation of business locations. Whenever
22 2 or more licensees desire to consolidate their places of
23 business, they shall make application for such consolidation
24 to the Director upon a form provided by him. This application
25 shall state: (a) the name to be adopted and the location at
26 which the business is to be located, which name and location
27 shall be the same as one of the consolidating licensees; (b)
28 that the owners or all partners or all stockholders or all
29 members, as the case may be, of the licensees involved in the
30 contemplated consolidation, have approved the application;
31 (c) a certification by the secretary, if any of the licensees
32 be corporations, that the contemplated consolidation has been
33 approved by all of the stockholders at a properly convened
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1 stockholders meeting; (d) other relevant information the
2 Director may require. Simultaneously with the approval of the
3 application by the Director, the licensee or licensees who
4 will cease doing business shall: (a) surrender their license
5 or licenses to the Director; (b) transfer all of their assets
6 and liabilities to the licensee continuing to operate by
7 virtue of the application; (c) apply to the Secretary of
8 State, if they be corporations, for surrender of their
9 corporate charter in accordance with the provisions of the
10 the "Business Corporation Act of 1983", as amended.
11 An application for consolidation shall be approved or
12 rejected by the Director within 30 days after receipt by him
13 of such application and supporting documents required
14 thereunder.
15 Such consolidation shall not affect suits pending in
16 which the surrendering licensees are parties; nor shall such
17 consolidation affect causes of action nor the rights of
18 persons in particular; nor shall suits brought against such
19 licensees in their former names be abated for that cause.
20 Nothing contained herein shall limit or prohibit any
21 action or remedy available to a licensee or to the Director
22 under Sections 15, 15.1 to 15.1e or 15.2 of this Act.
23 (Source: P.A. 83-1362.)
24 (205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
25 Sec. 15.1b. Liquidation; distribution; priority. The
26 General Assembly finds and declares that community currency
27 exchanges provide important and vital services to Illinois
28 citizens. The General Assembly also finds that in providing
29 such services, community currency exchanges transact
30 extensive business involving check cashing and the writing of
31 money orders in communities in which banking services are
32 generally unavailable. It is therefore declared to be the
33 policy of this State that customers who receive these
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1 services must be protected from insolvencies of currency
2 exchanges and interruptions of services. To carry out this
3 policy and to insure that customers of community currency
4 exchanges are protected in the event it is determined that a
5 community currency exchange in receivership should be
6 liquidated in accordance with Section 15.1a of this Act, the
7 Director shall make a distribution of moneys collected by the
8 receiver in the following order of priority: First, allowed
9 claims for the actual necessary expenses of the receivership
10 of the community currency exchange being liquidated,
11 including (a) reasonable receiver fees and receiver's
12 attorney's fees approved by the Director, (b) all expenses of
13 any preliminary or other examinations into the condition of
14 the community currency exchange or receivership, (c) all
15 expenses incurred by the Director which are incident to
16 possession and control of any property or records of the
17 community currency exchange, and (d) reasonable expenses
18 incurred by the Director as the result of business agreements
19 or contractual arrangements necessary to insure that the
20 services of the community currency exchanges are delivered to
21 the community without interruption. Said business agreements
22 or contractual arrangements may include, but are not limited
23 to, agreements made by the Director, or by the Receiver with
24 the approval of the Director, with banks, money order
25 companies, bonding companies and other types of financial
26 institutions; Second, allowed claims by a purchaser of money
27 orders issued on demand of the community currency exchange
28 being liquidated; Third, allowed claims arising by virtue of
29 and to the extent of the amount a utility customer deposits
30 with the community currency exchange being liquidated which
31 are not remitted to the utility company; Fourth, allowed
32 claims arising by virtue of and to the extent of the amount
33 paid by a purchaser of Illinois license plates, vehicle
34 stickers sold for State and municipal governments in
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1 Illinois, and temporary Illinois registration permits
2 purchased at the currency exchange being liquidated; Fifth,
3 allowed unsecured claims for wages or salaries, excluding
4 vacation, severance and sick leave pay earned by employee
5 earned within 90 days prior to the appointment of a Receiver;
6 Sixth, allowed unsecured claims of any tax, and interest and
7 penalty on the tax; Seventh, allowed unsecured claims other
8 than a kind specified in paragraph one, two and three of this
9 Section, filed with the Director within the time the Director
10 fixes for filing claims; Eighth, allowed unsecured claims,
11 other than a kind specified in paragraphs one, two and three
12 of this Section filed with the Director after the time fixed
13 for filing claims by the Director; Ninth, allowed creditor
14 claims asserted by an owner, member, or stockholder of the
15 community currency exchange in liquidation; Tenth, after one
16 year from the final dissolution of the currency exchange, all
17 assets not used to satisfy allowed claims shall be
18 distributed pro rata to the owner, owners, members, or
19 stockholders of the currency exchange.
20 The Director shall pay all claims of equal priority
21 according to the schedule set out above, and shall not pay
22 claims of lower priority until all higher priority claims are
23 satisfied. If insufficient assets are available to meet all
24 claims of equal priority, those assets shall be distributed
25 pro rata among those claims. All unclaimed assets of a
26 currency exchange shall be deposited with the Director to be
27 paid out by him when proper claims therefor are presented to
28 the Director.
29 (Source: P.A. 83-1293.)
30 (205 ILCS 405/15.1c) (from Ch. 17, par. 4828)
31 Sec. 15.1c. Powers of receiver. Upon the order of the
32 circuit court of the county wherein the community currency
33 exchange being liquidated is located, the receiver may sell
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1 or compound any bad or doubtful debt, and on like order may
2 sell the personal property of the community currency exchange
3 on such terms as the court approves. The receiver shall
4 succeed to whatever rights or remedies the unsecured
5 creditors of the currency exchange may have against the owner
6 or owners, operators, stockholders, directors, members,
7 managers, or officers thereof, arising out of their claims
8 against the currency exchange, but nothing herein contained
9 shall prevent such creditors from filing their claims in the
10 liquidation proceeding. The receiver may enforce such rights
11 or remedies in any court of competent jurisdiction.
12 (Source: P.A. 79-1361.)
13 (205 ILCS 405/16) (from Ch. 17, par. 4832)
14 Sec. 16. Annual report; investigation; costs. Each
15 licensee shall annually, on or before the 1st day of March,
16 file a report with the Director for the calendar year period
17 from January 1st through December 31st, except that the
18 report filed on or before March 15, 1990 shall cover the
19 period from October 1, 1988 through December 31, 1989, (which
20 shall be used only for the official purposes of the Director)
21 giving such relevant information as the Director may
22 reasonably require concerning, and for the purpose of
23 examining, the business and operations during the preceding
24 fiscal year period of each licensed currency exchange
25 conducted by such licensee within the State. Such report
26 shall be made under oath and shall be in the form prescribed
27 by the Director and the Director may at any time and shall at
28 least once in each year investigate the currency exchange
29 business of any licensee and of every person, partnership,
30 association, limited liability company, and corporation who
31 or which shall be engaged in the business of operating a
32 currency exchange. For that purpose, the Director shall have
33 free access to the offices and places of business and to such
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1 records of all such persons, firms, partnerships,
2 associations, limited liability companies and members
3 thereof, and corporations and to the officers and directors
4 thereof that shall relate to such currency exchange business.
5 The Director may at any time inspect the locations served by
6 an ambulatory currency exchange, for the purpose of
7 determining whether such currency exchange is complying with
8 the provisions of this Act at each location served. The
9 Director may require by subpoena the attendance of and
10 examine under oath all persons whose testimony he may require
11 relative to such business, and in such cases the Director, or
12 any qualified representative of the Director whom the
13 Director may designate, may administer oaths to all such
14 persons called as witnesses, and the Director, or any such
15 qualified representative of the Director, may conduct such
16 examinations, and there shall be paid to the Director for
17 each such examination a fee of $150 for each day or part
18 thereof for each qualified representative designated and
19 required to conduct the examination; provided, however, that
20 in the case of an ambulatory currency exchange, such fee
21 shall be $75 for each day or part thereof and shall not be
22 increased by reason of the number of locations served by it.
23 (Source: P.A. 86-432.)
24 (205 ILCS 405/24) (from Ch. 17, par. 4847)
25 Sec. 24. Violations. Any person, firm, association,
26 partnership, limited liability company, or corporation who or
27 which shall violate any provision of this Act for which no
28 other penalty is herein prescribed shall be guilty of a petty
29 offense, and each violation shall constitute a separate
30 offense.
31 (Source: P.A. 77-2320.)
32 Section 15. The Financial Planning and Management
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1 Service Act is amended by changing Sections 1, 2, 3, 4, 5, 6,
2 7, 9, 10, 11, 12, 13, 14, 15.1, 15.3, 16, 17, 18, 20, and 22
3 and the title and adding Sections 8.5, 11.5, and 13.5 as
4 follows:
5 (205 ILCS 665/Act title)
6 An Act in relation to the regulation, licensing, and
7 bonding of persons engaged in rendering debt financial
8 planning and management services to individuals by managing
9 the financial affairs of individuals and receiving funds from
10 individuals and managing and distributing the same to the
11 creditors thereof.
12 (205 ILCS 665/1) (from Ch. 17, par. 5301)
13 Sec. 1. Declaration of policy. The business of
14 providing rendering debt financial planning and management
15 services to individuals is a matter of public interest and
16 concern and is subject to regulation and control in the
17 public interest.
18 (Source: Laws 1957, p. 2164.)
19 (205 ILCS 665/2) (from Ch. 17, par. 5302)
20 Sec. 2. Definitions. As used in this Act:
21 "Debt Financial Planning and management service" means
22 the planning and management of the financial affairs of a
23 debtor for a fee and the receiving of money from the debtor
24 for the purpose of distributing it to the debtor's creditors
25 in payment or partial payment of the debtor's obligations or
26 soliciting financial contributions from creditors. The
27 business of debt management is conducted in this State if the
28 debt management business, its employees, or its agents are
29 located in this State or if the debt management business
30 solicits or contracts with debtors located in this State. an
31 individual, and distribution of money to the creditors
32 thereof, or acting as the agent of an individual in the
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1 distribution of his income to his creditors, whether or not
2 the person so acting receives a fee or charge for such
3 services. Any person, partnership, association or corporation
4 so engaged shall be deemed to be rendering "financial
5 planning and management service".
6 This term shall not be deemed to include the following
7 when engaged in the regular course of their respective
8 businesses and professions:
9 (a) Attorneys at law.;
10 (b) Banks, fiduciaries, credit unions, savings and loan
11 associations, savings banks, and Consumer Installment Loan
12 Act licensees, financing and lending institutions as duly
13 authorized and admitted to transact business in the State of
14 Illinois and performing credit and financial adjusting
15 service in the regular course of their principal business.:
16 (c) Title insurers and abstract companies, while doing
17 an escrow business.:
18 (d) Employees of licensees under this Act:
19 (d) (e) Judicial officers or others acting pursuant to
20 court order.:
21 (f) Non-profit organizations giving debt management
22 service:
23 (e) (g) Employers for their employees.:
24 (h) Associations for their members.
25 "Director" means Director of Financial Institutions.
26 "Debtor Individual" means the person or persons for whom
27 the debt management the credit and financial adjusting
28 service is performed.
29 "Person" means an any individual, firm, partnership,
30 association, limited liability company, or corporation, or
31 not for profit corporation.
32 "Licensee" means person licensed under this Act.
33 "Director" means Director or the Department of Financial
34 Institutions.
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1 (Source: Laws 1959, p. 1287.)
2 (205 ILCS 665/3) (from Ch. 17, par. 5303)
3 Sec. 3. Requirement of license. On or after January 1,
4 1958 It shall be unlawful for any person to operate a debt
5 Financial Planning and management service or engage in that
6 said business as herein defined except as authorized by this
7 Act and without first having obtained a license as
8 hereinafter provided.
9 (Source: Laws 1957, p. 2164.)
10 (205 ILCS 665/4) (from Ch. 17, par. 5304)
11 Sec. 4. Application for license. Application for a
12 license to engage in the debt Financial Planning and
13 management service business in this State shall be made to
14 the Director and shall be in writing, under oath, and in the
15 form prescribed by the Director, and shall contain the full
16 name and address of the applicant and, if the applicant is a
17 co-partnership or association, of every member thereof and,
18 if a corporation, of each officer and director thereof; the
19 application shall also contain the county and municipality
20 with street and number, if any, where the business is to be
21 conducted, and such other pertinent information as the
22 Director may require.
23 Each applicant, at the time of making such application,
24 shall pay to the Director the sum of $30.00 as a fee for
25 investigation of the applicant, and the additional sum of
26 $100.00 as a license fee.
27 Every applicant shall submit to the Director, at the time
28 of the application for a license, a bond to be approved by
29 the Director in which the applicant shall be the obligor, in
30 the sum of $25,000 or such additional amount as required by
31 the Director based on the amount of disbursements made by the
32 licensee in the previous year, $7,500.00 and in which an
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1 insurance company, which is duly authorized by the State of
2 Illinois, to transact the business of fidelity and surety
3 insurance shall be a surety; provided, however, the Director
4 may accept in lieu of the surety bond, a deposit in cash, a
5 certified check payable to the Director of Financial
6 Institutions, or United States Government Bonds in the amount
7 of at least $25,000.
8 The bond shall run to the Director State of Illinois for
9 the use of the Department or State and of any person or
10 persons who may have a cause of action against the obligor in
11 said bond. under and by virtue of the provisions of this Act.
12 Such bond shall be conditioned that the said obligor will
13 faithfully conform to and abide by the provisions of this Act
14 and of all rules, regulations and directions lawfully made by
15 the Director hereunder and will pay to the Director or State
16 and to any such person or persons any and all money that may
17 become due or owing to the State or to such person or
18 persons, from said obligor under and by virtue of the
19 provisions of this Act.
20 (Source: Laws 1963, p. 3507.)
21 (205 ILCS 665/5) (from Ch. 17, par. 5305)
22 Sec. 5. Qualifications for license. Upon the filing of
23 the application and the approval of the such bond and the
24 payment of the specified fees, if the Director shall, issue a
25 license, if he finds upon investigation, find:
26 (1) That the financial responsibility, experience,
27 character and general fitness of the applicant, and of the
28 managers members thereof, if the applicant is a limited
29 liability company, the partners thereof, (if the applicant is
30 be a partnership, or association) and of the officers and
31 directors thereof, (if the applicant is be a corporation or a
32 not for profit corporation) are such as to command the
33 confidence of the community and to warrant belief that the
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1 business will be operated fairly, honestly and efficiently
2 within the purposes of this Act, and
3 (2) That the applicant, if an individual, and the
4 managers members thereof, if the applicant is be a limited
5 liability company, the partners thereof if the applicant is a
6 partnership or association, and the officers and directors
7 thereof, if the applicant is be a corporation, have has not
8 been convicted of a felony or a misdemeanor involving
9 dishonesty or untrustworthiness, and any crime involving
10 moral turpitude, or
11 (3) That the if such person or persons have not had a
12 record of having defaulted in the payment of money collected
13 for others, including the discharge of such debts through
14 bankruptcy proceedings, and;
15 (4) The applicant, or any officers, directors, partners
16 or managers, have not previously violated any provision of
17 this Act, or any rule, lawfully made by the Director, and
18 (5) The applicant has not made any false statement or
19 representation to the Director in applying for a license
20 hereunder.
21 The Director shall thereupon issue and deliver a license
22 to the applicant to engage in the debt Financial Planning and
23 management service business in accordance with the provisions
24 of this Act at the location specified in the said
25 application, which license shall remain in full force and
26 effect until it is surrendered by the licensee or revoked by
27 the Director as herein hereinafter provided; provided,
28 however, that each license shall expire by the terms thereof
29 on January 1 next following the issuance thereof unless the
30 same be renewed as hereinafter provided. A license, however,
31 may not be surrendered without the approval of the Director.
32 More than one license may be issued to the same person
33 for separate places of business, but separate applications
34 shall be made for each place of business.
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1 (Source: Laws 1959, p. 1287.)
2 (205 ILCS 665/6) (from Ch. 17, par. 5306)
3 Sec. 6. Renewal of license. Each licensee under the
4 provisions of this Act may on or before December 1 make
5 application to the Director for renewal of its license, which
6 said application for renewal shall be on the form prescribed
7 by the Director and shall be accompanied by a fee of $100.00
8 together with a bond or other surety as required, in a
9 minimum amount of $25,000 or such an amount as required by
10 the Director based on the amount of disbursements made by the
11 licensee in the previous year in the case of an original
12 application.
13 (Source: Laws 1959, p. 1287.)
14 (205 ILCS 665/7) (from Ch. 17, par. 5307)
15 Sec. 7. License, display and location. Each license
16 issued hereunder shall be kept conspicuously posted in the
17 place of business of the licensee. The business location
18 address may be changed by any licensee upon 10 ten days prior
19 written notice thereof to the Director. A license must
20 operate under the name as stated in its original application.
21 (Source: Laws 1959, p. 1287.)
22 (205 ILCS 665/8.5 new)
23 Sec. 8.5. Temporary location. The Director may approve
24 a temporary additional business location for the purpose of
25 allowing a licensee to conduct business outside the licensed
26 location.
27 (205 ILCS 665/9) (from Ch. 17, par. 5309)
28 Sec. 9. Denial of license. Any application for a license
29 hereunder shall be approved or denied within 60 days of the
30 filing of an such application with the Director. If license
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1 shall be denied, then the applicant shall be so notified by
2 United States mail, registered, and shall be given an
3 opportunity to be heard thereon, within 60 days of such
4 denial of license.
5 (Source: Laws 1959, p. 1287.)
6 (205 ILCS 665/10) (from Ch. 17, par. 5310)
7 Sec. 10. Revocation or suspension of license.)
8 (a) The Director may shall revoke or suspend any license
9 issued hereunder if he finds shall find that:
10 (1) any licensee has failed to pay the annual
11 license fee, or to maintain in effect the bond required
12 under the provisions of this Act; or
13 (2) the licensee has willfully failed to comply with
14 any ruling of the Director made within the authority of
15 this Act or has willfully violated any provisions of this
16 Act or any rule, lawfully made by the Director within the
17 authority of this Act; or
18 (3) any fact or condition exists which, if it had
19 existed at the time of the original application for a
20 license, would have warranted the Director in refusing
21 its issuance; or
22 (4) any applicant or party to an application has
23 made any false statement or representation to the
24 Director in applying for a license hereunder.
25 (b) In every case in which a license is suspended or
26 revoked on an application for a license or renewal of a
27 license is denied, the Director shall serve notice of his
28 action, including a statement of the reasons for his actions
29 either personally, or by certified mail, return receipt
30 requested. Service by mail shall be deemed completed if the
31 notice is deposited in the U.S. Mail.
32 (c) In the case of a denial of an application or renewal
33 of a license, the applicant or licensee may request in
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1 writing, within 30 days after the date of service, a hearing.
2 In the case of a denial of a renewal of a license, the
3 license shall be deemed to continue in force until 30 days
4 after the service of the notice of denial, or if a hearing is
5 requested during that period, until a final administrative
6 order is entered.
7 (d) An order of revocation or suspension of a license
8 shall take effect upon service of the order unless the
9 licensee requests, in writing, within 10 days after the date
10 of service, a hearing. In the event a hearing is requested,
11 the order shall be stayed until a final administrative order
12 is entered.
13 (e) If the licensee requests a hearing, the Director
14 shall schedule the hearing within 30 days after the request
15 for a hearing unless otherwise agreed to by the parties.
16 (f) The hearing shall be held at the time and place
17 designated by the Director. The Director and any
18 administrative law judge designated by him have the power to
19 administer oaths and affirmations, subpoena witnesses and
20 compel their attendance, take evidence, and require the
21 production of books, papers, correspondence, and other
22 records or information that he considers relevant or material
23 to the injury.
24 (g) The costs for the administrative hearing shall be
25 set by rule.
26 (h) The Director shall have the authority to prescribe
27 rules for the administration of this Section.
28 (b) If the Director finds that a condition requiring the
29 revocation of a license exists and finds that revocation
30 could result in irreparable harm to the licensee or deny
31 necessary services to the public, the Director may suspend
32 rather than revoke the license. Such suspension shall be for
33 a specified period of time but not more than 90 days. If the
34 condition resulting in the suspension is not remedied during
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1 the suspension period, the Director shall take immediate
2 action to revoke the license.
3 (c) Action under this Section for revocation or
4 suspension of a license may be taken only upon 5 days notice
5 to the licensee. The notice shall be mailed to the licensee
6 by registered United States mail, directed to the licensee at
7 the address set forth on the license. The notice shall state
8 the contemplated action and in general the grounds for the
9 action. The Director shall provide reasonable opportunity for
10 the licensee to be heard prior to such action.
11 (Source: P.A. 81-1403.)
12 (205 ILCS 665/11) (from Ch. 17, par. 5311)
13 Sec. 11. Contracts, books, records and contract
14 cancellation. Each licensee shall furnish to the Director,
15 when requested, a copy of the contract entered into between
16 the licensee and the debtor individual. The licensee shall
17 furnish the debtor with a copy of the written contract, at
18 the time of execution which shall set forth the charges if
19 any, agreed upon for the services of the licensee.
20 An individual may cancel the contract upon 30 days
21 written notice to the licensee in which event the licensee
22 shall be entitled to such charges as are provided in Section
23 12.
24 Each licensee hereunder shall maintain records and
25 accounts which will enable any debtor individual contracting
26 with the licensee, at any reasonable time, to ascertain the
27 amounts paid to creditors of the debtor individual. A
28 statement showing the total amount received and the total
29 disbursements to each creditor shall be furnished by the
30 licensee to any individual within seven days of a request
31 therefor by the said debtor individual. Each licensee
32 licensed hereunder shall issue a receipt for each payment
33 made by the debtor individual to the licensee. Each licensee
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1 shall prepare and retain in the file of each debtor a written
2 analysis of debtor's income and expenses to substantiate that
3 the plan of payment is feasible and practical.
4 (Source: Laws 1959, p. 1287.)
5 (205 ILCS 665/11.5 new)
6 Sec. 11.5. Examination of licensee. The Director shall
7 examine, on an annual basis, the condition and affairs of a
8 licensee. In connection with any examination, the Director
9 may examine on oath any licensee and any director, officer,
10 employee, customer, manager, partner, member, creditor or
11 stock holder of a licensee concerning the affairs and
12 business of the licensee. The Director shall ascertain
13 whether the licensee transacts its business in the manner
14 prescribed by law and the rules issued thereunder. The
15 licensee shall pay the cost of the examination as determined
16 by the Director by administrative rule. Failure to pay the
17 examination fee within 30 days after receipt of demand from
18 the Director may result in the suspension of the license
19 until the fee is paid. The Director shall have the right to
20 investigate and examine any person, whether licensed or not,
21 who is engaged in the debt management service business. The
22 Director shall have the power to subpoena the production of
23 any books and records pertinent to any investigation.
24 (205 ILCS 665/12) (from Ch. 17, par. 5312)
25 Sec. 12. Fees and charges of licensees. A licensee may
26 not charge a debtor any fees or penalties except the
27 following:
28 (1) an initial counseling fee not to exceed $50 per
29 debtor counseled; and
30 (2) a monthly fee of not more than $20 per debtor. The
31 contract between a licensee and the individual shall be in
32 writing and the fees and charges for this service shall be
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1 correctly set forth thereon, which fees or charges shall be
2 pro-rated monthly over the entire term of the contract;
3 provided that the fees or charges shall not exceed the
4 percentage of the amount required to pay the indebtedness as
5 follows: (a) not to exceed 10% when the plan of payment shall
6 be for a period of 10 months or less; (b) not to exceed 12
7 1/2% when the plan of payment shall be for a period of more
8 than 10 but less than 20 months; (c) not to exceed 15% when
9 the plan of payment shall be for a period of more than 20
10 months. In no event shall more than the pro-rated service
11 charge for one month be payable by the individual unless a
12 plan of payment of his obligations shall have been accepted
13 by a majority in number of the creditors listed in the
14 contract, which majority in number shall also represent a
15 majority of the total amount of the obligations listed as
16 owing to such creditors in the contract.
17 In the event of prepayment of the listed debts or
18 cancellation by the debtor, as provided in Section 11 of this
19 Act, or in the event of cancellation by the licensee after
20 wilful default by the individual for a period of 30 days, and
21 if the licensee has performed all of the services required
22 under this Act, the licensee shall be entitled to a
23 cancellation charge of 30% of the agreed service charges due
24 for the unexpired term of the contract at the time of such
25 prepayment or cancellation, but in no event to exceed $50.
26 The service charge or fee as herein determined, if any, shall
27 then be due and payable to the licensee.
28 (Source: Laws 1963, p. 3507.)
29 (205 ILCS 665/13) (from Ch. 17, par. 5313)
30 Sec. 13. Prohibitions. (1) No licensee shall advertise,
31 in any manner whatsoever, any statement or representation
32 with regard to the rates, terms or conditions of debt
33 financial planning and management service which is false,
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1 misleading, or deceptive.
2 (2) No licensee shall require as a part of the agreement
3 between the licensee and any debtor, the purchase of any
4 stock, insurance, commodity, service or other property or any
5 interest therein.
6 (3) No licensee shall, directly or indirectly, accept
7 payment or any other consideration, whether in cash or in
8 kind, from any entity for referring applicants to that
9 entity. The licensee shall not, directly or indirectly, make
10 payments in any form, whether in cash or in kind, to any
11 person, corporation, or other entity for referring applicants
12 or clients to the licensee.
13 (4) No licensee shall make any loans.
14 (5) No licensee shall issue credit cards or act as an
15 agent in procuring customers for a credit card company or any
16 financial institution.
17 (6) No licensee shall act as a loan broker.
18 (7) No licensee shall operate any other business at the
19 licensed location without another business authorization from
20 the Director, pursuant to Section 13.5.
21 (Source: Laws 1963, p. 3507.)
22 (205 ILCS 665/13.5 new)
23 Sec. 13.5. Other business. Upon application by the
24 licensee, and approval by the Director, the Director may
25 approve the conduct of other businesses in the licensee's
26 place of business. The approval shall be in writing and
27 shall describe the other businesses that may be conducted in
28 the licensed office. The Director shall make and enforce
29 reasonable rules to prevent evasions or violations of this
30 Act. The Director may investigate any business conducted in
31 the licensed office to determine whether any evasion or
32 violation of this Act has occurred.
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1 (205 ILCS 665/14) (from Ch. 17, par. 5314)
2 Sec. 14. Trust funds; requirements and restrictions.
3 (a) All funds received by a licensee or his agent from
4 and for the purpose of paying bills, invoices, or accounts of
5 a debtor shall constitute trust funds owned by and belonging
6 to the debtor from whom they were received. All such funds
7 received by a licensee shall be separated from the funds of
8 the licensee not later than the end of the business day
9 following receipt by the licensee. All such funds shall be
10 kept separate and apart at all times from funds belonging to
11 the licensee or any of its officers, employees or agents and
12 may be used for no purpose other than paying bills, invoices,
13 or accounts of the debtor. All such trust funds received at
14 the main or branch offices of a licensee shall be deposited
15 in a bank in an account in the name of the licensee
16 designated "trust account", or by some other appropriate name
17 indicating that the funds are not the funds of the licensee
18 or its officers, employees, or agents, on or before the close
19 of the business day following receipt.
20 (b) Prior to separation and deposit by the licensee,
21 such funds may be used by the licensee only for the making of
22 change or the cashing of checks in the normal course of its
23 business. Such funds are not subject to attachment, lien,
24 levy of execution, or sequestration by order of court except
25 by a debtor for whom a licensee is acting as an agent in
26 paying bills, invoices, or accounts.
27 (c) Each licensee shall make remittances within 30 days
28 after initial receipt of funds, and thereafter remittances
29 shall be made within 15 days of receipt, less fees and costs,
30 unless the reasonable payment of one or more of the debtor's
31 obligations requires that the funds be held for a longer
32 period so as to accumulate a sum certain.
33 (d) At least once every month, the licensee shall render
34 an accounting to the debtor which shall itemize the total
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1 amount received from the debtor, the total amount paid each
2 creditor, the amount of charges deducted, and any amount held
3 in reserve. A licensee shall, in addition thereto, provide
4 such an accounting to a debtor within 7 days after written
5 demand, but not more than 3 times per 6 month period.
6 Licensee to remit to creditors. Each licensee shall remit the
7 funds received by it, less the amount withheld for fees and
8 charges as hereinabove provided, to the creditors promptly
9 after receipt of funds, and a record of the remittances shall
10 be furnished regularly to the debtor.
11 (Source: Laws 1963, p. 3507.)
12 (205 ILCS 665/15.1) (from Ch. 17, par. 5316)
13 Sec. 15.1. Advisory Board; appointment. There is created
14 a Board of Debt Financial Planning and Management Service
15 ydvisors composed of 5 persons appointed by the Governor.
16 Each member shall be familiar with and associated in the
17 field of debt Financial Planning and management service.
18 Each Board member shall serve without compensation, but shall
19 be reimbursed for necessary expenses. Initially, the Board
20 shall consist of members appointed for terms beginning on
21 July 1, 1965, and one member shall serve until July 1, 1966,
22 2 members shall serve until July 1, 1967, and 2 members shall
23 serve until July 1, 1968, as designated by the Governor at
24 the time of the initial appointments. As terms of appointment
25 expire, successors shall be appointed for terms to expire on
26 July 1, 3 three years subsequent to the date of appointment.
27 Each member of the board shall serve until his respective
28 successor is appointed.
29 (Source: P.A. 89-400, eff. 8-20-95.)
30 (205 ILCS 665/15.3) (from Ch. 17, par. 5318)
31 Sec. 15.3. Advisory Board; powers. The Board shall have
32 the following powers:
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1 1. To make recommendations to the Director concerning
2 matters which he may refer to the Board for consideration;
3 2. To recommend on its own initiative policies and
4 practices to the Director, the Governor and the General
5 Assembly;
6 3. To make recommendations to the Director for the
7 purpose of preventing unsound practices in the field of debt
8 Financial Planning and management service;
9 4. To foster the interest and cooperation of persons
10 rendering debt Financial Planning and management service in
11 improvement of their services to the people of the State of
12 Illinois.
13 (Source: Laws 1965, p. 2494.)
14 (205 ILCS 665/16) (from Ch. 17, par. 5319)
15 Sec. 16. Penalties.
16 (a) Any person who engages in the business of debt
17 management service without a license shall be guilty of a
18 Class 4 felony. Any person willfully violating any of the
19 provisions of this Act shall be deemed guilty of a Class B
20 misdemeanor.
21 (b) Any contract of debt management service financial
22 planning and management as defined in this Act, made by an
23 unlicensed person, shall be null and void and of no legal
24 effect.
25 (c) The Director may set by rule monetary penalties for
26 violation of this Act.
27 (Source: P.A. 77-2323.)
28 (205 ILCS 665/17) (from Ch. 17, par. 5320)
29 Sec. 17. Injunction.) To engage in debt the Financial
30 Planning and management service business, render financial
31 service, or accept debtors' individuals funds, as defined in
32 this Act, without a valid existing license so to do, is
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1 hereby declared to be inimical to the public welfare and to
2 constitute a public nuisance. The Director may, in the name
3 of the people of the State of Illinois, through the Attorney
4 General of the State of Illinois or the State's Attorney of
5 any county in the State of Illinois, file a complaint for an
6 injunction in the circuit court, to enjoin such person, firm
7 or corporation from engaging in said business. and any such
8 court may, as in cases relating to injunction in the State of
9 Illinois, enter preliminary or permanent injunctions as the
10 circumstances shall require; and in case of the violation of
11 any injunction entered under this section, the court may
12 summarily try and punish the offender for contempt of court
13 for each violation. Such injunction proceeding shall be in
14 addition to, and not in lieu of, penalties and remedies
15 otherwise in this Act provided.
16 (Source: P.A. 83-334.)
17 (205 ILCS 665/18) (from Ch. 17, par. 5321)
18 Sec. 18. Review. All final administrative decisions of
19 the Director hereunder shall be subject to judicial review
20 pursuant to the provisions of the Administrative Review Law,
21 and all amendments and modifications thereof and the rules
22 adopted pursuant thereto. The term "administrative decision"
23 is defined as in Section 3-101 of the Code of Civil
24 Procedure.
25 (Source: P.A. 82-783.)
26 (205 ILCS 665/20) (from Ch. 17, par. 5323)
27 Sec. 20. Cease and desist orders.
28 (a) The Director may issue a cease and desist order to
29 any licensee, or other person doing business without the
30 required license, when in the opinion of the Director, the
31 licensee, or other person, is violating or is about to
32 violate any provision of the Act or any rule or condition
-33- LRB9002126JSgc
1 imposed in writing by the Department.
2 (b) The Director may issue a cease and desist order
3 prior to a hearing.
4 (c) The Director shall serve notice of his action,
5 including a statement of the reasons for his action either
6 personally or by certified mail, return receipt requested.
7 Service by mail shall be deemed completed if the notice is
8 deposited in the U.S. mail.
9 (d) Within 10 days after service of the cease and desist
10 order, the licensee or other person may request, in writing,
11 a hearing.
12 (e) The Director shall schedule a hearing within 30 days
13 after the request for a hearing unless otherwise agreed to by
14 the parties.
15 (f) The Director shall have the authority to prescribe
16 rules for the administration of this Section.
17 (g) If it is determined that the Director had the
18 authority to issue the cease and desist order, he may issue
19 such orders as may be reasonably necessary to correct,
20 eliminate, or remedy such conduct.
21 (h) The powers vested in the Director by this Section
22 are additional to any and all other powers and remedies
23 vested in the Director by law, and nothing in this Section
24 shall be construed as requiring that the Director shall
25 employ the power conferred in this Section instead of or as a
26 condition precedent to the exercise of any other power or
27 remedy vested in the Director.
28 (i) The cost for the administrative hearing shall be set
29 by rule. Investigation. The Director may from time to time
30 investigate and examine the books and records of every
31 licensee hereunder and of any person, firm, association or
32 corporation who or which shall be engaged in the business as
33 defined in Section 2 of this Act and who or which are not
34 expressly exempted under this Act.
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1 (Source: Laws 1959, p. 1287.)
2 (205 ILCS 665/22) (from Ch. 17, par. 5325)
3 Sec. 22. Title of Act. This Act shall be known and may be
4 cited as the Debt Management Service Act Financial Planning
5 and Management Service Act.
6 (Source: Laws 1957, p. 2164.)
7 Section 20. The Viatical Settlements Act is amended by
8 changing Section 5 as follows:
9 (215 ILCS 158/5)
10 Sec. 5. Definitions. As used in this Act, the following
11 definitions apply:
12 "Director" means the Director of Insurance.
13 "Person" means any natural or artificial entity
14 including, but not limited to, individuals, partnerships,
15 associations, trusts, or corporations.
16 "Viatical settlement agent" means an individual,
17 partnership, corporation, or other entity who through
18 appointment by at least one viatical settlement provider and
19 for a fee, commission, or other valuable consideration,
20 offers or advertises the availability of viatical
21 settlements, introduces viators to viatical settlement
22 providers, or offers or attempts to negotiate viatical
23 settlements between a viator and one or more viatical
24 settlement providers. "Viatical settlement agent" does not
25 include an attorney licensed to practice law, a public
26 accountant as defined in the Illinois Public Accounting Act,
27 or a person licensed under the Debt Financial Planning and
28 Management Service Act retained to represent the viator whose
29 compensation is not paid by the viatical settlement provider.
30 "Viatical settlement contract" means a written agreement
31 entered into between a viatical settlement provider and a
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1 person who owns a life insurance policy or who owns or is
2 covered under a group policy, insuring the life of a person
3 who has a catastrophic or life threatening illness or
4 condition. The agreement shall establish the terms under
5 which the viatical settlement provider will pay compensation
6 or anything of value, which compensation or value is less
7 than the expected death benefit of the insurance policy or
8 certificate, in return for the policyowner's assignment,
9 transfer, sale, devise, or bequest of the death benefit or
10 ownership of the insurance policy or certificate to the
11 viatical settlement provider.
12 "Viatical settlement provider" means an individual,
13 partnership, corporation, or other entity that enters into an
14 agreement with a person who owns a life insurance policy, or
15 who owns or is covered under a group policy, insuring the
16 life of a person who has a catastrophic or life threatening
17 illness or condition, under the terms of which the viatical
18 settlement provider pays compensation or anything of value,
19 which compensation or value is less than the expected death
20 benefit of the insurance policy or certificate, in return for
21 the policyowner's assignment, transfer, sale, devise, or
22 bequest of the death benefit or ownership of the insurance
23 policy or certificate to the viatical settlement provider.
24 "Viatical settlement provider" does not include:
25 (1) a licensed insurance company, bank, savings
26 bank, savings and loan association, credit union,
27 commercial finance company or other licensed lending
28 institution, investment company registered under the
29 Investment Company Act of 1940, pension plan qualified
30 under Section 401(a) of the Internal Revenue Code of
31 1986, or trust funding such a pension plan that takes an
32 assignment of a life insurance policy only as collateral
33 for a loan;
34 (2) sophisticated investors meeting the standards
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1 of subsection H of Section 4 of the Illinois Securities
2 Law of 1953 who invest in or lend to a licensed viatical
3 settlement provider or other persons who so invest
4 pursuant to a registered security offering; or
5 (3) the issuer of a life insurance policy providing
6 accelerated benefits under the Illinois Insurance Code.
7 "Viaticated policy" means a life insurance policy held by
8 a viatical settlement provider, directly or indirectly,
9 through a viatical settlement contract.
10 "Viator" means a person who owns a life insurance policy,
11 or who owns or is covered under a group policy, insuring the
12 life of a person with a catastrophic or life threatening
13 illness or condition who enters into an agreement under which
14 the viatical settlement provider will pay compensation or
15 anything of value, which compensation or value is less than
16 the expected death benefit of the insurance policy or
17 certificate, in return for the viator's assignment, transfer,
18 sale, devise, or bequest of the death benefit or ownership of
19 the insurance policy or certificate to the viatical
20 settlement provider.
21 (Source: P.A. 89-484, eff. 6-21-96.)
22 Section 25. The General Not For Profit Corporation Act
23 of 1986 is amended by changing Section 103.05 as follows:
24 (805 ILCS 105/103.05) (from Ch. 32, par. 103.05)
25 Sec. 103.05. Purposes and authority of corporations;
26 particular purposes; exemptions.
27 (a) Not-for-profit corporations may be organized under
28 this Act for any one or more of the following or similar
29 purposes:
30 (1) Charitable.
31 (2) Benevolent.
32 (3) Eleemosynary.
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1 (4) Educational.,
2 (5) Civic.
3 (6) Patriotic.
4 (7) Political.
5 (8) Religious.
6 (9) Social.
7 (10) Literary.
8 (11) Athletic.
9 (12) Scientific.
10 (13) Research.
11 (14) Agricultural.
12 (15) Horticultural.
13 (16) Soil improvement.
14 (17) Crop improvement.
15 (18) Livestock or poultry improvement.
16 (19) Professional, commercial, industrial, or trade
17 association.
18 (20) Promoting the development, establishment, or
19 expansion of industries.
20 (21) Electrification on a cooperative basis.
21 (22) Telephone service on a mutual or cooperative
22 basis.
23 (23) Ownership and operation of water supply
24 facilities for drinking and general domestic use on a
25 mutual or cooperative basis.
26 (24) Ownership or administration of residential
27 property on a cooperative basis.
28 (25) Administration and operation of property owned
29 on a condominium basis or by a homeowner association.
30 (26) Administration and operation of an
31 organization on a cooperative basis producing or
32 furnishing goods, services, or facilities primarily for
33 the benefit of its members who are consumers of those
34 goods, services, or facilities.
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1 (27) Operation of a community mental health board
2 or center organized pursuant to the Community Mental
3 Health Act for the purpose of providing direct patient
4 services.
5 (28) (Blank). Provision of consumer credit
6 counseling as authorized by the Consumer Credit
7 Counseling Corporation Act.
8 (29) Promotion, operation, and administration of a
9 ridesharing arrangement as defined in Section 1-176.1 of
10 the Illinois Vehicle Code.
11 (30) The administration and operation of an
12 organization for the purpose of assisting low-income
13 consumers in the acquisition of utility and telephone
14 services.
15 (b) A corporation may be organized hereunder to serve in
16 an area that adjoins or borders (except for any intervening
17 natural watercourse) an area located in an adjoining state
18 intended to be similarly served, and the corporation may join
19 any corporation created by the adjoining state having an
20 identical purpose and organized as a not-for-profit
21 corporation. Whenever any corporation organized under this
22 Act so joins with a foreign corporation having an identical
23 purpose, the corporation shall be permitted to do business in
24 Illinois as one corporation; provided (1) that the name,
25 bylaw provisions, officers, and directors of each corporation
26 are identical, (2) that the foreign corporation complies with
27 the provisions of this Act relating to the admission of
28 foreign corporation, and (3) that the Illinois corporation
29 files a statement with the Secretary of State indicating that
30 it has joined with a foreign corporation setting forth the
31 name thereof and the state of its incorporation.
32 (Source: P.A. 87-449.)
33 (805 ILCS 140/Act rep.)
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1 Section 30. The Consumer Credit Counseling Corporation
2 Act is repealed.
3 Section 99. Effective date. This Act takes effect
4 January 1, 1998.
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1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 105/6z-26
4 205 ILCS 405/1 from Ch. 17, par. 4802
5 205 ILCS 405/2 from Ch. 17, par. 4803
6 205 ILCS 405/3 from Ch. 17, par. 4804
7 205 ILCS 405/4 from Ch. 17, par. 4808
8 205 ILCS 405/7 from Ch. 17, par. 4814
9 205 ILCS 405/10 from Ch. 17, par. 4817
10 205 ILCS 405/13.1 from Ch. 17, par. 4822
11 205 ILCS 405/15.1b from Ch. 17, par. 4827
12 205 ILCS 405/15.1c from Ch. 17, par. 4828
13 205 ILCS 405/16 from Ch. 17, par. 4832
14 205 ILCS 405/24 from Ch. 17, par. 4847
15 205 ILCS 665/1 from Ch. 17, par. 5301
16 205 ILCS 665/2 from Ch. 17, par. 5302
17 205 ILCS 665/3 from Ch. 17, par. 5303
18 205 ILCS 665/4 from Ch. 17, par. 5304
19 205 ILCS 665/5 from Ch. 17, par. 5305
20 205 ILCS 665/6 from Ch. 17, par. 5306
21 205 ILCS 665/7 from Ch. 17, par. 5307
22 205 ILCS 665/8.5 new
23 205 ILCS 665/9 from Ch. 17, par. 5309
24 205 ILCS 665/10 from Ch. 17, par. 5310
25 205 ILCS 665/11 from Ch. 17, par. 5311
26 205 ILCS 665/11.5 new
27 205 ILCS 665/12 from Ch. 17, par. 5312
28 205 ILCS 665/13 from Ch. 17, par. 5313
29 205 ILCS 665/13.5 new
30 205 ILCS 665/14 from Ch. 17, par. 5314
31 205 ILCS 665/15.1 from Ch. 17, par. 5316
32 205 ILCS 665/15.3 from Ch. 17, par. 5318
33 205 ILCS 665/16 from Ch. 17, par. 5319
34 205 ILCS 665/17 from Ch. 17, par. 5320
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1 205 ILCS 665/18 from Ch. 17, par. 5321
2 205 ILCS 665/20 from Ch. 17, par. 5323
3 205 ILCS 665/22 from Ch. 17, par. 5325
4 215 ILCS 158/5
5 805 ILCS 105/103.05 from Ch. 32, par. 103.05
6 805 ILCS 140/Act rep.