There Is a Newer Version of the Illinois Compiled Statutes
2005 Illinois Code - Chapter 205 Financial Regulation 205 ILCS 665/ Debt Management Service Act.
(205 ILCS 665/1) (from Ch. 17, par. 5301)
Sec. 1.
Declaration of policy.
The business of
providing debt
management services to
individuals is a matter of public interest and concern and is subject to
regulation and control in the public interest.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/2) (from Ch. 17, par. 5302)
Sec. 2. Definitions. As used in this Act:
"Debt management
service" means
the planning and management of the financial affairs of
a debtor for a fee and the receiving
of money
from the debtor for the purpose
of distributing it, directly or indirectly, to the debtor's creditors in payment or partial payment of
the debtor's obligations or soliciting financial contributions from creditors.
The business of debt management is conducted in this State if the debt
management business, its employees, or its agents are located in this State or
if the
debt management business solicits or contracts with debtors located in this
State.
This term shall not include the following when engaged in
the regular course of their respective businesses and professions:
(a) Attorneys at law.
(b) Banks, fiduciaries, credit unions, savings and | ||
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(c) Title insurers and abstract companies, while | ||
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(d) Judicial officers or others acting pursuant to | ||
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(e) Employers for their employees.
(f) Bill payment services, as defined in the | ||
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"Director" means Director of Financial Institutions.
"Debtor" means the person or persons for whom the debt
management service is performed.
"Person" means an individual, firm, partnership,
association, limited liability company,
corporation, or not‑for‑profit corporation.
"Licensee" means a person licensed under this Act.
"Director" means the Director of the Department of Financial Institutions.
(Source: P.A. 92‑400, eff. 1‑1‑02; 93‑903, eff. 8‑10‑04.)
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(205 ILCS 665/3) (from Ch. 17, par. 5303)
Sec. 3.
Requirement of license.
It shall be unlawful for any person to
operate a debt management service or
engage in that
business as herein defined except as authorized by this Act and without
first having obtained a license as hereinafter provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/4) (from Ch. 17, par. 5304)
Sec. 4.
Application for license.
Application for a license to engage in the debt
management
service
business in this State shall be made to the Director and shall
be in writing, under oath, and in the form prescribed by the Director.
Each applicant, at the time of making such application, shall pay to the
Director the sum of $30.00 as a fee for investigation of the applicant, and
the additional sum of $100.00 as a license fee.
Every applicant shall submit to the Director, at the time of the
application for a license, a bond to be approved by the Director in which
the applicant shall be the obligor, in the sum of $25,000 or
such additional amount as required by the Director based on the amount of
disbursements made by the
licensee in the
previous year, and in which an
insurance company, which is duly authorized by the State of Illinois, to
transact the business of fidelity and surety insurance shall be a surety.
The bond shall run to the Director for the use of
the Department or
of any person or persons who may have a cause of action against the obligor
in said bond arising out
of any violation of this
Act or rules by a license.
Such
bond
shall be conditioned that the obligor will faithfully conform to
and abide
by the provisions of this Act and of all rules, regulations and directions
lawfully made by the Director and will pay to the Director or to
any person or persons any and all money that may become due or owing
to the State or to such person or persons, from said obligor under and by
virtue of the provisions of this Act.
(Source: P.A. 92‑400, eff. 1‑1‑02.)
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(205 ILCS 665/5) (from Ch. 17, par. 5305)
Sec. 5.
Qualifications for license.
Upon the filing of the application and
the approval of the bond and the payment of the specified fees, the Director
shall issue a license if he finds:
(1) That the financial responsibility, experience, character and general
fitness of the applicant, the managers thereof, if the applicant is a limited
liability company, the partners thereof, if the applicant is a partnership, and
of the officers and directors thereof, if the applicant is a corporation or a
not‑for‑profit corporation, are such as to command the confidence of the
community and to warrant belief that the business will be operated fairly,
honestly and efficiently within the purposes of this Act, and
(2) That the applicant, if an individual, the managers thereof, if the
applicant is a limited liability company, the partners thereof, if the
applicant is a partnership, and the officers and directors thereof, if the
applicant is a corporation, have not been convicted of a felony or a
misdemeanor involving dishonesty or untrustworthiness, and
(3) That the person or persons have not had a record of having defaulted in
the payment of money collected for others, including the discharge of such
debts through bankruptcy proceedings, and
(4) The applicant, or any officers, directors, partners or managers, have
not previously violated any provision of this Act or any rule lawfully made
by the Director, and
(5) The applicant has not made any false statement or representation to the
Director in applying for a license hereunder.
The Director shall deliver a license to the applicant to engage in the debt
management service business in accordance with the provisions of this Act at
the location specified in the said application, which license shall remain in
full force and effect until it is surrendered by the licensee or revoked by the
Director as herein provided; provided, however, that each license shall expire
by the terms thereof on January 1 next following the issuance thereof unless
the same be renewed as hereinafter provided. A license, however, may not be
surrendered without the approval of the Director.
More than one license may be issued to the same person for separate
places of business, but separate applications shall be made for each place
of business.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/6) (from Ch. 17, par. 5306)
Sec. 6.
Renewal of license.
Each licensee under the provisions of this Act may
make application to the
Director for renewal of its license, which
application for renewal shall be on the form prescribed by the Director and
shall be accompanied by a fee of $100.00 together with a bond or other
surety as required, in a minimum amount of $25,000 or such an amount as
required by the Director based on the amount of disbursements made by the
licensee in the previous year. The application must be received by the
Department no later than December 1 of the year preceding the year for which
the application applies.
(Source: P.A. 92‑400, eff. 1‑1‑02.)
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(205 ILCS 665/7) (from Ch. 17, par. 5307)
Sec. 7.
License, display and location.
Each license issued shall be kept conspicuously posted in the
place of business of the licensee. The business
location may be changed by any licensee upon
10 days prior written notice to the Director.
A license must operate under the name as stated in its original
application.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/8.5)
Sec. 8.5.
Temporary location.
The Director may approve a temporary
additional business location for the purpose of allowing a licensee to conduct
business outside the licensed location.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/9) (from Ch. 17, par. 5309)
Sec. 9.
Denial of license.
Any application for a license shall be approved or denied
within 60 days of the filing of an application with the Director.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/10) (from Ch. 17, par. 5310)
Sec. 10.
Revocation or suspension of license.
(a) The Director may revoke or suspend any license if he finds that:
(1) any licensee has failed to pay the annual | ||
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(2) the licensee has violated any provisions of this | ||
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(3) any fact or condition exists which, if it had | ||
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(4) any applicant has made any false statement or | ||
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(b) In every case in which a license is suspended or revoked or an
application for a license or renewal of a license is denied, the Director shall
serve notice of his action, including a statement of the reasons for his
actions, either personally or by certified mail, return receipt requested.
Service by mail shall be deemed completed if the notice is deposited in the
U.S. Mail.
(c) In the case of a denial of an application or renewal of a license,
the applicant or licensee may request in writing, within
30 days after the date of service, a hearing. In the case of a denial of a
renewal of a license, the license shall be deemed to continue in force until 30
days after the service of the notice of denial, or if a hearing is requested
during that period, until a final administrative order is entered.
(d) An order of revocation or suspension of a license shall take effect upon
service of the order unless the licensee requests, in writing, within 10 days
after the date of service, a hearing. In the event a hearing is requested, the
order shall be stayed until a final administrative order is entered.
(e) If the licensee requests a hearing, the Director shall schedule the
hearing within 30 days after the request for a hearing unless otherwise agreed
to by the parties.
(f) The hearing shall be held at the time and place designated by the
Director. The Director and any administrative law judge designated by him have
the power to administer oaths and affirmations, subpoena witnesses and compel
their attendance, take evidence, and require the production of books, papers,
correspondence, and other records or information that he considers relevant or
material to the injury.
(g) The costs for the administrative hearing shall be set by rule.
(h) The Director shall have the authority to prescribe rules for the
administration of this Section.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/11) (from Ch. 17, par. 5311)
Sec. 11.
Contracts, books, records and contract cancellation.
Each licensee shall furnish to the Director, when requested, a copy of
the contract entered into between the licensee and the debtor. The
licensee shall furnish the debtor with a copy of the written contract, at the
time of execution,
which shall set forth the charges, if any, agreed upon for the services of
the licensee.
Each licensee shall maintain records and accounts which will
enable any debtor contracting with the licensee, at any
reasonable
time, to ascertain the amounts paid to creditors of the debtor. A
statement showing the total amount received and the total disbursements to
each creditor shall be furnished by the licensee to any individual within
seven days of a request therefor by the said debtor. Each
licensee shall issue a receipt for each payment made by the
debtor at a licensee's office. Each licensee
shall prepare and
retain in the
file of each debtor a written analysis of debtor's income and expenses to
substantiate that the plan of payment is feasible and practical.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/11.5)
Sec. 11.5.
Examination of licensee.
The Director at any time, either in
person or through an appointed representative, may examine the condition and
affairs of a
licensee. In connection with any
examination, the Director may examine on oath any licensee and
any
director,
officer, employee, customer, manager, partner, member, creditor or stockholder
of a licensee concerning the affairs and business of the licensee. The
Director shall ascertain whether the licensee transacts its business in the
manner prescribed by law and the rules issued thereunder. The
licensee shall pay the cost of the examination as determined by the Director by
administrative rule. Failure to pay the examination fee within 30 days after
receipt of demand from the Director may result in the suspension of the license
until the fee is paid. The Director shall have the right to investigate and
examine any person, whether licensed or not, who is engaged in the debt
management service business. The Director shall have the power to subpoena the
production of any books and records pertinent to any investigation.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/12) (from Ch. 17, par. 5312)
Sec. 12.
Fees and charges of licensees. A licensee may not charge a debtor any
fees or penalties except the following:
(1) an initial counseling fee not to exceed $50 per
debtor counseled, provided the average initial counseling fee does not
exceed $30 per debtor for all debtors counseled; and
(2) additional fees at the completion of the initial counseling services
which shall not exceed $50 per month, provided the average monthly fee does not
exceed $30 per debtor for all debtors counseled.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/12.1)
Sec. 12.1.
All moneys received by the Department of Financial Institutions
under this Act shall be deposited in the Financial Institutions Fund created
under Section 6z‑26 of the State Finance Act.
(Source: P.A. 88‑13.)
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(205 ILCS 665/13) (from Ch. 17, par. 5313)
Sec. 13.
Prohibitions.
(1) No licensee shall advertise, in any manner whatsoever, any statement
or
representation with regard to the rates, terms or conditions of debt management
service which is false, misleading, or deceptive.
(2) No licensee shall require as a part of the agreement between the
licensee and any debtor, the purchase of any stock, insurance, commodity,
service or other property or any interest therein.
(3) No licensee shall, directly or indirectly, accept payment or any other
consideration, whether in cash or in kind, from any entity for referring
applicants to that entity. The licensee shall not, directly or indirectly,
make payments in any form, whether in cash or in kind, to any person,
corporation, or other entity for referring applicants or clients to the
licensee.
(4) No licensee shall make any loans.
(5) No licensee shall issue credit cards or act as an agent in procuring
customers for a credit card company or any financial institution.
(6) No licensee shall act as a loan broker.
(7) No licensee shall operate any other business at the licensed location
without another business authorization from the Director, pursuant to Section
13.5.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/13.5)
Sec. 13.5.
Other business.
Upon application by the licensee, and approval
by the Director, the Director may approve the conduct of other businesses in
the licensee's place of business. The approval shall be in writing and shall
describe the other businesses that may be conducted in the licensed office.
The Director shall make and enforce reasonable rules to prevent
evasions or violations of this Act. The Director may investigate any business
conducted in the licensed office to determine whether any evasion or violation
of this Act has occurred.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/14) (from Ch. 17, par. 5314)
Sec. 14.
Trust funds; requirements and restrictions.
(a) All funds received by a licensee or his agent from and for the purpose
of paying bills, invoices, or accounts of a debtor shall constitute trust funds
owned by and belonging to the debtor from whom they were received. All such
funds received by a licensee shall be separated from the funds of the licensee
not later than the end of the business day following receipt by the
licensee. All such funds shall be kept separate and apart at all times from
funds belonging to the licensee or any of its officers, employees or agents and
may be used for no purpose other than paying bills, invoices, or accounts of
the debtor. All such trust funds received at the main or branch offices of a
licensee shall be deposited in a bank in an account in the name of the licensee
designated "trust account", or by some other appropriate name indicating that
the funds are not the funds of the licensee or its officers, employees, or
agents, on or before the close of the business day following receipt.
(b) Prior to separation and deposit by the licensee, such funds may be
used by the licensee only for the making of change or the cashing of checks
in the normal course of its business. Such funds are not subject to
attachment, lien, levy of execution, or sequestration by order of court except
by a debtor for whom a licensee is acting as an agent in paying bills,
invoices, or accounts.
(c) Each licensee shall make remittances within 30 days after
initial receipt of funds, and thereafter remittances shall be made within
15 days of receipt, less fees and costs, unless the reasonable
payment of one or more of the debtor's obligations requires that the funds
be held for a longer period so as to accumulate a sum certain.
(d) At least once every quarter, the licensee shall render an accounting to
the debtor which shall itemize the total amount received from the debtor, the
total amount paid each creditor, the amount of charges deducted, and any amount
held in reserve. A licensee shall, in addition thereto, provide such an
accounting to a debtor within 7 days after written demand, but not more
than 3 times per 6 month period.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/15) (from Ch. 17, par. 5315)
Sec. 15.
Rules.)
The Director shall make and enforce all
reasonable rules as shall be necessary for the
administration of this Act. Such rulemaking shall be subject to the provisions
of the Illinois Administrative Procedure Act.
(Source: P.A. 81‑1403.)
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(205 ILCS 665/15.1) (from Ch. 17, par. 5316)
Sec. 15.1.
Advisory Board; appointment.
There is created a Board of Debt
Management Service
Advisors composed of 5 persons appointed by the Governor.
The majority of members shall be active in a debt
management or consumer credit counseling service.
Each Board member
shall serve without compensation, but shall be reimbursed for necessary
expenses. Initially, the Board shall consist of members appointed for terms
beginning on July 1, 1965, and one member shall serve
until July 1, 1966, 2
members shall serve until July 1, 1967, and 2 members shall serve
until
July 1, 1968, as designated by the Governor at the time of the
initial
appointments. As terms of appointment expire, successors shall be appointed
for terms to expire on July 1, 3 years subsequent to the date of
appointment. Each member of the board shall serve until his respective
successor is appointed.
(Source: P.A. 89‑400, eff. 8‑20‑95; 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/15.2) (from Ch. 17, par. 5317)
Sec. 15.2.
Advisory board ‑ Organization and meetings.
The Board shall elect a chairman, vice‑chairman and secretary, adopt
regulations for the holding and conducting of meetings and for holding
hearings concerning all matters within its powers and shall keep a record
of all meetings and transactions. Regular meetings shall be held as
provided in the regulations, and special meetings may be called by the
Director or upon the request of any 4 members of the Board.
(Source: Laws 1965, p. 2494.)
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(205 ILCS 665/15.3) (from Ch. 17, par. 5318)
Sec. 15.3.
Advisory Board; powers.
The Board shall have the following powers:
1. To make recommendations to the Director concerning matters which he
may refer to the Board for consideration;
2. To recommend on its own initiative policies and practices to the
Director, the Governor and the General Assembly;
3. To make recommendations to the Director for the purpose of preventing
unsound practices in the field of debt
management
service;
4. To foster the interest and cooperation of persons rendering debt
management service in improvement of their services to the
people of the State of Illinois.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/16) (from Ch. 17, par. 5319)
Sec. 16.
Penalties.
(a) Any person who engages in the business of debt management service
without a license shall be guilty of a Class 4 felony.
(b) Any contract of debt management service as defined in this Act, made by
an unlicensed
person, shall be null and void and of no legal effect.
(c) The Director may set by rule monetary penalties for violation of this
Act.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/17) (from Ch. 17, par. 5320)
Sec. 17.
Injunction.
To engage in debt management service, render financial service, or accept debtors'
funds, as defined
in this Act, without a valid license so to do, is hereby declared
to be
inimical to the public welfare and to constitute a public nuisance. The
Director may, in the name of the people of the State of Illinois, through
the Attorney General of the State of Illinois, file a complaint for
an injunction in the circuit court to enjoin such person,
from
engaging in said business. Such injunction proceeding shall
be in addition to, and not in lieu of, penalties and remedies otherwise in this
Act provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/18) (from Ch. 17, par. 5321)
Sec. 18.
Review.
All final administrative decisions of the Director hereunder shall be
subject to judicial review pursuant to the provisions of the Administrative
Review Law, and all amendments and
modifications thereof and the rules adopted pursuant thereto.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/19) (from Ch. 17, par. 5322)
Sec. 19.
If any clause, sentence, section, provision or part of this Act
shall be adjudged to be unconstitutional or invalid for any reason by any
court of competent jurisdiction, such judgment shall not impair, affect
or invalidate the remainder of this Act which shall be in full force and
effect thereafter.
(Source: Laws 1957, p. 2164.)
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(205 ILCS 665/20) (from Ch. 17, par. 5323)
Sec. 20.
Cease and desist orders.
(a) The Director may issue a cease and desist order to any
licensee, or other person doing business without the required license, when in
the opinion of the Director, the licensee, or other person, is violating or is
about to violate any provision of the Act or any rule or condition imposed in
writing by the Department.
(b) The Director may issue a cease and desist order prior to a hearing.
(c) The Director shall serve notice of his action, including a statement of
the reasons for his action either personally or by certified mail, return
receipt requested. Service by mail shall be deemed completed if the notice is
deposited in the U.S. Mail.
(d) Within 10 days
after
service of the cease and desist order, the licensee or
other person may request, in writing, a hearing.
(e) The Director shall schedule a hearing within 30 days after the request
for a hearing unless otherwise agreed to by the parties.
(f) The Director shall have the authority to prescribe rules for the
administration of this Section.
(g) If it is determined that the Director had the authority to issue the
cease and desist order, he may issue such orders as may be reasonably necessary
to correct, eliminate, or remedy such conduct.
(h) The powers vested in the Director by this Section are additional
to any and all other powers and remedies vested in the Director by law, and
nothing in this Section shall be construed as requiring that the Director shall
employ the power conferred in this Section instead of
or
as a condition precedent
to the exercise of any other power or remedy vested in the Director.
(i) The cost for the administrative hearing shall be set by rule.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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(205 ILCS 665/20.5)
Sec. 20.5.
Receivership.
(a) If the Director determines that a licensee is insolvent or is violating
this Act,
he or she may appoint a receiver. Under the direction of the Director, the
receiver shall,
for the purpose of receivership, take possession of and title to the books,
records, and
assets of the licensee. The Director may require the receiver to provide
security in an
amount the Director deems proper. Upon appointment of the receiver, the
Director shall
have published, once each week for 4 consecutive weeks in a newspaper having a
general
circulation in the community, a notice informing all persons who have claims
against the
licensee to present them to the receiver. Within 10 days after the receiver
takes
possession, the licensee may apply to the Circuit Court of Sangamon County to
enjoin
further proceedings. The receiver may operate the business until the Director
determines
that possession should be restored to the licensee or that the business should
be
liquidated.
(b) If the Director determines that a business in receivership should be
liquidated,
he or she shall direct the Attorney General to file a complaint in the Circuit
Court of the
county in which the business is located, in the name of the People of the State
of Illinois,
for the orderly liquidation and dissolution of the business and for an
injunction restraining
the licensee and its officers and directors from continuing the operation
of the business.
Within 30 days after the day the Director determines that the business
should be
liquidated, the receiver shall file
with the Director and with the clerk of the court that has charge
of the liquidation
a correct list of all
creditors, as shown by
the licensee's books and records,
who
have not presented their claims.
The list shall state the amount of the claim after allowing all
just credits, deductions, and
set‑offs as shown by the licensee's books. These claims
shall be deemed proven unless
some interested party files an objection within the time fixed by the Director
or court that
has charge of the liquidation.
(c) The General Assembly finds and declares that debt management services
provide important and vital services to Illinois citizens. It is therefore
declared to be the
policy of this State that customers who receive these services must be
protected from
interruptions of services. To carry out this policy and to insure that
customers of a
licensee are protected if it is determined that a business in receivership
should be
liquidated, the Director shall make a distribution of moneys collected by the
receiver in
the following order of priority:
(1) Allowed claims for the actual necessary expenses | ||
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(A) reasonable receiver's fees and receiver's | ||
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(B) all expenses of any preliminary or other | ||
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(C) all expenses incurred by the Director that | ||
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(D) reasonable expenses incurred by the Director | ||
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(2) Allowed unsecured claims for wages or salaries, | ||
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(3) Allowed unsecured claims of any tax, and | ||
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(4) Allowed unsecured claims, other than a kind | ||
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(5) Allowed unsecured claims, other than a kind | ||
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(6) Allowed creditor claims asserted by an owner, | ||
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(7) After one year from the final dissolution of the | ||
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The Director shall pay all claims of equal priority according to the schedule
established in this subsection and shall not pay claims of lower priority until
all higher
priority claims are satisfied. If insufficient assets are available to meet all
claims of equal
priority, those assets shall be distributed pro rata among those claims. All
unclaimed
assets of a licensee and the licensee's business shall be deposited with the
Director to be
paid out when proper claims are presented to the Director.
(d) Upon the order of the circuit court of the county in which the business
being
liquidated is located, the receiver may sell or compound any bad or doubtful
debt, and on
like order may sell the personal property of the business on such terms as the
court
approves. The receiver shall succeed to whatever rights or remedies the
unsecured
creditors of the business may have against the owner or owners, operators,
stockholders,
directors, members, managers, or officers, arising out of their claims
against the
licensee's business, but nothing contained in this Section shall prevent those
creditors
from filing their claims in the liquidation proceeding. The receiver may
enforce those
rights or remedies in any court of competent jurisdiction.
(e) At the close of a receivership, the receiver shall turn over to the
Director all
books of account and ledgers of the business for preservation. The Director
shall hold all
records of receiverships received at any time for a period of 2 years after the
close of the
receivership. The records may be destroyed at the termination of the 2‑year
period. All
expenses of the receivership including, but not limited to, reasonable
receiver's and
attorney's fees approved by the Director, all expenses of any preliminary or
other
examinations into the condition of the licensee's business or the
receivership, and all
expenses incident to the possession and control of any property or records of
the business
incurred by the Director shall be paid out of the assets of the licensee's
business. These
expenses shall be paid before all other claims.
(f) Upon the filing of a complaint by the Attorney General for the orderly
liquidation and dissolution of a licensee's business, as provided in this Act,
all pending
suits and actions upon unsecured claims against the business shall abate.
Nothing
contained in this Act, however, prevents these claimants from filing their
claims in the
liquidation proceeding. If a suit or an action is instituted or maintained by
the receiver on
any bond or policy of insurance issued pursuant to the requirements of this
Act, the
bonding or insurance company sued shall not have the right to interpose or
maintain any
counterclaim based upon subrogation, upon any express or implied agreement of,
or right
to, indemnity or exoneration, or upon any other express or implied agreement
with, or
right against, the licensee's business. Nothing contained in this Act prevents
the bonding
or insurance company from filing this type of claim in the liquidation
proceeding.
(g) A licensee may not terminate its affairs and close up its business
unless it has
first deposited with the Director an amount of money equal to all of its debts,
liabilities,
and lawful demands against it including the costs and expenses of a proceeding
under this
Section, surrendered to the Director its license, and filed with the Director a
statement of
termination signed by the licensee containing a pronouncement of intent to
close up its
business and liquidate its liabilities and containing a sworn list itemizing in
full all of its
debts, liabilities, and lawful demands against it. Corporate licensees must
attach to,
and make a part of the statement of termination, a copy of a resolution
providing for the
termination and closing up of the licensee's affairs, certified by the
secretary of the
licensee and duly adopted at a shareholders' meeting by the holders of at least
two‑thirds
of the outstanding shares entitled to vote at the meeting. Upon the filing with
the Director
of a statement of termination, the Director shall cause notice of that action
to be published
once each week for 3 consecutive weeks in a public newspaper of general
circulation
published in the city or village where the business is located, and if no
newspaper is
published in that place, then in a public newspaper of general circulation
nearest to that
city or village. The publication shall give notice that the debts,
liabilities, and lawful
demands against the business will be redeemed by the Director upon demand in
writing
made by the owner thereof, at any time within 3 years after the date of first
publication.
After the expiration of the 3‑year period, the Director shall return to the
person or persons
designated in the statement of termination to receive repayment, and in the
proportion
specified in that statement, any balance of money remaining in his or her
possession after
first deducting all unpaid costs and expenses incurred in connection with
a
proceeding under this Section. The Director shall receive for his or her
services, exclusive
of costs
and expenses, 2% of any amount up to $5,000 and 1% of any amount in excess of
$5,000 deposited
with him or her under this Section by any business. Nothing contained
in this
Section shall affect or impair the liability of any bonding or insurance
company on
any bond
or insurance policy issued under this Act relating to the business.
(Source: P.A. 92‑400, eff. 1‑1‑02.)
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(205 ILCS 665/21) (from Ch. 17, par. 5324)
Sec. 21.
Effective date.
This Act shall become effective on the first day of January 1958.
(Source: Laws 1957, p. 2164.)
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(205 ILCS 665/22) (from Ch. 17, par. 5325)
Sec. 22.
Title of Act.
This Act may be cited as the Debt Management Service Act.
(Source: P.A. 90‑545, eff. 1‑1‑98.)
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