(625 ILCS 5/5‑101) (from Ch. 95 1/2, par. 5‑101)
Sec. 5‑101.
New vehicle dealers must be licensed.
(a) No person shall engage in this State in the business of selling
or dealing in, on consignment or otherwise, new vehicles of any make, or
act as an intermediary or agent or broker for any licensed dealer or
vehicle purchaser other than as a salesperson, or represent or advertise
that he is so engaged or intends to so engage in such business unless
licensed to do so in writing by the Secretary of State under the
provisions of this Section.
(b) An application for a new vehicle dealer's license shall be filed
with the Secretary of State, duly verified by oath, on such form as the
Secretary of State may by rule or regulation prescribe and shall contain:
1. The name and type of business organization of the |
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applicant and his established and additional places of business, if any, in this State.
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2. If the applicant is a corporation, a list of its
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officers, directors, and shareholders having a ten percent or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the name and residence address of the proprietor or of each partner, member, officer, director, trustee, or manager.
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3. The make or makes of new vehicles which the
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applicant will offer for sale at retail in this State.
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4. The name of each manufacturer or franchised
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distributor, if any, of new vehicles with whom the applicant has contracted for the sale of such new vehicles. As evidence of this fact, the application shall be accompanied by a signed statement from each such manufacturer or franchised distributor. If the applicant is in the business of offering for sale new conversion vehicles, trucks or vans, except for trucks modified to serve a special purpose which includes but is not limited to the following vehicles: street sweepers, fertilizer spreaders, emergency vehicles, implements of husbandry or maintenance type vehicles, he must furnish evidence of a sales and service agreement from both the chassis manufacturer and second stage manufacturer.
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5. A statement that the applicant has been approved
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for registration under the Retailers' Occupation Tax Act by the Department of Revenue: Provided that this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that that Department has approved the applicant for registration under the Retailers' Occupation Tax Act.
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6. A statement that the applicant has complied with
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the appropriate liability insurance requirement. A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he proposes to act as a new vehicle dealer. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one accident, and $50,000 for damage to property. Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed. Trailer and mobile home dealers are exempt from this requirement.
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If the permitted user has a liability insurance
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policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one accident, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one accident, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.
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When a permitted user is "test driving" a new
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vehicle dealer's automobile, the new vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.
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As used in this paragraph 6, a "permitted user" is a
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person who, with the permission of the new vehicle dealer or an employee of the new vehicle dealer, drives a vehicle owned and held for sale or lease by the new vehicle dealer which the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. The term "permitted user" also includes a person who, with the permission of the new vehicle dealer, drives a vehicle owned or held for sale or lease by the new vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.
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As used in this paragraph 6, "test driving" occurs
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when a permitted user who, with the permission of the new vehicle dealer or an employee of the new vehicle dealer, drives a vehicle owned and held for sale or lease by a new vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.
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As used in this paragraph 6, "loaner purposes" means
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when a person who, with the permission of the new vehicle dealer, drives a vehicle owned or held for sale or lease by the new vehicle dealer while the user's vehicle is being repaired or evaluated.
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7. (A) An application for a new motor vehicle
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dealer's license shall be accompanied by the following license fees:
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$1,000 for applicant's established place of
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business, and $100 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $50 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. All moneys received by the Secretary of State as license fees under paragraph (7)(A) of subsection (b) of this Section prior to applications for the 2004 licensing year shall be deposited into the Motor Vehicle Review Board Fund and shall be used to administer the Motor Vehicle Review Board under the Motor Vehicle Franchise Act. Of the money received by the Secretary of State as license fees under paragraph (7)(A) of subsection (b) of this Section for the 2004 licensing year and thereafter, 10% shall be deposited into the Motor Vehicle Review Board Fund and shall be used to administer the Motor Vehicle Review Board under the Motor Vehicle Franchise Act and 90% shall be deposited into the General Revenue Fund.
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(B) An application for a new vehicle dealer's
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license, other than for a new motor vehicle dealer's license, shall be accompanied by the following license fees:
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$1,000 for applicant's established place of
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business, and $50 for each additional place of business, if any, to which the application pertains; but if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. Of the money received by the Secretary of State as license fees under this subsection for the 2004 licensing year and thereafter, 95% shall be deposited into the General Revenue Fund.
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8. A statement that the applicant's officers,
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directors, shareholders having a 10% or greater ownership interest therein, proprietor, a partner, member, officer, director, trustee, manager or other principals in the business have not committed in the past 3 years any one violation as determined in any civil, criminal or administrative proceedings of any one of the following Acts:
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(A) The Anti Theft Laws of the Illinois Vehicle
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(B) The Certificate of Title Laws of the
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(C) The Offenses against Registration and
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Certificates of Title Laws of the Illinois Vehicle Code;
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(D) The Dealers, Transporters, Wreckers and
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Rebuilders Laws of the Illinois Vehicle Code;
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(E) Section 21‑2 of the Criminal Code of 1961,
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Criminal Trespass to Vehicles; or
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(F) The Retailers' Occupation Tax Act.
9. A statement that the applicant's officers,
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directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager or other principals in the business have not committed in any calendar year 3 or more violations, as determined in any civil, criminal or administrative proceedings, of any one or more of the following Acts:
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(A) The Consumer Finance Act;
(B) The Consumer Installment Loan Act;
(C) The Retail Installment Sales Act;
(D) The Motor Vehicle Retail Installment Sales
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(E) The Interest Act;
(F) The Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
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(H) The Consumer Fraud Act.
10. A bond or certificate of deposit in the amount
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of $20,000 for each location at which the applicant intends to act as a new vehicle dealer. The bond shall be for the term of the license, or its renewal, for which application is made, and shall expire not sooner than December 31 of the year for which the license was issued or renewed. The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a new vehicle dealer.
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11. Such other information concerning the business
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of the applicant as the Secretary of State may by rule or regulation prescribe.
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12. A statement that the applicant understands
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Chapter One through Chapter Five of this Code.
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(c) Any change which renders no longer accurate any information
contained in any application for a new vehicle dealer's license shall be
amended within 30 days after the occurrence of such change on such form
as the Secretary of State may prescribe by rule or regulation,
accompanied by an amendatory fee of $2.
(d) Anything in this Chapter 5 to the contrary notwithstanding no
person shall be licensed as a new vehicle dealer unless:
1. He is authorized by contract in writing between
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himself and the manufacturer or franchised distributor of such make of vehicle to so sell the same in this State, and
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2. Such person shall maintain an established place
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of business as defined in this Act.
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(e) The Secretary of State shall, within a reasonable time after
receipt, examine an application submitted to him under this Section and
unless he makes a determination that the application submitted to him
does not conform with the requirements of this Section or that grounds
exist for a denial of the application, under Section 5‑501 of this
Chapter, grant the applicant an original new vehicle dealer's license in
writing for his established place of business and a supplemental license
in writing for each additional place of business in such form as he may
prescribe by rule or regulation which shall include the following:
1. The name of the person licensed;
2. If a corporation, the name and address of its
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officers or if a sole proprietorship, a partnership, an unincorporated association or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee or manager;
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3. In the case of an original license, the
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established place of business of the licensee;
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4. In the case of a supplemental license, the
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established place of business of the licensee and the additional place of business to which such supplemental license pertains;
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5. The make or makes of new vehicles which the
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licensee is licensed to sell.
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(f) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State, shall be kept posted
conspicuously in the established place of business of the licensee and
in each additional place of business, if any, maintained by such
licensee.
(g) Except as provided in subsection (h) hereof, all new vehicle
dealer's licenses granted under this Section shall expire by operation
of law on December 31 of the calendar year for which they are granted
unless sooner revoked or cancelled under the provisions of Section 5‑501
of this Chapter.
(h) A new vehicle dealer's license may be renewed upon application
and payment of the fee required herein, and submission of proof of
coverage under an approved bond under the "Retailers' Occupation Tax
Act" or proof that applicant is not subject to such bonding
requirements, as in the case of an original license, but in case an
application for the renewal of an effective license is made during the
month of December, the effective license shall remain in force until the
application is granted or denied by the Secretary of State.
(i) All persons licensed as a new vehicle dealer are required to
furnish each purchaser of a motor vehicle:
1. In the case of a new vehicle a manufacturer's
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statement of origin and in the case of a used motor vehicle a certificate of title, in either case properly assigned to the purchaser;
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2. A statement verified under oath that all
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identifying numbers on the vehicle agree with those on the certificate of title or manufacturer's statement of origin;
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3. A bill of sale properly executed on behalf of
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4. A copy of the Uniform Invoice‑transaction
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reporting return referred to in Section 5‑402 hereof;
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5. In the case of a rebuilt vehicle, a copy of the
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Disclosure of Rebuilt Vehicle Status; and
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6. In the case of a vehicle for which the warranty
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has been reinstated, a copy of the warranty.
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(j) Except at the time of sale or repossession of the vehicle, no person
licensed as a new vehicle dealer may issue any other person a newly created
key to a vehicle unless the new vehicle dealer makes a copy of the driver's
license or State identification card of the person requesting or obtaining the
newly created key. The new vehicle dealer must retain the copy for 30 days.
A new vehicle dealer who violates this subsection (j) is guilty of a
petty offense. Violation of this subsection (j) is not cause to suspend,
revoke,
cancel, or deny renewal of the new vehicle dealer's license.
This amendatory Act of 1983 shall be applicable to the 1984 registration
year and thereafter.
(Source: P.A. 92‑391, eff. 8‑16‑01; 92‑835, eff. 6‑1‑03; 93‑32, eff. 7‑1‑03.)
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(625 ILCS 5/5‑101.1)
Sec. 5‑101.1.
Motor vehicle financing affiliates; licensing.
(a) In this State no business shall engage in the business of a motor
vehicle financing
affiliate without a license to do so in writing from the Secretary of State.
(b) An application for a motor vehicle financing affiliate's license must be
filed with
the Secretary of State, duly verified by oath, on a form prescribed by the
Secretary of
State and shall contain all of the following:
(1) The name and type of business organization of |
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the applicant and the applicant's established place of business and any additional places of business in this State.
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(2) The name and address of the licensed new or used
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vehicle dealer to which the applicant will be selling, transferring, or assigning new or used motor vehicles pursuant to a written contract. If more than one dealer is on the application, the applicant shall state in writing the basis of common ownership among the dealers.
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(3) A list of the business organization's officers,
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directors, members, and shareholders having a 10% or greater ownership interest in the business, providing the residential address for each person listed.
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(4) If selling, transferring, or assigning new motor
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vehicles, the make or makes of new vehicles that it will sell, assign, or otherwise transfer to the contracting new motor vehicle dealer listed on the application pursuant to paragraph (2).
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(5) The name of each manufacturer or franchised
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distributor, if any, of new vehicles with whom the applicant has contracted for the sale of new vehicles and a signed statement from each manufacturer or franchised distributor acknowledging the contract.
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(6) A statement that the applicant has been approved
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for registration under the Retailers' Occupation Tax Act by the Department of Revenue. This requirement does not apply to a motor vehicle financing affiliate that is already licensed with the Secretary of State and is applying for a renewal of its license.
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(7) A statement that the applicant has complied with
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the appropriate liability insurance requirement and a Certificate of Insurance that shall not expire before December 31 of the year for which the license was issued or renewed with a minimum liability coverage of $100,000 for the bodily injury or death of any person, $300,000 for the bodily injury or death of 2 or more persons in any one accident, and $50,000 for damage to property. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed. Trailer and mobile home dealers are exempt from the requirements of this paragraph. A motor vehicle financing affiliate is exempt from the requirements of this paragraph if it is covered by the insurance policy of the new or used dealer listed on the application pursuant to paragraph (2).
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(8) A license fee of $1,000 for the applicant's
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established place of business and $250 for each additional place of business, if any, to which the application pertains. However, if the application is made after June 15 of any year, the license fee shall be $500 for the applicant's established place of business and $125 for each additional place of business, if any, to which the application pertains. These license fees shall be returnable only in the event that the application is denied by the Secretary of State.
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(9) A statement incorporating the requirements of
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paragraphs 8 and 9 of subsection (b) of Section 5‑101.
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(10) Any other information concerning the business
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of the applicant as the Secretary of State may prescribe.
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(11) A statement that the applicant understands
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Chapter 1 through Chapter 5 of this Code.
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(c) Any change which renders no longer accurate any information contained in
any
application for a motor vehicle financing affiliate's license shall be amended
within 30
days after the occurrence of the change on a form prescribed by the Secretary
of State,
accompanied by an amendatory fee of $2.
(d) If a new vehicle dealer is not listed on the application, pursuant to
paragraph (2) of
subsection (b), the motor vehicle financing affiliate shall not receive,
possess, or transfer
any new vehicle. If a new motor vehicle dealer is listed on the application,
pursuant to
paragraph (2) of subsection (b), the new motor vehicle dealer can only receive
those new
cars it is permitted to receive under its franchise agreement. If both a new
and used
motor vehicle dealer are listed on the application, pursuant to paragraph (2)
of subsection
(b), only the new motor vehicle dealer may receive new motor vehicles. If a
used motor
vehicle is listed on the application, pursuant to paragraph (2) of
subsection (b), the used
motor vehicle dealer shall not receive any new motor vehicles.
(e) The applicant and dealer provided pursuant to paragraph (2) of
subsection (b)
must be business organizations registered to conduct business in Illinois.
Three‑fourths
of the dealer's board of directors must be members of the motor vehicle
financing
affiliate's board of directors, if applicable.
(f) Unless otherwise provided in this Chapter 5, no business organization
registered to
do business in Illinois shall be licensed as a motor vehicle financing
affiliate unless:
(1) The motor vehicle financing affiliate shall only
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sell, transfer, or assign motor vehicles to the licensed new or used dealer listed on the application pursuant to paragraph (2) of subsection (b).
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(2) The motor vehicle financing affiliate sells,
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transfers, or assigns to the new motor vehicle dealer listed on the application, if any, only those new motor vehicles the motor vehicle financing affiliate has received under the contract set forth in paragraph (5) of subsection (b).
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(3) Any new vehicle dealer listed pursuant to
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paragraph (2) of subsection (b) has a franchise agreement that permits the dealer to receive motor vehicles from the motor vehicle franchise affiliate.
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(4) The new or used motor vehicle dealer listed on
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the application pursuant to paragraph (2) of subsection (b) has one established place of business or supplemental places of business as referenced in subsection (g).
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(g) The Secretary of State shall, within a reasonable time after receipt,
examine an
application submitted pursuant to this Section and, unless it is determined
that the
application does not conform with the requirements of this Section or that
grounds exist
for a denial of the application under Section 5‑501, grant the applicant a
motor vehicle
financing affiliate license in writing for the applicant's established place of
business and
a supplemental license in writing for each additional place of business in a
form prescribed
by the Secretary, which shall include all of the following:
(1) The name of the business licensed;
(2) The name and address of its officers, directors,
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or members, as applicable;
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(3) In the case of an original license, the
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established place of business of the licensee; and
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(4) If applicable, the make or makes of new vehicles
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which the licensee is licensed to sell to the new motor vehicle dealer listed on the application pursuant to paragraph (2) of subsection (b).
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(h) The appropriate instrument evidencing the license or a certified copy,
provided by
the Secretary of State, shall be kept posted conspicuously in the established
place of
business of the licensee.
(i) Except as provided in subsection (h), all motor vehicle financing
affiliate's
licenses granted under this Section shall expired by operation of law on
December 31 of
the calendar year for which they are granted, unless revoked or canceled at an
earlier date
pursuant to Section 5‑501.
(j) A motor vehicle financing affiliate's license may be renewed upon
application and
payment of the required fee. However, when an application for renewal of a
motor
vehicle financing affiliate's license is made during the month of December, the
effective
license shall remain in force until the application is granted or denied by the
Secretary of
State.
(k) The contract a motor vehicle financing affiliate has with a manufacturer
or
franchised distributor, as provided in paragraph (5) of subsection (b), shall
only permit
the applicant to sell, transfer, or assign new motor vehicles to the new motor
vehicle
dealer listed on the application pursuant to paragraph (2) of subsection (b).
The contract
shall specifically prohibit the motor vehicle financing affiliate from selling
motor
vehicles at retail. This contract shall not be considered the granting of a
franchise as
defined in Section 2 of the Motor Vehicle Franchise Act.
(l) When purchasing of a motor vehicle by a new or used motor vehicle
dealer, all
persons licensed as a motor vehicle financing affiliate are required to furnish
all of the
following:
(1) For a new vehicle, a manufacturer's statement of
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origin properly assigned to the purchasing dealer. For a used vehicle, a certificate of title properly assigned to the purchasing dealer.
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(2) A statement verified under oath that all
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identifying numbers on the vehicle agree with those on the certificate of title or manufacturer's statement of origin.
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(3) A bill of sale properly executed on behalf of
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(4) A copy of the Uniform Invoice‑transaction report
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pursuant to Section 5‑402.
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(5) In the case of a rebuilt vehicle, a copy of the
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Disclosure of Rebuilt Vehicle Status pursuant to Section 5‑104.3.
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(6) In the case of a vehicle for which a warranty
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has been reinstated, a copy of the warranty.
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(m) The motor vehicle financing affiliate shall use the established and
supplemental
place or places of business the new or used vehicle dealer listed on the
application
pursuant to paragraph (2) of subsection (b) as its established and supplemental
place or
places of business.
(n) The motor vehicle financing affiliate shall keep all books and records
required by
this Code with the books and records of the new or used vehicle dealer listed
on the
application pursuant to paragraph (2) of subsection (b). The motor vehicle
financing
affiliate may use the books and records of the new or used motor vehicle dealer
listed on
the application pursuant to paragraph (2) of subsection (b).
(o) Under no circumstances shall a motor vehicle financing affiliate sell,
transfer, or
assign a new vehicle to any place of business of a new motor vehicle dealer,
unless that
place of business is licensed under this Chapter to sell, assign, or otherwise
transfer the
make of the new motor vehicle transferred.
(p) All moneys received by the Secretary of State as license fees under this
Section
shall be deposited into the Motor Vehicle Review Board Fund and shall be used
to
administer the Motor Vehicle Review Board under the Motor Vehicle Franchise
Act.
(q) Except as otherwise provided in this Section, a motor vehicle financing
affiliate
shall comply with all provisions of this Code.
(Source: P.A. 91‑415, eff. 1‑1‑00.)
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(625 ILCS 5/5‑102) (from Ch. 95 1/2, par. 5‑102)
Sec. 5‑102.
Used vehicle dealers must be licensed.
(a) No person, other than a licensed new vehicle dealer, shall engage in
the business of selling or dealing in, on consignment or otherwise, 5 or
more used vehicles of any make during the year (except house trailers as
authorized by paragraph (j) of this Section and rebuilt salvage vehicles
sold by their rebuilders to persons licensed under this Chapter), or act as
an intermediary, agent or broker for any licensed dealer or vehicle
purchaser (other than as a salesperson) or represent or advertise that he
is so engaged or intends to so engage in such business unless licensed to
do so by the Secretary of State under the provisions of this Section.
(b) An application for a used vehicle dealer's license shall be
filed with the Secretary of State, duly verified by oath, in such form
as the Secretary of State may by rule or regulation prescribe and shall
contain:
1. The name and type of business organization |
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established and additional places of business, if any, in this State.
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2. If the applicant is a corporation, a list of its
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officers, directors, and shareholders having a ten percent or greater ownership interest in the corporation, setting forth the residence address of each; if the applicant is a sole proprietorship, a partnership, an unincorporated association, a trust, or any similar form of business organization, the names and residence address of the proprietor or of each partner, member, officer, director, trustee or manager.
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3. A statement that the applicant has been approved
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for registration under the Retailers' Occupation Tax Act by the Department of Revenue. However, this requirement does not apply to a dealer who is already licensed hereunder with the Secretary of State, and who is merely applying for a renewal of his license. As evidence of this fact, the application shall be accompanied by a certification from the Department of Revenue showing that the Department has approved the applicant for registration under the Retailers' Occupation Tax Act.
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4. A statement that the applicant has complied with
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the appropriate liability insurance requirement. A Certificate of Insurance in a solvent company authorized to do business in the State of Illinois shall be included with each application covering each location at which he proposes to act as a used vehicle dealer. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one accident, and $50,000 for damage to property. Such policy shall expire not sooner than December 31 of the year for which the license was issued or renewed. The expiration of the insurance policy shall not terminate the liability under the policy arising during the period for which the policy was filed. Trailer and mobile home dealers are exempt from this requirement.
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If the permitted user has a liability insurance
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policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one accident, and $50,000 for damage to property, then the permitted user's insurer shall be the primary insurer and the dealer's insurer shall be the secondary insurer. If the permitted user does not have a liability insurance policy that provides automobile liability insurance coverage of at least $100,000 for bodily injury to or the death of any person, $300,000 for bodily injury to or the death of any 2 or more persons in any one accident, and $50,000 for damage to property, or does not have any insurance at all, then the dealer's insurer shall be the primary insurer and the permitted user's insurer shall be the secondary insurer.
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When a permitted user is "test driving" a used
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vehicle dealer's automobile, the used vehicle dealer's insurance shall be primary and the permitted user's insurance shall be secondary.
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As used in this paragraph 4, a "permitted user" is a
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person who, with the permission of the used vehicle dealer or an employee of the used vehicle dealer, drives a vehicle owned and held for sale or lease by the used vehicle dealer which the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle. The term "permitted user" also includes a person who, with the permission of the used vehicle dealer, drives a vehicle owned or held for sale or lease by the used vehicle dealer for loaner purposes while the user's vehicle is being repaired or evaluated.
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As used in this paragraph 4, "test driving" occurs
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when a permitted user who, with the permission of the used vehicle dealer or an employee of the used vehicle dealer, drives a vehicle owned and held for sale or lease by a used vehicle dealer that the person is considering to purchase or lease, in order to evaluate the performance, reliability, or condition of the vehicle.
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As used in this paragraph 4, "loaner purposes" means
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when a person who, with the permission of the used vehicle dealer, drives a vehicle owned or held for sale or lease by the used vehicle dealer while the user's vehicle is being repaired or evaluated.
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5. An application for a used vehicle dealer's
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license shall be accompanied by the following license fees:
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$1,000 for applicant's established place of
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business, and $50 for each additional place of business, if any, to which the application pertains; however, if the application is made after June 15 of any year, the license fee shall be $500 for applicant's established place of business plus $25 for each additional place of business, if any, to which the application pertains. License fees shall be returnable only in the event that the application is denied by the Secretary of State. Of the money received by the Secretary of State as license fees under this Section for the 2004 licensing year and thereafter, 95% shall be deposited into the General Revenue Fund.
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6. A statement that the applicant's officers,
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directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager or other principals in the business have not committed in the past 3 years any one violation as determined in any civil, criminal or administrative proceedings of any one of the following Acts:
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(A) The Anti Theft Laws of the Illinois Vehicle
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(B) The Certificate of Title Laws of the
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(C) The Offenses against Registration and
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Certificates of Title Laws of the Illinois Vehicle Code;
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(D) The Dealers, Transporters, Wreckers and
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Rebuilders Laws of the Illinois Vehicle Code;
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(E) Section 21‑2 of the Illinois Criminal Code
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of 1961, Criminal Trespass to Vehicles; or
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(F) The Retailers' Occupation Tax Act.
7. A statement that the applicant's officers,
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directors, shareholders having a 10% or greater ownership interest therein, proprietor, partner, member, officer, director, trustee, manager or other principals in the business have not committed in any calendar year 3 or more violations, as determined in any civil or criminal or administrative proceedings, of any one or more of the following Acts:
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(A) The Consumer Finance Act;
(B) The Consumer Installment Loan Act;
(C) The Retail Installment Sales Act;
(D) The Motor Vehicle Retail Installment Sales
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(E) The Interest Act;
(F) The Illinois Wage Assignment Act;
(G) Part 8 of Article XII of the Code of Civil
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(H) The Consumer Fraud Act.
8. A bond or Certificate of Deposit in the amount of
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$20,000 for each location at which the applicant intends to act as a used vehicle dealer. The bond shall be for the term of the license, or its renewal, for which application is made, and shall expire not sooner than December 31 of the year for which the license was issued or renewed. The bond shall run to the People of the State of Illinois, with surety by a bonding or insurance company authorized to do business in this State. It shall be conditioned upon the proper transmittal of all title and registration fees and taxes (excluding taxes under the Retailers' Occupation Tax Act) accepted by the applicant as a used vehicle dealer.
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9. Such other information concerning the business of
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the applicant as the Secretary of State may by rule or regulation prescribe.
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10. A statement that the applicant understands
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Chapter 1 through Chapter 5 of this Code.
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(c) Any change which renders no longer accurate any information
contained in any application for a used vehicle dealer's license shall
be amended within 30 days after the occurrence of each change on such
form as the Secretary of State may prescribe by rule or regulation,
accompanied by an amendatory fee of $2.
(d) Anything in this Chapter to the contrary notwithstanding, no
person shall be licensed as a used vehicle dealer unless such person
maintains an established place of business as
defined in this Chapter.
(e) The Secretary of State shall, within a reasonable time after
receipt, examine an application submitted to him under this Section.
Unless the Secretary makes a determination that the application
submitted to him does not conform to this Section or that grounds exist
for a denial of the application under Section 5‑501 of this Chapter, he
must grant the applicant an original used vehicle dealer's license in
writing for his established place of business and a supplemental license
in writing for each additional place of business in such form as he may
prescribe by rule or regulation which shall include the following:
1. The name of the person licensed;
2. If a corporation, the name and address of its
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officers or if a sole proprietorship, a partnership, an unincorporated association or any similar form of business organization, the name and address of the proprietor or of each partner, member, officer, director, trustee or manager;
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3. In case of an original license, the established
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place of business of the licensee;
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4. In the case of a supplemental license, the
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established place of business of the licensee and the additional place of business to which such supplemental license pertains.
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(f) The appropriate instrument evidencing the license or a certified
copy thereof, provided by the Secretary of State shall be kept posted,
conspicuously, in the established place of business of the licensee and
in each additional place of business, if any, maintained by such
licensee.
(g) Except as provided in subsection (h) of this Section, all used
vehicle dealer's licenses granted under this Section expire by operation
of law on December 31 of the calendar year for which they are granted
unless sooner revoked or cancelled under Section 5‑501 of this Chapter.
(h) A used vehicle dealer's license may be renewed upon application
and payment of the fee required herein, and submission of proof of
coverage by an approved bond under the "Retailers' Occupation Tax Act"
or proof that applicant is not subject to such bonding requirements, as
in the case of an original license, but in case an application for the
renewal of an effective license is made during the month of December,
the effective license shall remain in force until the application for
renewal is granted or denied by the Secretary of State.
(i) All persons licensed as a used vehicle dealer are required to
furnish each purchaser of a motor vehicle:
1. A certificate of title properly assigned to the
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2. A statement verified under oath that all
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identifying numbers on the vehicle agree with those on the certificate of title;
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3. A bill of sale properly executed on behalf of
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4. A copy of the Uniform Invoice‑transaction
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reporting return referred to in Section 5‑402 of this Chapter;
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5. In the case of a rebuilt vehicle, a copy of the
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Disclosure of Rebuilt Vehicle Status; and
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6. In the case of a vehicle for which the warranty
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has been reinstated, a copy of the warranty.
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(j) A real estate broker holding a valid certificate of registration issued
pursuant to "The Real Estate Brokers and Salesmen License Act" may engage
in the business of selling or dealing in house trailers not his own without
being licensed as a used vehicle dealer under this Section; however such
broker shall maintain a record of the transaction including the following:
(1) the name and address of the buyer and seller,
(2) the date of sale,
(3) a description of the mobile home, including the
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vehicle identification number, make, model, and year, and
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(4) the Illinois certificate of title number.
The foregoing records shall be available for inspection by any officer
of the Secretary of State's Office at any reasonable hour.
(k) Except at the time of sale or repossession of the vehicle, no
person licensed as a used vehicle dealer may issue any other person a newly
created key to a vehicle unless the used vehicle dealer makes a copy of the
driver's license or State identification card of the person requesting or
obtaining the newly created key. The used vehicle dealer must retain the
copy for 30 days.
A used vehicle dealer who violates this subsection (k) is guilty of a
petty offense. Violation of this subsection (k) is not cause to suspend,
revoke, cancel, or deny renewal of the used vehicle dealer's license.
(Source: P.A. 92‑391, eff. 8‑16‑01; 92‑835, eff. 6‑1‑03; 93‑32, eff. 7‑1‑03.)
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(625 ILCS 5/5‑102.1) (from Ch. 95 1/2, par. 5‑102.1)
Sec. 5‑102.1.
Permits for off site sales and exhibitions.
(a) A licensed new or used motor vehicle dealer licensed under Section
5‑101 or
5‑102 shall not engage in any off site sale without an off site sale permit
issued by the Secretary under this Section.
The Secretary shall issue an off site sale permit to a dealer if:
(1) an application therefor is received by the |
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Secretary prior to the beginning date of the proposed off site sale, accompanied by a fee of $25;
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(2) the applicant is a licensed new vehicle dealer
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or used vehicle dealer in good standing; and
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(3) the Secretary determines that the proposed off
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site sale will conform with the requirements imposed by law.
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However, in no event shall an off site sale permit be issued to any
licensed new or used vehicle dealer for any off site sale to be conducted
outside that dealer's relevant market area, as that term is defined in
this Chapter, except that this restriction
shall not apply to off site sales of motor homes or recreational vehicles.
The provisions of this subsection shall not apply to self‑contained motor
homes, mini motor homes, van campers, and recreational trailers, including
trailers designed and used to transport vessels or watercraft.
An off site sale permit does not authorize the sale of vehicles on a Sunday.
(b) Only a new or used vehicle dealer licensed under Section 5‑101
or 5‑102
may participate in a display exhibition and shall obtain a display exhibition
permit issued by the Secretary under this Section.
The Secretary shall issue a display exhibition permit to a dealer if:
(1) an application therefor is received by the
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Secretary prior to the beginning date of the proposed exhibition, accompanied by a fee of $10;
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(2) the applicant is a licensed new vehicle dealer
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or used vehicle dealer in good standing; and
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(3) the Secretary determines that the proposed
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exhibition will conform with the requirements imposed by law.
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A display exhibition permit shall be valid for a period of no longer than 30
days.
(c) A licensed new or used motor vehicle dealer under Section 5‑101 or
5‑102, or any other person as defined in this Section, may participate in a
trade show exhibition and must obtain a trade show exhibition permit issued by
the Secretary under this Section.
The Secretary shall issue a trade show exhibition permit
if:
(1) an application is received by the Secretary
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before the beginning date of the proposed trade show exhibition, accompanied by a fee of $10;
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(2) the applicant is a licensed new vehicle dealer
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or used vehicle dealer in good standing; and
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(3) the Secretary determines that the proposed trade
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show exhibition shall conform with the requirements imposed by law.
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A trade show exhibition permit shall be valid for a
period of no longer than 30 days.
The provisions of this subsection shall not apply to self‑contained motor
homes, mini motor homes, van campers, and recreational trailers, including
trailers designed and used to transport vessels or watercraft.
The term "any other person" shall mean new or used vehicle dealers
licensed by other states; provided however, a trade show exhibition of new
vehicles shall only be participated in by licensed new vehicle dealers, at
least 2 of which must be licensed under Section 5‑101.
(d) An Illinois or out‑of‑state licensed new or used trailer dealer,
manufactured home dealer, motor home dealer, mini motor home dealer, or van
camper dealer shall not
engage in any off site sale or trade show exhibition without first acquiring a
permit issued by the Secretary under this subsection.
However, the provisions of this Section shall not apply to a licensed
trailer dealer selling a mobile home or manufactured housing, as defined in the
Illinois Manufactured Housing and Mobile Home Safety Act, if the manufactured
housing or mobile home has utilities permanently attached.
The Secretary shall
issue a permit to an Illinois dealer if:
(1) an application is received by the Secretary
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before the beginning date of the proposed off site sale or trade show exhibition, accompanied by a fee of $25;
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(2) the applicant is a licensed new or used vehicle
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dealer in good standing; and
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(3) the Secretary determines that the proposed off
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site sale or trade show exhibition will conform with the requirements imposed by law.
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The Secretary shall issue a permit to an out‑of‑state dealer if the
requirements of subdivisions (1), (2), and (3) of this subsection (d) are met
and at least 2 licensed Illinois dealers will participate in the off site sale
or trade show exhibition.
A permit issued pursuant to this subsection shall allow for the sale of
vehicles at either an off site sale or at a trade show exhibition. The permit
shall be valid for a period not to exceed 30 days.
(e) The Secretary of State may adopt rules regulating the
conduct of off site sales and exhibitions, and governing the issuance and
enforcement of the permits authorized under this Section.
(Source: P.A. 90‑718, eff. 1‑1‑99;
90‑774, eff. 8‑14‑98; 91‑357, eff. 7‑29‑99.)
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