625 ILCS 5/5-101.1
2021 Illinois Compiled Statutes|Chapter 625 - VEHICLES|625 ILCS 5/ - Illinois Vehicle Code.|Chapter 5 - Dealers, Transporters, Wreckers And Rebuilders

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 the     applicant and the applicant's established place of business and any additional places of business in this State.(2) The name and address of the licensed new or used     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.(3) A list of the business organization's officers,     directors, members, and shareholders having a 10% or greater ownership interest in the business, providing the residential address for each person listed.(4) If selling, transferring, or assigning new motor     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).(5) The name of each manufacturer or franchised     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.(6) A statement that the applicant has been approved     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.(7) A statement that the applicant has complied with     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).(8) A license fee of $1,000 for the applicant's     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.(9) A statement incorporating the requirements of     paragraphs 8 and 9 of subsection (b) of Section 5-101.(10) Any other information concerning the business of     the applicant as the Secretary of State may prescribe.(11) A statement that the applicant understands     Chapter 1 through Chapter 5 of this Code.(12) The full name, address, and contact information     of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.(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     sell, transfer, or assign motor vehicles to the licensed new or used dealer listed on the application pursuant to paragraph (2) of subsection (b).(2) The motor vehicle financing affiliate sells,     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).(3) Any new vehicle dealer listed pursuant to     paragraph (2) of subsection (b) has a franchise agreement that permits the dealer to receive motor vehicles from the motor vehicle franchise affiliate.(4) The new or used motor vehicle dealer listed on     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).(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,     or members, as applicable;(3) In the case of an original license, the     established place of business of the licensee;(4) If applicable, the make or makes of new vehicles     which the licensee is licensed to sell to the new motor vehicle dealer listed on the application pursuant to paragraph (2) of subsection (b); and(5) The full name, address, and contact information     of each of the dealer's agents or legal representatives who is an Illinois resident and liable for the performance of the dealership.(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     origin properly assigned to the purchasing dealer.  For a used vehicle, a certificate of title properly assigned to the purchasing dealer.(2) A statement verified under oath that all     identifying numbers on the vehicle agree with those on the certificate of title or manufacturer's statement of origin.(3) A bill of sale properly executed on behalf of the     purchasing dealer.(4) A copy of the Uniform Invoice-transaction report     pursuant to Section 5-402.(5) In the case of a rebuilt vehicle, a copy of the     Disclosure of Rebuilt Vehicle Status pursuant to Section 5-104.3.(6) In the case of a vehicle for which a warranty has     been reinstated, a copy of the warranty.(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.(r) If a licensee under this Section voluntarily surrenders a license to the Illinois Secretary of State Police or a representative of the Secretary of State Vehicle Services Department due to the licensee's inability to adhere to recordkeeping provisions, or the inability to properly issue certificates of title or registrations under this Code, or the Secretary revokes a license under this Section, then the licensee and the licensee's agent, designee, or legal representative, if applicable, may not be named on a new application for a licensee under this Section or under this Chapter, nor is the licensee or the licensee's agent, designee, or legal representative permitted to work for another licensee under this Chapter in a recordkeeping, management, or financial position or as an employee who handles certificate of title and registration documents and applications. (Source: P.A. 102-154, eff. 1-1-22.)