2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 175/ - Illinois Loan Brokers Act of 1995. › Article 15

(815 ILCS 175/Art. 15 heading)
ARTICLE 15
(815 ILCS 175/15-1)
Sec. 15-1. 
		Short title. 
		This Article may be cited as the Illinois Loan
Brokers Act of 1995, and references in this Article to "this Act" mean this
Article.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-5)
Sec. 15-5. 
		Definitions. 
		As used in this Act, the terms
defined in the Sections following this Section and preceding
Section 15-6 have the meanings ascribed therein.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-5.03)
Sec. 15-5.03. 
		Borrower. 
		"Borrower" means any person who has signed an
agreement with a loan broker that provides for the services described in
Section 15-5.15, for compensation.
(Source: P.A. 90-70, eff. 7-8-97.)
(815 ILCS 175/15-5.05)
Sec. 15-5.05. 
		Creditor. 
		"Creditor" means any person to whom
a loan is initially payable on the face of the note or contract
evidencing the loan.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-5.10)
Sec. 15-5.10. 
		Loan. 
		"Loan" means any agreement to advance
money or property in return for the promise to make payments for
the money or property.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-5.15)
Sec. 15-5.15. 
		Loan broker.
(a) "Loan Broker" means any person who, in return for a fee, commission,
or other compensation from any person, promises to procure a loan for any
person or
assist any person in procuring a loan from any third party, or who
promises to consider whether or not to make a loan to any person.
(b) Loan broker does not include any of the following:
(1) Any bank, savings bank, trust company, savings     and loan association, credit union or any other financial institution regulated by any agency of the United States or authorized to do business in this State.
(2) Any person authorized to sell and service loans     for the federal National Mortgage Association or the federal Home Loan Mortgage Corporation, issue securities backed by the Government National Mortgage Association, make loans insured by the federal Department of Housing and Urban Development, make loans guaranteed by the federal Veterans Administration, or act as a correspondent of loans insured by the federal Department of Housing and Urban Development or guaranteed by the federal Veterans Administration.
(3) Any insurance producer or company authorized to     do business in this State.
(4) Any person arranging financing for the sale of     the person's product.
(5) Any person authorized to conduct business under     the Residential Mortgage License Act of 1987.
(6) Any person authorized to do business in this     State and regulated by the Department of Financial Institutions or the Office of Banks and Real Estate.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-5.20)
Sec. 15-5.20. 
		Person. 
		"Person" means an individual, a
corporation, trust, limited liability company, partnership, a joint stock
company, limited liability partnership,
incorporated or unincorporated
association, or any other entity.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-10)
Sec. 15-10. 
		Registration required. 
		It shall be unlawful for
any person to engage in the business of loan brokering unless
registered under this Act.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-15)
Sec. 15-15. 
		
		Application for registration; contents;
bond; issuance; effective date; consent to
Secretary of State as process agent.
(a) In order to be registered under this Act a loan broker
shall file an application for registration with the Secretary of
State.  The application for registration shall contain:
(1) the disclosure document required under subsection     (b) of Section 15-30 of this Act and the form of disclosure statement proposed to be used under item (1) of subsection (b) of Section 15-30 of this Act;
(2) consent to service of process under subsection     (e) of this Section;
(3) evidence of the bond required in subsection (b)     of this Section;
(4) a fee in the amount as specified in subsection     (a) of Section 15-25 of this Act, and shall not be returnable in any event.
(b) A loan broker
who engages in any loan brokerage transactions where the loan is subject to
the Truth-in-Lending Act
must maintain a bond satisfactory to the
Secretary of State in the amount of $25,000, which shall be in
favor of the State.
(c) Whenever the provisions of this Act have been complied
with, the Secretary of State shall issue a certificate of
registration to the applicant, authorizing the applicant to engage
in the business of loan brokering.
(d) An application for registration becomes effective 30 days
after it is filed, unless a certificate of the Secretary of
State
establishes an earlier effective date.  Every registration is
effective until January 1 of the year after it goes into effect.
(e) Every applicant for registration shall file with the
Secretary of State, in such form as the Secretary of State may
prescribe by rule or regulation, an irrevocable consent appointing
the Secretary of State to be the applicant's agent to receive
service of any lawful process in any noncriminal suit, action or
proceeding against the applicant arising from the violation of any
provision of this Act.
(f) An application shall be considered filed when all required
documentation and fees are received by the Office of the Secretary of State.
(Source: P.A. 90-70, eff. 7-8-97; 91-357, eff. 7-29-99.)
(815 ILCS 175/15-20)
Sec. 15-20. 
		Renewal of registration.
(a) A loan broker may not continue engaging in the business
of loan brokering unless the broker's registration is renewed
annually.  A loan broker shall renew the registration by filing
with the Secretary of State, at least 30 days before the
expiration of the registration, an application containing any
information the Secretary of State may require by rule or
regulation or order to indicate any material change from the
information contained in the applicant's original application or
any previous application.
(b) An application for renewal must be accompanied by a
filing fee in the amount specified in subsection (a) of Section 15-25 of this
Act.  The application and fee is
not returnable in any event.
(c) Notwithstanding the foregoing, applications for renewal of
registration of loan brokers may be filed within 30 days following the
expiration of the registration provided that the applicant pays the annual
registration fee together with an additional amount equal to the annual
registration fee and files any other information or documents that the
Secretary of State may prescribe by rule or order.  Any application filed
within 30 days following the expiration of the registration shall be
automatically effective as of the time of the earlier expiration provided that
the proper fee has been paid to the Secretary of State.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-25)
Sec. 15-25. 
		
		Fees and funds; accounting and deposit in Securities Audit
and Enforcement Fund.
(a) The Secretary of State shall by rule or regulation impose
and shall collect fees necessary for the administration of this
Act including, but not limited to, fees for the following purposes:
(1) filing an application pursuant to Section 15-15     of this Act;
(2) examining an application pursuant to Section     15-15 or Section 15-20 of this Act;
(3) registering a loan broker pursuant to Section     15-15 of this Act;
(4) renewing registration of a loan broker pursuant     to Section 15-20 of this Act;
(5) failure to file or file timely any document or     information required under this Act;
(6) acceptance of service of process pursuant to     Section 15-95;
(7) issuance of certification pursuant to Section     15-50; or
(8) late registration fee pursuant to Section     15-20(c).
(b) The Secretary of State may, by rule or regulation, raise
or lower any fee imposed by this Act, and which he or she is
authorized by law to collect under this Act.
(c) All fees and funds accruing for the administration of
this Act shall be accounted for by the Secretary of State and
shall be deposited with the State Treasurer who shall deposit them
in the Securities Audit and Enforcement Fund.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-30)
Sec. 15-30. 
		
		Disclosure document to be provided by loan
broker.
(a) At the time any person signs a
contract for the services of a loan broker, or at the time the loan broker receives any consideration upon the contract,
whichever occurs first, the loan broker must provide to the
contracting person a written disclosure document that meets the
requirements set forth in subsection (b) of this Section.
(b) A written disclosure statement shall contain the
following information:
(1) A disclosure statement which shall be the cover     sheet and shall be entitled in at least 10-point boldface capital letters "DISCLOSURES REQUIRED BY LAW".  Under this title shall appear the statement in at least 10-point type that "THE SECRETARY OF STATE HAS NOT REVIEWED AND DOES NOT APPROVE, RECOMMEND, ENDORSE OR SPONSOR ANY LOAN BROKERAGE CONTRACT.  THE INFORMATION CONTAINED IN THIS DISCLOSURE HAS NOT BEEN VERIFIED BY THE SECRETARY OF STATE. IF YOU HAVE ANY QUESTIONS SEE AN ATTORNEY BEFORE YOU SIGN A CONTRACT OR AGREEMENT."  Nothing except the title and the required statement shall appear on the cover sheet.
(2) The name and form of organization of the broker,     the names under which the broker has done, is doing, or intends to do business, and the name of any parent organization or affiliate of the broker.
(3) The names, addresses and titles of the broker's     officers, directors, trustees, general partners, general managers, principal executives and any other person performing similar duties.
(4) The length of time the broker has conducted     business as a loan broker.
(5) A full and detailed description of the actual     services that the loan broker undertakes to perform for the prospective borrower.
(6) A specific statement of the circumstances under     which the broker will be entitled to obtain or retain consideration from the party with whom the broker contracts.
(7) Any other information the Secretary of State may     require by rule or regulation.
(b-5) The information in subdivisions b(5) and b(6) of this Section need
not be set out on the disclosure document if the loan broker's contract is
provided with the disclosure document.
(c) A loan broker shall amend the disclosure document
required by subsection (b) of this Section whenever necessary to
prevent it from containing any false or misleading statement of a
material fact and shall deliver a copy of the amended disclosure
document to the Secretary of State on or before the date of the
amendment.
(d) A loan broker shall deliver to any person who proposes to
become obligated for a loan an estimated disclosure document if
the creditor is required to deliver to the person a
disclosure document under the Truth-in-Lending Law, 15 U.S.C.
1601-1667e, for the transaction.  The estimated disclosure
document shall:
(1) Be delivered to the person before the person     becomes contractually obligated on the loan; or
(2) Be delivered or placed in the mail to the person     not later than 3 business days after the person enters into an agreement with the loan broker whichever occurs first.  The estimated disclosure document must contain all the information and be in the form required by the Truth-in-Lending Law, 15 U.S.C. 1601-1667e, and regulations under that Law.  However, the annual percentage rate, finance charge, total of payments and other matters required under the Truth-in-Lending Law, 15 U.S.C. 1601-1667e, shall be adjusted to reflect the amount of all fees and charges of the loan broker that the creditor could exclude from an estimated disclosure document.  The estimated disclosure document must state at the top in at least 10 point type:  "THE FOLLOWING IS AN ESTIMATED DISCLOSURE DOCUMENT SHOWING YOUR LOAN TRANSACTION AS IF THE FEES AND CHARGES YOU ARE SCHEDULED TO PAY US WERE CHARGED TO YOU DIRECTLY BY THE CREDITOR."  After the estimated disclosure document is delivered to any person, the loan broker shall deliver to the person an additional statement redisclosing all items if the actual annual percentage rate will vary from the annual percentage rate contained in the original estimated disclosure document by more than 0.125%.  Any required additional disclosure document shall be delivered or placed in the mail before consummation of the loan or no later than 3 days from when the information that requires redisclosure becomes available, whichever occurs first.
(e) If none of the exemptions in Section 10-30.5 apply, then for a period
of 7 days after the time the borrower signs a contract for the services, the
borrower shall have the right to rescind the contract for services with the
loan broker and receive all fees actually paid thereon; provided, however, that
the client who has rescinded the contract may not use or disclose any
confidential or non-public information provided to the client by the loan
broker.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-30.5)
Sec. 15-30.5. 
		Exemption from disclosure requirement. 
		The disclosure
requirement of Section 15-30 shall not apply where the borrower to be
represented by the loan broker:
(a) Is a natural person who has, or is reasonably     believed by the loan broker relying upon this Section to have, a net worth or joint net worth with that person's spouse in excess of $1,000,000 at the time of the execution of the loan broker agreement;
(b) Is a natural person who has, or is reasonably     believed by the loan broker relying upon this Section to have, an income or joint income with that person's spouse in excess of $200,000 in the most recent applicable fiscal year;
(c) Is a person who is not a natural person who has,     or is reasonably believed by the loan broker relying upon this Section to have, total assets having a value of $1,000,000 and has been in existence for at least nine months and was not formed for the purposes of the transaction;
(d) Is a person who is not a natural person who has,     or is reasonably believed by the loan broker relying upon this Section to have, gross revenue in excess of $200,000 in the most recent applicable fiscal year and has been in existence for at least nine months and was not formed for the purposes of this transaction;
(e) Is a person who is not a natural person in which     at least 90% of the equity interest is owned, or is reasonably believed by the loan broker relying upon this Section to be owned, by persons who meet any of the tests set forth in this subsection; or
(f) Has had an attorney review the loan broker's     contract.
		A loan broker may rely upon a statement signed by the borrower that such
borrower is any of the categories enumerated above.
(Source: P.A. 90-70, eff. 7-8-97.)
(815 ILCS 175/15-35)
Sec. 15-35. 
		
		Contracts required to be in writing; retention of
copy by borrowing party.  To be enforceable, every contract for
the services of a loan broker shall be in writing and signed by
all contracting parties.  The borrowing party and loan broker shall retain
a copy of the signed contract at the time it is signed.
The loan broker shall retain a copy of the contract for a period of 6
years.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-40)
Sec. 15-40. 
		
		Denial, suspension or revocation of registration;
orders and hearing.
(a) The Secretary of State may deny, suspend or revoke the
registration of a loan broker if the loan broker:
(1) Fails to maintain the bond required under     subsection (b) of Section 15-15 of this Act.
(2) Is insolvent.
(3) Has violated any provision of this Act.
(4) Has filed with the Secretary of State any     document or statement containing any false representation of a material fact or omitting to state a material fact.
(5) Has been convicted, within 10 years before the     date of the application, renewal or review, of any crime involving fraud or deceit.
(b) The Secretary of State may not enter a final order
denying, suspending or revoking the registration of a loan broker
without prior notice to all interested parties, opportunity for a
hearing and written findings of fact and conclusions of law.  The
Secretary of State may by summary order deny, suspend or revoke a
registration pending final determination of any proceeding under
this Section.  Upon the entry of a summary order, the Secretary of
State shall promptly notify all interested parties that it has
been entered, of the reasons for the summary order and, that upon
receipt by the Secretary of State of a written request from a
party, the matter will be set for hearing which shall be conducted
in accordance with the provisions of the Illinois Administrative
Procedure Act.  If no hearing is requested within 30 days
of the entry of the order and none is ordered by
the Secretary of State, the order remains in effect until it is modified
vacated, or superseded by a final order. A final order may be entered by the
Secretary of State against any party who fails to request a hearing within 30
days of the entry of the summary order.  If a hearing is
requested or ordered, the Secretary of State, after notice of the
hearing has been given to all interested persons and the hearing
has been held, may modify or vacate the order, extend it until
final determination, or issue a final order.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-45)
Sec. 15-45. 
		
		Powers of Secretary of State; privilege against
self-incrimination; admissibility into evidence.
(a) The Secretary of State may do the following:
(1) Adopt rules and regulations to implement this Act.
(2) Make investigations and examinations:
(A) in connection with any application for         registration of any loan broker or any registration already granted; or
(B) whenever it appears to the Secretary of         State, upon the basis of a complaint or information, that reasonable grounds exist for the belief that an investigation or examination is necessary or advisable for the more complete protection of the interests of the public.
(3) Charge as costs of investigation or examination     all reasonable expenses, including a per diem prorated upon the salary of any employee and actual traveling and hotel expenses.  All reasonable expenses are to be paid by the party or parties under investigation or examination.
(4) Issue notices and orders, including cease and     desist notices and orders, after making an investigation or examination under item (2) of subsection (a) of this Section.  The Secretary of State may also bring an action to prohibit a person from violating this Act.  The Secretary of State shall notify the person that an order or notice has been issued, the reasons for it and that a hearing will be set in accordance with the provisions of the Illinois Administrative Procedure Act after the Secretary of State receives a written request from the person requesting a hearing.
(5) Sign all orders, official certifications,     documents or papers issued under this Act or delegate the authority to sign any of those items to his or her designee.
(6) Hold and conduct hearings.
(7) Hear evidence.
(8) Conduct inquiries with or without hearings.     Inquiries shall include oral and written requests for information. A failure to respond to a written request for information may be deemed  a violation of this Act and the Secretary of State may issue notices and orders, including cease and desist notices and orders, against the violators.
(9) Receive reports of investigators or other     officers or employees of the State of Illinois or any municipal corporation or governmental subdivision within the State.
(10) (Blank).
(11) (Blank).
(12) (Blank).
(13) Order depositions to be taken of any witness     residing within or without the State.  The depositions shall be taken in the manner prescribed by law for depositions in civil actions and made returnable to the Secretary of State.
(14) For the purpose of all investigations, audits,     examinations, or inspections that, in the opinion of the Secretary of State are necessary  and proper for the enforcement of this Act, the Secretary of State or a person designated by him or her is empowered  to administer oaths and  affirmations, subpoena witnesses, take evidence, and require by subpoena or other lawful means provided by this Act or the rules adopted by the Secretary of State the production of any books and records, papers, or other  documents that  the Secretary of State or a person designated by him or her deems relevant or material to the inquiry.
(b) If any person refuses to obey a subpoena issued under
this Act, the Secretary of State may make application to any court
of competent jurisdiction to order the person to appear before the
Secretary of State and produce documentary evidence or give
evidence as directed in the subpoena.  The failure to obey the
order of the court shall be subject to punishment by the court as
contempt of court.
(c) No person shall be excused from complying with a subpoena
on the ground that the testimony or evidence required may tend to
incriminate the person or subject the person to a penalty or
forfeiture.  No individual may be prosecuted or subject to any
penalty or forfeiture for or on account of any transaction, matter
or thing which the individual is compelled to testify or produce
evidence, after claiming the privilege against
self-incrimination.  However, the individual so testifying shall
not be exempt from prosecution and punishment for perjury
committed in so testifying.
(d) In any prosecution, action, suit or proceeding based upon
or arising out of this Act, the Secretary of State may sign a
certificate showing compliance or non-compliance with this Act by
any loan broker.  This shall constitute prima facie evidence of
compliance or non-compliance with this Act and shall be admissible
in evidence in any court.
(e) Whenever it shall appear to the Secretary of State that
any person is engaged or about to engage in any acts or practices
which constitute or will constitute a violation of this Act, or of
any rule or regulation prescribed under authority of this Act, the
Secretary of State may at his or her discretion, through the
Attorney General:
(1) File a complaint and apply for a temporary     restraining order without notice, and upon a proper showing the court may enter a temporary restraining order without a bond, to enforce this Act.
(2) File a complaint and apply for a preliminary or     permanent injunction, and, after notice and hearing and upon a proper showing, the court may grant a preliminary or permanent injunction and may order the defendant to make an offer of rescission with respect to any contract for loan brokerage services determined by the court to be unlawful under this Act.
(f) The court shall further have jurisdiction and authority,
in addition to the penalties and other remedies in this Act
provided, to enter an order for the appointment of the court or a
person as a receiver, conservator, ancillary receiver or ancillary
conservator for the defendant or the defendant's assets located in
this State, or to require restitution, damages or disgorgement of
profits on behalf of the person or persons injured by the act or
practice constituting the subject matter of the action, and may
assess costs and attorneys fees against the defendant for the use of the
State.
(Source: P.A. 91-357, eff. 7-29-99; 92-308, eff. 1-1-02.)
(815 ILCS 175/15-50)
Sec. 15-50. 
		Evidentiary matters.
(a) Certified copies of documents or records
admissible in actions or proceedings under this Act.  Copies of
any statement or document filed with the Secretary of State, and
copies of any records of the Secretary of State, certified to by
the Secretary of State are admissible in any prosecution, action,
suit or proceeding based upon, or arising out of or under, the
provisions of this Act to the same effect as the original of the
statement, document or record would be if actually produced.
(b) In any action, administrative, civil, or criminal, a certificate under
the seal of the State of Illinois,  signed  by  the  Secretary  of State,
attesting  to  the filing of or the absence of the filing of any
document or record with the Secretary of State  under  this  Act,  shall
constitute prima facie evidence of the filing or of the absence of the filing,
and shall be admissible in evidence in any administrative,
criminal, or civil action.
(c) Any certificate pursuant to subsection (a) or (b) of this Section shall
be furnished by the Secretary of State upon  application  therefor in  the
form and in the manner prescribed by the Secretary of
State by rule, and shall be accompanied by payment of a  non-refundable
certification  fee in  the
amount specified by rule or order of the Secretary of State.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-55)
Sec. 15-55. 
		Violations; administrative fines; enforcement.
(a) If the Secretary of State determines, after notice and
opportunity for a hearing, that a person has violated this Act,
the Secretary of State may in addition to all other remedies,
impose an administrative fine upon the person in an amount not to
exceed $10,000 for each violation.
(b) The Secretary of State may bring an action in the
circuit court of Sangamon or Cook county to enforce payment of
fines imposed under this Section.
(c) If the Secretary of State shall find that any person has
violated any provision of this Act, the Secretary of State may, by
written order temporarily or permanently prohibit or suspend such
person from acting as a loan broker.
(d) If the Secretary of State shall find that any person is
acting or has acted as a loan broker as defined in Section 15-5.15 of
this Act, without prior thereto or at the time thereof having
complied with the registration requirements of this Act, the
Secretary of State may by written order prohibit such person from
acting as a loan broker in this State.
(e) Anything herein contained to the contrary
notwithstanding, the Secretary of State may temporarily prohibit
or suspend, for a maximum period of 90 days, by an order effective
immediately,
any individual or entity acting as a loan broker or engaging in the business of
providing loan brokerage services, without notice and prior
hearing, if the Secretary of State in his or her opinion,
based upon credible evidence, deems it necessary to prevent an
imminent violation of this Act or to prevent losses to clients
which the Secretary of State reasonably believes will occur as a
result of a prior violation of this Act. Immediately after taking
action without such notice and hearing, the Secretary of State
shall deliver a copy of the temporary order to the respondent named
therein by personal service or registered mail or certified mail,
return receipt requested.  The temporary order shall set forth the
grounds for the action and shall advise that the respondent may
request a hearing to be held as soon as reasonably practicable, that the
request for a hearing will not stop the effectiveness of the
temporary order and that respondent's failure to request a hearing
within 30 days after the date of the entry of the temporary order,
shall constitute an admission of any facts alleged therein and
shall constitute sufficient basis to make the temporary order
final.
(f) The Secretary of State may issue a temporary order
suspending or delaying the effectiveness of any registration of a
loan broker under this Act subsequent to and upon the basis of the
issuance of any stop, suspension or similar order by any agency of
the United States regulating loan brokers or any state or federal
courts with respect to the person who is the subject of the
registration under this Act, and such order shall become effective
as of the date and time of effectiveness of the agency or court
order and shall be vacated automatically at such time as the order
of the agency or court order is no longer in effect.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-60)
Sec. 15-60. 
		
		Violations; liability of loan broker to damaged
parties; rights of prospective borrower.  A person who violates
this Act, in connection with a contract for the services of a loan
broker, is liable to any person damaged by the violation, for the
amount of the actual damages suffered, interest at the legal rate,
and attorney fees.  If a loan broker violates any provision of
this Act, in connection with a contract for loan brokering
services, the contract is void, and the prospective borrower is
entitled to receive from the loan broker all sums paid to the loan
broker, with interest and any attorney's fee required to enforce
this Section.
Any provision of this Section to the contrary notwithstanding, the civil
remedies of this Section shall not be available against any person by reason of
failure to comply with the requirements of Section 15-75 of this Act.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-65)
Sec. 15-65. 
		Violation. 
		
Any person who willfully violates this Act commits a Class 4
felony.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-70)
Sec. 15-70. 
		
		Rescission of contract under Truth-in-Lending Law;
notice to creditor.
(a) If a transaction for which a loan broker has charged any
fee or collected any costs is rescinded by any person under the
provisions of the Truth-in-Lending Law, 15 U.S.C. 1601-1667e,
within 20 calendar days after a notice of the rescission has been
delivered to the creditor, the loan broker shall return to the
person any money or property that has been given to the loan
broker, including property or money the loan broker delivered or
directed to third parties.
(b) For purposes of calculating the time period during which
a person may rescind a contract under this Section, a contract with
a loan broker shall be considered to be a sale of services that
occurs on the date the person receives the disclosure document
required by Section 15-30 of this Act.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-75)
Sec. 15-75. 
		
		Account numbers required; retention and maintenance of
records.
(a) Each loan broker agreement shall be given an account
number and all instruments taken in connection with that agreement
must bear this number.  Each loan broker shall keep and maintain
the following records or their equivalent:
(1) A loan agreement register that consists of a     chronological listing of all loan broker agreements that have been entered into.  For each loan broker agreement the register shall contain the following:
(A) The account number.
(B) The date of the agreement.
(C) The name of the borrower or any proposed         borrower.
(D) The amount of any fees charged.
(E) The cost and type of any insurance required.
(2) A file for each borrower or proposed borrower     shall contain the following:
(A) The name and address of the borrower or any         proposed borrower.
(B) A copy of the signed loan broker agreement.
(C) A copy of any other papers or instruments         used in connection with the loan broker agreement and signed by the borrower or any proposed borrower, including a copy of the disclosure document required by Section 15-30 of this Act that contains an acknowledged receipt by the borrower or any proposed borrower.
(D) If a loan was obtained for the borrower, the         name and address of the creditor.
(E) If a loan is accepted by the borrower, a copy         of the loan agreement.
(F) The amount of the loan broker's fee that the         borrower has paid.  If there is an unpaid balance, the status of any collection efforts.
(3) All receipts from or for the account of borrowers     or any proposed borrowers and all disbursements to or for the account of borrowers or any proposed borrowers, recorded so that the transactions are readily identifiable.
(4) A general ledger that shall be posted at least     monthly, and a trial balance sheet and profit and loss statement prepared within 30 days of the Secretary of State's request for the information.
(5) A copy of:
(A) All advertisements, pamphlets, circulars,         letters, articles or communications published in any newspaper, magazine or periodical.
(B) Scripts of any recording, radio or television         announcement.
(C) Any sales kits or literature to be used in         solicitation of borrowers.
(b) The records listed in subsection (a) of this Section
shall be kept for a period of 6 years in the loan broker's
principal office and must be separate or readily identifiable from
the records of any other business that is conducted in the office
of the loan broker.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-80)
Sec. 15-80. Persons exempt from registration and other duties; burden of
proof thereof.
(a) The following persons are exempt from the
requirements of Sections 15-10, 15-15, 15-20, 15-25, 15-30, 15-35, 15-40, and
15-75 of this Act:
(1) Any attorney while engaging in the practice of     law.
(2) Any certified public accountant licensed to     practice in Illinois, while engaged in practice as a certified public accountant and whose service in relation to procurement of a loan is incidental to his or her practice.
(3) Any person licensed to engage in business as a     real estate broker or salesperson in Illinois while rendering services in the ordinary course of a transaction in which a license as a real estate broker or salesperson is required.
(4) Any dealer, salesperson or investment adviser     registered under the Illinois Securities Law of 1953, or an investment advisor, representative, or any person who is regularly engaged in the business of offering or selling securities in a transaction exempted under subsection C, H, M, R, Q, or S of Section 4 of the Illinois Securities Law of 1953 or subsection G of Section 4 of the Illinois Securities Law of 1953 provided that such person is registered under the federal securities law.
(4.1) An associated person described in subdivision     (h)(2) of Section 15 of the Federal 1934 Act.
(4.2) An investment adviser registered pursuant to     Section 203 of the Federal 1940 Investment Advisers Act.
(4.3) A person described in subdivision (a)(11) of     Section 202 of the Federal 1940 Investment Advisers Act.
(5) Any person whose fee is wholly contingent on the     successful procurement of a loan from a third party and to whom no fee, other than a bona fide third party fee, is paid before the procurement.
(6) Any person who is a creditor, or proposed to be      a creditor, for any loan.
(7) (Blank).
(8) Any person regulated by the Department of     Financial Institutions or the Office of Banks and Real Estate, or any insurance producer or company authorized to do business in this State.
(b) As used in this Section, "bona fide third party fee"
includes fees for:
(1) Credit reports, appraisals and investigations.
(2) If the loan is to be secured by real property,     title examinations, an abstract of title, title insurance, a property survey and similar purposes.
(c) As used in this Section, "successful procurement of a
loan" means that a binding commitment from a creditor to advance
money has been received and accepted by the borrower.
(d) The burden of proof of any exemption provided in this Act
shall be on the party claiming the exemption.
(Source: P.A. 100-201, eff. 8-18-17.)
(815 ILCS 175/15-85)
Sec. 15-85. 
		Fraudulent and prohibited acts.
(a) A loan broker shall not, in
connection with a contract for the services of a loan broker,
either directly or indirectly, do any of the following:
(1) Employ any device, scheme or article to defraud.
(2) Make any untrue statements of a material fact or     omit to state a material fact necessary in order to make the statements made, in the light of circumstances under which they are made, not misleading.
(3) Engage in any act, practice or course of business     that operates or would operate as a fraud or deceit upon any person.
(b) A loan broker shall not either directly or indirectly do any of the
following:
(1) act as a loan broker without registration under     this Act unless exempt under the Act;
(2) fail to file with the Secretary of State any     application, report, document, or answer required to be filed under the provisions of this Act or any rule made by the Secretary of State pursuant to this Act, or fail to comply with the terms of any order issued pursuant to this Act or any  rules made by the Secretary of State;
(3) fail to keep or maintain any records as required     under the provisions of this Act or any rule made by the Secretary of State pursuant to this Act.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-90)
Sec. 15-90. 
		Deposit of moneys. 
		All moneys received under this Act shall
be deposited into the Securities Audit and Enforcement Fund.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-95)
Sec. 15-95. 
		Service of process.
(a) A person acting as a loan broker, unless exempt from registration
under this Act, shall constitute an appointment of the Secretary of State, or
his or her successors in Office, by the person  to be the true and lawful
attorney for the person upon whom may be served all lawful process in any
action or proceeding against the person, arising out of his or her activities
as a loan broker.
(b) Service of process under this Section shall be made by serving a copy
upon the Secretary of State or any employee in his or her Office designated  by
the Secretary of State to accept such service for him or her, provided notice
and a copy of the
process are, within 10 days of receipt, sent by registered mail or certified
mail, return receipt requested, by the plaintiff to the defendant, at the last
known address of the defendant.  The filing fee for service of  process under
this Section is non-refundable and is the amount established in Section 15-25
of this Act.  The Secretary of State shall keep a record of all such processes
that shall show the day of the service.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-100)
Sec. 15-100. 
		Immunity for official acts. 
		In no case shall the Secretary
of State or any of his or her employees or agents, in the administration of
this Act, incur any official or personal liability while acting in accordance
with their official duties or authority.
(Source: P.A. 90-70, eff. 7-8-97.)