2023 Illinois Compiled Statutes › Chapter 110 - HIGHER EDUCATION › 110 ILCS 992/ - Student Loan Servicing Rights Act. › Article 15 - Licensure

(110 ILCS 992/Art. 15 heading)
ARTICLE 15.  LICENSURE
(Source: P.A. 100-540, eff. 12-31-18.)
(110 ILCS 992/15-5)
Sec. 15-5. Scope; requirement for student loan servicing license.
(a) It shall be unlawful for any person to operate as a student loan servicer in Illinois except as authorized by this Act and without first having obtained a license in accordance with this Act.
(b) The provisions of this Act do not apply to any of the following:
(1) a bank, savings bank, savings association, or     credit union organized under the laws of the State or any other state or under the laws of the United States;
(2) a wholly owned subsidiary of any bank, savings     bank, savings association, or credit union organized under the laws of the State or any other state or under the laws of the United States;
(3) an operating subsidiary where each owner of the     operating subsidiary is wholly owned by the same bank, savings bank, savings association, or credit union organized under the laws of the State or any other state or under the laws of the United States;
(4) the Illinois Student Assistance Commission and     its agents when the agents are acting on the Illinois Student Assistance Commission's behalf;
(5) a public postsecondary educational institution or     a private nonprofit postsecondary educational institution servicing a student loan it extended to the borrower;
(6) a licensed debt management service under the Debt     Management Service Act, except to the extent that the organization acts as a subcontractor, affiliate, or service provider for an entity that is otherwise subject to licensure under this Act;
(7) any collection agency licensed under the     Collection Agency Act that is collecting post-default debt;
(8)  in connection with its responsibilities as a     guaranty agency engaged in default aversion, a State or nonprofit private institution or organization having an agreement with the U.S. Secretary of Education under Section 428(b) of the Higher Education Act (20 U.S.C. 1078(B); or
(9)  a State institution or a nonprofit private     organization designated by a governmental entity to make or service student loans, provided in each case that the institution or organization services fewer than 20,000 student loan accounts of borrowers who reside in Illinois.
(Source: P.A. 100-540, eff. 12-31-18.)
(110 ILCS 992/15-10)
Sec. 15-10. Licensee name. No person, partnership, association, corporation, limited liability company, or other entity engaged in the business regulated by this Act shall operate such business under a name other than the real names of the entity and individuals conducting such business. Such business may in addition operate under an assumed corporate name pursuant to the Business Corporation Act of 1983, an assumed limited liability company name pursuant to the Limited Liability Company Act, or an assumed business name pursuant to the Assumed Business Name Act.
(Source: P.A. 100-540, eff. 12-31-18.)
(110 ILCS 992/15-15)
Sec. 15-15. Application process; investigation; fees.
(a) The Secretary shall issue a license upon completion of all of the following:
(1) the filing of an application for license with the         Secretary or the Nationwide Multistate Licensing System and Registry as approved by the Secretary;
(2) the filing with the Secretary of a listing of         judgments entered against, and bankruptcy petitions by, the license applicant for the preceding 10 years;
(3) the payment, in certified funds, of investigation         and application fees, the total of which shall be in an amount equal to $1,000 for an initial application and $800 for a background investigation;
(4) the filing of an audited balance sheet, including     all footnotes prepared by a certified public accountant in accordance with generally accepted accounting principles and generally accepted auditing standards; notwithstanding the requirements of this subsection, an applicant that is a subsidiary may submit audited consolidated financial statements of its parent, intermediary parent, or ultimate parent as long as the consolidated statements are supported by consolidating statements that include the applicant's financial statement; if the consolidating statements are unaudited, the applicant's chief financial officer shall attest to the applicant's financial statements disclosed in the consolidating statements; and
(5) an investigation of the averments required by         Section 15-30, which investigation must allow the Secretary to issue positive findings stating that the financial responsibility, experience, character, and general fitness of the license applicant and of the members thereof if the license applicant is a partnership or association, of the officers and directors thereof if the license applicant is a corporation, and of the managers and members that retain any authority or responsibility under the operating agreement if the license applicant is a limited liability company, are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly, and efficiently within the purpose of this Act; if the Secretary does not so find, he or she shall not issue the license, and he or she shall notify the license applicant of the denial.
The Secretary may impose conditions on a license if the Secretary determines that those conditions are necessary or appropriate. These conditions shall be imposed in writing and shall continue in effect for the period prescribed by the Secretary.
(b) All licenses shall be issued to the license applicant. Upon receipt of the license, a student loan servicing licensee shall be authorized to engage in the business regulated by this Act. The license shall remain in full force and effect until it expires without renewal, is surrendered by the licensee, or revoked or suspended as hereinafter provided.
(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)
(110 ILCS 992/15-20)
Sec. 15-20. Application form.
(a) Application for a student loan servicer license must be made in accordance with Section 15-40 and, if applicable, in accordance with requirements of the Nationwide Multistate Licensing System and Registry. The application shall be in writing, under oath, and on a form obtained from and prescribed by the Secretary, or may be submitted electronically, with attestation, to the Nationwide Multistate Licensing System and Registry.
(b) The application shall contain the name and complete business and residential address or addresses of the license applicant. If the license applicant is a partnership, association, corporation, or other form of business organization, the application shall contain the names and complete business and residential addresses of each member, director, and principal officer thereof. The application shall also include a description of the activities of the license applicant in such detail and for such periods as the Secretary may require, including all of the following:
(1) an affirmation of financial solvency noting such         capitalization requirements as may be required by the Secretary and access to such credit as may be required by the Secretary;
(2) an affirmation that the license applicant or its         members, directors, or principals, as may be appropriate, are at least 18 years of age;
(3) information as to the character, fitness,         financial and business responsibility, background, experience, and criminal record of any (i) person, entity, or ultimate equitable owner that owns or controls, directly or indirectly, 10% or more of any class of stock of the license applicant; (ii) person, entity, or ultimate equitable owner that is not a depository institution, as defined in Section 1007.50 of the Savings Bank Act, that lends, provides, or infuses, directly or indirectly, in any way, funds to or into a license applicant in an amount equal to or more than 10% of the license applicant's net worth; (iii) person, entity, or ultimate equitable owner that controls, directly or indirectly, the election of 25% or more of the members of the board of directors of a license applicant; or (iv) person, entity, or ultimate equitable owner that the Secretary finds influences management of the license applicant; the provisions of this subsection shall not apply to a public official serving on the board of directors of a State guaranty agency;
(4) upon written request by the licensee and         notwithstanding the provisions of paragraphs (1), (2), and (3) of this subsection, the Secretary may permit the licensee to omit all or part of the information required by those paragraphs if, in lieu of the omitted information, the licensee submits an affidavit stating that the information submitted on the licensee's previous renewal application is still true and accurate; the Secretary may adopt rules prescribing the form and content of the affidavit that are necessary to accomplish the purposes of this Section; and
(5) such other information as required by rules         of the Secretary.
(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)
(110 ILCS 992/15-25)
Sec. 15-25. Student loan servicer license application and issuance.
(a) Applicants for a license shall apply in a form prescribed by the Secretary. Each form shall contain content as set forth by rule, regulation, instruction, or procedure of the Secretary and may be changed or updated as necessary by the Secretary in order to carry out the purposes of this Act.
(b) In order to fulfill the purposes of this Act, the Secretary is authorized to establish relationships or contracts with the Nationwide Multistate Licensing System and Registry or other entities designated by the Nationwide Multistate Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this Act.
(c) In connection with an application for licensing, the applicant may be required, at a minimum, to furnish to the Nationwide Multistate Licensing System and Registry information concerning the applicant's identity, including:
(1) fingerprints for submission to the Federal Bureau         of Investigation or any governmental agency or entity authorized to receive such information for a State, national, and international criminal history background check; and
(2) personal history and experience in a form         prescribed by the Nationwide Multistate Licensing System and Registry, including the submission of authorization for the Nationwide Multistate Licensing System and Registry and the Secretary to obtain:
(A) an independent credit report obtained from a                 consumer reporting agency described in Section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); and
(B) information related to any administrative,                 civil, or criminal findings by any governmental jurisdiction.
(d) For the purposes of this Section, and in order to reduce the points of contact that the Federal Bureau of Investigation may have to maintain for purposes of subsection (c) of this Section, the Secretary may use the Nationwide Multistate Licensing System and Registry as a channeling agent for requesting information from and distributing information to the federal Department of Justice or any governmental agency.
(e) For the purposes of this Section, and in order to reduce the points of contact that the Secretary may have to maintain for purposes of paragraph (2) of subsection (c) of this Section, the Secretary may use the Nationwide Multistate Licensing System and Registry as a channeling agent for requesting and distributing information to and from any source as directed by the Secretary.
(f) The provisions of this Section shall not apply to a public official serving on the board of directors of a State guaranty agency.
(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)
(110 ILCS 992/15-30)
Sec. 15-30. Averments of licensee. Each application for license shall be accompanied by the following averments stating that the applicant:
(1) will file with the Secretary or Nationwide     Multistate Licensing System and Registry, as applicable, when due, any report or reports that it is required to file under any of the provisions of this Act;
(2) has not committed a crime against the law of this         State, any other state, or of the United States involving moral turpitude or fraudulent or dishonest dealing, and that no final judgment has been entered against it in a civil action upon grounds of fraud, misrepresentation, or deceit that has not been previously reported to the Secretary;
(3) has not engaged in any conduct that would be         cause for denial of a license;
(4) has not become insolvent;
(5) has not submitted an application for a license         under this Act that contains a material misstatement;
(6) has not demonstrated by course of conduct,         negligence or incompetence in performing any act for which it is required to hold a license under this Act;
(7) will advise the Secretary in writing or the         Nationwide Multistate Licensing System and Registry, as applicable, of any changes to the information submitted on the most recent application for license or averments of record within 30 days of the change; the written notice must be signed in the same form as the application for the license being amended;
(8) will comply with the provisions of this Act and         with any lawful order, rule, or regulation made or issued under the provisions of this Act;
(9) will submit to periodic examination by the         Secretary as required by this Act; and
(10) will advise the Secretary in writing of         judgments entered against and bankruptcy petitions by the license applicant within 5 days after the occurrence.
A licensee who fails to fulfill the obligations of an averment, fails to comply with averments made, or otherwise violates any of the averments made under this Section shall be subject to the penalties of this Act.
(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)
(110 ILCS 992/15-35)
Sec. 15-35. Refusal to issue license. The Secretary shall refuse to issue or renew a license if:
(1) it is determined that the applicant is not in         compliance with any provisions of this Act;
(2) there is substantial continuity between the         applicant and any violator of this Act; or
(3) the Secretary cannot make the findings         specified in subsection (a) of Section 15-15 of this Act.
(Source: P.A. 100-540, eff. 12-31-18.)
(110 ILCS 992/15-40)
Sec. 15-40. License issuance and renewal; fees.
(a) Licenses shall be renewed every year using the common renewal date of the Nationwide Multistate Licensing System and Registry, as adopted by the Secretary. Properly completed renewal application forms and filing fees may be received by the Secretary 60 days prior to the license expiration date, but, to be deemed timely, the completed renewal application forms and filing fees must be received by the Secretary no later than 30 days prior to the license expiration date.
(b) It shall be the responsibility of each licensee to accomplish renewal of its license. Failure by a licensee to submit a properly completed renewal application form and fees in a timely fashion, absent a written extension from the Secretary, shall result in the license becoming inactive.
(c) No activity regulated by this Act shall be conducted by the licensee when a license becomes inactive. An inactive license may be reactivated by the Secretary upon payment of the renewal fee and payment of a reactivation fee equal to the renewal fee.
(d) A licensee ceasing an activity or activities regulated by this Act and desiring to no longer be licensed shall so inform the Secretary in writing and, at the same time, convey any license issued and all other symbols or indicia of licensure. The licensee shall include a plan for the withdrawal from regulated business, including a timetable for the disposition of the business, and comply with the surrender guidelines or requirements of the Secretary. Upon receipt of such written notice, the Secretary shall post the cancellation or issue a certified statement canceling the license.
(e)  The expenses of administering this Act, including investigations and examinations provided for in this Act, shall be borne by and assessed against entities regulated by this Act. Subject to the limitations set forth in Section 15-15 of this Act, the Secretary shall establish fees by rule in at least the following categories:
(1) investigation of licensees and license applicant     fees;
(2) examination fees;
(3) contingent fees;
and
(4) such other categories as may be required to     administer this Act.
(Source: P.A. 100-540, eff. 12-31-18; 100-1153, eff. 12-19-18.)