Illinois Administrative Code › Title 14 - COMMERCE › Part 135 - REGULATIONS UNDER THE BUSINESS OPPORTUNITY SALES LAW OF 1995 › Subpart A - DEFINITIONS › Section 135.50 - Definitions of Terms as Used in the Act and the Rules

Current through Register Vol. 48, No. 28, July 12, 2024
a) As used in this Part, unless the context
				otherwise requires, the term:
"Act" means the Business Opportunity Sales Law of 1995 [815
				  ILCS 602 ] and this Part.
"Advertising" means any circular, prospectus, advertisement,
				  or other material or any communication by radio, television, pictures or the
				  transmittal or sending of any communication via the non-proprietary, nonprofit,
				  public computer network (commonly known as the "Internet") or similar means
				  used in connection with an offer or sale of any business opportunity.
"Affiliate" of, or a person "affiliated" with, a specified
				  person means a person who, directly or indirectly through one or more
				  intermediaries, controls, or is controlled by, or is under common control with,
				  the person specified.
"Applicant" means the person making application for
				  registration.
"Consideration" as set forth in Section 5-35(a) of the Act
				  includes, without limitation, fully refundable deposits and postdated
				  checks.
"Date of filing" means the date that all of the required
				  documents are received by the Securities Department and all the required fees
				  are paid to the Secretary of State. A document shall not be deemed to be filed
				  if any material information required by the Act or this Part is omitted or the
				  document is illegible.
"Director" means any director of a corporation or any person
				  performing similar functions with respect to any organization whether
				  incorporated or unincorporated.
"Employee" does not include a director, trustee or
				  officer.
"Federal Banking Act of 1933" means the Federal Banking Act
				  of 1933 (
				  12 U.S.C.
				  227 ), and the Rules and Regulations
				  thereunder as in effect on January 1, 1996.
"Hearing" means a proceeding conducted by the Securities
				  Department in which the rights, privileges, immunities, duties or obligations
				  of any person or party are required by law to be determined by the Secretary of
				  State only after opportunity for a hearing.
"Initial payment" as set forth in Section 5-10(b) of the
				  Act:
shall include any form of a payment which evidences a
				  financial obligation on the part of the purchaser, including, without
				  limitation, a lump sum payment or a note evidencing installment debt;
shall include any form of payment or payments required to
				  start the business opportunity; that are made during a period from any time
				  before and within six months after commencing operation of the purchaser's
				  business opportunity, in whatever form, inclusive of payment for, without
				  limitation, services, supplies, sales material, samples and inventory
				  (inclusive of shipping and handling costs); and
does not include any cash payment by any purchaser not
				  exceeding $500 if the payment is made for the not-for-profit sale of
				  demonstration equipment, material or samples, or the payment is made for
				  product inventory sold to the purchaser at a bona fide wholesale price.
"Material", when used to qualify a requirement for the
				  furnishing of information as to any subject, limits the information required to
				  those matters as to which there is a substantial likelihood that a reasonable
				  person would consider important.
"Officer" means the president; any vice president in charge
				  of a principal business unit, division or function; the secretary; the
				  treasurer; any principal financial officer, comptroller or principal accounting
				  officer; any other officer performing a principal policy-making function and
				  any other person performing similar functions with respect to any organization
				  whether incorporated or unincorporated.
"Principal" means any officer, director, partner, member,
				  trustee or manager who is responsible for the supervision and management of the
				  daily business operations in this State of a business opportunity required to
				  be registered under the Act.
"Purchaser" means a person who enters into a contract or
				  agreement for the acquisition of a business opportunity or a person to whom an
				  offer to sell a business opportunity is directed.
"Rules" refers to all rules adopted by the Secretary of State
				  pursuant to the Act.
"Secretary of State" means the Securities Department of the
				  Office of the Secretary of State or the Securities Director or his or her
				  designee, as the case may be.
"Section" refers to a Section of this Part unless a reference
				  to the Act is specifically made.
b) A Section in this Part which defines a
				term without express reference to the Act or to this Part or to a portion
				thereof or hereof defines such term for all purposes as used both in the Act
				and in this Part. Terms defined in the Act and not defined in this Part have
				the meanings given them in the Act.