(205 ILCS 510/0.01) (from Ch. 17, par. 4650)
Sec. 0.01. Short title.
This Act may be cited as the Pawnbroker Regulation Act.
(Source: P.A. 86-1324.)
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(205 ILCS 510/0.05)
Sec. 0.05. Administration
of Act.
(a) This Act shall be administered
by the Commissioner of Banks and Real Estate who shall have all
of the following powers and duties in administering this Act:
(1)
To promulgate reasonable rules for the purpose
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of administering the provisions of
this Act.
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(2)
To issue orders for the purpose of administering
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the provisions of this Act and any
rule promulgated in accordance with this
Act.
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(3)
To appoint hearing officers and to hire
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employees or to contract with appropriate
persons to execute any of the powers granted
to the Commissioner under this Section for
the purpose of administering this Act and
any rule promulgated in accordance with this
Act.
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(4)
To subpoena witnesses, to compel their
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attendance, to administer an oath,
to examine any person under oath, and to
require the production of any relevant books,
papers, accounts, and documents in the course
of and pursuant to any investigation being
conducted, or any action being taken, by
the Commissioner in respect of any matter
relating to the duties imposed upon, or the
powers vested in, the Commissioner under
the provisions of this Act or any rule promulgated
in accordance with this Act.
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(5)
To conduct hearings.
(6)
To impose civil penalties graduated up to $1,000
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against any person for each violation
of any provision of this Act, any rule promulgated
in accordance with this Act, or any order
of the Commissioner based upon the seriousness
of the violation.
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(6.5)
To initiate, through the Attorney General,
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injunction proceedings whenever it
appears to the Commissioner that any person,
whether licensed under this Act or not, is
engaged or about to engage in an act or practice
that constitutes or will constitute a violation
of this Act or any rule prescribed under
the authority of this Act. The Commissioner
may, in his or her discretion, through the
Attorney General, apply for an injunction,
and upon a proper showing, any circuit court
may enter a permanent or preliminary injunction
or a temporary restraining order without
bond to enforce this Act in addition to the
penalties and other remedies provided for
in this Act.
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(7)
To issue a cease and desist order and, for
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violations of this Act, any order
issued by the Commissioner pursuant to this
Act, any rule promulgated in accordance with
this Act, or any other applicable law in
connection with the operation of a pawnshop,
to suspend a license issued under this Act
for up to 30 days.
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(8)
To determine compliance with applicable law and
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rules related to the operation of
pawnshops and to verify the accuracy of reports
filed with the Commissioner, the Commissioner,
not more than one time every 2 years, may,
but is not required to, conduct a routine
examination of a pawnshop, and in addition,
the Commissioner may examine the affairs
of any pawnshop at any time if the Commissioner
has reasonable cause to believe that unlawful
or fraudulent activity is occurring, or has
occurred, therein.
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(9)
In response to a complaint, to address any
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inquiries to any pawnshop in relation
to its affairs, and it shall be the duty
of the pawnshop to promptly reply in writing
to such inquiries. The Commissioner may also
require reports or information from any pawnshop
at any time the Commissioner may deem desirable.
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(10)
To revoke a license issued under this Act if
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the Commissioner determines that (a)
a licensee has been convicted of a felony
in connection with the operations of a pawnshop;
(b) a licensee knowingly, recklessly, or
continuously violated this Act, a rule promulgated
in accordance with this Act, or any order
of the Commissioner; (c) a fact or condition
exists that, if it had existed or had been
known at the time of the original application,
would have justified license refusal; or
(d) the licensee knowingly submits materially
false or misleading documents with the intent
to deceive the Commissioner or any other
party.
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(11)
Following license revocation, to take
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possession and control of a pawnshop
for the purpose of examination, reorganization,
or liquidation through receivership and to
appoint a receiver, which may be the Commissioner,
a pawnshop, or another suitable person.
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(b) After consultation
with local law enforcement officers, the Attorney
General, and the industry, the Commissioner may by
rule require that pawnbrokers operate video camera
surveillance systems to record photographic representations
of customers and retain the tapes produced for up
to 30 days.
(c) Pursuant to rule, the
Commissioner shall issue licenses on an annual or multi-year
basis for operating a pawnshop. Any person currently operating
or who has operated a pawnshop in this State during the 2 years
preceding the effective date of this amendatory Act of 1997 shall
be issued a license upon payment of the fee required under this
Act. New applicants shall meet standards for a license as established
by the Commissioner. Except with the prior written consent of the
Commissioner, no individual, either a new applicant or a person
currently operating a pawnshop, may be issued a license to operate
a pawnshop if the individual has been convicted of a felony or
of any criminal offense relating to dishonesty or breach of trust
in connection with the operations of a pawnshop. The Commissioner
shall establish license fees. The fees shall not exceed the amount
reasonably required for administration of this Act. It shall be
unlawful to operate a pawnshop without a license issued by the
Commissioner.
(d) In addition to license
fees, the Commissioner may, by rule, establish fees in connection
with a review, approval, or provision of a service, and levy a
reasonable charge to recover the cost of the review, approval,
or service (such as a change in control, change in location, or
renewal of a license). The Commissioner may also levy a reasonable
charge to recover the cost of an examination if the Commissioner
determines that unlawful or fraudulent activity has occurred. The
Commissioner may require payment of the fees and charges provided
in this Act by certified check, money order, an electronic transfer
of funds, or an automatic debit of an account.
(e) The Pawnbroker Regulation
Fund is established as a special fund in the State treasury. Moneys
collected under this Act shall be deposited into the Fund and used
for the administration of this Act. In the event that General Revenue
Funds are appropriated to the Office of the Commissioner of Banks
and Real Estate for the initial implementation of this Act, the
Governor may direct the repayment from the Pawnbroker Regulation
Fund to the General Revenue Fund of such advance in an amount not
to exceed $30,000. The Governor may direct this interfund transfer
at such time as he deems appropriate by giving appropriate written
notice. Moneys in the Pawnbroker Regulation Fund may be transferred
to the Professions Indirect Cost Fund, as authorized under Section
2105-300 of the Department of Professional Regulation Law
of the Civil Administrative Code of Illinois.
(f) The Commissioner may,
by rule, require all pawnshops to provide for the expenses that
would arise from the administration of the receivership of a pawnshop
under this Act through the assessment of fees, the requirement
to pledge surety bonds, or such other methods as determined by
the Commissioner.
(g) All final administrative
decisions of the Commissioner under this Act shall be subject to
judicial review pursuant to the provisions of the Administrative
Review Law. For matters involving administrative review, venue
shall be in either Sangamon County or Cook County.
(Source: P.A. 94-91, eff. 7-1-05.)
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(205 ILCS 510/1) (from Ch. 17, par. 4651)
Sec. 1. Every individual
or business entity which lends money on the deposit or pledge
of physically delivered personal property, other than property
the ownership of which is subject to a legal dispute, securities,
printed evidence of indebtedness or printed evidence of ownership
of the personal property, or who deals in the purchase of such
property on the condition of selling the property back again
at a stipulated price, shall be held and is hereby declared and
defined to be a pawnbroker. The business of a pawnbroker does
not include the lending of money on deposit or pledge of title
to property.
(Source: P.A. 90-602, eff. 7-1-98.)
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(205 ILCS 510/1.5)
Sec. 1.5. Misleading practices
and names prohibited. It shall not be lawful for an individual
or business entity to conduct business in this State using the
word "pawn", "pawnshop", or "pawnbroker" in
connection with the business or to transact business in this
State in a manner which has a substantial likelihood of misleading
the public by implying that the business is a pawnshop, without
first obtaining a license from the Commissioner.
(Source: P.A. 90-602, eff. 7-1-98.)
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(205 ILCS 510/2) (from Ch. 17, par. 4652)
Sec. 2. It shall be unlawful
for any pawnbroker to charge or collect a greater benefit or
percentage upon money advanced, and for the use and forbearance
thereof, than the rate of 3% per month. Nothing in this Section
shall be construed so as to conflict with the law pertaining
to usury and the person receiving money so advanced may hold
such moneys to pay any fees in addition to interest as herein
provided.
Each pawnbroker, when making
a loan under this Section, must disclose in printed form on the
pawn contract the following information to the persons receiving
the loan:
(1)
the amount of money advanced, which must be
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designated as the amount financed;
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(2)
the maturity date of the pawn, which must be at
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least 30 days after the date of the
pawn;
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(3)
the total pawn interest and service charge
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payable on the maturity date, which
must be designated as the finance charge;
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(4)
the total of payments that must be paid to
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redeem the pledged goods on the maturity
date, which must be designated as the total
of payments; and
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(5)
the annual percentage rate, computed according
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to the regulations adopted by the
Board of Governors of the Federal Reserve
System under the Federal Truth in Lending
Act.
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Each pawnbroker
may contract for and receive a monthly finance charge
including interest and fees not to exceed one-fifth
of the loan amount, as set forth herein, for appraising,
investigating title, storing and insuring the collateral,
closing the loan, making daily reports to local law
enforcement officers including enhanced computerized
reporting, complying with regulatory requirements,
and for other expenses and losses of every nature
whatsoever and for all other services. Such fees,
when made and collected, shall not be deemed interest
for any purpose of law.
(Source: P.A. 90-477, eff. 7-1-98.)
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(205 ILCS 510/3) (from Ch. 17, par. 4653)
Sec. 3. Every pawnbroker
shall at all times have and keep Section 2 of this act printed
in the English language and framed and posted in a prominent
and conspicuous position in his place of business, so that the
same shall be plainly legible and visible to all persons depositing
or pledging property with such pawnbroker.
(Source: Laws 1909, p. 300.)
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(205 ILCS 510/4) (from Ch. 17, par. 4654)
Sec. 4. Every pawnbroker
shall, at the time of making any advancement or loan, deliver
to the person pawning or pledging any property, a memorandum,
contract, or note signed by him containing an accurate account
and description, in the English language, of all the goods, articles
or other things pawned or pledged, the amount of money, value
of things loaned thereon, the time of pledging the same, the
rate of interest to be paid on the loan, the name and residence
of the person making the pawn or pledge, and the amount of any
fees as specified in Section 2 of this Act.
(Source: P.A. 87-802.)
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(205 ILCS 510/5) (from Ch. 17, par. 4655)
Sec. 5. Record requirements.
(a) Except in municipalities
located in counties having 3,000,000 or more inhabitants, every
pawn and loan broker shall keep a standard record book that has
been approved by the sheriff of the county in which the pawnbroker
does business. In municipalities in counties with 3,000,000 or
more inhabitants, the record book shall be approved by the police
department of the municipality in which the pawn or loan broker
does business. At the time of each and every loan or taking of
a pledge, an accurate account and description, in the English
language, of all the goods, articles and other things pawned
or pledged, the amount of money, value or thing loaned thereon,
the time of pledging the same, the rate of interest to be paid
on such loan, and the name and residence of the person making
such pawn or pledge shall be printed, typed, or written in ink
in the record book. Such entry shall include the serial number
or identification number of items received which bear such number.
Except for items purchased from dealers possessing a federal
employee identification number who have provided a receipt to
the pawnbroker, every pawnbroker shall also record in his book,
an accurate account and description, in the English language,
of all goods, articles and other things purchased or received
for the purpose of resale or loan collateral by the pawnbroker
from any source, not in the course of a pledge or loan, the time
of such purchase or receipt and the name and address of the person
or business which sold or delivered such goods, articles, or
other things to the pawnbroker. No entry in such book shall be
erased, mutilated or changed.
(b) Every pawnbroker shall
require identification to be shown him by each person pledging
or pawning any goods, articles or other things to the pawnbroker.
If the identification shown is a driver's license or a State
identification card issued by the Secretary of State and contains
a photograph of the person being identified, only one form of
identification must be shown. If the identification shown is
not a driver's license or a State identification card issued
by the Secretary of State and does not contain a photograph,
2 forms of identification must be shown, and one of the 2 forms
of identification must include his or her residence address.
These forms of identification shall include, but not be limited
to, any of the following: driver's license, social security card,
utility bill, employee or student identification card, credit
card, or a civic, union or professional association membership
card. In addition, in a municipality with a population of 1,000,000
or more inhabitants, if the customer does not have an identification
issued by a governmental entity containing a photograph of the
person being identified, the pawnbroker shall photograph the
customer in color and record the customer's name, residence address,
date of birth, social security number, gender, height, and weight
on the reverse side of the photograph. If the customer has no
social security number, the pawnbroker shall record this fact.
A county or municipality,
including a home rule unit, may regulate a pawnbroker's identification
requirements for persons pledging or pawning goods, articles,
or other things to the pawnbroker in a manner that is not less
restrictive than the regulation by the State of a pawnbroker's
identification requirements for persons pledging or pawning goods,
articles, or other things. A home rule unit may not regulate
a pawnbroker's identification requirements for persons pledging
or pawning goods, articles, or other things to the pawnbroker
in a manner less restrictive than the regulation by the State
of a pawnbroker's identification requirements for persons pledging
or pawning goods, articles, or other things. This Section is
a limitation under subsection (i) of Section 6 of Article VII
of the Illinois Constitution on the concurrent exercise by home
rule units of the powers and functions exercised by the State.
(c) A pawnbroker may maintain
the records required by subsection (a) in computer form if the
computer form has been approved by the Commissioner, the sheriff
of the county in which the shop is located, and the police department
of the municipality in which the shop is located.
(d) Records, including reports
to the Commissioner, maintained by pawnbrokers shall be confidential,
and no disclosure of pawnbroker records shall be made except
disclosures authorized by this Act or ordered by a court of competent
jurisdiction. No record transferred to a governmental official
shall be improperly disclosed, provided that use of those records
as evidence of a felony or misdemeanor shall be a proper purpose.
(e) Pawnbrokers and their
associations may lawfully give appropriate governmental agencies
computer equipment for the purpose of transferring information
pursuant to this Act.
(Source: P.A. 91-608, eff. 8-19-99;
92-215, eff. 8-2-01.)
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(205 ILCS 510/6) (from Ch. 17, par. 4656)
Sec. 6. Inspection of records.
(a) The book or computer
records, as well as every article or other thing of value so
pawned or pledged, shall at all times be open to the inspection
of the Commissioner, the sheriff of the county, his deputies,
or any members of the police force of any city in the county
in which such pawnbroker does business. In addition, the Commissioner
shall be authorized to inspect the books or records of any business
he or she has reasonable cause to believe is conducting pawn
transactions and should be licensed under this Act.
(b) The book or computer
records, pawn tickets, or any other records required by the Commissioner
under this Act or any rule promulgated in accordance with this
Act shall be maintained for a period of 3 years after the date
on which the record or ticket was prepared. These records and
tickets shall be open to inspection of the Commissioner at all
times during the 3-year period.
(Source: P.A. 92-215, eff. 8-2-01.)
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(205 ILCS 510/7) (from Ch. 17, par. 4657)
Sec. 7. Daily report.
(a) Except as provided in
subsection (b), it shall be the duty of every pawnbroker to make
out and deliver to the sheriff of the county in which such pawnbroker
does business, on each day before the hours of 12 o'clock noon,
a legible and exact copy from the standard record book, as required
in Section 5 of this Act, that lists all personal property and
any other valuable thing received on deposit or purchased during
the preceding day, including the exact time when received or
purchased, and a description of the person or person by whom
left in pledge, or from whom the same were purchased; provided,
that in cities or towns having 25,000 or more inhabitants, a
copy of the such report shall at the same time also be delivered
to the superintendent of police or the chief police officer of
such city or town. Such report may be made by computer printout
or input memory device if the format has been approved by the
local law enforcement agency.
(b) In counties with more
than 3,000,000 inhabitants, a pawnbroker must provide the daily
report to the sheriff only if the pawnshop is located in an unincorporated
area of the county. Pawnbrokers located in cities or towns in
such counties must deliver such reports to the superintendent
of police or the chief police officer of such city or town.
(Source: P.A. 90-477, eff. 7-1-98;
90-602, eff. 7-1-98.)
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(205 ILCS 510/7.5)
Sec. 7.5. Report to the
Commissioner. The Commissioner, as often as the Commissioner
shall deem necessary or proper, may require a pawnshop to submit
a full and detailed report of its operations including, but not
limited to, the number of pawns made, the amount financed on
pawn transactions, and the number and amount of pawns surrendered
to law enforcement.
The Commissioner shall prescribe
the form of the report and establish the date by which the report
must be filed.
(Source: P.A. 90-477, eff. 7-1-98;
90-602, eff. 7-1-98.)
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(205 ILCS 510/8) (from Ch. 17, par. 4658)
Sec. 8. No pawnbroker shall
take or receive any pawn or pledge for any advancement or loan,
any property of any kind from any minor who is under 18 years
of age, or the ownership of which is in, or which is claimed
by, any such minor, or which may be in the possession or under
the control of any such minor.
(Source: P.A. 84-478.)
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(205 ILCS 510/9) (from Ch. 17, par. 4659)
Sec. 9. No pawnbroker shall
purchase or take any article in pawn or pledge from any person
appearing to be intoxicated, nor from any person known to have
been convicted of theft. A law enforcement officer may provide
such criminal conviction information to a pawnbroker. When any
person is found to be the owner of stolen property which has
been pawned, such property shall be returned to the owner thereof
without the payment of the money advanced by the pawnbroker thereon
or any costs or charges of any kind which the pawnbroker may
have placed upon the same.
(Source: P.A. 84-1308.)
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(205 ILCS 510/10) (from Ch. 17, par. 4660)
Sec. 10. Sale of property.
No personal property received on deposit or pledge or purchased
by any pawnbroker shall be sold or permitted to be redeemed or
removed from the place of business of such pawnbroker for the
space of 48 hours after the delivery of the copy and statement
required by Section 7 of this Act required to be delivered to
the officer or officers named therein. If the pawner or pledger
fails to repay the loan during the period specified on the pawn
ticket, the pawnbroker shall automatically extend a grace period
of 30 days from the default date on the loan during which the
pawnbroker shall not dispose of or sell the personal property
pledged. The parties may agree to extend or renew a loan upon
terms agreed upon by the parties, provided the terms comply with
the requirements of this Act.
(Source: P.A. 90-477, eff. 7-1-98.)
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(205 ILCS 510/11) (from Ch. 17, par. 4661)
Sec. 11. Violations. Every
person who knowingly violates the provisions of this Act shall,
for the first offense, be guilty of a Class C misdemeanor, and
for each subsequent offense shall be guilty of a Class A misdemeanor,
except that a person who knowingly violates this Act by operating
a pawnshop without a license shall be guilty of a Class B misdemeanor
for the first offense and shall be guilty of a Class A misdemeanor
for any subsequent offense. This Act shall not be construed as
to, in any wise, impair the power of cities or villages in this
State to license, tax, regulate except as to fee amounts, suppress,
and prohibit pawnbrokers as now provided by law.
(Source: P.A. 92-215, eff. 8-2-01.)
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