Bill Text: IL HB4963 | 2011-2012 | 97th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Collateral Recovery Act. Defines "automobile rental company". Provides that the Act does not apply to an automobile rental company or the employee of an automobile rental company when engaged in an activity otherwise covered by the Act if the activity is conducted by the employee on behalf of that automobile rental company. Provides that the Act does not apply to a towing company or towing operator when an employee or agent of an automobile rental company is present at the site from which the vehicle is towed. Provides that the Act does not apply to persons engaged in the recovery of collateral that is incidental to and within the scope of the person's primary business purpose and the primary business purpose is other than repossession. Effective July 1, 2012.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Failed) 2013-01-08 - Session Sine Die [HB4963 Detail]

Download: Illinois-2011-HB4963-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB4963 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED:
225 ILCS 422/10
225 ILCS 422/30
Amends the Collateral Recovery Act. Defines "automobile rental company". Provides that the Act does not apply to an automobile rental company or the employee of an automobile rental company when engaged in an activity otherwise covered by the Act if the activity is conducted by the employee on behalf of that automobile rental company. Provides that the Act does not apply to a towing company or towing operator when an employee or agent of an automobile rental company is present at the site from which the vehicle is towed. Provides that the Act does not apply to persons engaged in the recovery of collateral that is incidental to and within the scope of the person's primary business purpose and the primary business purpose is other than repossession. Effective July 1, 2012.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Collateral Recovery Act is amended by
changing Sections 10 and 30 as follows:
(225 ILCS 422/10)
(This Section may contain text from a Public Act with a
delayed effective date)
(Section scheduled to be repealed on January 1, 2022)
Sec. 10. Definitions. In this Act:
"Assignment" means a written authorization by a legal
owner, lien holder, lessor, lessee, or licensed repossession
agency authorized by a legal owner, lien holder, lessor or
lessee to locate or repossess, involuntarily or voluntarily,
any collateral, including, but not limited to, collateral
registered under the Illinois Vehicle Code that is subject to a
security agreement that contains a repossession clause or is
the subject of a rental or lease agreement.
"Assignment" also means a written authorization by an
employer to recover any collateral entrusted to an employee or
former employee if the possessor is wrongfully in the
possession of the collateral. A photocopy, facsimile copy, or
electronic copy of an assignment shall have the same force and

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effect as an original written assignment.
"Automobile rental company" means a person or entity whose
primary business is renting motor vehicles to the public for 30
days or less.
"Branch office" means each additional office and secured
storage facility location of a repossession agency (i) located
in and conducting business within the State of Illinois and
(ii) operating under the same name as the repossession agency
where business is actively conducted or is engaged in the
business authorized by the licensure. Each branch office must
be individually licensed.
"Collateral" means any vehicle, boat, recreational
vehicle, motor home, motorcycle, or other property that is
subject to a security, lease, or rental agreement.
"Commission" means the Illinois Commerce Commission.
"Debtor" means any person or entity obligated under a
lease, rental, or security agreement.
"Financial institution" means a bank, a licensee under the
Consumer Installment Loan Act, savings bank, savings and loan
association, or credit union organized and operating under the
laws of this or any other state or of the United States, and
any subsidiary or affiliate thereof.
"Legal owner" means a person holding (i) a security
interest in any collateral that is subject to a security
agreement, (ii) a lien against any collateral, or (iii) an
interest in any collateral that is subject to a lease or rental

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agreement.
"Licensure" means the approval of the required criteria
that has been submitted for review in accordance with the
provisions of this Act.
"Licensed recovery manager" means a person who possesses a
valid license in accordance with the provisions of this Act and
is in control or management of an Illinois repossession agency.
"Personal effects" means any property contained within or
on repossessed collateral, or property that is not permanently
affixed to the collateral, that is not the property of the
legal owner.
"Recovery permit" means a permit issued by the Commission
to a repossession agency employee who has met all the
requirements under this Act.
"Recovery ticket" means a serialized record obtained from
the Commission for any repossessed vehicle or collateral
evidencing that any person, business, financial institution,
automotive dealership, or repossession agency who shows a
recovery ticket has paid the recovery ticket fee to the
Commission.
"Remote storage location" means a secured storage facility
of a licensed repossession agency designated for the storage of
collateral that is a secure building or has a perimeter that is
secured with a fencing construction that makes the area not
accessible to the public. A remote storage location shall not
transact business with the public and shall provide evidence of

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applicable insurance to the Commission that specifies the
licensed repossession agency as the primary policy holder. A
remote storage location shall be located in a commercially
zoned area physically located in Illinois.
"Repossession agency" means any person or entity
conducting business within the State of Illinois, that, for any
type of consideration, engages in the business of, accepts
employment to furnish, or agrees to provide or provides
property locating services, property recovery, recovered
property transportation, recovered property storage, or all
services relevant to any of the following:
(1) The location, disposition, or recovery of property
as authorized by the self-help provisions of the Uniform
Commercial Code.
(2) The location, disposition, or recovery of lost or
stolen property.
(3) Securing evidence concerning repossession and
recovery to be used before any court, board, office, or
investigating committee.
(4) Inventory of property contained in or on the
collateral or recovered property.
(5) The possession of collateral.
(6) The prevention of the misappropriation or
concealment of chattel, vehicles, goods, objects,
documents, or papers.
"Repossession agency" does not include any of the

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following:
(1) An attorney at law who is performing his or her
duties as an attorney at law.
(2) The legal owner of collateral that is subject to a
security agreement.
(3) An officer or employee of the United States of
America or of this State or a political subdivision of this
State while the officer or employee is engaged in the
performance of his or her official duties.
(4) A qualified license or recovery permit holder when
performing services for, or on behalf of, a licensed
repossession agency.
(5) A collection agency licensed under the Collection
Agency Act when its activities are limited to assisting an
owner in the recovery of property that is not collateral,
as defined in this Act.
"Repossession agency employee" means any person or
self-employed independent contractor who is hired by a
repossession agency.
"Secured storage facility" means an area located on the
same premises as a repossession agency office or branch office
that is designated for the storage of collateral and is a
secure building or has a perimeter that is secured with a
fencing construction that makes the area not accessible to the
public. Each repossession agency office or branch office must
maintain a secured storage facility.

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"Security agreement" means an obligation, pledge,
mortgage, chattel mortgage, lease agreement, rental agreement,
deposit, or lien, given by a debtor as security for payment or
performance of his or her debt by furnishing the creditor with
a recourse to be used in case of failure in the principal
obligation. "Security agreement" includes a bailment where an
employer-employee relationship exists or existed between the
bailor and the bailee.
(Source: P.A. 97-576, eff. 7-1-12.)
(225 ILCS 422/30)
(This Section may contain text from a Public Act with a
delayed effective date)
(Section scheduled to be repealed on January 1, 2022)
Sec. 30. License or registration required.
(a) It shall be unlawful for any person or entity to
repossess a vehicle or collateral in this State, attempt to
repossess a vehicle or collateral in this State, or to hold
himself, herself, or itself out to be a repossession agency
unless licensed under this Act.
(b) It shall be unlawful for any person to repossess a
vehicle or collateral in this State, attempt to repossess a
vehicle or collateral in this State, or to hold himself or
herself out to be a licensed recovery manager unless licensed
under this Act.
(c) It shall be unlawful for any person to repossess a

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vehicle or collateral in this State, attempt to repossess a
vehicle or collateral in this State, or hold himself or herself
out to be a repossession agency employee unless he or she holds
a valid recovery permit issued by the Commission under this
Act.
(d) This Act does not apply to a financial institution or
the employee of a financial institution when engaged in an
activity otherwise covered by this Act if the activity is
conducted by the employee on behalf of that financial
institution.
(e) This Act does not apply to a towing company or towing
operator when an employee or agent of the creditor financial
institution is present at the site from which the vehicle is
towed.
(f) This Act does not apply to an automobile rental company
or the employee of an automobile rental company when engaged in
an activity otherwise covered by this Act if the activity is
conducted by the employee on behalf of that automobile rental
company.
(g) This Act does not apply to a towing company or towing
operator when an employee or agent of an automobile rental
company is present at the site from which the vehicle is towed.
(h) This Act does not apply to persons engaged in the
recovery of collateral that is incidental to and within the
scope of the person's primary business purpose and the primary
business purpose is other than repossession.

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(Source: P.A. 97-576, eff. 7-1-12.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect July 1,
2012.