Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 160 - SALES FINANCE AGENCY ACT
Subpart A - GENERAL PROVISIONS
Section 160.280 - Loan Sales
Universal Citation: 38 IL Admin Code ยง 160.280
Current through Register Vol. 48, No. 12, March 22, 2024
a) For purposes of this Section:
1) "Act" means the
Sales Finance Agency Act [205 ILCS 660 ]; and
2) "Licensee" means licensees under the Act
and the Consumer Installment Loan Act [205 ILCS 670
].
3) "Transaction" means the
pledge, hypothecation, sale, or other conveyance of contracts purchased, or
loans made, under the provisions of the Act.
b) A licensee may not pledge, hypothecate, sell, or otherwise convey contracts purchased, or loans made, under the provisions of the Act, except as provided in this Section.
c) A licensee may not pledge, hypothecate, sell, or otherwise convey contracts purchased, or loans made, under the Act, except to:
1) another licensee under the
Act;
2) a Consumer Installment Loan
Act licensee;
3) a special purpose
vehicle as defined by the Act;
4)
a person or entity that lends against or purchases retail installment
contracts, retail charge agreements, or the outstanding balances or any portion
of the outstanding balances under those contracts or agreements from an
Illinois licensed sales finance agency or Consumer Installment Loan
Act licensee in connection with a securitization, private placement, or
similar type of investment transaction. A licensee may pledge,
hypothecate, sell, or otherwise convey contracts purchased, or loans made,
under the Act to a person or entity described in this subsection (c)(4) only if
the conveyor licensee retains servicing of the loan agreements or
contracts and maintains the records for those loan agreements or
contracts (see Section 17(b) of the Act);
5) the retail seller from which the conveyor
licensee originally purchased the retail installment contracts or retail charge
agreements; or
6) a credit union,
bank, banking association, trust company, savings bank, or savings and loan
association authorized to do business under the laws of this State or of the
United States.
d) The conveyor licensee shall notify the Department in writing, no more than 10 days after the transaction, indicating the name of the purchaser/pledgee/recipient and evidence of their qualifications to purchase contracts under this Section.
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