Ill. Admin. Code tit. 38, § 360.150 - Change in Control or Form of Ownership, Change in Location, Change in Name of Pawnshop, Voluntary Surrender of License; Fees
a) Change in Control or Form of Ownership. An
application must be filed, by the acquiring party, not less than 30 days prior
to the anticipated change in control or change in the form of ownership of a
pawnshop. As used in this Section, "control" means a change involving the sale,
assignment or transfer of a pawnshop; the addition or elimination of any
general or limited partner; or a 10 percent or more change in the ownership of
the outstanding stock, or membership interest, of a corporation that owns a
pawnshop. A change in the form of ownership is considered to be a change from
one type of business entity to another type of business entity (e.g., sole
proprietorship to a corporation, partnership to sole proprietorship). The
application must be submitted on the form prescribed in Section
360.210, in accordance with
the Secretary's instructions. The payment of the applicable Change in Control
or Form of Ownership Fee must accompany the application. No change in control
or form of ownership shall occur until approved by the Secretary. The Secretary
may prohibit a change in control or form of ownership from occurring if the
licensee does not meet the license standards set forth in Section
360.130.
The processing of the application shall be conducted in the same manner as
provided in Section
360.120.
The Change of Control or Form of Ownership Fee is set forth in Section
360.20.
b) Gift, Bequest, or Inheritance. Any person
who, by gift, bequest, or inheritance, obtains ownership rights to an existing
pawnshop or ownership rights in a company that controls the pawnshop such that
ownership rights would constitute control of the pawnshop or company, may
obtain title and ownership rights, but may not exercise management or control
of the business and affairs of the pawnshop or vote so as to exercise
management or control unless and until the Secretary approves an application
for the change in control as provided in this Section, unless such person has
requested, in writing, and received an exemption from the Secretary.
c) Change in Location
1) An application to change the location of a
pawn shop must be filed not less than 45 days prior to the anticipated date of
relocation. The application must be submitted on the form prescribed in Section
360.210 of this Part, in
accordance with the Secretary's instructions, and the processing of the
application shall be conducted in the same manner as provided in Section
360.120
of this Part. The payment of the applicable Change in Location Fee must
accompany the application. At a minimum, the application shall include: the
present name and address of the licensed pawnshop, the address and phone number
of the proposed new location, the anticipated date of relocation, a list of the
addresses of all pledgers with open pawn loans, and a sample copy of the
written notice that shall be provided to the pledgers of open pawn loans. No
relocation of a pawnshop may occur until approved by the Secretary. The
Secretary may prohibit a relocation if it adversely affects the ability of
pledgers to redeem pledged goods due to the distance between the locations.
Upon approval of a change in location by the Secretary, the licensee shall
provide notification to all pledgers with open pawn loans by signs and written
notice. The written notice shall be mailed to all pledgers with open pawn loans
of record, at their last known mailing address, not less than 15 days prior to
the anticipated date of relocation. The written notice must include the name of
the pawnshop as well as identify both the old and the new locations, the
telephone number of the new location, and the anticipated date of relocation.
At a minimum, two signs, of reasonable size and visibility, shall be posted on
the outside of the pawnshop for 15 business days prior to the relocation. The
signs shall include the information provided in substantially the following
form:
NOTICE OF CHANGE IN LOCATION (centered, in caps and bold)
(DATE)
(Name of Pawnshop) WILL BE MOVING TO (new address)
THE TELEPHONE NUMBER AT THE NEW LOCATION IS (telephone number)
THE ANTICIPATED DATE OF RE-LOCATION IS (date of relocation)
2) The
Secretary may waive the notification to pledgers by mail if a determination has
been made that no pledgers will be adversely affected by the relocation (e.g.,
the pawnshop relocates to a building within close proximity of the former
location). Upon receipt of the completed form, payment of the applicable fee,
and the Secretary's approval, a new license shall be issued to the licensee.
The licensee must surrender its former license to the Secretary not less than
10 business days after the relocation has occurred, unless an exemption has
been granted by the Secretary. The Change of Location Fee is set forth in
Section
360.20 of this
Part.
d) Change in Name
of Pawnshop. Prior to the change in the name of a pawnshop, the licensee shall
provide written notice to the Secretary, not less than 30 days prior to the
anticipated change, and pay the applicable fee, as established by the
Secretary. Upon receipt of the written notice and applicable fee, the Secretary
shall issue a new license. At such time, the licensee must surrender its former
license to the Secretary. The Change in Name Fee is set forth in Section
360.20 of this
Part.
e) Voluntary Surrender of
License. Prior to the voluntary surrender of a license, the licensee shall
provide not less than 60 days written notice to the Secretary. The licensee
shall also provide all pledgers with open pawn loans, at their last known
mailing address, with 60 days written notice and shall publish a notice in two
consecutive issues of a local newspaper of general circulation. At a minimum,
the notice shall contain: the name and address of the pawnshop, the telephone
number of the pawnshop, and the anticipated date on which business operations
will cease. Prior to the cancellation of any license, the licensee shall
certify to the Secretary, in the manner prescribed by the Secretary, that the
pawnshop has no open pawn loans and that no further pawn loans shall be made.
Upon receiving the certification from the licensee, the Secretary shall cancel
the license. At such time, the license shall be surrendered to the Secretary.
Ceasing business shall not impair or affect the obligation of either the
pawnbroker or the pledger to fulfill the terms of any preexisting contract
between them.
Notes
Amended at 35 Ill. Reg. 14957, effective September 9, 2011
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