§ 205-410

(was 20 ILCS 205/40.23) Sec. 205-410. Surety bonds; trust funds and accounts; bank accounts. (a) In this Section: "Claimant" means a person who is unable to secure satisfaction of financial obligations due from a person subject to regulation by the Department, in accordance with the applicable statute or regulation and the time limits provided for in that statute or regulation, if any, under any of the following Acts: (1) The Illinois Egg and Egg Products Act. (2) The Personal Property Storage Act. (3) The Livestock Auction Market Law. (4) The Illinois Pesticide Act. (5) The Weights and Measures Act. (6) The Illinois Livestock Dealer Licensing Act. (7) The Slaughter Livestock Buyers Act. (8) The Illinois Feeder Swine Dealer Licensing Act. "Failure" under the Acts cited in the definition of "claimant" contained in this Section means any of the following: (1) An inability to financially satisfy claimants in accordance with the applicable statute or regulation and the time limits provided for in that statute or regulation, if any. (2) A public declaration of insolvency. (3) A revocation of a license and the leaving of an outstanding indebtedness to claimants. (4) A failure to pay claimants in the ordinary course of business and when a bonafide dispute does not exist between the licensee and the customer. (5) A failure to apply for renewal of a license. (6) A denial of a request for renewal of a license. (7) A voluntary surrendering of a license. (b) The Department has the power to control surety bonds and trust funds and to establish trust accounts and bank accounts in adequately protected financial institutions, to hold monies received by the Director of Agriculture when acting as trustee, to protect the assets of licensees for the benefit of claimants, to accept security from licensees to collateralize licensees' financial deficiencies (and that security shall be secondary to surety bonds in the collection process), to accept collateral and security in lieu of or in addition to a commercial surety bond, and to collect and disburse the proceeds of those bonds and trust funds when acting as trustee on behalf of claimants without responsibility for the management and operation of discontinued or insolvent businesses, those funds, or additions to those funds in which the State of Illinois has no right, title, or interest. (c) The Department shall promulgate and file procedural rules and regulations to be followed concerning the establishment and segregation of trust accounts and bank accounts and the holding of administrative hearings to identify and verify claimants and claim amounts, to claim and collect the proceeds of surety bonds and other assets, and to distribute monies in trust funds and bank accounts to claimants. The trustee shall maintain and retain records and make available for audit or review by any person, firm, corporation, or government entity the trust accounts and bank accounts, check registers, cancelled claimants' checks, and records accumulated and used by the Department to ascertain the claimants and claims against surety bonds or trust funds. (d) The Department may use monies in the trust accounts that are established to hold monies received in trust for disbursement to claimants for the benefit of claimants and for paying expenses incurred in pursuing those assets.

Legislative History

(Source: P.A. 91-239, eff. 1-1-00.)