No person shall operate as a license broker without first being licensed by the commissioner. An applicant must apply for a license broker license using a print or electronic form prescribed by, and as directed by, the commissioner and accompanied by such documents as the commissioner may require and shall include, but not be limited to:
Proof that the license broker has its principal place of business in Chicago; and
Information as to whether the applicant for the license or any principal thereof has a financial interest in any lender, insurance brokerage firm or automobile dealership.
Applicants for a license broker license are subject to an investigation pursuant to Section9-112-120" destination-id="JD_9-112-120">9-112-110 of this Code.
All applicants for a license broker license shall deposit with the commissioner a bond, in the penal sum of $200,000.00, containing one or more sureties to be approved by the commissioner. Such bond shall be payable to the City of Chicago and shall be conditioned that the license applicant or licensee will comply with the provisions of the Municipal Code of Chicago and the rules and regulations promulgated thereunder. The applicant shall pay all fines, orders of restitution, or judgments for damages ordered by the department of administrative hearings, or a court of competent jurisdiction, based on a violation of the Municipal Code of Chicago and the rules and regulations promulgated thereunder, committed by such licensee, his agents or employees, while acting within the scope of their employment. The broker is immediately liable for satisfaction upon determination of the fine or award judgment, or, if timely appeal is taken, upon final determination of the appeal.
The annual fee for each license broker license is $500.00. All license broker licenses expire on October 31. Renewal of such license must be made during the month of October. The fee shall be paid in advance before the license is issued. In order to avoid lapse of the license broker license, the licensee must renew the license before the expiration date of the licensing term. License broker licensing renewal fees must be paid before the first day of the licensing term. Any license broker licensing fee paid on or after the first day of the licensing term is considered a late payment, and is subject to late payment fees and interest accrued as specified in the Code and promulgated in rules by the commissioner.
A license broker shall conspicuously display a license or copy thereof at all times in every place of business maintained by such broker.
A license broker shall not display a taxicab broker’s license which is expired, suspended or revoked, but shall surrender same to the commissioner immediately.
A license broker:
must not accept, request nor permit a party to sign a document or instrument, including but not limited to a power of attorney, which is incomplete or which does not include all material facts required under this Code;
must provide any party referenced in the documents with a duplicate copy of the executed instrument for the party’s own records; and
must upon completion of a closing, or other transaction deliver, to the party referenced in the documents, copies of all documents prepared by the broker or under the broker’s supervision within ten business days of such completion and request the party receiving such papers to acknowledge, in writing, receipt of same.
A license broker shall keep and maintain for a period of three years all records involving the sale or encumbrance of a license.
A license broker must furnish the commissioner with copies of any requested documents within three business days of such request.
The commissioner is authorized to promulgate rules and regulations governing the conduct of license brokers including, but not limited to: the form, duration and limitations on listing agreements for the transfer of licenses; disclosures by the license broker to any client or potential client regarding possible conflicts of interest based on the license broker’s activities as a lender, insurance broker, or automobile dealer or the license broker’s contractual relationship or financial or other interest in a lender, insurance broker or automobile dealer; advertising by the broker; forms to be used in the transfer or encumbrance of a license; and applicable penalties including but not limited to fines, license suspension, or license revocation for violation of any provision of this ordinance or the rules promulgated thereunder.
Any monies paid in connection with the transfer of a license, must be held in a separate interest- bearing escrow account until the department approves the transfer of the license.
(Added Coun. J. 1-18-12, p. 19118, § 1)