Chapter 815 — BUSINESS TRANSACTIONS

(815 ILCS 5/1) (from Ch. 121 1/2, par. 137.1) Sec. 1. Short title. This Act may be cited as the Illinois Securities Law of 1953. (Source: P.A. 86-1475.)

(815 ILCS 5/10) (from Ch. 121 1/2, par. 137.10) Sec. 10. Service of process. A. A consent to service of process shall be in the form prescribed by the Secretary of State, shall be irrevocable, and shall provide that actions arising out of or founded upon the offer or sale of any …

(815 ILCS 5/11) (from Ch. 121 1/2, par. 137.11) Sec. 11. Duties and powers of the Secretary of State. A. (1) The administration of this Act is vested in the Secretary of State, who may from time to time make, amend and rescind such rules and regulations as may be necessary to car…

(815 ILCS 5/11.5) Sec. 11.5. Securities exchange registration. (a) A person shall not operate a securities exchange in this State unless it has been registered with the Secretary of State. (b) The Secretary of State shall adopt rules or regulations necessary to carry out the prov…

(815 ILCS 5/11a) (from Ch. 121 1/2, par. 137.11a) Sec. 11a. Fees. (1) The Secretary of State shall by rule or regulation impose and shall collect reasonable fees necessary for the administration of this Act including, but not limited to, fees for the following purposes: (a) filin…

(815 ILCS 5/11b) (from Ch. 121 1/2, par. 137.11b) Sec. 11b. Special funds. All moneys received by the State of Illinois in furtherance of activities, duties, and responsibilities under the Illinois Securities Law of 1953 from government or non-governmental sources, except funds r…

(815 ILCS 5/11c) (from Ch. 121 1/2, par. 137.11c) Sec. 11c. Securities Audit and Enforcement Fund. (a) All moneys received by the Secretary of State as a Securities Audit and Enforcement Fund fee or pursuant to Section 981, 982, or 1963 of Title 18 of the United States Code shall…

(815 ILCS 5/12) (from Ch. 121 1/2, par. 137.12) Sec. 12. Violation. It shall be a violation of the provisions of this Act for any person: A. To offer or sell any security except in accordance with the provisions of this Act. B. To deliver to a purchaser any security required to b…

(815 ILCS 5/13) (from Ch. 121 1/2, par. 137.13) Sec. 13. Private and other civil remedies; securities. A. Every sale of a security made in violation of the provisions of this Act shall be voidable at the election of the purchaser exercised as provided in subsection B of this Sect…

(815 ILCS 5/14) (from Ch. 121 1/2, par. 137.14) Sec. 14. Sentence. A. Any person who violates any of the provisions of subsection A, B, C, or D of Section 12 or paragraph (3) of subsection K of Section 12 of this Act shall be guilty of a Class 4 felony. B. Any person who violates…

(815 ILCS 5/15) (from Ch. 121 1/2, par. 137.15) Sec. 15. Evidentiary matters. A. In any action, administrative, civil or criminal, where a defense is based upon any exemption provided for in this Act, the burden of proving such exemption shall be upon the party raising such defen…

(815 ILCS 5/15a) (from Ch. 121 1/2, par. 137.15a) Sec. 15a. Issuance of Non-Binding Statements. The Secretary of State, or any person designated by him or her, may issue a statement concerning the applicability of the Act or the rules and regulations thereunder to any transaction…

(815 ILCS 5/16) (from Ch. 121 1/2, par. 137.16) Sec. 16. Saving clauses. Notwithstanding any repeal provisions of this Act, the provisions of the Act entitled "An Act relating to the sale or other disposition of securities and providing penalties for the violation thereof and to …

(815 ILCS 5/17) (from Ch. 121 1/2, par. 137.17) Sec. 17. Separability of provisions. If any provision or provisions of this Act shall be held invalid, the remainder of this Act shall not be affected thereby. (Source: Laws 1953, p. 1329.)

(815 ILCS 5/18) (from Ch. 121 1/2, par. 137.18) Sec. 18. Repeal. All the provisions of the Act entitled "An Act relating to the sale or other disposition of securities and providing penalties for the violation thereof and to repeal Acts in conflict therewith," approved June 10, 1…

(815 ILCS 5/18.1) Sec. 18.1. Additional fees. In addition to any other fee that the Secretary of State may impose and collect pursuant to the authority contained in Sections 4, 8, and 11a of this Act, beginning on July 1, 2003 the Secretary of State shall also collect the followi…

(815 ILCS 5/19) (from Ch. 121 1/2, par. 137.19) Sec. 19. Effective date. This Act shall become effective January 1, 1954. (Source: Laws 1953, p. 1329.)

(815 ILCS 5/2) (from Ch. 121 1/2, par. 137.2) Sec. 2. Definitions. As used in this Act, unless the context otherwise requires, the terms defined in the Sections of this Act that precede Section 3 shall have the meanings therein ascribed. (Source: P.A. 87-463.)

(815 ILCS 5/2.1) (from Ch. 121 1/2, par. 137.2-1) Sec. 2.1. Security. "Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganizati…

(815 ILCS 5/2.10) (from Ch. 121 1/2, par. 137.2-10) Sec. 2.10. "Registered salesperson" means a salesperson registered under Section 8 of this Act. "Registered salesperson" also means a registered limited Canadian salesperson. (Source: P.A. 90-70, eff. 7-8-97.)

(815 ILCS 5/2.10a) Sec. 2.10a. (Repealed). (Source: P.A. 90-667, eff. 7-30-98. Repealed by P.A. 101-563, eff. 8-23-19.)

(815 ILCS 5/2.11) (from Ch. 121 1/2, par. 137.2-11) Sec. 2.11. Investment adviser. "Investment adviser" means any person who, for compensation, engages in this State in the business of advising others, either directly or through publications or writings, as to the value of securi…

(815 ILCS 5/2.12) (from Ch. 121 1/2, par. 137.2-12) Sec. 2.12. "Registered investment adviser" means an investment adviser registered under Section 8 of this Act. (Source: Laws 1961, p. 3663.)

(815 ILCS 5/2.12a) (from Ch. 121 1/2, par. 137.2-12a) Sec. 2.12a. "Principal of an investment adviser" means any officer, director, partner, member, trustee or manager of such investment adviser who is responsible for the supervision of the registered representatives in this Stat…

(815 ILCS 5/2.12b) (from Ch. 121 1/2, par. 137.2-12b) Sec. 2.12b. Investment adviser representative. "Investment adviser representative" means, with respect to an investment adviser who is required to register under this Act, any partner, officer, director of (or a person occupyi…

(815 ILCS 5/2.12c) Sec. 2.12c. Registered investment adviser representative. "Registered investment adviser representative" means an investment adviser representative registered under Section 8 of this Act. (Source: P.A. 90-70, eff. 7-8-97.)

(815 ILCS 5/2.13) (from Ch. 121 1/2, par. 137.2-13) Sec. 2.13. "Effective date" when used with respect to a registration under the Federal 1933 Act means the date and time as of which a statement for the registration of securities under said Act first becomes effective or, upon t…

(815 ILCS 5/2.14) (from Ch. 121 1/2, par. 137.2-14) Sec. 2.14. "Face amount certificate contract" means any form of "face amount certificate" or "periodic payment plan certificate" (as so designated and defined under the Federal Investment Company Act of 1940) and shall also mean…

(815 ILCS 5/2.15) (from Ch. 121 1/2, par. 137.2-15) Sec. 2.15. "Investment fund shares" means securities issued by persons known as "investment funds" or "investment companies" or "investment trusts" but such term shall not include securities issued by persons not within the inte…

(815 ILCS 5/2.16) (from Ch. 121 1/2, par. 137.2-16) Sec. 2.16. "Securities Director" means the chief administrator of the Securities Department, appointed by the Secretary of State. (Source: P.A. 84-869.)

(815 ILCS 5/2.17) (from Ch. 121 1/2, par. 137.2-17) Sec. 2.17. "Federal 1933 Act" means the Act of the Congress of the United States known as the Securities Act of 1933, as amended. (Source: P.A. 80-556.)

(815 ILCS 5/2.17a) (from Ch. 121 1/2, par. 137.2-17a) Sec. 2.17a. "Federal 1934 Act" means the Act of Congress of the United States known as the Securities Exchange Act of 1934, as amended. (Source: P.A. 85-1445.)

(815 ILCS 5/2.17b) (from Ch. 121 1/2, par. 137.2-17b) Sec. 2.17b. Federal 1974 Act. "Federal 1974 Act" means the Act of Congress of the United States known as the Commodity Exchange Act, as amended. (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)

(815 ILCS 5/2.17c) (from Ch. 121 1/2, par. 137.2-17c) Sec. 2.17c. "Federal Bankruptcy Code" means the Act of Congress of the United States known as the Bankruptcy Code of 1978, as amended. (Source: P.A. 84-869.)

(815 ILCS 5/2.17d) (from Ch. 121 1/2, par. 137.2-17d) Sec. 2.17d. "Federal 1940 Investment Company Act" means the Act of Congress of the United States known as the Investment Company Act of 1940, as amended. (Source: P.A. 84-869.)

(815 ILCS 5/2.17e) (from Ch. 121 1/2, par. 137.2-17e) Sec. 2.17e. "Federal 1940 Investment Advisers Act" means the Act of Congress of the United States known as the Investment Advisers Act of 1940, as amended. (Source: P.A. 84-869.)

(815 ILCS 5/2.17f) Sec. 2.17f. Federal 1996 Act. "Federal 1996 Act" means the Act of Congress of the United States known as the National Securities Markets Improvement Act of 1996. (Source: P.A. 90-70, eff. 7-8-97.)

(815 ILCS 5/2.18) (from Ch. 121 1/2, par. 137.2-18) Sec. 2.18. "Clearing corporation" means a clearing corporation as defined in Section 8-102 of the Uniform Commercial Code, as amended. (Source: P.A. 79-1176.)

(815 ILCS 5/2.2) (from Ch. 121 1/2, par. 137.2-2) Sec. 2.2. "Issuer" means every person who shall have issued or proposes to issue any security; except that (1) with respect to certificates of deposit, voting-trust certificates, collateral-trust certificates, and certificates of …

(815 ILCS 5/2.24) (from Ch. 121 1/2, par. 137.2-24) Sec. 2.24. "State" means any state, territory, or possession of the United States, the District of Columbia and Puerto Rico. (Source: P.A. 83-44.)

(815 ILCS 5/2.25) (from Ch. 121 1/2, par. 137.2-25) Sec. 2.25. "Federal ERISA Act" means the Act of Congress of the United States known as the Employee Retirement Income Security Act of 1974, as amended. (Source: P.A. 85-1445.)

(815 ILCS 5/2.26) (from Ch. 121 1/2, par. 137.2-26) Sec. 2.26. Mineral investment contract. "Mineral investment contract" means any investment, account, agreement, or contract whereby the investor's profits are dependent upon the transportation, mining, minting, milling, flotatio…

(815 ILCS 5/2.27) (from Ch. 121 1/2, par. 137.2-27) Sec. 2.27. Mineral deferred delivery contract. "Mineral deferred delivery contract" means any account, agreement, or contract for the purchase or sale, primarily for speculation or investment purposes and not for the use or cons…

(815 ILCS 5/2.28) Sec. 2.28. Securities exchange. "Securities exchange" means any organization, association, or group of persons, incorporated or unincorporated, located within this State that constitutes, maintains, or provides a marketplace, facilities, or electronic communicat…

(815 ILCS 5/2.29) Sec. 2.29. Covered security. "Covered security" means any security that is a covered security under Section 18(b) of the Federal 1933 Act or rules or regulations promulgated thereunder. (Source: P.A. 95-331, eff. 8-21-07.)

(815 ILCS 5/2.3) (from Ch. 121 1/2, par. 137.2-3) Sec. 2.3. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a limited liability company, a limited liability partnership, a trust or any unincorporated organization. As used in this…

(815 ILCS 5/2.30) Sec. 2.30. Federal covered investment adviser. "Federal covered investment adviser" means a person who is registered under Section 203 of the Federal 1940 Investment Advisers Act. (Source: P.A. 90-70, eff. 7-8-97; 90-667, eff. 7-30-98.)

(815 ILCS 5/2.31) Sec. 2.31. Limited Canadian salesperson. "Limited Canadian salesperson" means a salesperson who is a resident of Canada, has no office or other physical presence in this State, and complies with conditions specified by the Secretary of State through rule or orde…

(815 ILCS 5/2.32) Sec. 2.32. Limited Canadian dealer. "Limited Canadian dealer" means a dealer who is a resident of Canada, has no office or other physical presence in this State, and complies with conditions specified by the Secretary of State through rule or order. (Source: P.A…

(815 ILCS 5/2.33) Sec. 2.33. Viatical investment. "Viatical investment" means the contractual right to receive any portion of the death benefit or ownership of a life insurance policy or certificate for consideration that is less than the expected death benefit of the life insura…