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 1923 STATE OF ILLINOIS 
 
 <U 3 P' Department of Trade and Commerce 
 
 DIVISION OF SMALL LOANS 
 
 MINIMUM REQUIREMENTS 
 
 OF 
 
 LICENSEES 
 
 As Amended September 1, 1923 
 
 
 JUN 2 9 1927 
 
 UNIVERSITY m ILUNOI? 
 LEN SMALL, Governor 
 
 CLIFFORD IRELAND 
 
 Director 
 
 FRANK E. O'BRYANT 
 
 Assistant Director 
 
 [Printed by authority of the State of Illinois.j 
 
Schnepp & Barnes, Printers 
 Springfield, III. 
 3497 — 500 . 
 
 
 
 
STATE OF ILLINOIS. 
 
 DEPARTMENT OF TRADE AND COMMERCE. 
 
 DIVISION OF SMALL LOANS 
 
 In accordance with the provisions of an Act entitled “An Act 
 to license and regulate the business of making loans in sums of 
 three hundred dollars ($300) or less, at a greater rate of interest than 
 seven (7) per centum per annum, etc.,” approved June 14, 1917, in 
 force July 1, 1917, the Department of Trade and Commerce, for the 
 purpose of obtaining uniformity in the records of licensees and to 
 facilitate any examination of such records, hereby establishes the fol¬ 
 lowing minimum requirements: 
 
 (1) CASH BOOK. 
 
 Each and every licensee shall keep a hound book, or if preferred 
 a loose leaf record, provided sheets are numbered consecutively, of 
 columnar cash book or cash book journal type, which book shall be a 
 record of original entry, in which all transactions, entailing either the 
 receiving or disbursement of any amount whatsoever, shall be entered. 
 Separate columns must be provided for amounts received as payments 
 on principal and interest and any amounts which may be collected from 
 clients for filing and recording, with any public officer, any instru¬ 
 ment securing the loan, or any attorney fees permitted by law to be 
 collected for foreclosure. 
 
 The cash book must also plainly show all amounts paid out as 
 Joans to clients and the actual amount paid for filing or other fees, 
 which may be, according to law T , chargeable to any client. A record 
 of the receipt and disbursement of any and all such fees shall be kept 
 in the cash book and on record card. The payment of said fees shall 
 be entered on loan register. 
 
 The record of all payments of principal and interest must lie 
 entered daily on the cash book or report sheet numerically, irrespect¬ 
 ive of the time of payment that day. For example, if interest or 
 principal is paid on a certain date on loans Nos. 10, 9, 37 and 26, the 
 entries on the cash book or report sheet should be 9, 10, 26, 37, in 
 order to facilitate checking. 
 
 In fact the cash book must be a permanent record of all details of 
 income and disbursements which are necessary as a basis for deter¬ 
 mining entries to individual accounts of clients or the business of the 
 licensee as a whole. 
 
 (2) ACCOUNTS WITH CLIENTS. 
 
 Individual accounts must be kept by each licensee with each 
 client, which accounts may be kept on card or in a loose leaf or bound 
 ledger. Each account must show plainly the name and address of the 
 client; the loan number; the actual amount loaned and date loan is 
 
made; the rate of interest charged; the terms of repayment; the nature 
 of the security, if any; and such other information in regard to the 
 nature and place of employment, phone numbers, etc., as may be 
 necessary. 
 
 Account forms used must provide separate columns for payments 
 on principal, interest, and any other charges which may be by law 
 chargeable to the client, and accounts must be kept in such a manner 
 as to show at once, on inspection, the balance due on principal and 
 provide data for determination, easily and rapidly, of the amount of 
 interest which may be due or accrued. 
 
 Each account must show plainly items as per enclosed specimen. 
 (See Short Loan Form No. 2.) 
 
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 Each and every loan made to one and the same person shall be 
 kept separate and distinct from all subsequent loans to such person. 
 
 (3) FILE OF ORIGINAL PAPERS. 
 
 An envelope or other file must be maintained, in which shall be 
 filed all the original notes, chattel mortgages, wage assignments, power 
 of attorney or other evidences of indebtedness or security, which have 
 been signed by the client. 
 
 All instruments taken in connection with any certain loan should 
 bear its respective loan number. 
 
 This file shall be indexed in the same manner as the individual 
 accounts mentioned in paragraph (2) hereof, so that all papers in 
 connection with any loan may be checked with the corresponding 
 individual account. 
 
 (4) LOAN REGISTER. 
 
 Each licensee shall keep a book called “Loan Register/’ or its 
 equivalent, which shall disclose the account number, date, name of 
 borrower, post office address, the nature of the security, maturity of 
 the obligation, the rate of interest, the amount of the loan, interest, 
 fees, date of final payment, total of all payments and by whom made, 
 which loan register, or the equivalent thereof, shall be kept numerically 
 by numbers of loans in the order made. This register shall have 
 proper columns separating the various items required to be shown 
 thereon. 
 
 (5) INDEX. 
 
 Each licensee shall keep a card or envelope index system on which 
 all loans to each individual must be kept numerically as to date made, 
 showing loan number, date of loan, amount of loan, and date of final 
 payment. (See form one.) 
 
(4912-500) ll*4gjfc»» 
 
 S. L. Form 1 
 
 NO. _ _ 
 
 NAME __ 
 
 STREET No. City 
 
 Loan No. 
 
 Date. 
 
 Amount of Loan. 
 
 Date of tinal 
 payment. 
 
 • 
 
 
 
 
 • 
 
 
 
 
 
 * 
 
 4 
 
 
 
 
 
 
 
 
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 ♦ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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8 
 
 (6) ADDITIONAL RECORDS, FORMS OF NOTES, MORTGAGES, 
 
 ASSIGNMENTS, ETC. 
 
 In addition to the records mentioned in paragraphs 1, 2, 3 and 4, 
 each licensee may keep such card or other indexes, indexed as to 
 location of client, due date of loan, or other information which may 
 he considered necessary. 
 
 No form of note, mortgage, assignment, power of attorney, or 
 other evidence of indebtedness, shall provide for a greater rate of 
 interest, greater amount of charges for attorney fees, or any other 
 charges, than are provided by law, nor shall any such paper contain 
 any statement or provision contrary to or tending to nullify or enlarge 
 any provision of the Act above referred to. 
 
 The statement of loan delivered to client at the time of making 
 loan may be in pass or receipt book form or plain statement form, 
 provided only that such statement must contain all information in 
 regard to the loan, including a copy of section 2 of the law, as pre¬ 
 scribed in section 3 of the same. 
 
 All books, accounts, forms, etc., referred to above shall be 
 printed, written, or executed in the English language. 
 
 INTEREST. 
 
 All interest shall be computed on the basis of 30 days to each of 
 the 12 months constituting the year. 
 
 No interest shall be collected on deferred payments. No pay- 
 „ ments shall be accepted on balance due, unless interest is paid to date. 
 
 Interest shall be computed on the exact amount of money for the 
 l actual number of days the loan is in force. For example: 
 
 A represents borrower; B the loan company. On July 1, 1923, 
 A borrows $25 at 3interest a month. He makes repayment of 
 loan in full July 15, 1923. B shall be entitled to receive interest from 
 July 1, 1923, to July 15, 1923, a period of 14 days. The interest on 
 $25 for 14 days being 41 cents, B shall receive on July 15 the sum 
 of $25 plus accrued interest; the grand total of repayment of prin¬ 
 cipal and interest being $25.41. 
 
 In each and every case, where chattel mortgage (or bill of sale) 
 is acknowledged or recorded, the actual fee for the same may be 
 paid by the borrower. 
 
 The Department of Trade and Commerce reserves the right at 
 any time hereafter to alter, modify or add to the foregoing require¬ 
 ments as the exigencies of the administration of the law require. 
 
 Done at Springfield, Illinois, this first day of September, A. D. 
 1923. 
 
 Clifford Ireland, 
 Director of Trade and Commerce . 
 
 THE LIBRARY 
 
 JUN 2 9