Ill. Admin. Code tit. 14, § 140.750 - Records Required of Business Brokers
a) Each business broker agreement or contract
shall be given a unique identifying account number and all instruments or
documents relating to that agreement or contract must bear this number. Every
business broker registered by the Secretary of State shall keep and maintain
for a period of six years from the date of its agreement or contract with the
client in the business broker's principal office in this State the following
records:
1) A business broker agreement or
contract register that consists of a chronological listing of all business
broker agreements or contracts that have been entered into. For each business
broker agreement or contract the register shall contain the following:
A) The account number;
B) The date of the agreement or
contract;
C) The name of the client
or proposed client;
D) The amount
of fees charged, if any; and
E) The
cost and type of insurance required, if any.
2) A file for each client or proposed client
shall contain the following:
A) The name,
address and telephone number of the client or proposed client;
B) A copy of the signed business broker
agreement or contract;
C) A copy of
any other papers or instruments used in connection with the business broker
agreement or contract that are signed by the client or proposed client,
including a copy of the disclosure document required by Section 10-30 of the
Act that contains an acknowledged receipt by the client or proposed client;
and
D) The amount of the business
broker's fee that the client has paid; and, if there is an unpaid balance, the
status of any collection efforts.
No file need be kept for a buyer client or proposed buyer client where no fee, expense reimbursement, retainer or other charge was incurred and no transaction was consummated.
3) All receipts from or for the account of
clients or proposed clients and all disbursements to or for the account of
clients or proposed clients, recorded so that the transactions are readily
identifiable.
4) A copy of the
following:
A) All advertisements, pamphlets,
circulars, letters, articles or communications published in any newspaper,
magazine, periodical or the transmittal or sending of any communication via the
non-proprietary, nonprofit, public computer network (commonly known as the
"Internet") which discuss the business broker;
B) Scripts of any recording or radio or
television announcement which discuss the business broker; and
C) Any sales kit or literature used or to be
used in solicitation of clients.
b) Every registered business broker shall
preserve during the life of its business organization and of any successor
thereto all partnership agreements, certificates or articles and amendments
thereto or, in the case of a corporation, all certificates and articles of
incorporation or charter or amendments thereto, minute books and stock
certificate books.
c) Every
business broker registered by the Secretary of State shall maintain within this
State, in an easily accessible place, all records required by this Section or
the Act. All records required to be maintained under this Section or the Act
must be separate or readily identifiable from the records of any other business
that is conducted in the office of the business broker. A written request for a
waiver of the provisions of this Section may be made to the Secretary of State
to permit any registered business broker to maintain any of the records
required by this Section or the Act outside the State of Illinois. In
determining whether the provisions of this Section should be waived, the
Secretary of State shall consider, without limitation, whether the main office
of the business broker is outside the State of Illinois or whether the business
broker uses all or some of the bookkeeping facilities of some other business
broker whose main office is outside the State of Illinois.
d) For the purpose of this Section, if
advertisements are made through the use of the United States mail or similar
means of delivery, or broadcast over radio or television or similar means of
broadcast, or transmitted or sent via the Internet then only one representative
copy of the advertisement is required to be maintained by the business broker,
together with the dates of printing, broadcast or transmission (if known) and
the names and addresses of the recipients.
Notes
Amended at 23 Ill. Reg. 3059, effective March 1, 1999
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