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Real estate glossary and exam guide

Police power: government's authority to regulate land use

Police power explains why owning land does not mean you can build anything, anywhere, in any manner. A city can separate industrial uses from homes, require safe electrical work, limit building height, protect floodways, control occupancy, and order a dangerous condition corrected. The exam question is usually not whether regulation exists. It is which government power supports it, what public purpose it serves, and whether the facts describe regulation or an actual taking.

Last updated: August 1, 2026

What does this exam area cover?

Short answer: Police power is government's authority to regulate property and conduct to protect public health, safety, morals, comfort, and welfare. It is the foundation for zoning, building codes, permits, subdivision rules, housing standards, nuisance abatement, and many environmental controls. A valid regulation ordinarily does not require just compensation, but government remains bound by its authority, procedures, due process, equal protection, and takings limits.

Official section
National II.B: Police power and government controls on land use
Broker weight
Part of 5% of the national broker portion
Expected scored items
The current PSI outline assigns Land Use Controls about 5 of the 100 scored national broker items

This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026, the Illinois Constitution, and current Illinois municipal and county zoning statutes checked through August 1, 2026. Illinois authority differs among home-rule municipalities, non-home-rule municipalities, home-rule counties, other counties, townships, districts, and state agencies. State preemption, federal law, project location, annexation, agricultural exemptions, utility rules, affordable-housing laws, religious-land-use protections, fair-housing law, disability law, wetlands, historic resources, and court precedent can alter local power. Always verify the exact jurisdiction and current ordinance.

What is on the official outline?

Topic
Police-power foundation
What to know
Government authority, regulation, health, safety, morals, comfort, welfare, property, conduct, public purpose, constitution, statute, ordinance, and enforcement
Best exam move
Choose police power when government controls use or condition to protect the public without acquiring the property interest.
Topic
Illinois home rule
What to know
Article VII, section 6, municipality over 25,000, elected county executive, referendum, government and affairs, health, safety, morals, welfare, concurrent power, state limitation, and liberal construction
Best exam move
Do not assume every Illinois local government has identical authority. Identify home-rule status and state limits.
Topic
Non-home-rule authority
What to know
Article VII, section 7, statutory grant, municipality, county, limited power, enabling act, ordinance, express terms, implied necessity, state preemption, and no broad home-rule presumption
Best exam move
For a non-home-rule unit, locate the legal grant instead of relying on the home-rule clause.
Topic
Municipal zoning
What to know
65 ILCS 5/11-13-1, height, bulk, setback, intensity, lot area, open space, district, use, structure, floodwater, congestion, light, air, fire safety, history, and aesthetics
Best exam move
Match district use, bulk, height, setback, and intensity controls to zoning under police power.
Topic
County zoning
What to know
55 ILCS 5/5-12001, unincorporated territory, land use, buildings, structures, trade, industry, residence, districts, height, open space, setbacks, public welfare, agriculture, utilities, and municipal supersession
Best exam move
Check whether the parcel lies outside a municipality and whether statutory exceptions limit county regulation.
Topic
Zoning map and districts
What to know
Residential, commercial, industrial, mixed use, agricultural, open space, overlay, planned development, district boundary, parcel, zoning map, permitted use, special use, accessory use, and prohibited use
Best exam move
The comprehensive plan guides; the enacted ordinance and official zoning map regulate the parcel.
Topic
Building and housing codes
What to know
Structural safety, fire resistance, electrical, plumbing, mechanical, energy, sanitation, occupancy, ventilation, egress, maintenance, permit, inspection, certificate, violation, and correction
Best exam move
Choose building or housing code when the issue is how a structure is constructed, occupied, or maintained rather than which use district permits it.
Topic
Permits and inspections
What to know
Building permit, demolition, electrical, plumbing, sign, driveway, grading, stormwater, occupancy, plan review, inspector, stop-work order, correction notice, certificate of occupancy, fee, and appeal
Best exam move
A contractor's willingness to build does not replace required approvals and inspections.
Topic
Subdivision regulation
What to know
Plat, lots, blocks, streets, utilities, drainage, easements, dedications, access, public improvements, design standards, review, recording, developer agreement, and bonds
Best exam move
Choose subdivision control when land is divided and infrastructure or plat approval is the issue.
Topic
Environmental regulation
What to know
Wetland, floodplain, stormwater, erosion, air, water, septic, well, contamination, hazardous material, noise, habitat, federal, state, local, permit, and remediation
Best exam move
Layer environmental restrictions over zoning. A permitted land use can still need separate environmental approval.
Topic
Nuisance and dangerous conditions
What to know
Public nuisance, unsafe structure, fire hazard, sanitation, weeds, debris, noise, odor, vermin, abandoned building, notice, abatement, emergency, demolition, costs, and lien
Best exam move
Use police power for correction or abatement of conditions threatening public welfare, not eminent domain merely because government acts against the property.
Topic
Historic and aesthetic controls
What to know
Landmark, historic district, demolition delay, certificate of appropriateness, facade, design review, preservation, architectural significance, public purpose, local commission, and standards
Best exam move
A historic designation regulates alteration or demolition; it does not by itself transfer title to government.
Topic
Special-use approval
What to know
65 ILCS 5/11-13-1.1, permitted use, special use, unusual impact, planned development, public hearing, notice, standards, evidence, conditions, recommendation, and vote
Best exam move
A special use is allowed only after the ordinance's stated review and standards; it is not a variance from hardship.
Topic
Variance and hardship
What to know
Dimensional relief, lot shape, topography, unique condition, practical difficulty, unnecessary hardship, board, findings, public notice, minimum relief, self-created condition, and no use rewrite
Best exam move
Choose a variance for qualified relief from a zoning standard, not for a broad policy change benefiting an entire district.
Topic
Nonconforming use
What to know
Lawful before change, later prohibited, continuation, abandonment, discontinuance, expansion, change of use, damage, reconstruction, amortization, proof, vested right, and ordinance
Best exam move
Verify that the use was lawful when established. An illegal use does not become protected merely by lasting a long time.
Topic
Due process and notice
What to know
Article I, section 2, life, liberty, property, hearing, notice, opportunity to be heard, standards, evidence, impartial decision, record, reasons, appeal, and judicial review
Best exam move
Government needs both substantive authority and proper procedure when it affects property rights.
Topic
Equal protection and fair application
What to know
Classification, similarly situated property, rational basis, protected class, discriminatory enforcement, spot treatment, fair housing, disability accommodation, religious use, and constitutional review
Best exam move
A police-power label does not authorize arbitrary or unlawfully discriminatory treatment.
Topic
Takings boundary
What to know
Article I, section 15, physical occupation, property interest, public use, just compensation, regulatory taking, economic impact, expectations, total deprivation, exaction, nexus, proportionality, and court
Best exam move
Ordinary regulation is not automatically a taking. Identify the specific constitutional theory and facts.
Topic
Public vs. private control
What to know
Zoning, building code, deed restriction, declaration, covenant, HOA rule, lease restriction, government enforcement, private enforcement, stricter rule, conflict, waiver, and title
Best exam move
Comply with both layers. Government approval does not erase a stricter private covenant, and private permission does not override code.
Topic
Broker verification
What to know
Jurisdiction, zoning map, code text, use table, permit history, violations, certificate of occupancy, municipal letter, official confirmation, planned change, disclosure, scope, attorney, architect, engineer, and records
Best exam move
Describe current official facts and refer technical interpretation. Never guarantee a future rezoning or permit.

Which distinctions produce the most mistakes?

Terms
Police power vs. eminent domain
Difference
Police power regulates property for public welfare and ordinarily requires no compensation. Eminent domain acquires or damages a property interest for public use with just compensation.
Question cue
Regulate versus acquire.
Terms
Police power vs. taxation
Difference
Police power controls conduct and property condition or use. Taxation raises public revenue through legally imposed charges.
Question cue
Rule versus revenue.
Terms
Police power vs. escheat
Difference
Police power regulates an owner's property. Escheat supplies government ownership when no private successor can legally take.
Question cue
Regulation versus succession backstop.
Terms
Zoning ordinance vs. comprehensive plan
Difference
The comprehensive plan states long-range policy. The enacted zoning ordinance and map impose present regulatory controls.
Question cue
Policy guide versus binding land-use rule.
Terms
Zoning vs. building code
Difference
Zoning controls location, use, density, bulk, and setbacks. Building codes govern how structures are built, altered, occupied, and maintained.
Question cue
Where and what versus how safely.
Terms
Variance vs. special use
Difference
A variance grants qualified relief from an ordinance standard due to property conditions. A special use is a use the ordinance anticipates but subjects to standards and discretionary review.
Question cue
Relief from rule versus conditionally allowed use.
Terms
Nonconforming use vs. illegal use
Difference
A nonconforming use was lawful when established but no longer conforms after a rule change. An illegal use lacked lawful authorization when created or operated.
Question cue
Lawful then versus unlawful from the start.
Terms
Public restriction vs. deed restriction
Difference
A public restriction comes from government authority and is enforced publicly. A deed restriction is a private covenant found in the title chain and enforced through private-law remedies.
Question cue
Ordinance versus covenant.
Terms
Permit vs. certificate of occupancy
Difference
A permit authorizes specified work subject to inspection. A certificate of occupancy confirms the approved occupancy after required completion and compliance findings.
Question cue
Permission to build versus permission to occupy.
Terms
Home rule vs. non-home rule
Difference
Home-rule units have constitutionally broad power over local government and affairs subject to limits. Non-home-rule units generally possess powers granted by law.
Question cue
Broad constitutional local authority versus statutory grant.
Terms
Regulation vs. regulatory taking
Difference
Regulation limits use under police power. A regulatory taking is the exceptional constitutional result when the nature and severity of regulation meet an applicable takings test.
Question cue
Ordinary limit versus compensable constitutional burden.
Terms
Code condemnation vs. acquisition condemnation
Difference
Code condemnation addresses an unsafe or unfit structure under police power. Acquisition condemnation uses eminent domain to obtain a property interest.
Question cue
Correct or remove condition versus transfer property rights.

The R-E-G-U-L-A-T-E screen for police-power questions

  1. Regulator: identify the state, home-rule unit, non-home-rule municipality, county, district, or agency and the source of its authority.
  2. End: name the public health, safety, morals, comfort, welfare, planning, environmental, or nuisance purpose served.
  3. Government rule: find the enacted ordinance, zoning map, adopted code, permit condition, order, or statute that actually applies.
  4. Use and property: identify present use, proposed use, district, structure, lot, lawful status, permit history, and any private covenant.
  5. Legal procedure: check notice, public hearing, standards, findings, evidence, official decision, administrative appeal, and judicial-review deadline.
  6. Alternative relief: test permitted use, special use, variance, rezoning, amendment, nonconforming status, reasonable accommodation, appeal, or code correction.
  7. Taking boundary: distinguish value loss from physical appropriation, total deprivation, qualifying exaction, or another compensable taking theory.
  8. Explain and document: brokers verify public records, disclose known material facts, avoid legal opinions, and refer land-use and technical work.
Control
Zoning
Main question
Is the use and development form allowed here?
Typical record
Zoning ordinance, map, and use table
Control
Building code
Main question
Is construction safe and code compliant?
Typical record
Adopted code, permit, plans, and inspections
Control
Subdivision
Main question
May land be divided and served as proposed?
Typical record
Subdivision ordinance, plat, and improvement agreement
Control
Environmental
Main question
What resource or hazard limits the project?
Typical record
Agency rule, map, study, permit, and clearance
Control
Nuisance or housing
Main question
Must a dangerous condition be corrected?
Typical record
Inspection report, notice, order, hearing, and lien
Control
Historic preservation
Main question
May the exterior or structure be altered?
Typical record
Designation, standards, and certificate decision

How do the rules work in scenarios?

A restaurant use in a residential district

Scenario: A buyer wants to convert a detached house into a late-night restaurant, but the zoning use table permits only residential and listed civic uses in the district.

  1. The issue is land use and district compatibility, so zoning applies under police power.
  2. A building-code renovation permit would not independently authorize a prohibited restaurant use.
  3. The buyer must investigate rezoning, map amendment, special-use authority, or another lawful route without assuming approval.

Answer: The current zoning restriction controls unless the buyer obtains valid land-use approval.

A legal use with unsafe wiring

Scenario: An apartment building is a permitted residential use, but an inspection finds exposed wiring and blocked exits.

  1. Zoning answers whether apartments are allowed in the district.
  2. Electrical, fire, housing, and occupancy codes address the unsafe conditions.
  3. A permitted use does not immunize the owner from building and life-safety enforcement.

Answer: The city may require correction under its valid safety codes even though the use is permitted.

Private permission does not override zoning

Scenario: An HOA approves an owner's backyard event venue, but the municipal zoning ordinance prohibits commercial event uses in the district.

  1. The HOA acts under private covenants and rules.
  2. The municipality acts under public police power.
  3. Private approval cannot authorize conduct that violates the public ordinance.

Answer: The owner still needs compliance with municipal zoning.

Zoning approval does not erase a covenant

Scenario: A city grants a permit for a six-foot fence, but a recorded subdivision covenant limits front-yard fences to four feet.

  1. The permit confirms public-code approval under the city's rule.
  2. The covenant is a separate private control in the title chain.
  3. The stricter valid restriction can still be privately enforceable even though the city issued a permit.

Answer: The owner must evaluate and comply with both public and private controls.

Value loss is not enough by itself

Scenario: A rezoning reduces potential apartment density and the owner estimates a 30 percent loss in value, but retains economically viable permitted uses.

  1. Rezoning is a police-power regulation.
  2. A value reduction is relevant to some constitutional analysis but does not automatically establish a compensable taking.
  3. The complete test can require economic impact, expectations, character of the action, available uses, procedure, and other facts.

Answer: Do not label the regulation eminent domain solely because value fell.

A lawful nonconforming shop

Scenario: A corner shop was lawfully established before the village rezoned the block residential. The ordinance allows lawful nonconforming uses to continue but limits expansion and addresses abandonment.

  1. The shop does not conform to current zoning but was lawful when created.
  2. Its continuation depends on the ordinance's nonconforming-use provisions and evidence of uninterrupted lawful status.
  3. A long-standing illegal shop would not receive the same protection.

Answer: Treat it as a possible lawful nonconforming use and verify every condition before promising continued operation.

A code order is not a property acquisition

Scenario: A city orders an owner to repair a collapsing porch after notice and inspection. The owner keeps title and may correct the violation.

  1. Government is regulating a dangerous condition rather than acquiring the porch or parcel.
  2. The order rests in police power if authorized and properly administered.
  3. Eminent domain and just compensation are not automatically triggered by a valid safety correction order.

Answer: This is police-power code enforcement, not acquisition condemnation.

What are the common exam traps?

Trap
Thinking police power belongs only to police officers
Correction
It is government's broad regulatory authority for public welfare across land-use, health, safety, and code systems.
Trap
Calling every government action eminent domain
Correction
Regulation under police power usually leaves title with the owner; eminent domain acquires or damages a property interest.
Trap
Promising compensation for every value reduction
Correction
A valid regulation can reduce value without compensation. Apply the relevant takings test before reaching that conclusion.
Trap
Assuming every Illinois municipality is home rule
Correction
Check population, referendum history, and current status. Non-home-rule authority depends on law.
Trap
Assuming home rule is unlimited
Correction
The Illinois Constitution and General Assembly can limit or preempt powers through the applicable rules.
Trap
Treating a comprehensive plan as the zoning ordinance
Correction
The plan guides policy; the enacted ordinance and map impose current parcel rules.
Trap
Using zoning and building code as synonyms
Correction
Zoning controls use and development form; building codes control construction, occupancy, and safety.
Trap
Calling a special use a variance
Correction
A special use is anticipated by the ordinance subject to standards. A variance grants qualified relief from a standard.
Trap
Protecting an illegal use as nonconforming
Correction
Nonconforming protection starts with a use that was lawful when established.
Trap
Letting a permit override a covenant
Correction
A public permit does not adjudicate or erase private title restrictions.
Trap
Letting an HOA vote override city code
Correction
Private approval cannot legalize a use or structure prohibited by public law.
Trap
Ignoring procedure because the goal sounds beneficial
Correction
Authority, notice, hearing, standards, evidence, findings, and review remain important.
Trap
Using county zoning inside a municipality without checking
Correction
Municipal zoning supersedes an otherwise applicable county plan within municipal corporate limits under the county statute.
Trap
Guaranteeing rezoning or permit approval
Correction
State current official facts and contingencies. Legislative and discretionary approvals are not guaranteed.
Trap
Calling these official PSI questions
Correction
These are original questions aligned to the public PSI outline and Illinois primary law.

Can you answer these original practice questions?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. What is police power in real estate?

  1. Government's authority to regulate property for public welfare
  2. A police department's ownership of every parcel
  3. A seller's right to cancel a deed
  4. A lender's right to collect interest
Show answer and explanation

Answer: Government's authority to regulate property for public welfare

Health, safety, morals, comfort, and general welfare are the classic purposes.

2. Which is the clearest exercise of police power?

  1. A city adopts a fire-safety code
  2. A buyer records a deed
  3. A lender releases a mortgage
  4. An owner signs a listing agreement
Show answer and explanation

Answer: A city adopts a fire-safety code

Safety regulation of structures is a standard police-power function.

3. What distinguishes eminent domain from police power?

  1. Eminent domain acquires or damages property for public use with just compensation
  2. Police power always transfers title
  3. Eminent domain is a private covenant
  4. There is no difference
Show answer and explanation

Answer: Eminent domain acquires or damages property for public use with just compensation

Police power generally regulates without acquiring the owner's interest.

4. Which record normally establishes the current zoning classification of a parcel?

  1. The enacted zoning ordinance and official zoning map
  2. A neighbor's memory
  3. An old listing advertisement
  4. A utility bill
Show answer and explanation

Answer: The enacted zoning ordinance and official zoning map

The comprehensive plan and informal statements do not replace the current regulatory text and map.

5. A use is permitted, but the building lacks safe exits. Which control is most directly involved?

  1. Building and fire codes
  2. Escheat
  3. Mortgage foreclosure
  4. Intestate succession
Show answer and explanation

Answer: Building and fire codes

Zoning allows the use, while code regulates safe construction and occupancy.

6. What is a lawful nonconforming use?

  1. A use lawful when established that no longer conforms after a rule change
  2. Any illegal use that lasts one year
  3. A private easement
  4. An unpaid special assessment
Show answer and explanation

Answer: A use lawful when established that no longer conforms after a rule change

The ordinance then determines continuation, expansion, abandonment, and restoration treatment.

7. A city permit allows a six-foot fence, but a valid covenant allows only four feet. What is the safest conclusion?

  1. The owner must evaluate both public and private restrictions
  2. The permit automatically voids the covenant
  3. The covenant automatically rewrites city code
  4. Neither rule matters
Show answer and explanation

Answer: The owner must evaluate both public and private restrictions

Approval under one system does not eliminate the separate restriction in the other.

8. Does a 20 percent value loss from a zoning change automatically prove a taking?

  1. No, the applicable constitutional test and full facts still control
  2. Yes, every value loss is eminent domain
  3. Yes, if the owner dislikes the rule
  4. No, because regulations can never be takings
Show answer and explanation

Answer: No, the applicable constitutional test and full facts still control

Ordinary regulation can reduce value, while some extreme burdens can cross the constitutional line.

9. What does article VII, section 6 of the Illinois Constitution give home-rule units?

  1. Broad local powers over government and affairs, including public-welfare regulation, subject to limits
  2. Unlimited authority over federal land
  3. Ownership of every private building
  4. Power to ignore all state limits
Show answer and explanation

Answer: Broad local powers over government and affairs, including public-welfare regulation, subject to limits

The home-rule clause is broad but not unlimited.

10. What should a broker do when a buyer asks whether a proposed use will definitely be approved?

  1. Verify current records, state contingencies, and refer official, legal, and technical interpretation
  2. Guarantee the rezoning
  3. Rely only on the seller's memory
  4. Ignore private restrictions
Show answer and explanation

Answer: Verify current records, state contingencies, and refer official, legal, and technical interpretation

Current zoning does not promise discretionary approval, and a broker should not practice law or engineering.

How should you study this area?

Session
Session 1
Focus
Separate the four government powers
Proof you are ready
Classify 24 facts as police power, eminent domain, taxation, or escheat and state whether property is regulated, acquired, charged, or inherited by government.
Session
Session 2
Focus
Map Illinois authority
Proof you are ready
For 12 locations, identify home rule, non-home rule, municipality, unincorporated county, state authority, and the statute or ordinance to check.
Session
Session 3
Focus
Sort public controls
Proof you are ready
Classify 30 problems into zoning, building, housing, fire, subdivision, environmental, nuisance, historic, or permit enforcement.
Session
Session 4
Focus
Master relief routes
Proof you are ready
Choose permitted use, special use, variance, rezoning, nonconforming status, accommodation, appeal, or code correction for 20 fact patterns.
Session
Session 5
Focus
Test limits and private layers
Proof you are ready
Analyze 12 cases for authority, preemption, notice, standards, due process, equal protection, taking theory, deed restriction, and permit status.
Session
Session 6
Focus
Run the R-E-G-U-L-A-T-E screen
Proof you are ready
Score at least 90 percent and explain every miss through regulator, end, rule, use, procedure, relief, taking, or documentation.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

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Questions students ask about What Is Police Power? Illinois Real Estate Exam Guide

What is police power in real estate?

Police power is government's authority to regulate private property and conduct to protect public health, safety, morals, comfort, and general welfare. In real estate, it supports zoning, building and housing codes, fire rules, permits, environmental controls, occupancy limits, subdivision standards, and nuisance enforcement.

Does police power mean police officers own the land?

No. Police power is a constitutional and statutory regulatory concept, not ownership by a police department. The word police refers broadly to government's power to protect the community through lawful regulation.

How is police power different from eminent domain?

Police power regulates how property may be used and ordinarily does not require compensation for a valid regulation. Eminent domain takes or damages a property interest for public use and requires just compensation. A regulation that goes too far can create a separate takings question, but loss of value alone does not automatically prove a taking.

Is zoning an exercise of police power?

Yes. Zoning divides land into districts and regulates uses, intensity, height, bulk, setbacks, open space, and related development standards for public purposes. Illinois municipal and county statutes expressly connect those powers to public health, safety, morals, comfort, and welfare.

What is home rule in Illinois?

Article VII, section 6 of the Illinois Constitution gives home rule units broad power over their government and affairs, including regulation for public health, safety, morals, and welfare, subject to constitutional and legislative limits. Non-home-rule governments generally depend more directly on powers granted by law.

Can a valid zoning ordinance reduce property value without compensation?

Yes. A lawful land-use regulation can reduce an owner's preferred use or market value without requiring compensation. Compensation becomes a separate constitutional issue if government physically appropriates property, imposes a qualifying exaction, eliminates protected use under a categorical rule, or otherwise meets the applicable takings test.

Are deed restrictions an exercise of police power?

No. Zoning and codes are public restrictions created and enforced by government. Deed restrictions and recorded covenants are private controls created through instruments in the chain of title. A parcel can be subject to both, and compliance with one does not excuse violation of the other.

Can government regulate an existing use?

The answer depends on the authority, ordinance, lawful status, nonconforming-use rules, vested rights, permits, nuisance and safety law, and constitutional limits. Existing lawful uses often receive special treatment, but they are not universally immune from every health or safety regulation.

What procedures limit police power?

The governing constitution, enabling law, ordinance, notice, public-hearing rules, standards, evidence, equal protection, due process, judicial review, and takings protections all matter. A worthy public goal does not excuse government from its legal authority and procedure.

Where is police power tested on the Illinois broker exam?

The PSI Illinois Candidate Information Booklet effective June 24, 2026 lists government rights in land under National II.A.1 and public controls based in police power under National II.A.2. Zoning, planning, building codes, permits, environmental rules, and private controls are related outline topics.

Are these official PSI questions or land-use advice?

No. The practice questions are original, and the guide is based on primary sources reviewed through August 1, 2026. A real development or enforcement matter requires the current local ordinance, zoning map, code edition, permit file, official interpretation, and qualified legal or technical advice.

Primary sources

The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.

Editorial status

Checked against primary sources

The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.

Read our editorial and corrections process

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