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Public Act 094-0635


 

Public Act 0635 94TH GENERAL ASSEMBLY



 


 
Public Act 094-0635
 
SB2060 Enrolled LRB094 10968 DRJ 42097 b

    AN ACT concerning military personnel, which may be referred
to as the Illinois Patriot Plan.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Military Personnel Cellular Phone Contract Termination Act.
 
    Section 5. Definition. In this Act:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
 
    Section 10. Termination of cellular phone contract without
penalty. Any service member who is deployed on active duty, or
the spouse of that service member, may terminate, without
penalty, a cellular phone contract that meets both of the
following requirements:
        (1) The contract is entered into on or after the
    effective date of this Act.
        (2) The contract is executed by or on behalf of the
    service member who is deployed on active duty.
 
    Section 15. Effective date of termination. Termination of
the cellular phone contract shall not be effective until:
        (1) thirty days after the service member who is
    deployed on active duty or the service member's spouse
    gives notice by certified mail, return receipt requested,
    of the intention to terminate the cellular phone contract
    together with a copy of the military or gubernatorial
    orders calling the service member to active duty and of any
    orders further extending the service member's period of
    active duty; and
        (2) unless the service member who is deployed on active
    duty owns the cellular phone, the cellular phone is
    returned to the custody or control of the cellular
    telephone company, or the service member who is deployed on
    active duty or the service member's spouse agrees in
    writing to return the cellular phone as soon as practical
    after the deployment is completed.
 
    Section 900. The Department of Central Management Services
Law of the Civil Administrative Code of Illinois is amended by
adding Section 405-272 as follows:
 
    (20 ILCS 405/405-272 new)
    Sec. 405-272. Bulk long distance telephone services for
military personnel on active duty.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Immediate family" means a service member's spouse
residing in the service member's household, brothers and
sisters of the whole or of the half blood, children, including
adopted children and stepchildren, parents, and grandparents.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
    (b) The Department may enter into a contract to purchase
bulk long distance telephone services and make them available
at cost, or may make bulk long distance telephone services
available at cost under any existing contract the Department
has entered into, to persons in the immediate family of service
members deployed on active duty so that those persons in the
service members' families can communicate with the service
members so deployed. If the Department enters into a contract
under this Section, it shall do so in accordance with the
Illinois Procurement Code and in a nondiscriminatory manner
that does not place any potential vendor at a competitive
disadvantage.
    (c) In order to be eligible to use bulk long distance
telephone services purchased by the Department under this
Section, a service member or person in the service member's
immediate family must provide the Department with a copy of the
military or gubernatorial orders calling the service member to
active duty and of any orders further extending the service
member's period of active duty.
    (d) If the Department enters into a contract under this
Section, the Department shall adopt rules as necessary to
implement this Section.
 
    Section 902. The Illinois Municipal Code is amended by
adding Section 11-117-12.2 as follows:
 
    (65 ILCS 5/11-117-12.2 new)
    Sec. 11-117-12.2. Military personnel on active duty; no
stoppage of gas or electricity; arrearage.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
    (b) No municipality owning a public utility shall stop gas
or electricity from entering the residential premises of which
a service member was a primary occupant immediately before the
service member was deployed on active duty for nonpayment for
gas or electricity supplied to the residential premises.
    (c) Upon the return from active duty of a residential
consumer who is a service member, the municipality shall offer
the residential consumer a period equal to at least the period
of the residential consumer's deployment on active duty to pay
any arrearages incurred during the period of the residential
consumer's deployment. The municipality shall inform the
residential consumer that, if the period the municipality
offers presents a hardship to the consumer, the consumer may
request a longer period to pay the arrearages.
    (d) In order to be eligible for the benefits granted to
service members under this Section, a service member must
provide the municipality with a copy of the military or
gubernatorial orders calling the service member to active duty
and of any orders further extending the service member's period
of active duty.
 
    Section 905. The Illinois Insurance Code is amended by
adding Section 224.05 as follows:
 
    (215 ILCS 5/224.05 new)
    Sec. 224.05. Military personnel on active duty; no lapse of
life insurance policy.
    (a) Except as provided in subsection (b), this Section
shall apply to any individual life insurance policy insuring
the life of a member of the armed services or reserve forces of
the United States or a member of the Illinois National Guard
who is on active duty pursuant to an executive order of the
President of the United States, an act of the Congress of the
United States, or an order of the Governor, if the life
insurance policy meets both of the following conditions:
        (1) The policy has been in force for at least 180 days.
        (2) The policy has been brought within the
    "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003),
    50 U.S.C. App. 541 and following.
    (b) This Section does not apply to any policy that was
cancelled or that had lapsed for the nonpayment of premiums
prior to the commencement of the insured's period of military
service.
    (c) An individual life insurance policy described in this
Section shall not lapse or be forfeited for the nonpayment of
premiums during the military service of a member of the armed
services or reserve forces of the United States or a member of
the Illinois National Guard or during the 2-year period
subsequent to the end of the member's period of military
service.
    (d) In order to be eligible for the benefits granted to
service members under this Section, a service member must
provide the life insurance company with a copy of the military
or gubernatorial orders calling the service member to active
duty and of any orders further extending the service member's
period of active duty.
    (e) This Section does not limit a life insurance company's
enforcement of provisions in the insured's policy relating to
naval or military service in time of war.
 
    Section 910. The Public Utilities Act is amended by adding
Section 8-201.5 as follows:
 
    (220 ILCS 5/8-201.5 new)
    Sec. 8-201.5. Military personnel on active duty; no
stoppage of gas or electricity; arrearage.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
    (b) No company or electric cooperative shall stop gas or
electricity from entering the residential premises of which a
service member was a primary occupant immediately before the
service member was deployed on active duty for nonpayment for
gas or electricity supplied to the residential premises.
    (c) In order to be eligible for the benefits granted to
service members under this Section, a service member must
provide the company or electric cooperative with a copy of the
military or gubernatorial orders calling the service member to
active duty and of any orders further extending the service
member's period of active duty.
    (d) Upon the return from active duty of a residential
consumer who is a service member, the company or electric
cooperative shall offer the residential consumer a period equal
to at least the period of deployment on active duty to pay any
arrearages incurred during the period of the residential
consumer's deployment. The company or electric cooperative
shall inform the residential consumer that, if the period that
the company or electric cooperative offers presents a hardship
to the consumer, the consumer may request a longer period to
pay the arrearages and, in the case of a company that is a
public utility, may request the assistance of the Illinois
Commerce Commission to obtain a longer period. No late payment
fees or interest shall be charged to the residential consumer
during the period of deployment or the repayment period.
 
    Section 915. The Code of Civil Procedure is amended by
adding Section 9-107.10 as follows:
 
    (735 ILCS 5/9-107.10 new)
    Sec. 9-107.10. Military personnel on active duty; action
for possession.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
    (b) In an action for possession of residential premises of
a tenant, including a tenant who is a resident of a mobile home
park, who is a service member deployed on active duty, or of
any member of the tenant's family who resides with the tenant,
if the tenant entered into the rental agreement on or after the
effective date of this amendatory Act of the 94th General
Assembly, the court may, on its own motion, and shall, upon
motion made by or on behalf of the tenant, do either of the
following if the tenant's ability to pay the agreed rent is
materially affected by the tenant's deployment on active duty:
        (1) Stay the proceedings for a period of 90 days,
    unless, in the opinion of the court, justice and equity
    require a longer or shorter period of time.
        (2) Adjust the obligation under the rental agreement to
    preserve the interest of all parties to it.
    (c) In order to be eligible for the benefits granted to
service members under this Section, a service member or a
member of the service member's family who resides with the
service member must provide the landlord or mobile home park
operator with a copy of the military or gubernatorial orders
calling the service member to active duty and of any orders
further extending the service member's period of active duty.
    (d) If a stay is granted under this Section, the court may
grant the landlord or mobile home park operator such relief as
equity may require.
 
    Section 920. The Interest Act is amended by changing
Section 4 and by adding Section 4.05 as follows:
 
    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
    Sec. 4. General interest rate.
    (1) Except as otherwise provided in this Section 4.05, in
In all written contracts it shall be lawful for the parties to
stipulate or agree that 9% per annum, or any less sum of
interest, shall be taken and paid upon every $100 of money
loaned or in any manner due and owing from any person to any
other person or corporation in this state, and after that rate
for a greater or less sum, or for a longer or shorter time,
except as herein provided.
    The maximum rate of interest that may lawfully be
contracted for is determined by the law applicable thereto at
the time the contract is made. Any provision in any contract,
whether made before or after July 1, 1969, which provides for
or purports to authorize, contingent upon a change in the
Illinois law after the contract is made, any rate of interest
greater than the maximum lawful rate at the time the contract
is made, is void.
    It is lawful for a state bank or a branch of an
out-of-state bank, as those terms are defined in Section 2 of
the Illinois Banking Act, to receive or to contract to receive
and collect interest and charges at any rate or rates agreed
upon by the bank or branch and the borrower. It is lawful for a
savings bank chartered under the Savings Bank Act or a savings
association chartered under the Illinois Savings and Loan Act
of 1985 to receive or contract to receive and collect interest
and charges at any rate agreed upon by the savings bank or
savings association and the borrower.
    It is lawful to receive or to contract to receive and
collect interest and charges as authorized by this Act and as
authorized by the Consumer Installment Loan Act and by the
"Consumer Finance Act", approved July 10, 1935, as now or
hereafter amended. It is lawful to charge, contract for, and
receive any rate or amount of interest or compensation with
respect to the following transactions:
        (a) Any loan made to a corporation;
        (b) Advances of money, repayable on demand, to an
    amount not less than $5,000, which are made upon warehouse
    receipts, bills of lading, certificates of stock,
    certificates of deposit, bills of exchange, bonds or other
    negotiable instruments pledged as collateral security for
    such repayment, if evidenced by a writing;
        (c) Any credit transaction between a merchandise
    wholesaler and retailer; any business loan to a business
    association or copartnership or to a person owning and
    operating a business as sole proprietor or to any persons
    owning and operating a business as joint venturers, joint
    tenants or tenants in common, or to any limited
    partnership, or to any trustee owning and operating a
    business or whose beneficiaries own and operate a business,
    except that any loan which is secured (1) by an assignment
    of an individual obligor's salary, wages, commissions or
    other compensation for services, or (2) by his household
    furniture or other goods used for his personal, family or
    household purposes shall be deemed not to be a loan within
    the meaning of this subsection; and provided further that a
    loan which otherwise qualifies as a business loan within
    the meaning of this subsection shall not be deemed as not
    so qualifying because of the inclusion, with other security
    consisting of business assets of any such obligor, of real
    estate occupied by an individual obligor solely as his
    residence. The term "business" shall be deemed to mean a
    commercial, agricultural or industrial enterprise which is
    carried on for the purpose of investment or profit, but
    shall not be deemed to mean the ownership or maintenance of
    real estate occupied by an individual obligor solely as his
    residence;
        (d) Any loan made in accordance with the provisions of
    Subchapter I of Chapter 13 of Title 12 of the United States
    Code, which is designated as "Housing Renovation and
    Modernization";
        (e) Any mortgage loan insured or upon which a
    commitment to insure has been issued under the provisions
    of the National Housing Act, Chapter 13 of Title 12 of the
    United States Code;
        (f) Any mortgage loan guaranteed or upon which a
    commitment to guaranty has been issued under the provisions
    of the Veterans' Benefits Act, Subchapter II of Chapter 37
    of Title 38 of the United States Code;
        (g) Interest charged by a broker or dealer registered
    under the Securities Exchange Act of 1934, as amended, or
    registered under the Illinois Securities Law of 1953,
    approved July 13, 1953, as now or hereafter amended, on a
    debit balance in an account for a customer if such debit
    balance is payable at will without penalty and is secured
    by securities as defined in Uniform Commercial
    Code-Investment Securities;
        (h) Any loan made by a participating bank as part of
    any loan guarantee program which provides for loans and for
    the refinancing of such loans to medical students, interns
    and residents and which are guaranteed by the American
    Medical Association Education and Research Foundation;
        (i) Any loan made, guaranteed, or insured in accordance
    with the provisions of the Housing Act of 1949, Subchapter
    III of Chapter 8A of Title 42 of the United States Code and
    the Consolidated Farm and Rural Development Act,
    Subchapters I, II, and III of Chapter 50 of Title 7 of the
    United States Code;
        (j) Any loan by an employee pension benefit plan, as
    defined in Section 3 (2) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
    individual participating in such plan, provided that such
    loan satisfies the prohibited transaction exemption
    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
    (1)) of the Employee Retirement Income Security Act of
    1974;
        (k) Written contracts, agreements or bonds for deed
    providing for installment purchase of real estate;
        (1) Loans secured by a mortgage on real estate;
        (m) Loans made by a sole proprietorship, partnership,
    or corporation to an employee or to a person who has been
    offered employment by such sole proprietorship,
    partnership, or corporation made for the sole purpose of
    transferring an employee or person who has been offered
    employment to another office maintained and operated by the
    same sole proprietorship, partnership, or corporation;
        (n) Loans to or for the benefit of students made by an
    institution of higher education.
    (2) Except for loans described in subparagraph (a), (c),
(d), (e), (f) or (i) of subsection (1) of this Section, and
except to the extent permitted by the applicable statute for
loans made pursuant to Section 4a or pursuant to the Consumer
Installment Loan Act:
        (a) Whenever the rate of interest exceeds 8% per annum
    on any written contract, agreement or bond for deed
    providing for the installment purchase of residential real
    estate, or on any loan secured by a mortgage on residential
    real estate, it shall be unlawful to provide for a
    prepayment penalty or other charge for prepayment.
        (b) No agreement, note or other instrument evidencing a
    loan secured by a mortgage on residential real estate, or
    written contract, agreement or bond for deed providing for
    the installment purchase of residential real estate, may
    provide for any change in the contract rate of interest
    during the term thereof. However, if the Congress of the
    United States or any federal agency authorizes any class of
    lender to enter, within limitations, into mortgage
    contracts or written contracts, agreements or bonds for
    deed in which the rate of interest may be changed during
    the term of the contract, any person, firm, corporation or
    other entity not otherwise prohibited from entering into
    mortgage contracts or written contracts, agreements or
    bonds for deed in Illinois may enter into mortgage
    contracts or written contracts, agreements or bonds for
    deed in which the rate of interest may be changed during
    the term of the contract, within the same limitations.
    (3) In any contract or loan which is secured by a mortgage,
deed of trust, or conveyance in the nature of a mortgage, on
residential real estate, the interest which is computed,
calculated, charged, or collected pursuant to such contract or
loan, or pursuant to any regulation or rule promulgated
pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on
which the total indebtedness, with the exception of late
payment penalties, is paid in full.
    For purposes of this Section, a prepayment shall mean the
payment of the total indebtedness, with the exception of late
payment penalties if incurred or charged, on any date before
the date specified in the contract or loan agreement on which
the total indebtedness shall be paid in full, or before the
date on which all payments, if timely made, shall have been
made. In the event of a prepayment of the indebtedness which is
made on a date after the date on which interest on the
indebtedness was last computed, calculated, charged, or
collected but before the next date on which interest on the
indebtedness was to be calculated, computed, charged, or
collected, the lender may calculate, charge and collect
interest on the indebtedness for the period which elapsed
between the date on which the prepayment is made and the date
on which interest on the indebtedness was last computed,
calculated, charged or collected at a rate equal to 1/360 of
the annual rate for each day which so elapsed, which rate shall
be applied to the indebtedness outstanding as of the date of
prepayment. The lender shall refund to the borrower any
interest charged or collected which exceeds that which the
lender may charge or collect pursuant to the preceding
sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after the
effective date of this amendatory Act, but shall not apply to
contracts or loans entered into on or after that date that are
subject to Section 4a of this Act, the Consumer Installment
Loan Act, or the Retail Installment Sales Act, or that provide
for the refund of precomputed interest on prepayment in the
manner provided by such Act.
(Source: P.A. 92-483, eff. 8-23-01.)
 
    (815 ILCS 205/4.05 new)
    Sec. 4.05. Military personnel on active duty; limitation on
interest rate.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Obligation" means any retail installment sales contract,
other contract for the purchase of goods or services, or bond,
bill, note, or other instrument of writing for the payment of
money arising out of a contract or other transaction for the
purchase of goods or services.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
    (b) Notwithstanding any contrary provision of State law,
but subject to the federal Servicemembers Civil Relief Act, no
creditor in connection with an obligation entered into on or
after the effective date of this amendatory Act of the 94th
General Assembly, but prior to a service member's deployment on
active duty, shall charge or collect from a service member who
is deployed on active duty, or the spouse of that service
member, interest or finance charges exceeding 6% per annum
during the period that the service member is deployed on active
duty.
    (c) Notwithstanding any contrary provision of law,
interest or finance charges in excess of 6% per annum that
otherwise would be incurred but for the prohibition in
subsection (b) are forgiven.
    (d) The amount of any periodic payment due from a service
member who is deployed on active duty, or the spouse of that
service member, under the terms of the obligation shall be
reduced by the amount of the interest and finance charges
forgiven under subsection (c) that is allocable to the period
for which the periodic payment is made.
    (e) In order for an obligation to be subject to the
interest and finance charges limitation of this Section, the
service member deployed on active duty, or the spouse of that
service member, shall provide the creditor with written notice
of and a copy of the military or gubernatorial orders calling
the service member to active duty and of any orders further
extending the service member's period of active duty, not later
than 180 days after the date of the service member's
termination of or release from active duty.
    (f) Upon receipt of the written notice and a copy of the
orders referred to in subsection (e), the creditor shall treat
the obligation in accordance with subsection (b), effective as
of the date on which the service member is deployed to active
duty.
    (g) A court may grant a creditor relief from the interest
and finance charges limitation of this Section, if, in the
opinion of the court, the ability of the service member
deployed on active duty, or the spouse of that service member,
to pay interest or finance charges with respect to the
obligation at a rate in excess of 6% per annum is not
materially affected by reason of the service member's
deployment on active duty.
 
    Section 925. The Motor Vehicle Leasing Act is amended by
adding Section 37 as follows:
 
    (815 ILCS 636/37 new)
    Sec. 37. Military personnel on active duty; termination of
lease.
    (a) In this Act:
    "Active duty" means active duty pursuant to an executive
order of the President of the United States, an act of the
Congress of the United States, or an order of the Governor.
    "Motor vehicle" means any automobile, car minivan,
passenger van, sport utility vehicle, pickup truck, or other
self-propelled vehicle not operated or driven on fixed rails or
track.
    "Service member" means a member of the armed services or
reserve forces of the United States or a member of the Illinois
National Guard.
    (b) Any service member who is deployed on active duty for a
period of not less than 180 days, or the spouse of that service
member, may terminate any motor vehicle lease that meets both
of the following requirements:
        (1) The lease is entered into on or after the effective
    date of this amendatory Act of the 94th General Assembly.
        (2) The lease is executed by or on behalf of the
    service member who is deployed on active duty.
    (c) Termination of the motor vehicle lease shall not be
effective until:
        (1) the service member who is deployed on active duty,
    or the service member's spouse, gives the lessor by
    certified mail, return receipt requested, a notice of the
    intention to terminate the lease together with a copy of
    the military or gubernatorial orders calling the service
    member to active duty and of any orders further extending
    the service member's period of active duty; and
        (2) the motor vehicle subject to the lease is returned
    to the custody or control of the lessor not later than 15
    days after the delivery of the written notice.
    (d) Lease amounts unpaid for the period preceding the
effective date of the lease's termination shall be paid on a
prorated basis. The lessor may not impose an early termination
charge, but any taxes, costs of summons, and title or
registration fees and any other obligation and liability of the
lessee under the terms of the lease, including reasonable
charges to the lessee for excess wear, use, and mileage, that
are due and unpaid at the time of the lease's termination shall
be paid by the lessee.
    (e) The lessor shall refund to the lessee lease amounts
paid in advance for a period after the effective date of the
lease's termination within 30 days after the effective date of
the lease's termination.
    (f) Upon application by the lessor to a court before the
effective date of the lease's termination, relief granted by
this Section may be modified as justice and equity require.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/22/2005