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91_SB0377
LRB9104949KSgc
1 AN ACT to amend the Motor Vehicle Franchise Act by
2 changing Section 10.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Motor Vehicle Franchise Act is amended by
6 changing Section 10.1 as follows:
7 (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
8 Sec. 10.1. (a) As used in this Section, "motorcycle"
9 means every motor vehicle having a seat or saddle for the use
10 of the rider and designed to travel with 3 or less wheels in
11 contact with the ground, excluding farm, garden, and lawn
12 equipment, and including off-highway vehicles.
13 (b) It shall be deemed a violation for a manufacturer, a
14 distributor, a wholesaler, a distributor branch or division,
15 or officer, agent or other representative thereof:
16 (1) To require a motorcycle franchisee to
17 participate in a retail financing plan or retail leasing
18 plan or to participate in any retail consumer insurance
19 plan.
20 (2) To own, to operate or to control any motorcycle
21 dealership in this State for a period longer than 2
22 years.
23 (3) Whenever any motorcycle dealer enters into a
24 franchise agreement, evidenced by a contract, with a
25 wholesaler, manufacturer or distributor wherein the
26 franchisee agrees to maintain an inventory and the
27 contract is terminated by the wholesaler, manufacturer,
28 distributor, or franchisee, then the franchisee may
29 require the repurchase of the inventory as provided for
30 in this Act. If the franchisee has any outstanding debts
31 to the wholesaler, manufacturer or distributor then the
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1 repurchase amount may be credited to the franchisee's
2 account. The franchise agreement shall either expressly
3 or by operation of law have as part of its terms a
4 security agreement whereby the wholesaler, manufacturer,
5 or distributor agrees to and does grant a security
6 interest to the motorcycle dealer in the repurchased
7 inventory to secure payment of the repurchase amount to
8 the dealer. The perfection, priority, and other matters
9 relating to the security interest shall be governed by
10 Article 9 of the Uniform Commercial Code. The provisions
11 of this Section shall not be construed to affect in any
12 way any security interest that any financial institution,
13 person, wholesaler, manufacturer, or distributor may have
14 in the inventory of the motorcycle dealer.
15 (c) The provisions of this Section 10.1 are applicable
16 to all new or existing motorcycle franchisees and franchisors
17 and are in addition to the other rights and remedies provided
18 in this Act, and, in the case of a conflict with other
19 provisions contained in this Act, with respect to motorcycle
20 franchises, this Section shall be controlling.
21 (d) The filing of a timely protest by a motorcycle
22 franchise before the Motor Vehicle Review Board as prescribed
23 by Sections 12 and 29 of this Act, shall stay the effective
24 date of a proposed additional franchise or selling agreement,
25 or the effective date of a proposed motorcycle dealership
26 relocation, or the effective date of a cancellation,
27 termination or modification, or extend the expiration date of
28 a franchise or selling agreement by refusal to honor
29 succession to ownership or refusal to approve a sale or
30 transfer pending a final determination of the issues in the
31 hearing.
32 (Source: P.A. 88-349.)
33 Section 99. Effective date. This Act takes effect upon
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1 becoming law.
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