96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4135


 
Introduced 2/27/2009, by Rep. Chapin Rose
 
SYNOPSIS AS INTRODUCED:
 		













740 ILCS 155/0.05 new










    Amends the Sureties Act. Provides that the Act applies to sureties who share primary liabilities with their principals on promissory notes or performance or other contracts and whose primary liabilities originate from the contracts of their principals. Provides that the Act does not apply to guarantors of payment or guarantors of collection who undertake obligations to pay creditors of principal debtors, but whose obligations are not primary liabilities or are otherwise created by contracts that are separate from the contractual obligations of the principals. Effective immediately.
















LRB096 08893 AJO 19028 b

















 


 


A BILL FOR









 











HB4135

LRB096 08893 AJO 19028 b






1
    AN ACT concerning civil law.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Sureties Act is amended  by adding Section 
5
0.05 as follows:
 
6
    (740 ILCS 155/0.05  new)
7
    Sec. 0.05. Primary liabilities; application of Act. The 
8
provisions of this Act apply to sureties who share primary 
9
liabilities with their principals on promissory notes or other 
10
obligations for the payment of money or for the performance of 
11
any other contracts, and whose primary liabilities originate 
12
from the very contracts under which their principals are 
13
obligated. The provisions of this Act do not apply to 
14
guarantors of payment or guarantors of collection who undertake 
15
obligations to pay creditors of principal debtors, but whose 
16
obligations are not primary liabilities or are otherwise 
17
created by contractual agreements between the creditors and the 
18
guarantors that are separate from the contractual obligations 
19
of the principals.
 

20
    Section 99. Effective date. This Act takes effect upon 
21
becoming law.