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``` ` ` `(205 ILCS 670/15)` `(from Ch. 17, par. 5415)` ```
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``` ` ` `Sec. 15. ` `Charges permitted. ` ```
``` ` ` ```
(a) Every licensee may
lend a principal amount not exceeding $40,000 and may charge,
contract for
and receive thereon interest at an annual percentage rate of no more than 36%, subject to the provisions of this Act. For purposes of this Section, the annual percentage rate shall be calculated as such rate is calculated using the system for calculating a military annual percentage rate under Section 232.4 of Title 32 of the Code of Federal Regulations as in effect on the effective date of this amendatory Act of the 101st General Assembly.
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``` ` ` ```
(b) For purpose of this Section, the following terms shall have the
meanings ascribed herein.
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``` ` ` ```
"Applicable interest" for a precomputed loan contract means the amount of
interest attributable to each monthly installment period. It is computed
as if each installment period were one month and any interest charged for
extending the first installment period beyond one month is ignored. The
applicable interest for any monthly installment period is that portion of
the precomputed interest that bears the same ratio to the total precomputed
interest as the balances scheduled to be outstanding during that month bear
to the sum of all scheduled monthly outstanding balances in the original
contract.
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``` ` ` ```
"Interest-bearing loan" means a loan in which the debt is
expressed as a principal amount plus interest charged on actual unpaid
principal balances for the time actually outstanding.
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``` ` ` ```
"Precomputed loan" means a loan in which the debt is expressed as the sum
of the original principal amount plus interest computed actuarially in
advance, assuming all payments will be made when scheduled.
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``` ` ` `"Substantially equal installment" includes a last regularly scheduled payment that may be less than, but not more than 5% larger than, the previous scheduled payment according to a disclosed payment schedule agreed to by the parties.` ` ` `(c) Loans may be interest-bearing or precomputed.` ```
``` ` ` ```
(d) To compute time for either interest-bearing or precomputed loans for
the calculation of interest and other purposes, a month shall be a calendar
month and a day shall be considered 1/30th of a month when calculation is
made for a fraction of a month. A month shall be 1/12th of a year. A
calendar month is that period from a given date in one month to the same
numbered date in the following month, and if there is no same numbered
date, to the last day of the following month. When a period of time
includes a month and a fraction of a month, the fraction of the month is
considered to follow the whole month. In the alternative, for
interest-bearing loans, the licensee may charge interest at the rate of
1/365th of the agreed annual rate for each day actually
elapsed.
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``` ` ` `(d-5) No licensee or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers. Payment options, including, but not limited to, electronic fund transfers and Automatic Clearing House (ACH) transactions may be offered to consumers as a choice and method of payment chosen by the consumer. ` ` ` `(e) With respect to interest-bearing loans:` ```
``` ` ` ` ` `(1) Interest shall be computed on unpaid principal ` | ||

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``` ` ` ` ` `(2) Interest shall not be payable in advance or ` | ||

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``` ` ` ` ` `(3) Loans must be fully amortizing and be repayable ` | ||

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``` ` ` ` ` `(4) The lender or creditor may, if the contract ` | ||

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``` ` ` `(f) With respect to precomputed loans:` ```
``` ` ` ` ` `(1) Loans shall be repayable in substantially equal ` | ||

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``` ` ` ` ` `(2) Payments may be applied to the combined total of ` | ||

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``` ` ` ` ` `(3) When any loan contract is paid in full by cash, ` | ||

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``` ` ` ` ` `(4) The lender or creditor may, if the contract ` | ||

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``` ` ` ` ` `(5) If the parties agree in writing, either in the ` | ||

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``` ` ` ` ` `(6) If two or more installments are delinquent one ` | ||

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``` ` ` ` ` `(7) Fifteen days after the final installment as ` | ||

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``` `(Source: P.A. 101-563, eff. 8-23-19; 101-658, eff. 3-23-21.)` ```
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