(815 ILCS 375/16) (from Ch. 121 1/2, par. 576)
Sec. 16.
An agreement by a buyer that he will not assert against the
assignee or the holder of a retail installment contract executed by the
buyer any claim or defense which he may have against the seller and the
rights of a holder in due course of any negotiable note executed in
connection with a retail installment contract are enforceable by an
assignee or holder who takes his assignment or indorsement for value in
good faith and without notice of a claim or defense unless:
(a) the assignee or holder is an affiliate of the seller. "Affiliate"
includes a parent or subsidiary corporation, any person holding substantial
common ownership of stock of the assignee and the seller and any person
having the common ownership of the legal or commercial entities of assignee
and seller;
(b) the assignee or the holder has actual knowledge or has received
notice before the contract or note is acquired (1) of repetitive complaints
of a substantial nature by other buyers to any governmental agency that the
seller has failed or refused to perform his agreements with such buyers and
(2) of the failure of the seller to perform his agreements with such buyers
within a reasonable time after the governmental agency has determined that
the complaints are well-founded and has notified seller thereof, and the
assignee, if known; or
(c) the assignee or the holder has actual knowledge or has received
notice from its course of dealing with the seller or from its own records
of substantial complaints by other buyers that the seller has failed or
refused to perform his agreements with such buyers within a reasonable time
after such complaints are made.
(Source: Laws 1967, p. 2163.)
|