(815 ILCS 405/6) (from Ch. 121 1/2, par. 506)
Sec. 6.
(a) Every retail installment contract must provide for a schedule
of periodic
installment payments from the due date of the
first installment payment to the date of the final maturity of the
contract.
(b) Retail installment contracts may provide for balloon-note financing.
For the purpose of this Section, "balloon-note financing" means the manner of
purchase whereby a consumer agrees to select and perform, at the conclusion of
a predetermined schedule of installment payments made in periodic or monthly
amounts, one of the following options:
(1) satisfy the balance of the contractual amount |
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(2) refinance any balance owing, on the terms
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| previously agreed upon at the time of executing the retail installment contract.
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(c) Retail installment contracts may provide for deferred payment of a
down payment provided any deferred portion of a down payment is payable not
later than 10 days prior to the due date of the first regularly scheduled
payment and is not subject to a finance charge.
(d) Retail installment sales contracts may be precomputed or interest
bearing.
(Source: P.A. 90-437, eff. 1-1-98.)
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