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90_HB1629
205 ILCS 660/1 from Ch. 17, par. 5201
205 ILCS 670/8.1
205 ILCS 675/1 from Ch. 17, par. 7001
815 ILCS 205/4.1a from Ch. 17, par. 6406
815 ILCS 375/1 from Ch. 121 1/2, par. 561
815 ILCS 405/1 from Ch. 121 1/2, par. 501
Amends the Sales Finance Agency Act, the Consumer
Installment Loan Act, the Illinois Financial Services
Development Act, the Interest Act, the Motor Vehicle Retail
Installment Sales Act, and the Retail Installment Sales Act.
Adds captions and makes technical changes.
LRB9004225PTcw
LRB9004225PTcw
1 AN ACT concerning commercial transactions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Sales Finance Agency Act is amended by
5 changing Section 1 as follows:
6 (205 ILCS 660/1) (from Ch. 17, par. 5201)
7 Sec. 1. Short title. This Act shall be known and may be
8 cited as the Sales Finance Agency Act.
9 (Source: Laws 1967, p. 2062.)
10 Section 10. The Consumer Installment Loan Act is amended
11 by changing Section 8.1 as follows:
12 (205 ILCS 670/8.1)
13 Sec. 8.1. Financial Institutions Fund. All moneys
14 received by the Department of Financial Institutions under
15 this Act shall be deposited in the Financial Institutions
16 Fund created under Section 6z-26 of the State Finance Act.
17 (Source: P.A. 88-13.)
18 Section 15. The Illinois Financial Services Development
19 Act is amended by changing Section 1 as follows:
20 (205 ILCS 675/1) (from Ch. 17, par. 7001)
21 Sec. 1. Short title. This Act shall be known and may be
22 cited as the "Illinois Financial Services Development Act".
23 (Source: P.A. 85-1432.)
24 Section 20. The Interest Act is amended by changing
25 Section 4.1a as follows:
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1 (815 ILCS 205/4.1a) (from Ch. 17, par. 6406)
2 Sec. 4.1a. Miscellaneous charges. Charges for and cost
3 of the following items paid or incurred by any lender in
4 connection with any loan shall not be deemed to be charges
5 for or in connection with any loan of money referred to in
6 Section 6 of this Act, or charges by the lender as a
7 consideration for the loan referred to in this Section:
8 (a) hazard, mortgage or life insurance premiums,
9 survey, credit report, title insurance, abstract and
10 attorneys' fees, recording charges, escrow and appraisal
11 fees, and similar charges.
12 (b) in the case of construction loans, in addition
13 to the matters referred to in clause (a) above, the
14 actual cost incurred by the lender for services for
15 making physical inspections, processing payouts,
16 examining and reviewing contractors' and subcontractors'
17 sworn statements and waivers of lien and the like.
18 (c) in the case of any loan made pursuant to the
19 provisions of the Emergency Home Purchase Assistance Act
20 of 1974 (Section 313 of the National Housing Act, Chapter
21 B of Title 12 of the United States Code), in addition to
22 the matters referred to in paragraphs (a) and (b) of this
23 Section all charges required or allowed by the Government
24 National Mortgage Association, whether designated as
25 processing fees, commitment fees, loss reserve and
26 marketing fees, discounts, origination fees or otherwise
27 designated.
28 (d) in the case of a single payment loan, made for
29 a period of 6 months or less, a regulated financial
30 institution or licensed lender may contract for and
31 receive a maximum charge of $15 in lieu of interest.
32 Such charge may be collected when the loan is made, but
33 only one such charge may be contracted for, received, or
34 collected for any such loan, including any extension or
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1 renewal thereof.
2 (e) if the agreement governing the loan so
3 provides, a charge not to exceed the rate permitted under
4 Section 3-806 of the Uniform Commercial Code-Commercial
5 Paper for any check, draft or order for the payment of
6 money submitted in accordance with said agreement which
7 is unpaid or not honored by a bank or other depository
8 institution.
9 (f) if the agreement governing the loan so
10 provides, for each loan installment in default for a
11 period of not less than 10 days, a charge in an amount
12 not in excess of 5% of such loan installment. Only one
13 delinquency charge may be collected on any such loan
14 installment regardless of the period during which it
15 remains in default. Payments timely received by the
16 lender under a written extension or deferral agreement
17 shall not be subject to any delinquency charge.
18 Where there is a charge in addition to the stated rate of
19 interest payable directly or indirectly by the borrower and
20 imposed directly or indirectly by the lender as a
21 consideration for the loan, or for or in connection with the
22 loan of money, whether paid or payable by the borrower, the
23 seller, or any other person on behalf of the borrower to the
24 lender or to a third party, or for or in connection with the
25 loan of money, other than as hereinabove in this Section
26 provided, whether denominated "points," "service charge,"
27 "discount," "commission," or otherwise, and without regard to
28 declining balances of principal which would result from any
29 required or optional amortization of the principal of the
30 loan, the rate of interest shall be calculated in the
31 following manner:
32 The percentage of the principal amount of the loan
33 represented by all of such charges shall first be computed,
34 which in the case of a loan with an interest rate in excess
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1 of 8% per annum secured by residential real estate, other
2 than loans described in paragraphs (e) and (f) of Section 4,
3 shall not exceed 3% of such principal amount. Said
4 percentage shall then be divided by the number of years and
5 fractions thereof of the period of the loan according to its
6 stated maturity. The percentage thus obtained shall then be
7 added to the percentage of the stated annual rate of
8 interest.
9 The borrower in the case of nonexempt loan shall have the
10 right to prepay the loan in whole or in part at any time,
11 but, except as may otherwise be provided by Section 4, the
12 lender may require payment of not more than 6 months' advance
13 interest on that part of the aggregate amount of all
14 prepayments on a loan in one year, which exceeds 20% of the
15 original principal amount of the loan.
16 (Source: P.A. 87-496.)
17 Section 25. The Motor Vehicle Retail Installment Sales
18 Act is amended by changing Section 1 as follows:
19 (815 ILCS 375/1) (from Ch. 121 1/2, par. 561)
20 Sec. 1. Short title. This Act may be cited as the Motor
21 Vehicle Retail Installment Sales Act.
22 (Source: Laws 1967, p. 2163.)
23 Section 30. The Retail Installment Sales Act is amended
24 by changing Section 1 as follows:
25 (815 ILCS 405/1) (from Ch. 121 1/2, par. 501)
26 Sec. 1. Short title. This Act may be cited as the Retail
27 Installment Sales Act.
28 (Source: Laws 1967, p. 2149.)