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90_HB2211enr
SEE INDEX
Amends the Sales Finance Agency Act and the Consumer
Installment Loan Act. Amends provisions regarding application
and renewal of licenses, suspension and revocation of
licenses, and ceasing operations under these Acts. Provides
that a claim for a violation of these Acts may be asserted in
an individual action. Makes provision for the Director of
the Department of Financial Institutions to issue cease and
desist orders or to petition the circuit court for an
injunction, penalties, and costs. Amends the Consumer
Installment Loan Act regarding loss insurance on secured
property and provides that the parties may agree to submit
disputes to arbitration; permits loans up to $25,000 (now
$10,000). Makes other changes to these Acts. Amends the
Motor Vehicle Retail Installment Sales Act and the Vehicle
Retail Installment Sales Act. Provides that the parties may
agree to submit disputes to arbitration and amends provisions
regarding loss insurance on secured property. Provides that
a claim for a violation of these Acts may be asserted in an
individual action. Changes some fees licensees may charge
under this Act. Makes other Changes.
LRB9004659SMdv
HB2211 Enrolled (corrected) LRB9004659SMdv
1 AN ACT concerning financial 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 Sections 2, 3, 4, 5, 6, 7, 8, 8.1, 8.2, 8.3, 8.4,
6 8.6, 8.8, 8.9, 8.10, 8.11, 8.13, 10, 10.1, 10.2, 11, 12, 13,
7 14, and 15 and by adding Sections 8.14, 15.5, 16.5, 18, 19,
8 and 20 as follows:
9 (205 ILCS 660/2) (from Ch. 17, par. 5202)
10 Sec. 2. Definitions. In this Act, unless the context
11 otherwise requires:
12 "Sales finance agency" means a person, irrespective of
13 his or her state of domicile or place of business, engaged in
14 this State, in whole or in part, in the business of
15 purchasing, or making loans secured by, retail installment
16 contracts, retail charge agreements or the outstanding
17 balances under such contracts or agreements entered into in
18 this State irrespective of the state of domicile or place of
19 business of such person. The term does not include a person
20 who makes, other than in the regular course of business, only
21 isolated purchases of or loans secured by retail installment
22 contracts, retail charge agreements or the outstanding
23 balances under such contracts or agreements to secure a bona
24 fide loan thereon.
25 "Holder" of a retail installment contract or a retail
26 charge agreement means the retail seller of the goods or
27 services under the contract or charge agreement, or if the
28 outstanding balances thereunder are purchased by or
29 transferred as security to a sales finance agency or other
30 assignee, the sales finance agency or other assignee.
31 "Person" means an individual, corporation, partnership,
HB2211 Enrolled (corrected) -2- LRB9004659SMdv
1 limited liability company, joint venture, or any other form
2 of business association.
3 "Department" means the Department of Financial
4 Institutions.
5 "Director" means the Director of Financial Institutions.
6 "Motor Vehicle Retail Installment Sales Act" and "Retail
7 Installment Sales Act" refer to the Acts having those titles
8 enacted by the 75th General Assembly.
9 "Retail installment contract" and "retail charge
10 agreement" have the meanings ascribed to them in the Motor
11 Vehicle Retail Installment Sales Act and the Retail
12 Installment Sales Act.
13 "Special purpose vehicle" means an entity that, in
14 connection with a securitization, private placement, or
15 similar type of investment transaction, is administered by a
16 State or national bank under a management agreement for the
17 purpose of purchasing, making loans against, or in pools of,
18 receivables, general intangibles, and other financial assets
19 including retail installment contracts, retail charge
20 agreements, or the outstanding balances or any portion of the
21 outstanding balances under those contracts or agreements.
22 "Net Worth" means total assets minus total liabilities.
23 (Source: P.A. 89-400, eff. 8-20-95.)
24 (205 ILCS 660/3) (from Ch. 17, par. 5203)
25 Sec. 3. No person may engage in the business of a sales
26 finance agency in this State without first obtaining a
27 license as provided in this Act. A licensee under the
28 Consumer Installment Loan Act or licensee under the Consumer
29 Finance Act that is authorized to do business in this State
30 may engage in the business of a sales finance agency without
31 securing a license under this Act. A Consumer Installment
32 Loan Act licensee engaged in the business of a sales finance
33 agency is required to comply with this Act and violations of
HB2211 Enrolled (corrected) -3- LRB9004659SMdv
1 this Act may result in penalties, revocation of the
2 licensee's authority to engage in sales finance agency
3 activity, or revocation or suspension of the Consumer
4 Installment Loan Act license., however, and to the extent so
5 engaged is considered as a licensee under this Act which is
6 required to comply with this Act and which is subject to
7 revocation, for any of the grounds and in the manner provided
8 in this Act, of its privilege to engage in the business of a
9 sales finance agency in this State.
10 (Source: P.A. 76-1496.)
11 (205 ILCS 660/4) (from Ch. 17, par. 5204)
12 Sec. 4. After December 31, 1967, a person who is required
13 to be licensed under this Act must display at each of his
14 places of business a non-transferable and non-assignable
15 license. A licensee who operates more than one place of
16 business may obtain additional licenses upon compliance with
17 this Act as to each place of business. Application for a
18 license must be on a form prescribed and furnished by the
19 Department. A licensee may move his place or places of
20 business from one location to another within a county without
21 obtaining a new license if he gives the Department at least
22 10 days' prior written notice of the relocation removal.
23 (Source: Laws 1967, p. 2062.)
24 (205 ILCS 660/5) (from Ch. 17, par. 5205)
25 Sec. 5. If a licensee fails to renew his or her license
26 by the 31st day of December, it shall automatically expire
27 and the licensee is not entitled to a hearing; however, the
28 Director in his or her discretion, may reinstate an expired
29 license upon payment of the annual renewal fee and proof of
30 good cause for failure to renew. Licenses issued under this
31 Act expire annually on December 31. A license fee of $300 for
32 the applicant's principal place of business and $100 for each
HB2211 Enrolled (corrected) -4- LRB9004659SMdv
1 additional place of business for which a license is sought
2 must be submitted with an application for license made before
3 July 1 of any year. If application is made on July 1 or
4 thereafter, a license fee of $150 for the principal place of
5 business and of $50 for each additional place of business
6 must accompany the application. Each license remains in force
7 until surrendered, suspended or revoked. If the application
8 for license is denied, the original license fee shall be
9 retained by the State in reimbursement of its costs of
10 investigating that application.
11 (Source: P.A. 85-716.)
12 (205 ILCS 660/6) (from Ch. 17, par. 5206)
13 Sec. 6. A license fee of $300 for the applicant's
14 principal place of business and $100 for each additional
15 place of business for which a license is sought must be
16 submitted with an application for license made before July 1
17 of any year. If application for a license is made on July 1
18 or thereafter, a license fee of $150 for the principal place
19 of business and of $50 for each additional place of business
20 must accompany the application. Each license remains in
21 force until surrendered, suspended, or revoked. If the
22 application for license is denied, the original license fee
23 shall be retained by the State in reimbursement of its costs
24 of investigating that application.
25 Before the license is granted, the applicant shall prove
26 in form satisfactory to the Director, that the applicant has
27 a positive net worth of a minimum of $30,000.
28 A licensee must pay to the Department, by December 1 of
29 each year, $300 for the license for his principal place of
30 business and $100 for each additional license held as a
31 renewal license fee for the succeeding calendar year. Failure
32 to pay the license fee within the time prescribed
33 automatically revokes renewal of the license as of the last
HB2211 Enrolled (corrected) -5- LRB9004659SMdv
1 day of the calendar year for which it issued.
2 (Source: P.A. 85-716.)
3 (205 ILCS 660/7) (from Ch. 17, par. 5207)
4 Sec. 7. The Department shall examine each licensee
5 annually to determine if it is in compliance with this Act.
6 In the course of that examination, insofar as feasible, the
7 Department shall give particular attention to whether the
8 licensee has complied with Sections 8.2 through 8.5 and 8.9
9 through 8.13 of this Act. The expense of this annual
10 examination shall be paid to the Department by the licensee
11 in accordance with a schedule of fees established by the
12 Department as reasonably reflecting the actual cost of the
13 examination.
14 In addition, the Department may charge all licensees in
15 accordance with its schedule of fees for the examinations or
16 re-examinations made pursuant to Section 11 of this Act. This
17 expense and cost of examination is in addition to the license
18 fees hereunder.
19 Instead of requiring a licensee to have an annual
20 examination conducted by the Department, the Director may
21 accept the report of a registered public accountant licensed
22 in Illinois if:
23 (1) the costs of the examination and report are borne by
24 the licensee;
25 (2) the scope of the examination is at least equal in
26 scope to the examination made by the Department;
27 (3) the report is made on forms approved by the
28 Director; and
29 (4) the Director gives prior permission for the
30 examination and prior approval of the registered public
31 accountant making the examination. The cost of any other
32 examination or investigation of the licensee conducted under
33 this Act may not be charged to the licensee.
HB2211 Enrolled (corrected) -6- LRB9004659SMdv
1 (Source: P.A. 76-996.)
2 (205 ILCS 660/8) (from Ch. 17, par. 5208)
3 Sec. 8. The Department may deny an application for a
4 license, deny an application for renewal of a license, or
5 suspend or revoke a license on any of the grounds listed in
6 Sections 8.1 through 8.14. Renewal of a license originally
7 granted under this Act may be denied, or a license may be
8 denied, suspended or revoked by the Department on any of the
9 grounds listed in Sections 8.1 to 8.13.
10 (Source: Laws 1967, p. 2062.)
11 (205 ILCS 660/8.1) (from Ch. 17, par. 5209)
12 Sec. 8.1. Material misstatement in the application or
13 renewal, for original license or in any form which may be
14 prescribed by the Director for the renewal of a license, or
15 in any amendment made to the application for original license
16 or form for renewal.
17 (Source: Laws 1967, p. 2062.)
18 (205 ILCS 660/8.2) (from Ch. 17, par. 5210)
19 Sec. 8.2. Violating Willful violation or aiding any
20 person in the willful violation of this Act or of any rule or
21 regulation promulgated by the Director.
22 (Source: Laws 1967, p. 2062.)
23 (205 ILCS 660/8.3) (from Ch. 17, par. 5211)
24 Sec. 8.3. Aiding or conspiring to aid any person in the
25 willful violation of the Retail Installment Sales Act or of
26 the Motor Vehicle Retail Installment Sales Act.
27 (Source: Laws 1967, p. 2062.)
28 (205 ILCS 660/8.4) (from Ch. 17, par. 5212)
29 Sec. 8.4. Except for an honest mistake, purchase of any
HB2211 Enrolled (corrected) -7- LRB9004659SMdv
1 retail contract, retail charge agreement, or evidence of
2 indebtedness thereunder, that which on its face violates this
3 Act, the Retail Installment Sales Act or the Motor Vehicle
4 Retail Installment Sales Act.
5 (Source: Laws 1967, p. 2062.)
6 (205 ILCS 660/8.6) (from Ch. 17, par. 5214)
7 Sec. 8.6. Use of collection process that which violates
8 any of the laws of this State with respect to garnishment,
9 wage deduction orders or wage assignments.
10 (Source: Laws 1967, p. 2062.)
11 (205 ILCS 660/8.8) (from Ch. 17, par. 5216)
12 Sec. 8.8. Conviction in a criminal matter or final
13 judgment in a civil action of the offense of defrauding
14 another person any retail buyer to his damage.
15 (Source: Laws 1967, p. 2062.)
16 (205 ILCS 660/8.9) (from Ch. 17, par. 5217)
17 Sec. 8.9. Fraud, Fraudulent misrepresentation,
18 circumvention or concealment by the licensee of material
19 facts that are required to be disclosed through whatever
20 subterfuge or device of any of the material particulars or
21 the nature thereof required to be stated or furnished to a
22 retail buyer under the Retail Installment Sales Act or the
23 Motor Vehicle Retail Installment Sales Act.
24 (Source: Laws 1967, p. 2062.)
25 (205 ILCS 660/8.10) (from Ch. 17, par. 5218)
26 Sec. 8.10. Conducting Holding any license to do business
27 as a sales finance agency, bank, savings and loan
28 association, consumer finance company, or credit union, under
29 the laws of this or any other State or of the United States
30 of America, when the that license to conduct that business
HB2211 Enrolled (corrected) -8- LRB9004659SMdv
1 has been cancelled, revoked, suspended or denied for reasons
2 other than failure to pay the required fees for that license.
3 (Source: Laws 1967, p. 2062.)
4 (205 ILCS 660/8.11) (from Ch. 17, par. 5219)
5 Sec. 8.11. Purchase of a retail installment contract
6 creating or providing for a security interest in a motor
7 vehicle that qualifies as consumer goods under the Uniform
8 Commercial Code, or purchase of the evidence of indebtedness
9 under such a contract, from a person who is not licensed
10 under The Illinois Vehicle Code, not licensed under this Act,
11 and not exempt from licensure under this Act.
12 (Source: P.A. 77-1165.)
13 (205 ILCS 660/8.13) (from Ch. 17, par. 5221)
14 Sec. 8.13. Failure to maintain a positive net worth of
15 $30,000 without having access to sources of funding approved
16 by the Director possess the financial responsibility,
17 experience, character and general fitness necessary to
18 command the confidence of the community and to warrant belief
19 that the business will be operated honestly, fairly and
20 efficiently within the purposes of this Act.
21 (Source: Laws 1967, p. 2062.)
22 (205 ILCS 660/8.14 new)
23 Sec. 8.14. Conviction of a felony. Conviction of a
24 felony of any applicant or licensee, or of any partner,
25 manager of a limited liability company, officer, or director
26 of a sales finance agency.
27 (205 ILCS 660/10) (from Ch. 17, par. 5223)
28 Sec. 10. Denial, revocation, or suspension of license.
29 (a) The Director may revoke or suspend a license if the
30 licensee violates any provisions of this Act.
HB2211 Enrolled (corrected) -9- LRB9004659SMdv
1 (b) In every case in which a license is revoked or
2 suspended, or an application for a license or renewal of a
3 license is denied, the Director shall serve notice of his or
4 her action, including a statement of the reasons for the
5 action either personally or by certified mail, return receipt
6 requested. Service by certified mail shall be deemed
7 completed when the notice is deposited in the U.S. mail.
8 (c) An order revoking or suspending a license or an
9 order denying renewal of a license shall take effect upon
10 service of the order, unless the licensee requests, in
11 writing, within 10 days after the date of service, a hearing.
12 In the event a hearing is requested, the order shall be
13 stayed until a final administrative order is entered.
14 (d) If the licensee requests a hearing, the Director
15 shall schedule a hearing within 30 days after the request for
16 a hearing unless otherwise agreed to by the parties.
17 (e) The hearing shall be held at the time and place
18 designated by the Director. The Director and any
19 administrative law judge designated by him or her shall have
20 the power to administer oaths and affirmations, subpoena
21 witnesses and compel their attendance, take evidence, and
22 require the production of books, papers, correspondence, and
23 other records or information that he or she considers
24 relevant or material to the inquiry.
25 (f) The costs for the administrative hearing shall be
26 set by rule.
27 (g) The Director shall have the authority to prescribe
28 rules for the administration of this Section. The Department
29 shall, after 5 days notice by certified mail, return receipt
30 requested, sent to the licensee at the address set forth in
31 the license, stating the contemplated action and in general
32 the grounds therefor and the date, time and place of a
33 hearing thereon, and after providing the licensee with a
34 reasonable opportunity to be heard prior to the action,
HB2211 Enrolled (corrected) -10- LRB9004659SMdv
1 suspend or revoke any license issued hereunder if it finds
2 that the licensee has violated any of Sections 8.1 through
3 8.12 or Section 9.
4 (Source: Laws 1967, p. 2062.)
5 (205 ILCS 660/10.1) (from Ch. 17, par. 5224)
6 Sec. 10.1. The Department may suspend or revoke only the
7 particular license with respect to which grounds therefor
8 occur or exist, but if it finds that those grounds are of
9 general application to all offices or to more than one office
10 of the licensee, the Department shall suspend or revoke every
11 license to which those grounds apply.
12 (Source: Laws 1967, p. 2062.)
13 (205 ILCS 660/10.2) (from Ch. 17, par. 5225)
14 Sec. 10.2. Closing of business; surrender of license. At
15 least 10 days prior to a licensee ceasing operations, closing
16 business, or filing for bankruptcy, the licensee shall:
17 (a) Notify the Department of its action in writing.
18 (b) Surrender its license to the Director for
19 cancellation. The surrender of the license shall not affect
20 the licensee's civil or criminal liability for acts committed
21 prior to surrender or entitle the licensee to a return of any
22 part of the annual license fee.
23 (c) The licensee shall notify the department of the
24 location where the books, accounts, contracts, and records
25 will be maintained and the procedure to ensure prompt return
26 of contracts, titles, and releases to the customers.
27 (d) The accounts, books, records, and contracts shall be
28 maintained and serviced by the licensee or another licensee
29 under this Act, or an entity exempt from licensure under this
30 Act.
31 (e) The Department shall have the authority to conduct
32 examinations of the books, records, and loan documents at any
HB2211 Enrolled (corrected) -11- LRB9004659SMdv
1 time after surrender of the license, filing of bankruptcy, or
2 the cessation of operations. Any licensee may surrender a
3 license by delivering to the Department written notice that
4 he thereby surrenders the license, but surrender does not
5 affect the licensee's civil or criminal liability for acts
6 committed prior to surrender or entitle the licensee to a
7 return of any part of the annual license fee.
8 (Source: Laws 1967, p. 2062.)
9 (205 ILCS 660/11) (from Ch. 17, par. 5229)
10 Sec. 11. For the purpose of discovering violations of
11 this Act or securing information lawfully required by it
12 hereunder, the Department may at any time investigate the
13 business and examine the books, accounts, records, and files
14 of any person acting as a sales finance agency without a
15 license used therein, of every licensee and of every person,
16 co-partnership, association and corporation which is a sales
17 finance agency as defined in Section 2 of this Act, whether
18 that person, co-partnership, association or corporation acts
19 or claims to act as principal or agent or within or without
20 the authority of this Act. For that purpose the Department
21 shall have free access to the offices and places of business,
22 books, accounts, papers, records, files, safes and vaults of
23 those persons, co-partnerships, associations, and
24 corporations.
25 In connection with this investigation the Department may
26 examine witnesses under oath and subpoena compel the
27 production of books and papers pertinent to the
28 investigation. The Director, the Supervisor of Sales Finance
29 Agencies and any employee of the Department designated for
30 that purpose by the Director may administer oaths in these
31 investigations or at any hearing held under this Act.
32 Upon the application of the licensee or of the
33 Department, any circuit court may enter an order requiring
HB2211 Enrolled (corrected) -12- LRB9004659SMdv
1 the attendance of witnesses and the production of relevant
2 books and papers before the Department at any hearing held
3 under this Act. The court may compel obedience to its order
4 by proceedings for contempt.
5 (Source: Laws 1967, p. 2062.)
6 (205 ILCS 660/12) (from Ch. 17, par. 5230)
7 Sec. 12. Every licensee shall retain and use in his
8 business such records as are required by the Department to
9 enable the Department to determine the licensee is complying
10 with this Act and the rules and regulations lawfully made by
11 the Department hereunder. Every licensee shall preserve the
12 records of each of its transactions for at least 2 years
13 after making the final entry for that transaction.
14 With the Director's approval, a licensee may maintain
15 these records at a location other than the licensed facility.
16 With the Director's approval, a licensee may contract for
17 servicing of these accounts.
18 (Source: Laws 1967, p. 2062.)
19 (205 ILCS 660/13) (from Ch. 17, par. 5231)
20 Sec. 13. The Department may make and enforce such
21 reasonable rules, regulations, directions, orders, decisions
22 and findings as the execution and enforcement of this Act
23 require, and as are not inconsistent therewith. All such
24 rules, regulations, directions, orders, decisions and
25 findings shall be filed with the Secretary of State as
26 provided in "The Illinois Administrative Procedure Act",
27 approved September 22, 1975, as amended, and filed and
28 entered by the Department in an indexed permanent book or
29 record, with the effective date thereof suitably indicated.
30 All rules and, regulations and directions of a general
31 character shall be printed and copies thereof mailed to all
32 licensees within 10 days after such filing.
HB2211 Enrolled (corrected) -13- LRB9004659SMdv
1 (Source: P.A. 83-333.)
2 (205 ILCS 660/14) (from Ch. 17, par. 5232)
3 Sec. 14. All final administrative decisions of the
4 Department hereunder shall be subject to judicial review
5 pursuant to the "Administrative Review Law", and all
6 amendments and modifications thereof, and any rules adopted
7 pursuant thereto. The term "administrative decision" is
8 defined as in Section 3-101 of the "Administrative Review
9 Law".
10 (Source: P.A. 83-1539.)
11 (205 ILCS 660/15) (from Ch. 17, par. 5233)
12 Sec. 15. Any person who engages in business as a sales
13 finance agency without the license required by this Act shall
14 be guilty of a Class 4 felony A misdemeanor.
15 (Source: P.A. 77-2264.)
16 (205 ILCS 660/15.5 new)
17 Sec. 15.5. Civil action. A claim of violation of this
18 Act may be asserted in a civil action. Additionally, a court
19 may award reasonable attorney's fees and court costs.
20 (205 ILCS 660/16.5 new)
21 Sec. 16.5. Cease and desist orders.
22 (a) The Director may issue a cease and desist order to a
23 sales finance agency or other person doing business without
24 the required license when, in the opinion of the director,
25 the licensee or other person is violating or is about to
26 violate any provision of this Act or any law, rule, or
27 requirement imposed in writing by the Department.
28 (b) The Director may issue a cease and desist order
29 prior to a hearing.
30 (c) The Director shall serve notice of his or her
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1 action, designated as a cease and desist order made pursuant
2 to this Section, including a statement of the reasons for the
3 action, either personally or by certified mail, return
4 receipt requested. Service by certified mail shall be deemed
5 completed when the notice is deposited in the U.S. mail.
6 (d) Within 15 days of service of the cease and desist
7 order, the sales finance agency or other person may request,
8 in writing, a hearing.
9 (e) The Director shall schedule a hearing within 30 days
10 after the request for a hearing unless otherwise agreed to by
11 the parties.
12 (f) The Director shall have the authority to prescribe
13 rules for the administration of this Section.
14 (g) If it is determined that the Director had the
15 authority to issue the cease and desist order, he or she may
16 issue such orders as may be reasonably necessary to correct,
17 eliminate, or remedy such conduct.
18 (h) The powers vested in the Director by this Section
19 are additional to any and all other powers and remedies
20 vested in the Director by law, and nothing in this Section
21 shall be construed as requiring that the Director shall
22 employ the powers conferred in this Section instead of or as
23 a condition precedent to the exercise of any other power or
24 remedy vested in the Director.
25 (i) The cost for the administrative hearing shall be set
26 by rule.
27 (205 ILCS 660/18 new)
28 Sec. 18. Penalties. The Director may set by rule
29 penalties for violations of this Act or rules promulgated
30 under this Act.
31 (205 ILCS 660/19 new)
32 Sec. 19. Injunction; civil penalty; costs. If it
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1 appears to the Director that a person has committed or is
2 about to commit a violation of this Act, a rule promulgated
3 under this Act, or an order of the Director, the Director may
4 apply to the circuit court for an order enjoining the person
5 from violating or continuing to violate this Act, the rule,
6 or order and for injunctive or other relief that the nature
7 of the case may require and may, in addition, request the
8 court to assess a civil penalty up to $1,000 along with costs
9 and attorney's fees.
10 (205 ILCS 660/20 new)
11 Sec. 20. Conformance with Department rule does not
12 violate Act. No provision of this Act imposing any civil
13 liability shall apply to any act done or omitted in
14 conformity with any rule promulgated under this Act by the
15 Department of Financial Institutions, notwithstanding that,
16 after the act or omission has occurred, the rule or
17 regulation is amended, rescinded, or determined by judicial
18 or other authority to be invalid for any reason.
19 (205 ILCS 660/8.7 rep.)
20 (205 ILCS 660/9 rep.)
21 (205 ILCS 660/10.5 rep.)
22 (205 ILCS 660/16 rep.)
23 Section 10. The Sales Finance Agency Act is amended by
24 repealing Sections 8.7, 9, 10.5, and 16.
25 Section 15. The Consumer Installment Loan Act is amended
26 by changing the title of the Act and Sections 1, 2, 4, 5, 7,
27 8, 9, 10, 11, 12, 13, 14, 15, 15a, 15b, 15d, 15e, 16, 17, 18,
28 19.1, 20, 21, 22, and 23, and by adding Sections 9.1, 12.5,
29 20.5, 20.7, and 24.5 as follows:
30 (205 ILCS 670/Act title)
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1 An Act in relation to the business of making installment
2 loans in a principal amount exceeding $800 and not exceeding
3 $25,000 $10,000 at rates of interest charge greater than
4 otherwise allowed by law, requiring lenders making loans
5 under this Act to be licensed and providing penalties.
6 (Source: L. 1963, p. 3526. Title amended by P.A. 78-1257.)
7 (205 ILCS 670/1) (from Ch. 17, par. 5401)
8 Sec. 1. License required to engage in business. No
9 person, partnership co-partnership, association, limited
10 liability company, or corporation shall engage in the
11 business of making loans of money in a principal amount not
12 exceeding $25,000 $10,000, and charge, contract for, or
13 receive on any such loan a greater rate of interest,
14 discount, or consideration therefor than the lender would be
15 permitted by law to charge if he were not a licensee
16 hereunder, except as authorized by this Act after first
17 obtaining a license from the Director of Financial
18 Institutions (hereinafter called the Director).
19 No license may be issued under this Act for a location
20 outside of Illinois.
21 (Source: P.A. 89-400, eff. 8-20-95.)
22 (205 ILCS 670/2) (from Ch. 17, par. 5402)
23 Sec. 2. Application; fees; positive net worth Assets.
24 Application for such license shall be in writing, and in the
25 form prescribed by the Director, and shall contain the full
26 name and address (both of the residence and place of
27 business) of the applicant and, if the applicant is a
28 co-partnership or association, of every member thereof, and,
29 if a corporation, of each officer, director and owner of 5%
30 or more of the capital stock thereof; also the county and
31 municipality with street and number, if any, where the
32 business is to be conducted and such further information as
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1 the Director may reasonably require. Such applicant at the
2 time of making such application shall pay to the Director the
3 sum of $300 as a fee for investigating the applicant and the
4 additional sum of $300 as an annual license fee, for a period
5 terminating on the last day of the current calendar year;
6 provided that if the application is filed after June 30th in
7 any year, such license fee shall be 1/2 of the annual license
8 fee for such year.
9 Before the license is granted, every applicant shall
10 prove in form satisfactory to the Director that the applicant
11 he has a positive net worth of a minimum of $30,000 available
12 for the operation of such business at the location specified
13 in the application, assets of at least $25,000. Every
14 applicant shall maintain a surety bond in the principal sum
15 of $1,000 issued by a bonding company authorized to do
16 business in this State and which shall be approved by the
17 Director. Such bond shall run to the Director and shall be
18 for the benefit of any person who incurs damages as a result
19 of the actions of a licensee and who is lawfully awarded such
20 damages pursuant to an appropriate court order. If the
21 Director finds at any time that a bond is of insufficient
22 size, is insecure, exhausted, or otherwise doubtful, an
23 additional bond in such amount as determined by the Director
24 shall be filed by the licensee within 30 days after written
25 demand therefor by the Director. "Net worth" means total
26 assets minus total liabilities.
27 (Source: P.A. 84-1004.)
28 (205 ILCS 670/4) (from Ch. 17, par. 5404)
29 Sec. 4. Investigation to determine whether license shall
30 be issued.
31 (a) Upon the filing of an application and the payment of
32 the fee, if the Director shall investigate to determine upon
33 investigation finds (1) that the financial responsibility and
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1 reputation of the applicant, including managers of a limited
2 liability company, partners, and of the members thereof (if
3 the applicant be a co-partnership or association) and of the
4 owners, officers or and directors thereof is (if the
5 applicant be a corporation) are such as to warrant belief
6 that the business will be operated honestly and fairly within
7 the purposes of this Act and (2) that the applicant meets the
8 positive net worth requirement set forth in Section 2 of this
9 Act has available for the operation of such business at the
10 specified location assets of at least $25,000, it shall
11 thereupon issue and deliver a license to the applicant to
12 make loans in accordance with the provisions of this Act at
13 the location specified in the application. The license shall
14 remain in effect until it is surrendered by the licensee or
15 suspended or revoked by the Director as hereinafter provided.
16 Unless the Director makes both findings hereinabove
17 enumerated, he or she it shall not issue a license and shall
18 notify the applicant of the denial and return to the
19 applicant the sum paid by the applicant as a license fee, but
20 shall retain the $300 investigation fee. The Director shall
21 approve or deny every application for license hereunder
22 within 60 days from the filing thereof with the fee.
23 (b) No application shall be denied until the applicant
24 shall have had a notice of a hearing on the application and
25 an opportunity to be heard thereon. Whenever an application
26 is denied, the Director shall, within 20 days thereafter,
27 prepare and keep on file in its office a written order of
28 denial thereof. The order shall contain its findings with
29 respect thereto and the reasons supporting the denial, and
30 the Director shall send a copy thereof by registered mail to
31 the applicant at the address set forth in the application
32 within 5 days after the filing of such order.
33 (c) Any request for a hearing shall be accompanied by a
34 surety in which the applicant shall be obligor in the amount
HB2211 Enrolled (corrected) -19- LRB9004659SMdv
1 of $500 guaranteeing payment of costs of such hearing. This
2 surety may be in the form of a bond, money order, or
3 certified check, payable to the Director, and shall be
4 returned upon proof of payment of costs. If costs are not
5 paid within 20 days after the end of the hearing, the
6 Director may authorize their payment from the surety,
7 returning any balance to the applicant.
8 (Source: P.A. 84-1004.)
9 (205 ILCS 670/5) (from Ch. 17, par. 5405)
10 Sec. 5. License. The license shall state the address,
11 including city and state, at which the business is to be
12 conducted and shall state fully the name of the licensee. The
13 license shall be conspicuously posted in the place of
14 business of the licensee and shall not be transferable or
15 assignable.
16 (Source: Laws 1963, p. 3526.)
17 (205 ILCS 670/7) (from Ch. 17, par. 5407)
18 Sec. 7. More than one license to same licensee - Changing
19 place of business.
20 (a) Not more than one place of business shall be
21 maintained under the same license, but the Director may issue
22 more than one license to the same licensee upon compliance
23 with all the provisions of this Act governing an original
24 issuance of a license.
25 (b) Whenever a licensee changes his place of business to
26 a location other than that set forth in his license, he shall
27 request written approval of the change and give written
28 notice thereof to the Director, at least 10 days prior to the
29 relocation. However, if the new location is in excess of 15
30 miles from the previous location, the licensee shall obtain
31 written approval from the Director prior to the relocation.
32 who, upon approving the change, shall note the change and
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1 amend the license accordingly.
2 (Source: P.A. 84-1004.)
3 (205 ILCS 670/8) (from Ch. 17, par. 5408)
4 Sec. 8. Annual license fee - Expenses. Every licensee
5 shall, on or before the 15th day of each December, pay to the
6 Director the annual license fee required by Section 2 for the
7 next succeeding calendar year. The license shall expire on
8 the first of January unless the license fee has been paid
9 prior thereto.
10 In addition to such license fee, the reasonable expense
11 of any examination, investigation or custody by the Director
12 under any provisions of this Act shall be borne by the
13 licensee.
14 If a licensee fails to renew his or her license by the
15 31st day of December, it shall automatically expire and the
16 licensee is not entitled to a hearing; however, the Director,
17 in his or her discretion, may reinstate an expired license
18 upon payment of the annual renewal fee and proof of good
19 cause for failure to renew.
20 (Source: P.A. 84-1004.)
21 (205 ILCS 670/9) (from Ch. 17, par. 5409)
22 Sec. 9. Fines, Suspension or Revocation of license
23 Surrender of license.
24 (a) The Director may, after 10 days notice by registered
25 mail to the licensee at the address set forth in the license,
26 stating the contemplated action and in general the grounds
27 therefor and the date, time and place of a hearing thereon,
28 and after providing the licensee with a reasonable
29 opportunity to be heard prior to such action, fine such
30 licensee an amount not exceeding $10,000 per violation, or
31 revoke or suspend any license issued hereunder if he or she
32 it finds that:
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1 (1) The licensee has failed to comply with any provision
2 of this Act or any order, decision, finding, rule, regulation
3 or direction of the Director lawfully made pursuant to the
4 authority of this Act; or
5 (2) Any fact or condition exists which, if it had
6 existed at the time of the original application for the
7 license, clearly would have warranted the Director in
8 refusing to issue the license.
9 (b) The Director may fine, suspend, or revoke only the
10 particular license with respect to which grounds for the
11 fine, revocation or suspension occur or exist, but if the
12 Director shall find that grounds for revocation are of
13 general application to all offices or to more than one office
14 of the licensee, the Director shall fine, suspend, or revoke
15 every license to which such grounds apply.
16 (c) (Blank). Any licensee may surrender a license by
17 delivering to the Director written notice that he thereby
18 surrenders such license, but surrender shall not affect the
19 licensee's civil or criminal liability for acts committed
20 prior to surrender or entitle the licensee to a return of any
21 part of the annual license fee.
22 (d) No revocation, suspension, or surrender of any
23 license shall impair or affect the obligation of any
24 pre-existing lawful contract between the licensee and any
25 obligor.
26 (e) The Director may issue a new license to a licensee
27 whose license has been revoked when facts or conditions which
28 clearly would have warranted the Director in refusing
29 originally to issue the license no longer exist.
30 (f) (Blank). No licensee shall be fined and no license
31 shall be revoked or suspended until the licensee receives the
32 notice of hearing and an opportunity to be heard thereat.
33 Whenever a licensee is fined or a license is revoked or
34 suspended, the Director shall, within 20 days thereafter,
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1 prepare and keep on file in its office a written order of the
2 fine, revocation or suspension. The order shall contain the
3 Director's findings with respect thereto and the reasons
4 supporting the fine, suspension, or revocation, and the
5 Director shall send a copy thereof by registered mail to the
6 licensee at the address set forth in the license within 5
7 days after the filing of such order. The cost of such hearing
8 shall be borne by the licensee.
9 (g) In every case in which a license is suspended or
10 revoked or an application for a license or renewal of a
11 license is denied, the Director shall serve the licensee with
12 notice of his or her action, including a statement of the
13 reasons for his or her actions, either personally, or by
14 certified mail, return receipt requested. Service by
15 certified mail shall be deemed completed when the notice is
16 deposited in the U.S. Mail.
17 (h) An order assessing a fine, an order revoking or
18 suspending a license or, an order denying renewal of a
19 license shall take effect upon service of the order unless
20 the licensee requests, in writing, within 10 days after the
21 date of service, a hearing. In the event a hearing is
22 requested, the order shall be stayed until a final
23 administrative order is entered.
24 (i) If the licensee requests a hearing, the Director
25 shall schedule a hearing within 30 days after the request for
26 a hearing unless otherwise agreed to by the parties.
27 (j) The hearing shall be held at the time and place
28 designated by the Director. The Director and any
29 administrative law judge designated by him or her shall have
30 the power to administer oaths and affirmations, subpoena
31 witnesses and compel their attendance, take evidence, and
32 require the production of books, papers, correspondence, and
33 other records or information that he or she considers
34 relevant or material to the inquiry.
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1 (k) The costs for the administrative hearing shall be
2 set by rule.
3 (l) The Director shall have the authority to prescribe
4 rules for the administration of this Section.
5 (Source: P.A. 84-1004.)
6 (205 ILCS 670/9.1 new)
7 Sec. 9.1. Closing of business; surrender of license. At
8 least 10 days prior to a licensee ceasing operations, closing
9 business, or filing for bankruptcy, the licensee shall:
10 (a) Notify the Department of its action in writing.
11 (b) Surrender its license to the Director for
12 cancellation. The surrender of the license shall not affect
13 the licensee's civil or criminal liability for acts committed
14 prior to surrender or entitle the licensee to a return of any
15 part of the annual license fee.
16 (c) The licensee shall notify the Department of the
17 location where the books, accounts, contracts, and records
18 will be maintained and the procedure to ensure prompt return
19 of contracts, titles, and releases to the customers.
20 (d) The accounts, books, records, and contracts shall be
21 maintained and serviced by the licensee or another licensee
22 under this Act, or an entity exempt from licensure under this
23 Act.
24 (e) The Department shall have the authority to conduct
25 examinations of the books, records, and loan documents at any
26 time after surrender of the license, filing of bankruptcy, or
27 the cessation of operations.
28 (205 ILCS 670/10) (from Ch. 17, par. 5410)
29 Sec. 10. Investigation of conduct of business. For the
30 purpose of discovering violations of this Act or securing
31 information lawfully required by it hereunder, the Director
32 may at any time investigate the loans and business and
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1 examine the books, accounts, records, and files used therein,
2 of every licensee and of every person, partnership
3 co-partnership, association, limited liability company, and
4 corporation engaged in the business described in Section 1 of
5 this Act, whether such person, partnership co-partnership,
6 association, limited liability company, or corporation shall
7 act or claim to act as principal or agent or within or
8 without the authority of this Act. For such purpose the
9 Director shall have free access to the offices and places of
10 business, books, accounts, papers, records, files, safes, and
11 vaults of such persons, partnerships co-partnerships,
12 associations, limited liability companies, and corporations.
13 The Director may require the attendance of and examine under
14 oath all persons whose testimony he or she it may require
15 relative to such loans or such business, and in such cases
16 the Director and the Supervisor of Consumer Credit shall each
17 have power to administer oaths to all persons called as
18 witnesses; and the Director or his designee may conduct such
19 examinations.
20 The Director or his designee shall make an examination of
21 the affairs, business, office and records of each licensee as
22 considered necessary, and at least once each year. The
23 Director shall by rule and regulation set the fee to be
24 charged for each examination day, including travel expenses
25 for out-of-state licensed locations. The fee shall
26 reasonably reflect actual costs. The Director shall also
27 have authority to examine the books and records of any
28 business made by a former licensee which is being liquidated,
29 as the Director deems necessary, and may charge the
30 examination fees otherwise required for licensees.
31 (Source: P.A. 84-1004.)
32 (205 ILCS 670/11) (from Ch. 17, par. 5411)
33 Sec. 11. Books and records - Reports.
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1 (a) Every licensee shall retain and use in his business
2 or at another location approved by the Director such records
3 as are required by the Director to enable the Director to
4 determine whether the licensee is complying with the
5 provisions of this Act and the rules and regulations
6 promulgated pursuant to this Act hereunder. Every licensee
7 shall preserve the records of any loan for at least 2 years
8 after making the final entry for such loan. Accounting
9 systems maintained in whole or in part by mechanical or
10 electronic data processing methods which provide information
11 equivalent to that otherwise required and follow generally
12 accepted accounting principles are acceptable for that
13 purpose, if approved by the Director in writing.
14 (b) Each licensee shall annually, on or before the first
15 day of March, file a report with the Director (which shall be
16 used only for the official purposes of the Director) giving
17 such relevant information as the Director may reasonably
18 require concerning the business and operations during the
19 preceding calendar year of each licensed place of business
20 conducted by the licensee within the State. The report shall
21 be made under oath and in a form prescribed by the Director.
22 Whenever a licensee operates 2 or more licensed offices or
23 whenever 2 or more affiliated licensees operate licensed
24 offices, a composite report of such group of licensed offices
25 may be filed in lieu of individual reports. The Director may
26 shall make and publish annually an analysis and
27 recapitulation of such reports. The Director may shall fine
28 each licensee $25 for each day beyond March 1 such report is
29 filed.
30 (Source: P.A. 84-1004.)
31 (205 ILCS 670/12) (from Ch. 17, par. 5412)
32 Sec. 12. Other business.
33 (a) Upon application by the licensee, and approval by
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1 the Director, the Director may approve the conduct of other
2 businesses not specifically permitted by this Act in the
3 licensee's place of business including, but not limited to,
4 brokering, making, buying, selling or otherwise dealing in
5 any loans and soliciting, effecting or selling any type of
6 insurance provided that all such insurance transactions are
7 conducted in accordance with and are regulated under the
8 "Illinois Insurance Code", approved June 29, 1937, as
9 amended, unless the Director finds that such conduct will
10 conceal or facilitate evasion or violation of this Act. Such
11 approval shall be in writing and shall describe the other
12 businesses which may be conducted in the licensed office. A
13 licensee under this Act may, without the written approval of
14 the Director, conduct the business of a sales finance agency
15 in compliance with the "Sales Finance Agency Act", approved
16 July 26, 1967, as amended, and the business of extending
17 revolving credit in compliance with the provisions of "An Act
18 in relation to the rate of interest and other charges in
19 connection with sales on credit and the lending of money",
20 approved May 24, 1879, as amended.
21 (b) A licensee may without notice to and approval of the
22 Director, in addition to the business permitted by this Act,
23 conduct the following business:
24 (1) The business of a sales finance agency as
25 defined in the Sales Finance Agency Act.
26 (2) The business of soliciting or selling any type
27 of insurance provided that all such insurance
28 transactions are conducted in accordance with and are
29 regulated under the Illinois Insurance Code.
30 (3) The business of financing premiums for
31 insurance.
32 (4) Making loans pursuant to the Financial Services
33 Development Act.
34 The Director shall make and enforce such reasonable rules and
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1 regulations for the conduct of business under this Act in the
2 same office with other businesses as may be necessary to
3 prevent evasions or violations of this Act. The Director may
4 investigate any business conducted in the licensed office to
5 determine whether any evasion or violation of this Act has
6 occurred.
7 (Source: P.A. 85-1264.)
8 (205 ILCS 670/12.5 new)
9 Sec. 12.5. Limited purpose branch.
10 (a) Upon the written approval of the Director, a
11 licensee may maintain a limited purpose branch for the sole
12 purpose of making loans as permitted by this Act. A limited
13 purpose branch may include an automatic loan machine. No
14 other activity shall be conducted at the site, including but
15 not limited to, accepting payments, servicing the accounts,
16 or collections.
17 (b) The licensee must submit an application for a
18 limited purpose branch to the Director on forms prescribed by
19 the Director with an application fee of $300. The approval
20 for the limited purpose branch must be renewed concurrently
21 with the renewal of the licensee's license along with a
22 renewal fee of $300 for the limited purpose branch.
23 (c) The books, accounts, records, and files of the
24 limited purpose branch's transactions shall be maintained at
25 the licensee's licensed location. The licensee shall notify
26 the Director of the licensed location at which the books,
27 accounts, records, and files shall be maintained.
28 (d) The licensee shall prominently display at the
29 limited purpose branch the address and telephone number of
30 the licensee's licensed location.
31 (e) No other business shall be conducted at the site of
32 the limited purpose branch unless authorized by the Director.
33 (f) The Director shall make and enforce reasonable rules
HB2211 Enrolled (corrected) -28- LRB9004659SMdv
1 for the conduct of a limited purpose branch.
2 (g) A limited purpose branch may not be located within
3 1,000 feet of a facility operated by an inter-track wagering
4 licensee or an organization licensee subject to the Illinois
5 Horse Racing Act of 1975, on a riverboat subject to the
6 Riverboat Gambling Act, or within 1,000 feet of the location
7 at which the riverboat docks.
8 (205 ILCS 670/13) (from Ch. 17, par. 5413)
9 Sec. 13. Prohibition against taking power of attorney. No
10 licensee shall take any power of attorney except to cancel
11 any policies of insurance financed by the licensee as
12 permitted by this Act and to receive either rebate of
13 unearned premiums or loss payments acknowledge the execution
14 of an instrument or to confess judgment.
15 (Source: Laws 1963, p. 3526.)
16 (205 ILCS 670/14) (from Ch. 17, par. 5414)
17 Sec. 14. Pledge or sale of note. No licensee or other
18 person shall pledge, hypothecate or sell a note entered into
19 under the provisions of this Act executed or security
20 deposited by an obligor except by an agreement authorizing
21 the Director in his discretion to examine the documents so
22 hypothecated, pledged or sold. No licensee shall sell such
23 note or security except to another licensee under this Act, a
24 licensee under the Sales Finance Agency Act, a bank, savings
25 bank, savings and loan association, or credit union created
26 under the laws of this State or the United States, the
27 Collection Agency Act, or to other persons or entities
28 authorized by the Director in writing. Sales of such notes
29 by licensees under this Act or other persons shall be made by
30 agreement in writing and shall authorize the Director to
31 examine the loan documents so hypothecated, pledged, or sold.
32 (Source: P.A. 84-1004.)
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1 (205 ILCS 670/15) (from Ch. 17, par. 5415)
2 Sec. 15. Charges Rates of charge permitted.
3 (a) Every licensee hereunder may lend a principal amount
4 not exceeding $25,000 $10,000 and may charge, contract for
5 and receive thereon interest at the actuarial rate or rates
6 agreed upon by the licensee and the borrower, subject to the
7 provisions of this Act.
8 (b) For purpose of this Section, the following terms
9 shall have the meanings ascribed herein.
10 "Actuarial method" means the method of allocating
11 payments made on a loan between the principal amount and
12 interest whereby a payment is applied first to the
13 accumulated interest and then to the unpaid principal amount.
14 "Applicable interest" for a precomputed loan contract
15 means the amount of interest attributable to each monthly
16 installment period. It is computed as if each installment
17 period were one month and any interest charged for extending
18 the first installment period beyond one month is ignored.
19 The applicable interest for any monthly installment period is
20 that portion of the precomputed interest that bears the same
21 ratio to the total precomputed interest as the balances
22 scheduled to be outstanding during that month bear to the sum
23 of all scheduled monthly outstanding balances in the original
24 contract.
25 "Interest-bearing loan" means a loan in which the debt is
26 expressed as a principal amount plus interest charged on
27 actual unpaid principal balances for the time actually
28 outstanding.
29 "Precomputed loan" means a loan in which the debt is
30 expressed as the sum of the original principal amount plus
31 interest computed actuarially in advance, assuming all
32 payments will be made when scheduled.
33 (c) Loans may be interest-bearing or precomputed.
34 (d) To compute time for either interest-bearing or
HB2211 Enrolled (corrected) -30- LRB9004659SMdv
1 precomputed loans for the calculation of interest and other
2 purposes, a month shall be a calendar month and a day shall
3 be considered 1/30th of a month when calculation is made for
4 a fraction of a month. A month shall be 1/12th of a year. A
5 calendar month is that period from a given date in one month
6 to the same numbered date in the following month, and if
7 there is no same numbered date, to the last day of the
8 following month. When a period of time includes a month and
9 a fraction of a month, the fraction of the month is
10 considered to follow the whole month. In the alternative,
11 for interest-bearing loans, the licensee may charge interest
12 at the rate of 1/365th of the agreed annual rate for each day
13 actually elapsed.
14 (e) With respect to interest-bearing loans:
15 (1) Interest shall be computed on unpaid principal
16 balances outstanding from time to time, for the time
17 outstanding, until fully paid. Each payment shall be applied
18 first to the accumulated interest and the remainder of the
19 payment applied to the unpaid principal balance; provided
20 however, that if the amount of the payment is insufficient to
21 pay the accumulated interest, the unpaid interest continues
22 to accumulate to be paid from the proceeds of subsequent
23 payments and is not added to the principal balance.
24 (2) Interest shall not be payable in advance or
25 compounded. However, if part or all of the consideration for
26 a new loan contract is the unpaid principal balance of a
27 prior loan, then the principal amount payable under the new
28 loan contract may include any unpaid interest which has
29 accrued. The unpaid principal balance of a precomputed loan
30 is the balance due after refund or credit of unearned
31 interest as provided in paragraph (f), clause (3). The
32 resulting loan contract shall be deemed a new and separate
33 loan transaction for all purposes.
34 (3) Loans may be payable as agreed between the parties,
HB2211 Enrolled (corrected) -31- LRB9004659SMdv
1 including payment at irregular times or in unequal amounts
2 and rates that may vary with an index that is independently
3 verifiable and beyond the control of the licensee.
4 (4) The lender or creditor may, if the contract
5 provides, collect a delinquency or collection charge on each
6 installment in default for a period of not less than 10 days
7 in an amount not exceeding 5% of the installment on
8 installments in excess of $200, or $10 on installments of
9 $200 or less, but only one delinquency and collection charge
10 may be collected on any installment regardless of the period
11 during which it remains in default.
12 (f) With respect to precomputed loans:
13 (1) Loans shall be repayable in substantially equal and
14 consecutive monthly installments of principal and interest
15 combined, except that the first installment period may be
16 longer than one month by not more than 15 days, and the first
17 installment payment amount may be larger than the remaining
18 payments by the amount of interest charged for the extra
19 days; and provided further that monthly installment payment
20 dates may be omitted to accommodate borrowers with seasonal
21 income.
22 (2) Payments may be applied to the combined total of
23 principal and precomputed interest until the loan is fully
24 paid. Payments shall be applied in the order in which they
25 become due, except that any insurance proceeds received as a
26 result of any claim made on any insurance, unless sufficient
27 to prepay the contract in full, may be applied to the unpaid
28 installments of the total of payments in inverse order.
29 (3) When any loan contract is paid in full by cash,
30 renewal or refinancing, or a new loan, one month or more
31 before the final installment due date, a licensee shall
32 refund or credit the obligor borrower with the total of the
33 applicable interest for all fully unexpired installment
34 periods, as originally scheduled or as deferred, which follow
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1 the day of prepayment; provided, if the prepayment occurs
2 prior to the first installment due date, the licensee may
3 retain 1/30 of the applicable interest for a first
4 installment period of one month for each day from the date of
5 the loan to the date of prepayment, and shall refund or
6 credit the obligor borrower with the balance of the total
7 interest contracted for. If the maturity of the loan is
8 accelerated for any reason and judgment is entered, the
9 licensee shall credit the borrower with the same refund as if
10 prepayment in full had been made on the date the judgement is
11 entered.
12 (4) The lender or creditor may, if the contract
13 provides, collect a delinquency or collection charge on each
14 installment in default for a period of not less than 10 days
15 in an amount not exceeding 5% of the installment on
16 installments in excess of $200, or $10 on installments of
17 $200 or less, but only one delinquency or collection charge
18 may be collected on any installment regardless of the period
19 during which it remains in default. If an installment is not
20 paid in full within 10 days of its scheduled due date, a
21 licensee may contract for and receive a default charge not
22 exceeding 5% of the amount of the installment.
23 (5) If the parties agree in writing, either in the loan
24 contract or in a subsequent agreement, to a deferment of
25 wholly unpaid installments, a licensee may grant a deferment
26 and may collect a deferment charge as provided in this
27 Section. A deferment postpones the scheduled due date of the
28 earliest unpaid installment and all subsequent installments
29 as originally scheduled, or as previously deferred, for a
30 period equal to the deferment period. The deferment period
31 is that period during which no installment is scheduled to be
32 paid by reason of the deferment. The deferment charge for a
33 one month period may not exceed the applicable interest for
34 the installment period immediately following the due date of
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1 the last undeferred payment. A proportionate charge may be
2 made for deferment for periods of more or less than one
3 month. A deferment charge is earned pro rata during the
4 deferment period and is fully earned on the last day of the
5 deferment period. Should a loan be prepaid in full during a
6 deferment period, the licensee shall credit to the obligor
7 borrower a refund of the unearned deferment charge in
8 addition to any other refund or credit made for prepayment of
9 the loan in full.
10 (6) If two or more installments are delinquent one full
11 month or more on any due date, and if the contract so
12 provides, the licensee may reduce the unpaid balance by the
13 refund credit which would be required for prepayment in full
14 on the due date of the most recent maturing installment in
15 default. Thereafter, and in lieu of any other default or
16 deferment charges, the agreed rate of interest may be charged
17 on the unpaid balance until fully paid.
18 (7) Fifteen days after the final installment as
19 originally scheduled or deferred, the licensee, for any loan
20 contract which has not previously been converted to
21 interest-bearing under paragraph (f), clause (6), may compute
22 and charge interest on any balance remaining unpaid,
23 including unpaid default or deferment charges, at the agreed
24 rate of interest until fully paid. At the time of payment of
25 said final installment, the licensee shall give notice to the
26 obligor borrower stating any amounts unpaid and that the
27 borrower has fifteen days to pay such amount without having
28 interest computed and charged on such amount.
29 (Source: P.A. 84-1004.)
30 (205 ILCS 670/15a) (from Ch. 17, par. 5416)
31 Sec. 15a. Credit insurance. Voluntary credit life
32 insurance, and credit accident and health insurance,
33 involuntary unemployment insurance, credit property
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1 insurance, or other credit insurance policies approved or
2 permitted by the Director of Insurance and any charge
3 therefor which is deducted from the loan or paid by the
4 obligor shall comply with the Illinois Insurance Code Article
5 IX1/2 of the "Illinois Insurance Code", approved June 29,
6 1937, as heretofore and hereafter amended, and all lawful
7 requirements of the Director of Insurance related thereto.
8 When there are 2 or more obligors on the loan contract, only
9 one charge for credit life insurance and credit accident and
10 health insurance may be made and only one of the obligors
11 need be required to be insured, except that joint credit
12 insurance may cover two obligors. Insurance obtained from, by
13 or through a licensee shall be in effect when the loan is
14 transacted. The purchase of such insurance through the
15 licensee or from an agent, broker or insurer specified by the
16 licensee shall not be a condition precedent to the granting
17 of the loan.
18 (Source: P.A. 84-1004.)
19 (205 ILCS 670/15b) (from Ch. 17, par. 5417)
20 Sec. 15b. Property insurance.
21 (a) A licensee may require the obligor to provide
22 property damage insurance on real and personal property, all
23 or part of which serves as security against reasonable risks
24 of loss, damage, and destruction in connection with loans
25 exceeding an original principal amount of $500. The amount
26 and term of the insurance shall be reasonable in relation to
27 the amount and term of the loan contract and the type and
28 value of the property, and the insurance shall be procured in
29 accordance with the insurance laws of this State. The
30 purchase of such insurance through the licensee or from an
31 agent, broker or insurer specified by the licensee shall not
32 be a condition precedent to the granting of the loan. The
33 premium charged shall not exceed that charged by the
HB2211 Enrolled (corrected) -35- LRB9004659SMdv
1 insurance company.
2 (b) If the obligor fails to furnish evidence that he has
3 procured insurance on the property, the licensee may purchase
4 substitute insurance that may be substantially equivalent to
5 or more limited than coverage the obligor is required to
6 maintain. Such insurance must comply with the Collateral
7 Protection Act.
8 (Source: P.A. 84-1004.)
9 (205 ILCS 670/15d) (from Ch. 17, par. 5419)
10 Sec. 15d. Extra charges prohibited; exceptions. No amount
11 in addition to the charges authorized by this Act shall be
12 directly or indirectly charged, contracted for, or received,
13 except (1) lawful fees paid to any public officer or agency
14 to record, file or release security; (2) (i) costs and
15 disbursements actually incurred in connection with a real
16 estate loan, for any title insurance, title examination,
17 abstract of title, survey, or appraisal, or paid to a trustee
18 in connection with a trust deed, and (ii) in connection with
19 a real estate loan those charges authorized by Section 4.1a
20 of the Interest Act, whether called "points" or otherwise,
21 which charges are imposed as a condition for making the loan
22 and are not refundable in the event of prepayment of the
23 loan; (3) costs and disbursements, including reasonable
24 attorney's fees, incurred in legal proceedings to collect a
25 loan or to realize on a security after default; and (4) an
26 amount not exceeding $25 $10, plus any actual expenses
27 incurred in connection therewith, if any check given to a
28 licensee in connection with a check or draft that loan is not
29 honored because of insufficient or uncollected funds or
30 because no such account exists; and (5) a document
31 preparation fee not to exceed $25 for obtaining and reviewing
32 credit reports and preparation of other documents. This
33 Section does not prohibit the receipt of a commission,
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1 dividend, charge, or other benefit by the licensee or by an
2 employee, affiliate, or associate of the licensee from the
3 insurance permitted by Sections 15a and 15b of this Act or
4 from insurance in lieu of perfecting a security interest
5 provided that the premiums for such insurance do not exceed
6 the fees that otherwise could be contracted for by the
7 licensee under this Section item (1). Obtaining any of the
8 items referred to in clause (i) of item (2) of this Section
9 through the licensee or from any person specified by the
10 licensee shall not be a condition precedent to the granting
11 of the loan.
12 (Source: P.A. 89-400, eff. 8-20-95.)
13 (205 ILCS 670/15e) (from Ch. 17, par. 5419.1)
14 Sec. 15e. Other Insurance.
15 (a) A licensee shall not be considered to be the
16 obligor's borrower's agent or broker in connection with the
17 purchase or sale of insurance under this Act for any purpose.
18 (b) Consideration or another thing of value may be paid
19 to or retained by the licensee, or an affiliate of the
20 licensee, in connection with any insurance, debt cancellation
21 contract, or other such product purchased pursuant to the
22 loan made or held by the licensee, and all or a portion of
23 the consideration may be included in the amount charged to
24 the obligor, so long as the licensee discloses to the obligor
25 that either the licensee or an affiliate may receive
26 something of value in connection with the purchase by the
27 obligor.
28 (Source: P.A. 83-657.)
29 (205 ILCS 670/16) (from Ch. 17, par. 5420)
30 Sec. 16. Disclosure of Terms of Contract. In any loan
31 transaction under this Act, the licensee must disclose the
32 following items to the obligor of the loan before the
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1 transaction is consummated:
2 (a) The amount and date of the loan contract;
3 (b) The amount of the loan credit using the term "amount
4 financed";
5 (c) Any Every deduction from the amount financed or
6 payment made by the obligor for insurance and the type of
7 insurance for which each deduction or payment was made;
8 (d) Any additional Every other deduction from the loan
9 or payment made by the obligor in connection with obtaining
10 the loan;
11 (e) The date on which the finance charge begins to
12 accrue if different from the date of the transaction;
13 (f) The total amount of the loan charge with a
14 description of each amount included using the term "finance
15 charge";
16 (g) The finance charge expressed as an annual percentage
17 rate using the term "annual percentage rate".
18 "Annual percentage rate" means the nominal annual
19 percentage rate of finance charge determined in accordance
20 with the actuarial method of computation with an accuracy at
21 least to the nearest 1/4 of 1%; or at the option of the
22 licensee by application of the United States rule so that it
23 may be disclosed with an accuracy at least to the nearest 1/4
24 of 1%;
25 (h) The number, amount and due dates or periods of
26 payments scheduled to repay the loan and the sum of such
27 payments using the term "total of payments";
28 (i) The amount, or method of computing the amount of any
29 default, delinquency or similar charges payable in the event
30 of late payments;
31 (j) The right of the obligor to prepay the loan in full
32 on any installment date and the fact that such prepayment in
33 full will reduce the insurance charge for the loan;
34 (k) A description or identification of the type of any
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1 security interest held or to be retained or acquired by the
2 licensee in connection with the loan and a clear
3 identification of the property to which the security interest
4 relates. If after-acquired property will be subject to the
5 security interest, or if other or future indebtedness is or
6 may be secured by any such property, this fact shall be
7 clearly set forth in conjunction with the description or
8 identification of the type of security interest held,
9 retained or acquired;
10 (l) A description of any penalty charge that may be
11 imposed by the licensee for prepayment of the principal of
12 the obligation with an explanation of the method of
13 computation of such penalty and the conditions under which it
14 may be imposed;
15 (m) Identification and description of the method of
16 computing any unearned portion of the finance charge in the
17 event of prepayment of the loan, and if the licensee uses the
18 "Rule of 78THS" method, including a statement explaining such
19 method substantially as follows:
20 Unearned finance charges under the Rule of 78ths are
21 computed by calculating for all fully unexpired monthly
22 installment periods, as originally scheduled or deferred,
23 which follow the day of prepayment, the portion of the
24 precomputed interest that bears the same ratio to the
25 total precomputed interest as the balances scheduled to
26 be outstanding during that monthly installment period
27 bear to the sum of all scheduled monthly outstanding
28 balances originally contracted for.
29 The description shall also include an example of its
30 application solely for purposes of illustration in
31 substantially the following form:
32 PREPAYMENT - "RULE OF 78THS"
33 Unearned Original Sum of balances due every month after
34 prepayment
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1 = X ___________________________________
2 Charge Charge* Sum of balances due every month of
3 contract
4 *for Finance Charge (excluding any charges added for a first
5 payment period of more than one month) or credit insurance
6 charges.
7 Example: 12 monthly payments of $10 (balance is $120 1st
8 month, $110 2nd month, and so on), $20 Finance Charge. If 5
9 payments are prepaid in full, unearned Finance Charge is:
10 50+40+30+20+10
11 $20 x _________________________________ =$3.85
12 120+110+100+90+80+70+60+50+40+30+20+10
13 The terms "finance charge" and "annual percentage rate"
14 shall be printed more conspicuously than other terminology
15 required by this Section.
16 At the time disclosures are made, the licensee shall
17 deliver to the obligor a duplicate of the instrument or
18 statement by which the required disclosures are made and on
19 which the licensee and obligor are identified and their
20 addresses stated. All of the disclosures shall be made
21 clearly, conspicuously and in meaningful sequence and made
22 together on either:
23 (i) the note or other instrument evidencing the
24 obligation. Where a creditor elects to combine disclosures
25 with the contract, security agreement, and evidence of a
26 transaction in a single document, the disclosures required
27 under Section 16 shall be made on the face of the document,
28 on the reverse side, or on both sides, provided that the
29 amount of the finance charge and the annual percentage rate
30 shall appear on the face of the document, and, if the reverse
31 side is used, the printing on both sides of the document
32 shall be equally clear and conspicuous, both sides shall
33 contain the statement, "NOTICE: See other side for important
34 information", and the place for the obligor's customer's
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1 signature shall be provided following the full content of the
2 document; or
3 (ii) One side of a separate statement which identifies
4 the transaction.
5 The amount of the finance charge shall be determined as
6 the sum of all charges, payable directly or indirectly by the
7 obligor and imposed directly or indirectly by the licensee as
8 an incident to or as a condition to the extension of credit,
9 whether paid or payable by the obligor, any other person on
10 behalf of the obligor, to the licensee or to a third party,
11 including any of the following types of charges:
12 (1) Interest, time price differential, and any amount
13 payable under a discount or other system of additional
14 charges.
15 (2) Service, transaction, activity, or carrying charge.
16 (3) Loan fee, points, finder's fee, or similar charge.
17 (4) Fee for an appraisal, investigation, or credit
18 report.
19 (5) Charges or premiums for credit life, accident,
20 health, or loss of income insurance, written in connection
21 with any credit transaction unless:
22 (i) the insurance coverage is not required by the
23 licensee and this fact is clearly and conspicuously disclosed
24 in writing to the obligor; and
25 (ii) any obligor desiring such insurance coverage gives
26 specific dated and separately signed affirmative written
27 indication of such desire after receiving written disclosure
28 to him of the cost of such insurance.
29 (6) Charges or premiums for insurance, written in
30 connection with any credit transaction, against loss of or
31 damage to property or against liability arising out of the
32 ownership or use of property unless a clear, conspicuous, and
33 specific statement in writing is furnished by the licensee to
34 the obligor setting forth the cost of the insurance if
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1 obtained from or through the licensee and stating that the
2 obligor may choose the person through which the insurance is
3 to be obtained.
4 (7) Premium or other charge for any other guarantee or
5 insurance protecting the licensee against the obligor's
6 default or other credit loss.
7 (8) Any charge imposed by a licensee upon another
8 licensee for purchasing or accepting an obligation of an
9 obligor if the obligor is required to pay any part of that
10 charge in cash, as an addition to the obligation, or as a
11 deduction from the proceeds of the obligation.
12 A late payment, delinquency, default, reinstatement or
13 other charge is not a finance charge if imposed for actual
14 unanticipated late payment, delinquency, default or other
15 occurrence.
16 A licensee who complies with the federal Truth in Lending
17 Act, amendments thereto, and any regulations issued or which
18 may be issued thereunder, shall be deemed to be in compliance
19 with the provisions of this Section, except with respect to
20 the disclosure in paragraph (m), which may be set forth in
21 any manner.
22 (Source: P.A. 86-385.)
23 (205 ILCS 670/17) (from Ch. 17, par. 5423)
24 Sec. 17. Maximum term and amount. The loan contract shall
25 provide for repayment of the principal and charges within 181
26 121 months from the date of the loan contract or the last
27 advance, if any, required by the loan contract. No licensee
28 shall permit an obligor to owe such licensee or an affiliate
29 (including a corporation owned or managed by the licensee) or
30 agent of such licensee an aggregate principal amount of more
31 than $25,000 $10,000 at any time for loans transacted
32 pursuant to this Act.
33 (Source: P.A. 84-1004.)
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1 (205 ILCS 670/18) (from Ch. 17, par. 5424)
2 Sec. 18. Advertising. Advertising for loans transacted
3 under this Act may not be false, misleading or deceptive.
4 That advertising, if it states a rate or rates or amount of
5 charge for a loan, must state the rate or rates as an annual
6 percentage rate or rates. No licensee person whose loans are
7 regulated under this Act may advertise in any manner so as to
8 indicate or imply that his interest rates or charges for
9 loans are in any way "recommended", "approved", "set" or
10 "established" by the State government or by this Act. The
11 Director may issue a cease and desist order for any violation
12 of this Section.
13 If any advertisement to which this Section applies states
14 the amount of any installment payment, the dollar amount of
15 any finance charge, or the number of installments or the
16 period of repayment, then the advertisement shall state all
17 of the following items:
18 (1) The amount of the loan.
19 (2) The number, amount, and due dates or period of
20 payments scheduled to repay the indebtedness if the credit is
21 extended.
22 (3) The rate of the finance charge expressed as an
23 annual percentage rate.
24 (Source: P.A. 84-1004.)
25 (205 ILCS 670/19.1) (from Ch. 17, par. 5425.1)
26 Sec. 19.1. Where the licensee repossesses a motor vehicle
27 that was used as collateral and which is used primarily for
28 the obligor's borrower's personal, family or household
29 purposes, and the obligor borrower at the time of
30 repossession has paid an amount equal to 30% or more of the
31 total of payments due, the obligor borrower may, within 15
32 days, reinstate the contract and recover redeem the motor
33 vehicle from the licensee by tendering:
HB2211 Enrolled (corrected) -43- LRB9004659SMdv
1 (a) the total of all unpaid amounts, including any
2 unpaid delinquency or deferral charges due, without
3 acceleration; and
4 (b) performance necessary to cure any default other than
5 nonpayment of the amounts due; and
6 (c) any reasonable cost or fees incurred by the licensee
7 in the retaking of the goods. Tender of payment and
8 performance pursuant to this Section restores to the obligor
9 borrower his rights under the loan as though no default had
10 occurred. The obligor borrower has a right to reinstate the
11 contract and recover redeem the collateral from the licensee
12 only once under this Section.
13 The licensee must give written notice to the obligor
14 borrower, within 3 days of the repossession, of the obligor's
15 borrower's right to reinstate the contract and recover redeem
16 the collateral pursuant to this Section. The Written notice
17 shall be in substantially the following form:
18 NOTICE OF RIGHT TO RECOVER VEHICLE
19 Your car was repossessed on (specify date) for failure to
20 make payments on the loan (or other reason).
21 Under Illinois law, because you have paid at least 30% of
22 the loan before repossession, you may be able to get the car
23 back. To recover the car and reinstate the loan you must do
24 the following within 15 days of the date of repossession:
25 1. Make payment of all back payments as
26 of the date of this notice so that
27 you are current on the loan. $...........
28 2. Pay any late charge due. $...........
29 3. Pay the costs of repossession. $...........
30 Total due as of the date of this
31 notice plus any additional amounts
32 which may become due between the date
33 of the notice and the date of
34 reinstatement. $...........
HB2211 Enrolled (corrected) -44- LRB9004659SMdv
1 Total $...........
2 Bring cash, a certified check or money order for the
3 total amount plus any amounts which may become due between
4 the date of the notice and the date of reinstatement listed
5 above to our office located at (specify address) by (specify
6 date) to get your car back.
7 (Source: P.A. 86-421.)
8 (205 ILCS 670/20) (from Ch. 17, par. 5426)
9 Sec. 20. Penalties for violation.
10 (a) Any person who engages in business as a Consumer
11 Installment Loan lender without the license required by this
12 Act shall be guilty of a Class 4 felony., co-partnership,
13 association, or corporation and the several members,
14 officers, directors, agents, and employees thereof, who
15 violates or participates in the violation of a provision of
16 Section 1, 15, 15a, 15b, 15d, 16b, 17, 18 or 19.1 of this
17 Act, shall be guilty of a business offense and punishable by
18 a fine of not less than $100 nor more than $1000 for each
19 offense; a natural person convicted of such violations shall
20 be guilty of a Class A misdemeanor.
21 (b) Any person, co-partnership, association, or
22 corporation who violates a provision of Section 1, 15, 15a,
23 15b, 15d, 16b, or 17 of this Act, in connection with
24 transacting or collecting a loan regulated by this Act, shall
25 not be entitled to collect any interest on such loan. The
26 obligor, prior to the expiration of 2 years after the date of
27 his last scheduled payment, may recover any such interest
28 paid plus such reasonable attorney's fees and court costs as
29 a court may assess against such licensee or lender for a
30 violation of Sections 1, 12, 15, 15a, 15b, 15d, 15e, 16, 17,
31 18, or 19.1. The balance due under the terms of the loan
32 contract shall be reduced by the amount which the obligor is
33 thus entitled to recover. A bona fide error by a licensee in
HB2211 Enrolled (corrected) -45- LRB9004659SMdv
1 calculating charges or rebates is not a violation if the
2 licensee corrects the error within a reasonable time, after
3 discovery.
4 (b-5) A license issued under this Act may be revoked if
5 the licensee, or any directors, managers of a limited
6 liability company, partners, or officer thereof is convicted
7 of a felony.
8 (c) No provision of this Section imposing any liability
9 shall apply to any act done or omitted in good faith in
10 conformity with any rule or regulation or written
11 interpretation thereof by the Department of Financial
12 Institutions or any other department or agency of the State,
13 notwithstanding that after such act or omission has occurred,
14 such rule, regulation or interpretation is amended, rescinded
15 or determined by judicial or other authority to be invalid
16 for any reason. All interpretations issued after January 1,
17 1998 must be written and signed by the Department's Chief
18 Counsel and approved by the Director.
19 (Source: P.A. 86-421; 86-1222.)
20 (205 ILCS 670/20.5 new)
21 Sec. 20.5. Cease and desist.
22 (a) The Director may issue a cease and desist order to
23 any licensee, or other person doing business without the
24 required license, when in the opinion of the Director, the
25 licensee, or other person, is violating or is about to
26 violate any provision of this Act or any rule or requirement
27 imposed in writing by the Department as a condition of
28 granting any authorization permitted by this Act.
29 (b) The Director may issue a cease and desist order
30 prior to a hearing.
31 (c) The Director shall serve notice of his or her
32 action, designated as a cease and desist order made pursuant
33 to this Section, including a statement of the reasons for the
HB2211 Enrolled (corrected) -46- LRB9004659SMdv
1 action, either personally or by certified mail, return
2 receipt requested. Service by certified mail shall be deemed
3 completed when the notice is deposited in the U.S. mail.
4 (d) Within 15 days of service of the cease and desist
5 order, the licensee or other person may request, in writing,
6 a hearing.
7 (e) The Director shall schedule a hearing within 30 days
8 after the request for a hearing unless otherwise agreed to by
9 the parties.
10 (f) The Director shall have the authority to prescribe
11 rules for the administration of this Section.
12 (g) If it is determined that the Director had the
13 authority to issue the cease and desist order, he or she may
14 issue such orders as may be reasonably necessary to correct,
15 eliminate, or remedy such conduct.
16 (h) The powers vested in the Director by this Section
17 are additional to any and all other powers and remedies
18 vested in the Director by law, and nothing in this Section
19 shall be construed as requiring that the Director shall
20 employ the power conferred in this Section instead of or as a
21 condition precedent to the exercise of any other power or
22 remedy vested in the Director.
23 (i) The cost for the administrative hearing shall be set
24 by rule.
25 (205 ILCS 670/20.7 new)
26 Sec. 20.7. Civil action. A claim of violation of this
27 Act may be asserted in a civil action.
28 (205 ILCS 670/21) (from Ch. 17, par. 5427)
29 Sec. 21. Application of act. This Act does not apply to
30 any person, partnership co-partnership, association, limited
31 liability company, or corporation doing business under and as
32 permitted by any law of this State or of the United States
HB2211 Enrolled (corrected) -47- LRB9004659SMdv
1 relating to banks trust companies, savings and loan
2 associations, savings banks, pawnbrokers, or credit unions,
3 or licensees under the Residential Mortgage License Act for
4 residential mortgage loans made pursuant to that Act. This
5 Act does not apply to business loans, meaning either loans to
6 corporations or loans to a business association or
7 co-partnership or to a person owning and operating a business
8 as sole proprietor if transacted solely for the purpose of
9 carrying on or acquiring the business of such business
10 association, co-partnership or person. A bank authorized to
11 transact business by the laws of this State or of the United
12 States may contract for and receive the charges authorized by
13 this Act without being licensed pursuant to this Act, but
14 shall comply with all other provisions of this Act when
15 contracting for or receiving charges on loans regulated by
16 this Act.
17 (Source: Laws 1963, p. 3526.)
18 (205 ILCS 670/22) (from Ch. 17, par. 5428)
19 Sec. 22. Rules and regulations. The Department may make
20 and enforce such reasonable rules, regulations, directions,
21 orders, decisions, and findings as the execution and
22 enforcement of the provisions of this Act require, and as are
23 not inconsistent therewith. All such rules, regulations,
24 directions, orders, decisions, and findings shall be filed
25 and entered by the Department in an indexed permanent book or
26 record, with the effective date thereof suitably indicated.
27 All rules, regulations and directions of a general character
28 shall be printed and copies thereof mailed to all licensees
29 within 10 days after such filing.
30 (Source: Laws 1963, p. 3526.)
31 (205 ILCS 670/23) (from Ch. 17, par. 5429)
32 Sec. 23. Judicial review. All final administrative
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1 decisions of the Department hereunder shall be subject to
2 judicial review pursuant to the provisions of the
3 Administrative Review Law, and all amendments and
4 modifications thereof, and any rules adopted pursuant
5 thereto. The term "administrative decision" is defined as in
6 Section 3-101 of the Code of Civil Procedure.
7 (Source: P.A. 82-783.)
8 (205 ILCS 670/24.5 new)
9 Sec. 24.5. Injunction; civil penalty; costs. If it
10 appears to the Director that a person or any entity has
11 committed or is about to commit a violation of this Act, a
12 rule promulgated under this Act, or an order of the Director,
13 the Director may apply to the circuit court for an order
14 enjoining the person or entity from violating or continuing
15 to violate this Act, the rule, or order and for injunctive or
16 other relief that the nature of the case may require and may,
17 in addition, request the court to assess a civil penalty up
18 to $1,000 along with costs and attorney's fees.
19 (205 ILCS 670/4.1 rep.)
20 (205 ILCS 670/6 rep.)
21 (205 ILCS 670/19 rep.)
22 (205 ILCS 670/24 rep.)
23 Section 20. The Consumer Installment Loan Act is amended
24 by repealing Sections 4.1, 6, 19, and 24.
25 Section 23. The Interest Act is amended by changing
26 Section 4a as follows:
27 (815 ILCS 205/4a) (from Ch. 17, par. 6410)
28 Sec. 4a. Installment loan rate.
29 (a) On money loaned to or in any manner owing from any
30 person, whether secured or unsecured, except where the money
HB2211 Enrolled (corrected) -49- LRB9004659SMdv
1 loaned or in any manner owing is directly or indirectly for
2 the purchase price of real estate or an interest therein and
3 is secured by a lien on or retention of title to that real
4 estate or interest therein, to an amount not more than
5 $25,000 (excluding interest) which is evidenced by a written
6 instrument providing for the payment thereof in 2 or more
7 periodic installments over a period of not more than 181
8 months from the date of the execution of the written
9 instrument, it is lawful to receive or to contract to receive
10 and collect either:
11 (i) interest in an amount equivalent to interest
12 computed at a rate not exceeding 9% per year on the
13 entire principal amount of the money loaned or in any
14 manner owing for the period from the date of the making
15 of the loan or the incurring of the obligation for the
16 amount owing evidenced by the written instrument until
17 the date of the maturity of the last installment thereof,
18 and to add that amount to the principal, except that
19 there shall be no limit on the rate of interest which may
20 be received or contracted to be received and collected by
21 (1) any bank that has its main office or, after May 31,
22 1997, a branch in this State; (2) a savings and loan
23 association chartered under the Illinois Savings and Loan
24 Act of 1985 or a federal savings and loan association
25 established under the laws of the United States and
26 having its main office in this State; or (3) any lender
27 licensed under either the Consumer Finance Act or, the
28 Consumer Installment Loan Act or the Sales Finance Agency
29 Act, but in any case in which interest is received,
30 contracted for or collected on the basis of this clause
31 (i), the debtor may satisfy in full at any time before
32 maturity the debt evidenced by the written instrument,
33 and in so satisfying must receive a refund credit against
34 the total amount of interest added to the principal
HB2211 Enrolled (corrected) -50- LRB9004659SMdv
1 computed in the manner provided under Section 15(f)(3) of
2 the Consumer Installment Loan Act for refunds or credits
3 of applicable interest on payment in full of precomputed
4 loans before the final installment due date; or
5 (ii) interest accrued on the principal balance from
6 time to time remaining unpaid, from the date of making of
7 the loan or the incurring of the obligation to the date
8 of the payment of the debt in full, at a rate not
9 exceeding the annual percentage rate equivalent of the
10 rate permitted to be charged under clause (i) above, but
11 in any such case the debtor may, provided that the debtor
12 shall have paid in full all interest and other charges
13 accrued to the date of such prepayment, prepay the
14 principal balance in full or in part at any time, and
15 interest shall, upon any such prepayment, cease to accrue
16 on the principal amount which has been prepaid.
17 (b) Whenever the principal amount of an installment loan
18 is $300 or more and the repayment period is 6 months or more,
19 a minimum charge of $15 may be collected instead of interest,
20 but only one minimum charge may be collected from the same
21 person during one year. When the principal amount of the loan
22 (excluding interest) is $800 or less, the lender or creditor
23 may contract for and receive a service charge not to exceed
24 $5 in addition to interest; and that service charge may be
25 collected when the loan is made, but only one service charge
26 may be contracted for, received, or collected from the same
27 person during one year.
28 (c) Credit life insurance and credit accident and health
29 insurance, and any charge therefor which is deducted from the
30 loan or paid by the obligor, must comply with Article IX 1/2
31 of the Illinois Insurance Code and all lawful requirements of
32 the Director of Insurance related thereto. When there are 2
33 or more obligors on the loan contract, only one charge for
34 credit life insurance and credit accident and health
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1 insurance may be made and only one of the obligors may be
2 required to be insured. Insurance obtained from, by or
3 through the lender or creditor must be in effect when the
4 loan is transacted. The purchase of that insurance from an
5 agent, broker or insurer specified by the lender or creditor
6 may not be a condition precedent to the granting of the loan.
7 (d) The lender or creditor may require the obligor to
8 provide property insurance on security other than household
9 goods, furniture and personal effects. The amount and term of
10 the insurance must be reasonable in relation to the amount
11 and term of the loan contract and the type and value of the
12 security, and the insurance must be procured in accordance
13 with the insurance laws of this State. The purchase of that
14 insurance from an agent, broker or insurer specified by the
15 lender or creditor may not be a condition precedent to the
16 granting of the loan.
17 (e) The lender or creditor may, if the contract
18 provides, collect a delinquency and collection charge on each
19 installment in default for a period of not less than 10 days
20 in an amount not exceeding 5% of the installment on
21 installments in excess of $200 or $10 on installments of $200
22 or less, but only one delinquency and collection charge may
23 be collected on any installment regardless of the period
24 during which it remains in default. In addition, the contract
25 may provide for the payment by the borrower or debtor of
26 attorney's fees incurred by the lender or creditor. The
27 lender or creditor may enforce such a provision to the extent
28 of the reasonable attorney's fees incurred by him in the
29 collection or enforcement of the contract or obligation.
30 Whenever interest is contracted for or received under this
31 Section, no amount in addition to the charges authorized by
32 this Section may be directly or indirectly charged,
33 contracted for or received, except lawful fees paid to a
34 public officer or agency to record, file or release security,
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1 and except costs and disbursements including reasonable
2 attorney's fees, incurred in legal proceedings to collect a
3 loan or to realize on a security after default. This Section
4 does not prohibit the receipt of any commission, dividend or
5 other benefit by the creditor or an employee, affiliate or
6 associate of the creditor from the insurance authorized by
7 this Section.
8 (f) When interest is contracted for or received under
9 this Section, the lender must disclose the following items to
10 the obligor in a written statement before the loan is
11 consummated:
12 (1) the amount and date of the loan contract;
13 (2) the amount of loan credit using the term
14 "amount financed";
15 (3) every deduction from the amount financed or
16 payment made by the obligor for insurance and the type of
17 insurance for which each deduction or payment was made;
18 (4) every other deduction from the loan or payment
19 made by the obligor in connection with obtaining the
20 loan;
21 (5) the date on which the finance charge begins to
22 accrue if different from the date of the transaction;
23 (6) the total amount of the loan charge for the
24 scheduled term of the loan contract with a description of
25 each amount included using the term "finance charge";
26 (7) the finance charge expressed as an annual
27 percentage rate using the term "annual percentage rate".
28 "Annual percentage rate" means the nominal annual
29 percentage rate of finance charge determined in
30 accordance with the actuarial method of computation with
31 an accuracy at least to the nearest 1/4 of 1%; or at the
32 option of the lender by application of the United States
33 rule so that it may be disclosed with an accuracy at
34 least to the nearest 1/4 of 1%;
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1 (8) the number, amount and due dates or periods of
2 payments scheduled to repay the loan and the sum of such
3 payments using the term "total of payments";
4 (9) the amount, or method of computing the amount
5 of any default, delinquency or similar charges payable in
6 the event of late payments;
7 (10) the right of the obligor to prepay the loan
8 and the fact that such prepayment will reduce the charge
9 for the loan;
10 (11) a description or identification of the type of
11 any security interest held or to be retained or acquired
12 by the lender in connection with the loan and a clear
13 identification of the property to which the security
14 interest relates. If after-acquired property will be
15 subject to the security interest, or if other or future
16 indebtedness is or may be secured by any such property,
17 this fact shall be clearly set forth in conjunction with
18 the description or identification of the type of security
19 interest held, retained or acquired;
20 (12) a description of any penalty charge that may
21 be imposed by the lender for prepayment of the principal
22 of the obligation with an explanation of the method of
23 computation of such penalty and the conditions under
24 which it may be imposed;
25 (13) unless the contract provides for the accrual
26 and payment of the finance charge on the balance of the
27 amount financed from time to time remaining unpaid, an
28 identification of the method of computing any unearned
29 portion of the finance charge in the event of prepayment
30 of the loan.
31 The terms "finance charge" and "annual percentage rate"
32 shall be printed more conspicuously than other terminology
33 required by this Section.
34 (g) At the time disclosures are made, the lender shall
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1 deliver to the obligor a duplicate of the instrument or
2 statement by which the required disclosures are made and on
3 which the lender and obligor are identified and their
4 addresses stated. All of the disclosures shall be made
5 clearly, conspicuously and in meaningful sequence and made
6 together on either:
7 (i) the note or other instrument evidencing the
8 obligation on the same side of the page and above or
9 adjacent to the place for the obligor's signature;
10 however, where a creditor elects to combine disclosures
11 with the contract, security agreement, and evidence of a
12 transaction in a single document, the disclosures
13 required under this Section shall be made on the face of
14 the document, on the reverse side, or on both sides,
15 provided that the amount of the finance charge and the
16 annual percentage rate shall appear on the face of the
17 document, and, if the reverse side is used, the printing
18 on both sides of the document shall be equally clear and
19 conspicuous, both sides shall contain the statement,
20 "NOTICE: See other side for important information", and
21 the place for the customer's signature shall be provided
22 following the full content of the document; or
23 (ii) one side of a separate statement which
24 identifies the transaction.
25 The amount of the finance charge shall be determined as
26 the sum of all charges, payable directly or indirectly by the
27 obligor and imposed directly or indirectly by the lender as
28 an incident to or as a condition to the extension of credit,
29 whether paid or payable by the obligor, any other person on
30 behalf of the obligor, to the lender or to a third party,
31 including any of the following types of charges:
32 (1) Interest, time price differential, and any
33 amount payable under a discount or other system of
34 additional charges.
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1 (2) Service, transaction, activity, or carrying
2 charge.
3 (3) Loan fee, points, finder's fee, or similar
4 charge.
5 (4) Fee for an appraisal, investigation, or credit
6 report.
7 (5) Charges or premiums for credit life, accident,
8 health, or loss of income insurance, written in
9 connection with any credit transaction unless (a) the
10 insurance coverage is not required by the lender and this
11 fact is clearly and conspicuously disclosed in writing to
12 the obligor; and (b) any obligor desiring such insurance
13 coverage gives specific dated and separately signed
14 affirmative written indication of such desire after
15 receiving written disclosure to him of the cost of such
16 insurance.
17 (6) Charges or premiums for insurance, written in
18 connection with any credit transaction, against loss of
19 or damage to property or against liability arising out of
20 the ownership or use of property, unless a clear,
21 conspicuous, and specific statement in writing is
22 furnished by the lender to the obligor setting forth the
23 cost of the insurance if obtained from or through the
24 lender and stating that the obligor may choose the person
25 through which the insurance is to be obtained.
26 (7) Premium or other charges for any other
27 guarantee or insurance protecting the lender against the
28 obligor's default or other credit loss.
29 (8) Any charge imposed by a lender upon another
30 lender for purchasing or accepting an obligation of an
31 obligor if the obligor is required to pay any part of
32 that charge in cash, as an addition to the obligation, or
33 as a deduction from the proceeds of the obligation.
34 A late payment, delinquency, default, reinstatement or
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1 other such charge is not a finance charge if imposed for
2 actual unanticipated late payment, delinquency, default or
3 other occurrence.
4 (h) Advertising for loans transacted under this Section
5 may not be false, misleading, or deceptive. That advertising,
6 if it states a rate or amount of interest, must state that
7 rate as an annual percentage rate of interest charged. In
8 addition, if charges other than for interest are made in
9 connection with those loans, those charges must be separately
10 stated. No advertising may indicate or imply that the rates
11 or charges for loans are in any way "recommended",
12 "approved", "set" or "established" by the State government or
13 by this Act.
14 (i) A lender or creditor who complies with the federal
15 Truth in Lending Act, amendments thereto, and any regulations
16 issued or which may be issued thereunder, shall be deemed to
17 be in compliance with the provisions of subsections (f), (g)
18 and (h) of this Section.
19 (Source: P.A. 88-348; 89-208, eff. 9-29-95.)
20 Section 25. The Motor Vehicle Retail Installment Sales
21 Act is amended by changing Sections 2, 2.5, 2.7, 2.9, 2.11,
22 2.12, 4, 5, 6, 7, 8, 9, 9.02, 10, 11, 13, 15, 20, and 21, and
23 by adding Sections 2.14, 2.15, 9.03, 11.2, and 17.1 as
24 follows:
25 (815 ILCS 375/2) (from Ch. 121 1/2, par. 562)
26 Sec. 2. For the purposes of this Act, unless the context
27 otherwise requires, the terms specified in the following
28 Sections preceding Section 3 2.1 through 2.12 have the
29 meanings ascribed to them in those Sections.
30 (Source: Laws 1967, p. 2163.)
31 (815 ILCS 375/2.5) (from Ch. 121 1/2, par. 562.5)
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1 Sec. 2.5. "Retail Installment contract", "installment
2 contract" or "contract" means an instrument or instruments
3 prescribing the terms of a retail installment transaction and
4 entered into or to be performed in this State.
5 (Source: Laws 1967, p. 2163.)
6 (815 ILCS 375/2.7) (from Ch. 121 1/2, par. 562.7)
7 Sec. 2.7. "Official fees" means the taxes and fees
8 prescribed by law that actually are, or will be, paid to
9 public officials for determining the existence of, or for
10 perfecting, releasing, or satisfying a security interest the
11 fees required by law to be paid to the Secretary of State to
12 perfect a security interest in a motor vehicle retained or
13 taken by a seller under a retail installment contract and to
14 file a release or termination statement of a perfected
15 security interest.
16 (Source: Laws 1967, p. 2163.)
17 (815 ILCS 375/2.9) (from Ch. 121 1/2, par. 562.9)
18 Sec. 2.9. "Finance charge" means the sum of all charges
19 payable, directly or indirectly by the buyer and imposed
20 directly or indirectly by the seller as an incident to or as
21 a condition of the extension of credit, whether payable by
22 the buyer, the seller, or any other person on behalf of the
23 buyer to the seller or a third party including any of the
24 following types of charges:
25 (1) Interest, time price differential, and any amount
26 payable under a discount or other system of additional
27 charges.
28 (2) Service, transaction, activity, or carrying charge.
29 (3) Loan fee, points, finder's fee, or similar charge.
30 (4) Fee for an appraisal, investigation, or credit
31 report.
32 (5) Charges or premiums for credit life, accident,
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1 health, or loss of income insurance, written in connection
2 with any credit transaction unless
3 (i) the insurance coverage is not required by the
4 creditor and this fact is clearly and conspicuously disclosed
5 in writing to the customer; and
6 (ii) any customer desiring such insurance coverage gives
7 specific dated and separately signed affirmative written
8 indication of such desire after receiving written disclosure
9 to him of the cost of such insurance.
10 (6) Charges or premiums for insurance, written in
11 connection with any credit transaction, against loss of or
12 damage to property or against liability arising out of the
13 ownership or use of property, unless a clear, conspicuous,
14 and specific statement in writing is furnished by the
15 creditor to the customer setting forth the cost of the
16 insurance if obtained from or through the creditor and
17 stating that the customer may choose the person through which
18 the insurance is to be obtained.
19 (7) Premium or other charge for any other guarantee or
20 insurance protecting the creditor against the customer's
21 default or other credit loss.
22 (8) Any charge imposed by a creditor upon another
23 creditor for purchasing or accepting an obligation of a
24 customer if the customer is required to pay any part of that
25 charge in cash, as an addition to the obligation, or as a
26 deduction from the proceeds of the obligation.
27 If itemized and disclosed to the customer, any charges of
28 the following types need not be included in the finance
29 charge:
30 (1) Fees and charges prescribed by law which
31 actually are or will be paid to public officials for
32 determining the existence of or for perfecting or re-
33 leasing or satisfying any security related to the
34 credit transaction.
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1 (2) The premium payable for any insurance in lieu
2 of perfecting any security interest otherwise required
3 by the creditor in connection with the transaction,
4 if the premium does not exceed the fees and charges
5 described in subparagraph (1) of this paragraph which
6 would otherwise be payable.
7 (3) Taxes not included in the cash price.
8 (4) License, certificate of title, and registration
9 fees imposed by law.
10 (5) Other charges as authorized by this Act.
11 A late payment, delinquency, default, reinstatement, or
12 other such charge is not a finance charge if imposed for
13 actual unanticipated late payment, delinquency, default or
14 other such occurrence.
15 (Source: P.A. 76-1781.)
16 (815 ILCS 375/2.11) (from Ch. 121 1/2, par. 562.11)
17 Sec. 2.11. "Sales finance agency" means a person engaged,
18 in this State, in whole or in part, in the business of
19 purchasing or making loans upon the security of retail
20 installment contracts. The term includes, but is not limited
21 to, banks, trust companies, private bankers and industrial
22 bankers authorized to do business and to accept deposits in
23 this State, if so engaged. The term does not include a person
24 who makes, other than in the regular course of his business,
25 only isolated purchases of or isolated loans upon the
26 security of retail installment contracts or retail charge
27 agreements.
28 (Source: Laws 1967, p. 2163.)
29 (815 ILCS 375/2.12) (from Ch. 121 1/2, par. 562.12)
30 Sec. 2.12. "Holder" of a retail installment contract
31 means the retail seller of the motor vehicle under the
32 installment contract or sales finance agency or other
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1 assignee which purchases or makes a loan upon the security of
2 the retail installment contract.
3 (Source: Laws 1967, p. 2163.)
4 (815 ILCS 375/2.14 new)
5 Sec. 2.14. Truth-in-Lending Act. "Truth-in-Lending Act"
6 means the federal Truth-in-Lending Act, 15 U.S.C. 1601 et
7 seq., and Regulation Z, 12 C.F.R. Part 226.
8 (815 ILCS 375/2.15 new)
9 Sec. 2.15. Precomputed. A contract is "precomputed" if
10 the debt is expressed as the sum of the amount financed plus
11 the amount of the finance charge computed in advance.
12 (815 ILCS 375/4) (from Ch. 121 1/2, par. 564)
13 Sec. 4. Every retail installment contract must contain
14 the names of the seller and of the buyer, the place of
15 business of the seller, the residence of the buyer as
16 specified by the buyer, and a description of the motor
17 vehicle. The contract must clearly state and describe any
18 security taken or retained by the seller. No charge may be
19 made to a buyer under an installment contract for insurance
20 against loss or damage caused to the motor vehicle, for
21 insurance against liability for personal injury or property
22 damage caused to others by reason of ownership or operation
23 of the motor vehicle, for credit life insurance, for credit
24 health and accident insurance or for any other kind of
25 insurance, unless the installment contract or charge
26 agreement separately specifies for each kind of insurance the
27 type of coverage, the term of coverage and the separate,
28 identified charge made therefor.
29 (Source: Laws 1967, p. 2163.)
30 (815 ILCS 375/5) (from Ch. 121 1/2, par. 565)
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1 Sec. 5. Every retail installment contract shall disclose
2 the following items, as applicable:
3 (1) The cash price of the motor vehicle, using the term
4 "cash price".
5 (2) The amount of the down payment itemized, as
6 applicable, as down payment in money, using the term "cash
7 down payment", down payment in property, using the term
8 "trade-in" and the sum, using the term "total down payment".
9 (3) The difference between the amounts described in
10 subparagraphs (1) and (2) of this paragraph, using the term
11 "unpaid balance of cash price".
12 (4) All other charges, individually itemized, which are
13 included in the amount financed but which are not part of the
14 finance charge.
15 (5) The sum of the amounts determined under
16 subparagraphs (3) and (4) of this paragraph, using the term
17 "unpaid balance".
18 (6) Any finance charge paid separately, in cash or
19 otherwise, directly or indirectly to the seller or with the
20 seller's knowledge to another person, or withheld by the
21 seller from the proceeds of the credit extended and any
22 deposit balance or any investment which the seller requires
23 the buyer to make, maintain, or increase in a specified
24 amount or proportion as a condition to the extension of
25 credit, using as applicable, the terms "prepaid finance
26 charge" and "required deposit balance", and if both are
27 applicable, the total of such items using the term "total
28 prepaid finance charge and required deposit balance".
29 (7) The difference between the amounts determined under
30 subparagraphs (5) and (6) of this paragraph, using the term
31 "amount financed".
32 (8) The total amount of the finance charge, with
33 description of each amount included, using the term "finance
34 charge".
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1 (9) The sum of the amounts determined under
2 subparagraphs (1), (4), and (8) of this paragraph, using the
3 term "deferred payment price".
4 (10) The finance charge expressed as an annual
5 percentage rate, using the term "annual percentage rate".
6 (11) The number, amount, and due dates or periods of
7 payments scheduled to repay the indebtedness and the sum of
8 such payments using the term, "total of payments". If
9 installment payments are stated in terms of a series of
10 scheduled amounts and if the amount of the final installment
11 payment does not exceed the scheduled amount of any preceding
12 installment payment, the maximum number of payments and the
13 amount and date of each payment need not be separately stated
14 and the amount of the scheduled final installment payment may
15 be stated as the remaining unpaid balance. The due date of
16 the first installment payment may be fixed by a calendar
17 date, by reference to the date of the contract or by
18 reference to the date of delivery or installation of the
19 goods.
20 (12) The amount, or method of computing the amount, of
21 any default, delinquency, or similar charges payable in the
22 event of late payments.
23 (13) A description or identification of the type of any
24 security interest held or to be retained or acquired by the
25 seller in connection with the extension of credit, and a
26 clear identification of the property to which the security
27 interest relates.
28 (14) A description of any penalty charge that may be
29 imposed by the seller or his assignee for prepayment of the
30 principal of the obligation (such as a real estate mortgage)
31 with an explanation of the method of computation of such
32 penalty and the conditions under which it may be imposed.
33 (15) Identification of the method of computing any
34 unearned portion of the finance charge in the event of
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1 prepayment of the obligation and a statement of the amount or
2 method of computation of any charge that may be deducted from
3 the amount of any rebate of such unearned finance charge that
4 will be credited to the obligation or refunded to the buyer.
5 (16) The date on which the finance charge begins to
6 accrue if different from the date of the transaction.
7 The disclosures required to be given by this Section
8 shall be made clearly, conspicuously and in meaningful
9 sequence. Where the terms "finance charge" and "annual
10 percentage rate" are required to be used, they shall be
11 printed more conspicuously than other terminology required.
12 A retail installment contract which complies with the
13 federal Truth in Lending Act, amendments thereto, and any
14 regulations issued or which may be issued thereunder, shall
15 be deemed to be in compliance with the provisions of this
16 Section.
17 Notwithstanding any other provision of this Act or any
18 other law of this State, there is no obligation or duty to
19 disclose to an obligor under a retail installment contract:
20 (i) any agreement to sell, assign, or otherwise transfer the
21 contract to a third party for an amount which is equal to, in
22 excess of, or less than the amount financed under the
23 contract; or (ii) that the assignee of the contract or the
24 person who funded it may pay the seller or the person who
25 originated the contract all or a portion of the prepaid
26 finance charges and other fees or a portion of the finance
27 charge to be paid by the buyer over the term of the
28 transaction or any other compensation irrespective of how the
29 compensation is determined.
30 (Source: P.A. 82-169.)
31 (815 ILCS 375/6) (from Ch. 121 1/2, par. 566)
32 Sec. 6. (a) Except as provided under subsections
33 subsection (b) and (c), every retail installment contract
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1 must provide for a schedule of periodic installment payments
2 in periodic, equal amounts, from the due date of the first
3 installment payment to the date of the final maturity of the
4 contract. The amount of the final installment payment may be
5 less than the amount of any of the periodic installment
6 payments in the contract.
7 (b) Retail installment contracts may provide for
8 balloon-note financing. For the purpose of this Section,
9 balloon-note financing shall mean the manner of purchase
10 whereby a consumer agrees to select and perform, at the
11 conclusion of a pre-determined schedule of installment
12 payments made in equal periodic or monthly amounts, one of
13 the following options:
14 (1) satisfy the balance of the contractual amount owing;
15 (2) refinance any balance owing, on the terms previously
16 agreed upon at the time of executing the retail installment
17 contract; or
18 (3) surrender the vehicle at such time and manner agreed
19 upon at the time of executing the retail installment
20 contract.
21 (c) Retail installment contracts may provide for
22 deferred payment of a down payment provided any deferred
23 portion of a down payment is payable not later than 10 days
24 prior to the due date of the first regularly scheduled
25 payment and is not subject to a finance charge.
26 (d) Retail installment contracts may be precomputed or
27 interest bearing.
28 (Source: P.A. 85-440.)
29 (815 ILCS 375/7) (from Ch. 121 1/2, par. 567)
30 Sec. 7. Notwithstanding the provisions of any retail
31 installment contract to the contrary, the buyer may prepay
32 the contract in full, whether by payment in cash, extension,
33 renewal or otherwise, at any time before maturity, and if he
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1 does so shall receive a refund credit thereon for that
2 prepayment. The amount of refund credit shall represent at
3 least as great a proportion of the finance charge less an
4 acquisition cost of $25, as the sum of the periodical time
5 balances beginning with the next payment period bears to the
6 sum of all the periodical time balances under the schedule of
7 installment payments in the contract. In those instances
8 where a buyer's overpayment requires the refund credit to be
9 given through the issuance of a negotiable instrument by the
10 holder, no refund credit need be made if the amount of refund
11 credit is less than $5, provided that a buyer may obtain a
12 cash refund at the seller's or holder's location. In all
13 other cases where the buyer's prepayment permits the refund
14 credit to be given to the buyer as a credit on the buyer's
15 account, no refund credit need be made if the amount of
16 refund credit is less than $1. Where the amount of refund
17 credit is less than $1, no refund credit need be made.
18 (Source: P.A. 76-1781.)
19 (815 ILCS 375/8) (from Ch. 121 1/2, par. 568)
20 Sec. 8. (a) A seller under a retail installment contract
21 may require insurance against substantial risk of loss of or
22 damage to the motor vehicle, protecting the seller or holder
23 as well as the buyer, and may, if the buyer elects, include
24 therefor in the contract an amount not exceeding the premiums
25 chargeable for such insurance in accordance with rate filings
26 made with the Director of Insurance. No seller or holder may
27 require as a condition precedent to, or as a part of, a
28 retail installment transaction that such insurance be
29 purchased from or through the seller or holder, or any
30 employee, affiliate, or associate of seller or holder. A
31 seller under a retail installment contract may not require
32 other insurance; but if the buyer voluntarily contracts
33 therefor, the seller may then include in the contract an
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1 amount for that other insurance not exceeding the premiums
2 paid or payable by the seller or holder. In those
3 transactions where the buyer elects to select the insurance
4 company, broker or agent for the purpose of obtaining
5 insurance required by the holder under this Section, the
6 buyer must, on or before the date when buyer takes possession
7 of the motor vehicle, furnish the holder with satisfactory
8 evidence of insurance in a company acceptable to the seller
9 or holder. If the buyer fails to furnish such evidence, the
10 holder may purchase such insurance, charge the premium
11 therefor to buyer, and prorate the cost of the insurance over
12 the remaining scheduled time payments.
13 (b) If the obligor fails to furnish evidence that he has
14 procured insurance on the property, the licensee may purchase
15 substitute insurance that may be substantially equivalent to
16 or more limited than coverage the obligor is required to
17 maintain. Such insurance must comply with the Collateral
18 Protection Act.
19 (Source: Laws 1967, p. 2163.)
20 (815 ILCS 375/9) (from Ch. 121 1/2, par. 569)
21 Sec. 9. The seller may not decline existing required
22 insurance and must afford the buyer the privilege of
23 purchasing any required insurance from an insurance company
24 authorized to do business in this State, from or through any
25 broker or agent selected by the buyer, if the insurance
26 company is approved by the holder and satisfactory evidence
27 of binding coverage is furnished the seller or holder. The
28 inclusion in a contract of an amount for required insurance
29 when the buyer selects the insurance company, broker or agent
30 is optional with the seller. Such approval may not be
31 arbitrarily or unreasonably withheld by the holder. All
32 insurance which is purchased by the seller or holder and for
33 which an amount is included in a contract must be written by
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1 an insurance company authorized to do business in the State
2 and the seller or holder is responsible as though such
3 insurance were in force from the date the buyer takes
4 possession of the vehicle. The holder of a contract which
5 includes an amount for insurance purchased by the seller or
6 holder must, within 30 days after the date of the contract,
7 cause to be sent to the buyer the policies or certificates of
8 insurance clearly setting forth the amount of the premium,
9 the types of insurance, the coverages and all the terms,
10 exceptions, limitations, restrictions and conditions of the
11 insurance or, in respect to group credit life insurance and
12 credit accident and health insurance, a notice or statement
13 for that insurance clearly setting forth the name of the
14 insurer, the identity of the insured buyer by name or
15 otherwise and a description of the coverage. If, however, the
16 holder or seller is unable to obtain insurance for the buyer
17 within a reasonable time, the holder or seller shall notify
18 the buyer by certified mail of this fact, and 10 days after
19 this notification the seller or holder of the contract shall
20 cease to be liable for the insurance except for the credit or
21 refund to the buyer of the premiums included in the contract.
22 (Source: P.A. 76-1208.)
23 (815 ILCS 375/9.02) (from Ch. 121 1/2, par. 569.02)
24 Sec. 9.02. In any situation in which a person has
25 purchased a motor vehicle under an installment sales
26 contract agreement and has purchased credit life or credit
27 disability insurance with such contract agreement, the
28 installment sales contract agreement must include a notice
29 containing the following information:
30 (1) IF YOU HAVE PURCHASED EITHER CREDIT LIFE OR CREDIT
31 DISABILITY INSURANCE, OR BOTH, TO GUARANTEE PAYMENTS BEING
32 MADE IN CASE OF YOUR DEATH OR DISABILITY, ON YOUR VEHICLE
33 PURCHASED UNDER AN INSTALLMENT SALES CONTRACT, YOU MAY BE
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1 ENTITLED TO A PARTIAL REFUND OF YOUR PREMIUM IF YOU PAY OFF
2 YOUR INSTALLMENT LOAN EARLY.
3 (2) IN CASE OF EARLY COMPLETE PAYMENT OF YOUR LOAN, YOU
4 SHOULD CONTACT THE SELLER OF YOUR CREDIT LIFE OR CREDIT
5 DISABILITY INSURANCE TO SEE IF A REFUND IS DUE. IF YOUR
6 VEHICLE DEALER FINANCED YOUR LOAN, THE SELLER OF YOUR CREDIT
7 LIFE OR CREDIT DISABILITY INSURANCE IS YOUR VEHICLE DEALER.
8 The above provisions shall be in large block print at
9 least 1/8" in height.
10 The notice form shall also be captioned: "NOTICE OF
11 POSSIBLE REFUND OF CREDIT LIFE OR DISABILITY INSURANCE
12 PREMIUM."
13 The willful failure to provide such a notice shall
14 subject the insurance seller to liability to the purchaser
15 for 3 times the amount of refund due or $100, whichever is
16 greater.
17 (Source: P.A. 85-588.)
18 (815 ILCS 375/9.03 new)
19 Sec. 9.03. Disclosure of consideration paid to seller.
20 Consideration or another thing of value may be paid to or
21 retained by the seller or holder or an affiliate of the
22 seller or holder in connection with any insurance, debt
23 cancellation contract, or other such product purchased
24 pursuant to the retail installment sales contract made or
25 held by the seller or holder and all or a portion of the
26 consideration may be included in the amount charged to the
27 obligor, so long as the seller discloses to the obligor that
28 the seller, holder, or any of their affiliates may receive
29 something of value in connection with the purchase.
30 (815 ILCS 375/10) (from Ch. 121 1/2, par. 570)
31 Sec. 10. If any required insurance for which an amount is
32 included in the contract is cancelled, any unearned insurance
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1 refund exceeding one dollar received or receivable by the
2 holder or, if the amount included for insurance in the
3 contract exceeds the premiums paid or payable by the holder
4 therefor, any unearned portion of the amount so included
5 exceeding one dollar shall be credited on the final maturing
6 installments of the contract except to the extent those
7 amounts are applied toward payment for similar insurance
8 protecting the interests of the buyer and the holder or
9 either of them.
10 If any credit life or credit accident and health
11 insurance for which an amount is included in the contract or
12 charge agreement is terminated, a refund or credit with
13 respect to the amount paid or charged for such coverage shall
14 be determined and made as provided in Section 155.58 of the
15 "Illinois Insurance Code", approved June 29, 1937, as now or
16 hereafter amended.
17 (Source: Laws 1967, p. 2163.)
18 (815 ILCS 375/11) (from Ch. 121 1/2, par. 571)
19 Sec. 11. Delinquency charges. A retail installment
20 contract may provide for, and the seller or holder may (if
21 the contract provides) collect, a delinquency and collection
22 charge, on each installment in default for a period of not
23 less than 10 days, in an amount not exceeding 5% of the
24 installment on installments in excess of $200 or $10 on
25 installments of $200 or less., but Only one delinquency and
26 collection charge may be collected on any installment
27 regardless of the period during which it that installment
28 remains in default. In addition, a retail installment
29 contract may provide for the payment by the buyer of
30 reasonable attorney's fees incurred in the collection or
31 enforcement of the contract. Any clause or provision of any
32 retail installment contract entered into after December 31,
33 1973, to the contrary notwithstanding with respect to
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1 attorney's fees incurred in the collection or enforcement of
2 such contract, the court in its discretion may award
3 attorney's fees to either party as the interests of justice
4 may require.
5 (Source: P.A. 87-483; 87-625; 87-841; 87-895; 88-348.)
6 (815 ILCS 375/11.2 new)
7 Sec. 11.2. Final installment. Fifteen days after the
8 final installment is due as originally scheduled or deferred,
9 the holder may compute and charge interest on any balance
10 remaining unpaid, including unpaid default or deferment
11 charges, at the annual percentage rate stated in the retail
12 installment contract until fully paid or reduced to judgment.
13 At the time the final installment is due, the holder shall
14 give notice to the buyer stating any amounts unpaid.
15 (815 ILCS 375/13) (from Ch. 121 1/2, par. 573)
16 Sec. 13. The seller shall deliver to the buyer a copy of
17 the retail installment contract signed by the seller. Any
18 acknowledgment by the buyer of delivery of a copy of the
19 contract must be printed or written in a size equal to at
20 least 10 point bold type and, if contained in the contract,
21 must appear directly above the legend required above the
22 buyer's signature by paragraph (1) of Section 3. The buyer's
23 written acknowledgment of delivery of a copy of the contract
24 conforming to the requirements of this Act is conclusive
25 proof of the such delivery and of compliance with this
26 Section in any action by or against an assignee of the
27 contract without knowledge to the contrary when he purchases
28 the contract. Until the seller delivers a copy of the
29 contract to him or her does so, a buyer who has not received
30 delivery of the motor vehicle has the right to cancel his
31 agreement and to receive a refund of all payments made and a
32 return of all goods traded in to the seller on account of or
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1 in contemplation of the contract, or, if those goods cannot
2 be returned, the value thereof. However, this Section does
3 not apply when the merchandise has been specially ordered or
4 custom made to the specifications of the purchaser and
5 evidence of such order is provided by the seller.
6 (Source: Laws 1967, p. 2163.)
7 (815 ILCS 375/15) (from Ch. 121 1/2, par. 575)
8 Sec. 15. The seller or other holder of a retail
9 installment contract must give the buyer a written receipt
10 for any payment made in cash. Upon the buyer's written
11 request the holder of a retail installment contract shall
12 must give or forward to the buyer a written statement of the
13 amounts of payments and the total amount unpaid under the
14 contract. Upon written request, a buyer is entitled to such a
15 statement once every 6 months without charge. The holder may
16 require payment of a reasonable charge not exceeding $10 for
17 each additional statement furnished.
18 (Source: Laws 1967, p. 2163.)
19 (815 ILCS 375/17.1 new)
20 Sec. 17.1. Seller may not keep keys. For contracts
21 entered into after January 1, 1998, unless otherwise provided
22 for in the retail installment sales contract, a seller or
23 holder cannot take or retain possession of the keys (or copy
24 thereof) to a motor vehicle purchased under a retail
25 installment sales contract.
26 (815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
27 Sec. 20. Unless otherwise limited by this Section, the
28 parties shall have the rights and remedies provided in
29 Article 9 of the Uniform Commercial Code with respect to
30 default and disposition of collateral.
31 If the buyer has paid an amount equal to 60% or more of
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1 the deferred payment price at the time of his default under
2 the contract and if the buyer, at the request of the holder
3 and without legal proceedings, surrenders the goods to the
4 holder in ordinary condition and free from malicious damage,
5 the holder must, within a period of 5 days from the date of
6 receipt of the goods at his place of business, elect either
7 (a) to retain the goods and release the buyer from further
8 obligation under the contract, or (b) to return the goods to
9 the buyer at the holder's expense and be limited to an action
10 to recover the balance of the indebtedness.
11 If the buyer has paid an amount equal to 30% or more of
12 the deferred payment price at the time of repossession, the
13 buyer may, within 15 days, reinstate the contract and recover
14 redeem the collateral from the holder by tendering (a) the
15 total of all unpaid amounts, including any unpaid delinquency
16 or deferral charges due at the time of tender, without
17 acceleration, and (b) performance necessary to cure any
18 default other than nonpayment of the amounts due; and (c) any
19 reasonable cost or fees incurred by the holder in the
20 retaking of the goods. Tender of payment and performance
21 pursuant to this Section restores to the buyer his rights
22 under the contract as though no default had occurred. The
23 buyer has a right to reinstate the contract and recover
24 redeem the collateral from the holder only once under this
25 Section.
26 The holder must give written notice to the buyer, within
27 3 days of the repossession, of the buyer's right to reinstate
28 the contract and recover redeem the collateral pursuant to
29 this Section. The written notice shall be in substantially
30 the following form:
31 NOTICE OF RIGHT TO RECOVER VEHICLE
32 Your car was repossessed on (specify date) for failure to
33 make payments on the contract (or other reason).
34 Under Illinois law, because you have paid at least 30% of
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1 the deferred payment price before repossession, you may be
2 able to get the car back. To recover the car you must do the
3 following within 15 days of the date of repossession:
4 1. Make payment of all back payments due
5 as of the date of this notice so that
6 you are current on the contract. $
7 2. Pay any late charges due. $
8 3. Pay the costs of repossession. $
9 Total due as of the date of this notice
10 plus any additional amounts which may
11 become due between the date of the
12 notice and the date of reinstatement. $
13 TOTAL $
14 Bring cash, a certified check or money order for the
15 total amount plus any additional amounts which may become due
16 between the date of this notice and the date of the
17 reinstatement listed above to our office located at (specify
18 address) by (specify date) to get your car back.
19 (Source: P.A. 83-302.)
20 (815 ILCS 375/21) (from Ch. 121 1/2, par. 581)
21 Sec. 21. (a) A retail installment contract may provide
22 for, and the seller or holder may charge, collect and receive
23 a finance charge computed on the entire amount financed as
24 determined in accordance with this Act from the date of the
25 contract to the due date of the final installment at not
26 exceeding the following rates:
27 Class 1 - Any new motor vehicle designated by the
28 manufacturer by a year model not earlier than the year in
29 which the sale is made - $12 per $100 per year until December
30 31, 1981 and $8.00 per $100 per year thereafter.
31 Class 2 - Any new motor vehicle not in Class 1 and any
32 used motor vehicle designated by the manufacturer by a year
33 model of not more than 2 years prior to the year in which the
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1 sale is made - $13 per $100 per year until December 31, 1981
2 and $11 per $100 per year thereafter.
3 Class 3 - Any used motor vehicle not in Class 2 and
4 designated by the manufacturer by a year model not more than
5 4 years prior to the year in which the sale is made - $14 per
6 $100 per year until December 31, 1981 and $14 per $100 per
7 year thereafter.
8 Class 4 - Any used motor vehicle not in Class 2 or Class
9 3 and designated by the manufacturer by a year model more
10 than 4 years prior to the year in which the sale is made -
11 $16 per $100 per year.
12 (b) A minimum finance charge of $25 may be charged on
13 any retail installment contract.
14 (c) Notwithstanding the provisions of any other Statute,
15 and notwithstanding the rate limitations expressed in
16 subdivisions (a) and (b) of this Section, for motor vehicle
17 retail installment contracts executed after the effective
18 date of this amendatory Act of 1981, there shall be no limit
19 on the finance charges which may be charged, collected and
20 received.
21 (Source: P.A. 82-660.)
22 Section 30. The Retail Installment Sales Act is amended
23 by changing Sections 2, 2.9, 2.11, 2.13, 5, 6, 7, 8, 9, 11,
24 12, 13, 14, 21, 24, 27, and 28, and by adding Sections 2.16,
25 2.17, 11.1, 12.1, and 23.1 as follows:
26 (815 ILCS 405/2) (from Ch. 121 1/2, par. 502)
27 Sec. 2. For the purposes of this Act, unless the context
28 otherwise requires, the terms specified in the following
29 Sections preceding Section 3 2.1 through 2.14 have the
30 meanings ascribed to them in those Sections.
31 (Source: Laws 1967, p. 2149.)
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1 (815 ILCS 405/2.9) (from Ch. 121 1/2, par. 502.9)
2 Sec. 2.9. "Official fees" means the taxes and fees
3 prescribed by law that actually are, or will be, paid to
4 public officials for determining the existence of, or for
5 perfecting, releasing or satisfying a security interest fees
6 required by law to be paid to a public officer to perfect by
7 filing a security interest in goods retained by a seller
8 under a retail installment transaction and to file a release
9 or termination statement of a security interest so perfected.
10 (Source: Laws 1967, p. 2149.)
11 (815 ILCS 405/2.11) (from Ch. 121 1/2, par. 502.11)
12 Sec. 2.11. "Finance charge" means the sum of all charges
13 payable, directly or indirectly by the buyer and imposed
14 directly or indirectly by the seller as an incident to or as
15 a condition of the extension of credit, whether payable by
16 the buyer, the seller, or any other person on behalf of the
17 buyer to the seller or a third party including any of the
18 following types of charges:
19 (1) Interest, time price differential, and any amount
20 payable under a discount or other system of additional
21 charges.
22 (2) Service, transaction, activity, or carrying charge.
23 (3) Loan fee, points, finder's fee, or similar charge.
24 (4) Fee for an appraisal, investigation, or credit
25 report.
26 (5) Charges or premiums for credit life, accident,
27 health, or loss of income insurance, written in connection
28 with any credit transaction unless
29 (i) the insurance coverage is not required by the
30 creditor and this fact is clearly and conspicuously disclosed
31 in writing to the customer; and
32 (ii) any customer desiring such insurance coverage gives
33 specific dated and separately signed affirmative written
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1 indication of such desire after receiving written disclosure
2 to him of the cost of such insurance.
3 (6) Charges or premiums for insurance, written in
4 connection with any credit transaction, against loss of or
5 damage to property or against liability arising out of the
6 ownership or use of property, unless a clear, conspicuous,
7 and specific statement in writing is furnished by the
8 creditor to the customer setting forth the cost of the
9 insurance if obtained from or through the creditor and
10 stating that the customer may choose the person through which
11 the insurance is to be obtained.
12 (7) Premium or other charge for any other guarantee or
13 insurance protecting the creditor against the customer's
14 default or other credit loss.
15 (8) Any charge imposed by a creditor upon another
16 creditor for purchasing or accepting an obligation of a
17 customer if the customer is required to pay any part of that
18 charge in cash, as an addition to the obligation, or as a
19 deduction from the proceeds of the obligation.
20 If itemized and disclosed to the customer, any charges of
21 the following types need not be included in the finance
22 charge:
23 (a) Fees and charges prescribed by law which actually
24 are or will be paid to public officials for determining the
25 existence of or for perfecting or releasing or satisfying any
26 security related to the credit transaction.
27 (b) The premium payable for any insurance in lieu of
28 perfecting any security interest otherwise required by the
29 creditor in connection with the transaction, if the premium
30 does not exceed the fees and charges described in
31 subparagraph (1) of this paragraph which would otherwise be
32 payable.
33 (c) Taxes not included in the cash price.
34 (d) License, certificate of title, and registration fees
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1 imposed by law.
2 (e) Other charges as authorized by this Act.
3 A late payment, delinquency, default, reinstatement, or
4 other such charge is not a finance charge if imposed for
5 actual unanticipated late payment, delinquency, default or
6 other such occurrence.
7 (Source: P.A. 76-1780.)
8 (815 ILCS 405/2.13) (from Ch. 121 1/2, par. 502.13)
9 Sec. 2.13. "Sales finance agency" means a person engaged,
10 in this State, in whole or in part, in the business of
11 purchasing or making loans upon the security of retail
12 installment contracts or retail charge agreements. The term
13 includes, but is not limited to, banks, trust companies,
14 private bankers and industrial banks authorized to do
15 business and to accept deposits in this State, if so engaged.
16 The term does not include a person who makes, other than in
17 the regular course of his business, only isolated purchases
18 of or isolated loans upon the security of retail installment
19 contracts or retail charge agreements.
20 (Source: Laws 1967, p. 2149.)
21 (815 ILCS 405/2.16 new)
22 Sec. 2.16. Truth-in Lending Act. "Truth-in-Lending
23 Act" means the federal Truth-in-Lending Act, 15 U.S.C. 1601
24 et seq., and Regulation Z, 12 C.F.R. Part 226.
25 (815 ILCS 405/2.17 new)
26 Sec. 2.17. Precomputed. A contract is "precomputed" if
27 the debt is expressed as a sum of the amount financed plus
28 the amount of the finance charge computed in advance.
29 (815 ILCS 405/5) (from Ch. 121 1/2, par. 505)
30 Sec. 5. Every retail installment contract shall disclose
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1 the following items, as applicable:
2 (1) The cash price of the property or service purchased,
3 using the term "cash price".
4 (2) The amount of the down payment itemized, as
5 applicable, as down payment in money, using the term "cash
6 down payment", down payment in property, using the term
7 "trade-in" and the sum, using the term "total down payment".
8 (3) The difference between the amounts described in
9 subparagraphs (1) and (2) of this paragraph, using the term
10 "unpaid balance of cash price".
11 (4) All other charges, individually itemized, which are
12 included in the amount financed but which are not part of the
13 finance charge.
14 (5) The sum of the amounts determined under
15 subparagraphs (3) and (4) of this paragraph, using the term
16 "unpaid balance".
17 (6) Any amounts required to be deducted under this Act
18 using, as applicable, the terms "prepaid finance charge" and
19 "required deposit balance", and, if both are applicable, the
20 total of such items using the term "total prepaid finance
21 charge and required deposit balance".
22 (7) The difference between the amounts determined under
23 subparagraphs (5) and (6) of this paragraph, using the term
24 "amount financed".
25 (8) The total amount of the finance charge, with
26 description of each amount included, using the term "finance
27 charge".
28 (9) The sum of the amounts determined under
29 subparagraphs (1), (4), and (8) of this paragraph, using the
30 term "deferred payment price".
31 (10) The finance charge expressed as an annual
32 percentage rate, using the term "annual percentage rate",
33 except in the case of a finance charge
34 (i) which does not exceed $5 and is applicable to an
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1 amount financed not exceeding $75, or
2 (ii) which does not exceed $7.50 and is applicable to an
3 amount financed exceeding $75.
4 (11) The number, amount, and due dates or periods of
5 payments scheduled to repay the indebtedness and the sum of
6 such payments using the term "total of payments". If
7 installment payments are stated in terms of a series of
8 scheduled amounts and if the amount of the final installment
9 payment does not exceed the scheduled amount of any preceding
10 installment payment, the maximum number of payments and the
11 amount and date of each payment need not be separately stated
12 and the amount of the scheduled final installment payment may
13 be stated as the remaining unpaid balance. The due date of
14 the first installment payment may be fixed by a calendar
15 date, by reference to the date of the contract or by
16 reference to the date of delivery or installation of the
17 goods.
18 (12) The amount, or method of computing the amount, of
19 any default, delinquency, or similar charges payable in the
20 event of late payments.
21 (13) A description or identification of the type of any
22 security interest held or to be retained or acquired by the
23 seller in connection with the extension of credit, and a
24 clear identification of the property to which the security
25 interest relates.
26 (14) A description of any penalty charge that may be
27 imposed by the seller or his assignee for prepayment of the
28 principal of the obligation (such as a real estate mortgage)
29 with an explanation of the method of computation of such
30 penalty and the conditions under which it may be imposed.
31 (15) Identification of the method of computing any
32 unearned portion of the finance charge in the event of
33 prepayment of the obligation and a statement of the amount or
34 method of computation of any charge that may be deducted from
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1 the amount of any rebate of such unearned finance charge that
2 will be credited to the obligation or refunded to the buyer.
3 (16) The date on which the finance charge begins to
4 accrue if different from the date of the transaction.
5 The disclosures required to be given by this Section
6 shall be made clearly, conspicuously and in meaningful
7 sequence. Where the terms "finance charge" and "annual
8 percentage rate" are required to be used, they shall be
9 printed more conspicuously than other terminology required.
10 A retail installment contract which complies with the
11 federal Truth in Lending Act, amendments thereto, and any
12 regulations issued or which may be issued thereunder, shall
13 be deemed to be in compliance with the provisions of this
14 Section.
15 Notwithstanding any other provision of this Act or any
16 other law of this State, there is no obligation or duty to
17 disclose to an obligor under a retail installment contract:
18 (i) any agreement to sell, assign, or otherwise transfer the
19 contract to a third party for an amount which is equal to, in
20 excess of, or less than the amount financed under the
21 contract; or (ii) that the assignee of the contract or the
22 person who funded it may pay the seller or the person who
23 originated the contract all or a portion of the prepaid
24 finance charges and other fees or a portion of the finance
25 charge to be paid by the buyer over the term of the
26 transaction or any other compensation irrespective of how the
27 compensation is determined.
28 (Source: P.A. 82-169.)
29 (815 ILCS 405/6) (from Ch. 121 1/2, par. 506)
30 Sec. 6. (a) Every retail installment contract must
31 provide for a schedule of periodic installment payments in
32 periodic, equal amounts from the due date of the first
33 installment payment to the date of the final maturity of the
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1 contract, except that where the business or vocation of the
2 buyer results in intermittent or irregular income, the
3 contract may reduce or omit payment over any period or
4 periods in which the buyer's income is reduced or suspended.
5 The amount of the final installment payment may be less than
6 the amount of any of the periodic installment payments in the
7 contract.
8 (b) Retail installment contracts may provide for
9 balloon-note financing. For the purpose of this Section,
10 "balloon-note financing" means the manner of purchase whereby
11 a consumer agrees to select and perform, at the conclusion of
12 a predetermined schedule of installment payments made in
13 periodic or monthly amounts, one of the following options:
14 (1) satisfy the balance of the contractual amount
15 owing; or
16 (2) refinance any balance owing, on the terms
17 previously agreed upon at the time of executing the
18 retail installment contract.
19 (c) Retail installment contracts may provide for
20 deferred payment of a down payment provided any deferred
21 portion of a down payment is payable not later than 10 days
22 prior to the due date of the first regularly scheduled
23 payment and is not subject to a finance charge.
24 (d) Retail installment sales contracts may be
25 precomputed or interest bearing.
26 (Source: Laws 1967, p. 2149.)
27 (815 ILCS 405/7) (from Ch. 121 1/2, par. 507)
28 Sec. 7. Notwithstanding the provisions of any retail
29 installment contract to the contrary, the buyer may prepay
30 the contract in full, whether by payment in cash, extension,
31 renewal or otherwise, at any time before maturity, and if he
32 does so, shall receive a refund credit thereon for that
33 prepayment. The amount of refund credit shall represent at
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1 least as great a proportion of the finance charge, less an
2 acquisition cost of $25 $12, as the sum of the periodical
3 time balances beginning with the next payment period bears to
4 the sum of all the periodical time balances under the
5 schedule of installment payments in the contract. In those
6 instances where a buyer's overpayment requires the refund
7 credit to be given through the issuance of a negotiable
8 instrument by the holder, no refund credit need be made if
9 the amount of refund credit is less than $5, provided that a
10 buyer may obtain a cash refund at the seller's or holder's
11 location. In all other cases where the buyer's prepayment
12 permits the refund credit to be given to the buyer as a
13 credit on the buyer's account, no refund credit need be made
14 if the amount of refund credit is less than $1. Where the
15 amount of refund credit is less than $1, no refund credit
16 need be made.
17 (Source: P.A. 76-1780.)
18 (815 ILCS 405/8) (from Ch. 121 1/2, par. 508)
19 Sec. 8. (a) A seller under a retail installment contract
20 or retail charge agreement may require insurance against
21 substantial risk of loss of or damage to the goods protecting
22 the seller or holder, as well as the buyer, and may, if the
23 buyer elects, include therefor in the contract an amount not
24 exceeding the premiums chargeable for similar insurance in
25 accordance with rate filings made with the Director of
26 Insurance. No seller or holder may require, as a condition
27 precedent to or as a part of a retail installment
28 transaction, that such insurance be purchased from or through
29 the seller or holder, or any employee, affiliate, or
30 associate of seller or holder. A seller under a retail
31 installment contract or retail charge agreement may not
32 require other insurance; but if the buyer voluntarily
33 contracts therefor, the seller may then include in the
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1 contract an amount for that other insurance not exceeding the
2 premiums paid or payable by the seller or holder. In those
3 transactions where the buyer elects to select the insurance
4 company, broker or agent for the purpose of obtaining
5 insurance required by the holder under this Section, the
6 buyer must furnish the holder with satisfactory evidence of
7 insurance on or before the date when the buyer takes
8 possession of the goods.
9 (b) If the obligor fails to furnish evidence that he has
10 procured insurance on the property, the licensee may purchase
11 substitute insurance that may be substantially equivalent to
12 or more limited than coverage the obligor is required to
13 maintain. Such insurance must comply with the Collateral
14 Protection Act.
15 (Source: Laws 1967, p. 2149.)
16 (815 ILCS 405/9) (from Ch. 121 1/2, par. 509)
17 Sec. 9. The seller may not decline existing insurance
18 written by an insurance company authorized to do business in
19 this State and must afford the buyer the privilege of
20 purchasing any required insurance from or through an
21 insurance company, broker or agent of his own selection, if
22 the insurance company is approved by the holder. The
23 inclusion in the contract or charge agreement of an amount
24 for required insurance when the buyer selects the insurance
25 company, broker or agent is optional with the seller. All
26 insurance which is purchased by the holder and for which an
27 amount is included in a contract or charge agreement must be
28 written by an insurance company authorized to do business in
29 this State. The holder of a contract or charge agreement
30 which includes an amount for insurance purchased by the
31 seller or holder must, within 30 days after the date of the
32 contract or charge agreement, cause to be sent to the buyer
33 the policies or certificates of insurance clearly setting
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1 forth the amount of the premium, the types of insurance, the
2 coverages and all the terms, exceptions, limitations,
3 restrictions and conditions of the insurance or, in respect
4 to group credit life insurance and credit accident and health
5 insurance, a notice or statement for that insurance clearly
6 setting forth the name of the insurer, the identity of the
7 insured buyer by name or otherwise and a description of the
8 coverage.
9 (Source: Laws 1967, p. 2149.)
10 (815 ILCS 405/11) (from Ch. 121 1/2, par. 511)
11 Sec. 11. If any required insurance for which an amount is
12 included in the contract or charge agreement is cancelled,
13 any unearned insurance refund exceeding one dollar received
14 or receivable by the holder or, if the amount included for
15 insurance in the contract or charge agreement exceeds the
16 premiums paid or payable by the holder therefor, any unearned
17 portion of the amount so included exceeding one dollar shall
18 be credited on the final maturing installments of the
19 contract except to the extent those amounts are applied
20 toward payment for similar insurance protecting the interests
21 of the buyer and the holder or either of them.
22 If any credit life or credit accident and health
23 insurance for which an amount is included in the contract or
24 charge agreement is terminated, a refund or credit with
25 respect to the amount paid or charged for such coverage shall
26 be determined and made as provided in Section 155.58 of the
27 "Illinois Insurance Code", approved June 29, 1937, as now or
28 hereafter amended.
29 (Source: Laws 1967, p. 2149.)
30 (815 ILCS 405/11.1 new)
31 Sec. 11.1. Disclosure of consideration paid to seller.
32 Consideration or another thing of value may be paid to or
HB2211 Enrolled (corrected) -85- LRB9004659SMdv
1 retained by the seller or holder or an affiliate of the
2 seller or holder in connection with any insurance, debt
3 cancellation contract, or other such product purchased
4 pursuant to the retail installment sales contract made or
5 held by the seller and all or a portion of the consideration
6 may be included in the amount charged to the obligor, so long
7 as the seller or holder discloses to the obligor that the
8 seller, holder, or any of their affiliates may receive
9 something of value in connection with the purchase.
10 (815 ILCS 405/12) (from Ch. 121 1/2, par. 512)
11 Sec. 12. Delinquency charges. A retail installment
12 contract or a retail charge agreement may provide for, and
13 the seller or holder may (if the contract or retail charge
14 agreement provides) collect, a delinquency and collection
15 charge, on each installment in default for a period of not
16 less than 10 days, in an amount not exceeding 5% of the
17 installment on installments in excess of $200 or $10 on
18 installments of $200 or less, or, in lieu thereof with
19 respect to a retail installment contract only, interest after
20 maturity on each such installment not to exceed the highest
21 lawful contract rate. Only one delinquency and collection
22 charge may be collected on any installment regardless of the
23 period during which it that installment remains in default.
24 In addition, a retail installment contract or a retail charge
25 agreement may provide for the payment by the buyer of
26 reasonable attorney's fees incurred in the collection or
27 enforcement of the contract or retail charge agreement. Any
28 clause or provision of any retail installment contract or
29 retail charge agreement entered into after December 31, 1973,
30 to the contrary notwithstanding with respect to attorney's
31 fees incurred in the collection or enforcement of such
32 contract or retail charge agreement the court in its
33 discretion may award attorney's fees to either party as the
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1 interest of justice may require.
2 (Source: P.A. 87-483; 87-841; 88-348.)
3 (815 ILCS 405/12.1 new)
4 Sec. 12.1. Final installment. Fifteen days after the
5 final installment is due as originally scheduled or deferred,
6 the holder may compute and charge interest on any balance
7 remaining unpaid, including unpaid default or deferment
8 charges, at the annual percentage rate stated in the retail
9 installment contract until fully paid or until reduced to
10 judgment. At the time the final installment is due, the
11 holder shall give notice to the buyer stating any amounts
12 unpaid.
13 (815 ILCS 405/13) (from Ch. 121 1/2, par. 513)
14 Sec. 13. No provision in a retail installment contract
15 under which, in the absence of the buyer's default, the
16 holder may, arbitrarily and without reasonable cause,
17 accelerate the maturity of any part of or all of the amount
18 owing thereunder is enforceable.
19 No provision in a retail installment contract under which
20 the holder may accelerate the maturity of any part or all of
21 the amount owing thereunder is enforceable, unless prior to
22 such acceleration, the buyer has been in default for at least
23 30 days or the buyer has abandoned or destroyed the property
24 or the holder has reasonable cause to believe that the buyer
25 is about to leave the state.
26 No provision in a retail installment contract relieving
27 the seller from liability for any remedies provided by law
28 which the buyer may have against the seller under the
29 contract is enforceable.
30 No provision in a retail installment contract purporting
31 to waive any of the provisions of this Act is enforceable.
32 (Source: P.A. 83-345.)
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1 (815 ILCS 405/14) (from Ch. 121 1/2, par. 514)
2 Sec. 14. The seller shall deliver to the buyer a copy of
3 the retail installment contract signed by the seller. Any
4 acknowledgment by the buyer of delivery of a copy of the
5 contract must be printed or written in a size equal to at
6 least 10 point bold type and, if contained in the contract,
7 must appear directly above the legend required above the
8 buyer's signature by paragraph (c) (1) of Section 3. The
9 buyer's written acknowledgment of delivery of a copy of the
10 contract conforming to the requirements of this Act is
11 conclusive proof of that delivery and of compliance with this
12 Section in any action by or against an assignee of the
13 contract without knowledge to the contrary when he purchases
14 the contract. Until the seller delivers a copy of the
15 contract to him, a buyer who has not received delivery of the
16 goods or has not been furnished or rendered the services has
17 the right to cancel his agreement and to receive a refund of
18 all payments made and a return of all goods traded in to the
19 seller on account of or in contemplation of the contract or,
20 if those goods cannot be returned, the value thereof.
21 However, this Section shall not apply when merchandise has
22 been specially ordered or custom made to the specifications
23 of the purchaser and evidence of such order is provided the
24 seller.
25 (Source: Laws 1967, p. 2149.)
26 (815 ILCS 405/21) (from Ch. 121 1/2, par. 521)
27 Sec. 21. (a) If, in a retail installment transaction, a
28 retail buyer makes any subsequent purchase of goods or
29 services from a retail seller from whom he has previously
30 purchased goods or services under one or more retail
31 installment contracts, and the amounts under the previous
32 contract or contracts have not been fully paid, the
33 subsequent purchases may, at the seller's option, be included
HB2211 Enrolled (corrected) -88- LRB9004659SMdv
1 in and consolidated with one or more of the previous
2 contracts. Each subsequent purchase must be evidenced by a
3 separate retail installment contract under this Act,
4 notwithstanding that the purchase may be included in and
5 consolidated with one or more of those in the previous
6 contracts. All of the provisions of this Act with respect to
7 retail installment contracts apply to these subsequent
8 purchases except as otherwise provided in this Section. If
9 installment purchases are consolidated, the seller may,
10 instead of having the buyer execute a retail installment
11 contract for each subsequent purchase as provided in this
12 Act, prepare a written memorandum of each subsequent
13 purchase, in which case Sections 3 and 14 and paragraph (a)
14 of Section 5 do not apply. Unless previously furnished in
15 writing to the buyer by the seller, by sales slip, memoranda
16 or otherwise, the memorandum must set forth with respect to
17 each subsequent purchase the following:
18 (1) All items of disclosure required by Section 5 of
19 this Act for a retail installment contract; and
20 (2) the outstanding balance of the previous contract or
21 contracts;
22 (3) the consolidated balance;
23 (4) the deferred payment price of the subsequent
24 purchase; and
25 (5) the revised Total of Payments applicable to the
26 previous contract or contracts and the subsequent purchase.
27 The seller must deliver to the buyer a copy of this
28 memorandum before the due date of the first installment under
29 the consolidated contract.
30 (Source: P.A. 76-1780.)
31 (815 ILCS 405/23.1 new)
32 Sec. 23.1. Other fees. The seller may charge a premium
33 for insurance, in lieu of perfecting a security interest, to
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1 the extent that the premium does not exceed the fees paid to
2 public officials for determining the existence of or for
3 perfecting or satisfying a security interest. The premium
4 must be disclosed in the itemization of the amount financed.
5 (815 ILCS 405/24) (from Ch. 121 1/2, par. 524)
6 Sec. 24. Retail installment contracts negotiated and
7 entered into by mail or telephone without personal
8 solicitation by salesmen or other representatives of the
9 seller and based upon a catalog of the seller or other
10 printed solicitation clearly setting forth the cash sale
11 prices and other terms of sales to be made through that
12 medium, may be made as provided in this Section. The
13 provisions of this Act with respect to retail installment
14 contracts apply to those sales, except that: (1) the
15 designation and notice provisions of paragraphs (b) and (c)
16 of Section 3 are inapplicable to such contracts.;
17 (2) the retail installment contract, when completed by
18 the buyer, need not contain the items required by paragraph
19 (a) of Section 5.
20 When an order is received from the retail buyer, the
21 seller must prepare a written memorandum containing all of
22 the information required by paragraph (a) of Section 5 to be
23 included in a retail installment contract. Instead of
24 delivering a copy of the contract to the retail buyer as
25 provided in Section 14, the seller must, before the due date
26 of the first installment payable under the contract, deliver
27 to the buyer a written statement setting forth all the
28 information required by paragraph (a) of Section 5.
29 (Source: Laws 1967, p. 2149.)
30 (815 ILCS 405/27) (from Ch. 121 1/2, par. 527)
31 Sec. 27. (a) Notwithstanding the provisions of any other
32 statute, a retail installment contract may provide for, and
HB2211 Enrolled (corrected) -90- LRB9004659SMdv
1 the seller or holder may, if the contract does so provide,
2 charge, collect and receive, a finance charge computed on the
3 principal balance from the date of the contract to the due
4 date of the final installment at not exceeding the following
5 rates:
6 (1) on so much of the principal balance as does not
7 exceed $500--$16 per $100 per year;
8 (2) on so much of the principal balance exceeding $500
9 but not exceeding $800--$14 per $100 per year;
10 (3) on so much of the principal balance as exceeds
11 $800--$12 per $100 per year on the excess.
12 (b) A minimum finance charge not in excess of the
13 following amounts may be charged on any retail installment
14 contract: $12 on any retail installment contract involving an
15 initial principal balance of $50 or more; $7.50 on a retail
16 installment contract involving an initial principal balance
17 of more than $25 and less than $50; and $5 on a retail
18 installment contract involving an initial principal balance
19 of $25 or less.
20 (c) Notwithstanding the provisions of any other statute,
21 and notwithstanding the rate limitations expressed in
22 subdivisions (a) and (b) of this Section, for retail
23 installment contracts executed after the effective date of
24 this amendatory Act of 1981, there shall be no limit on the
25 finance charges which may be charged, collected and received.
26 (Source: P.A. 82-660.)
27 (815 ILCS 405/28) (from Ch. 121 1/2, par. 528)
28 Sec. 28. (a) Notwithstanding the provisions of any other
29 statute, a retail charge agreement may provide for, and the
30 seller or holder may, if the agreement does so provide,
31 charge, collect and receive, a finance charge not exceeding
32 18¢ per $10 per month, computed on all amounts unpaid
33 thereunder from month to month, which need not be a calendar
HB2211 Enrolled (corrected) -91- LRB9004659SMdv
1 month. The finance charge under this Section may be computed
2 for all unpaid balances from month to month within a range of
3 not exceeding $10 on the basis of the median amount within
4 the range if, as so computed, the same rate of finance charge
5 is applied to all unpaid balances within the range. If the
6 amount of the finance charge as so computed is less than 70¢
7 for any month, a finance charge of that amount may be
8 charged, collected and received for that month. If the
9 regular period is other than a month to month period, the
10 finance charge shall be computed proportionately.
11 (b) Notwithstanding the provisions of any other statute,
12 and notwithstanding the limitations on amounts of finance
13 charges which may be charged, collected and received
14 expressed in subsection (a) of this Section, a retail charge
15 agreement may provide for the charging, collection and
16 receipt of finance charges at any specified rate on the for
17 unpaid balances incurred after the effective date of this
18 amendatory Act of 1981. If a seller or holder under a retail
19 charge agreement entered into on, prior to or after the
20 effective date of this amendatory Act of 1981 notifies the
21 retail buyer at least 15 30 days in advance of any lawful
22 increase in the finance charges to be charged under the
23 agreement, and the retail buyer, after the effective date of
24 such notice, makes a new or additional purchase or incurs
25 additional debt pursuant to the agreement, the increased
26 finance charges may be applied only to any such new or
27 additional purchase or additional debt incurred regardless of
28 any other terms of the agreement. For purposes of
29 determining the balances to which the increased interest rate
30 applies, all payments and other credits may be deemed to be
31 applied to the balance existing prior to the change in rate
32 until that balance is paid in full.
33 (Source: P.A. 82-660.)
HB2211 Enrolled (corrected) -92- LRB9004659SMdv
1 INDEX
2 Statutes amended in order of appearance
3 205 ILCS 660/2 from Ch. 17, par. 5202
4 205 ILCS 660/3 from Ch. 17, par. 5203
5 205 ILCS 660/4 from Ch. 17, par. 5204
6 205 ILCS 660/5 from Ch. 17, par. 5205
7 205 ILCS 660/6 from Ch. 17, par. 5206
8 205 ILCS 660/7 from Ch. 17, par. 5207
9 205 ILCS 660/8 from Ch. 17, par. 5208
10 205 ILCS 660/8.1 from Ch. 17, par. 5209
11 205 ILCS 660/8.2 from Ch. 17, par. 5210
12 205 ILCS 660/8.3 from Ch. 17, par. 5211
13 205 ILCS 660/8.4 from Ch. 17, par. 5212
14 205 ILCS 660/8.6 from Ch. 17, par. 5214
15 205 ILCS 660/8.8 from Ch. 17, par. 5216
16 205 ILCS 660/8.9 from Ch. 17, par. 5217
17 205 ILCS 660/8.10 from Ch. 17, par. 5218
18 205 ILCS 660/8.11 from Ch. 17, par. 5219
19 205 ILCS 660/8.13 from Ch. 17, par. 5221
20 205 ILCS 660/8.14 new
21 205 ILCS 660/10 from Ch. 17, par. 5223
22 205 ILCS 660/10.1 from Ch. 17, par. 5224
23 205 ILCS 660/10.2 from Ch. 17, par. 5225
24 205 ILCS 660/11 from Ch. 17, par. 5229
25 205 ILCS 660/12 from Ch. 17, par. 5230
26 205 ILCS 660/13 from Ch. 17, par. 5231
27 205 ILCS 660/14 from Ch. 17, par. 5232
28 205 ILCS 660/15 from Ch. 17, par. 5233
29 205 ILCS 660/15.5 new
30 205 ILCS 660/16.5 new
31 205 ILCS 660/18 new
32 205 ILCS 660/19 new
33 205 ILCS 660/20 new
34 205 ILCS 660/8.7 rep.
HB2211 Enrolled (corrected) -93- LRB9004659SMdv
1 205 ILCS 660/9 rep.
2 205 ILCS 660/10.5 rep.
3 205 ILCS 660/16 rep.
4 205 ILCS 670/Act title
5 205 ILCS 670/1 from Ch. 17, par. 5401
6 205 ILCS 670/2 from Ch. 17, par. 5402
7 205 ILCS 670/4 from Ch. 17, par. 5404
8 205 ILCS 670/5 from Ch. 17, par. 5405
9 205 ILCS 670/7 from Ch. 17, par. 5407
10 205 ILCS 670/8 from Ch. 17, par. 5408
11 205 ILCS 670/9 from Ch. 17, par. 5409
12 205 ILCS 670/9.1 new
13 205 ILCS 670/10 from Ch. 17, par. 5410
14 205 ILCS 670/11 from Ch. 17, par. 5411
15 205 ILCS 670/12 from Ch. 17, par. 5412
16 205 ILCS 670/12.5 new
17 205 ILCS 670/13 from Ch. 17, par. 5413
18 205 ILCS 670/14 from Ch. 17, par. 5414
19 205 ILCS 670/15 from Ch. 17, par. 5415
20 205 ILCS 670/15a from Ch. 17, par. 5416
21 205 ILCS 670/15b from Ch. 17, par. 5417
22 205 ILCS 670/15d from Ch. 17, par. 5419
23 205 ILCS 670/15e from Ch. 17, par. 5419.1
24 205 ILCS 670/16 from Ch. 17, par. 5420
25 205 ILCS 670/17 from Ch. 17, par. 5423
26 205 ILCS 670/18 from Ch. 17, par. 5424
27 205 ILCS 670/19.1 from Ch. 17, par. 5425.1
28 205 ILCS 670/19.5 new
29 205 ILCS 670/20 from Ch. 17, par. 5426
30 205 ILCS 670/20.5 new
31 205 ILCS 670/20.7 new
32 205 ILCS 670/21 from Ch. 17, par. 5427
33 205 ILCS 670/22 from Ch. 17, par. 5428
34 205 ILCS 670/23 from Ch. 17, par. 5429
HB2211 Enrolled (corrected) -94- LRB9004659SMdv
1 205 ILCS 670/24.5 new
2 205 ILCS 670/3 rep.
3 205 ILCS 670/4.1 rep.
4 205 ILCS 670/6 rep.
5 205 ILCS 670/19 rep.
6 205 ILCS 670/24 rep.
7 815 ILCS 375/2 from Ch. 121 1/2, par. 562
8 815 ILCS 375/2.5 from Ch. 121 1/2, par. 562.5
9 815 ILCS 375/2.7 from Ch. 121 1/2, par. 562.7
10 815 ILCS 375/2.9 from Ch. 121 1/2, par. 562.9
11 815 ILCS 375/2.11 from Ch. 121 1/2, par. 562.11
12 815 ILCS 375/2.12 from Ch. 121 1/2, par. 562.12
13 815 ILCS 375/2.14 new
14 815 ILCS 375/2.15 new
15 815 ILCS 375/3 from Ch. 121 1/2, par. 563
16 815 ILCS 375/4 from Ch. 121 1/2, par. 564
17 815 ILCS 375/5 from Ch. 121 1/2, par. 565
18 815 ILCS 375/6 from Ch. 121 1/2, par. 566
19 815 ILCS 375/7 from Ch. 121 1/2, par. 567
20 815 ILCS 375/8 from Ch. 121 1/2, par. 568
21 815 ILCS 375/9 from Ch. 121 1/2, par. 569
22 815 ILCS 375/9.02 from Ch. 121 1/2, par. 569.02
23 815 ILCS 375/9.03 new
24 815 ILCS 375/10 from Ch. 121 1/2, par. 570
25 815 ILCS 375/11 from Ch. 121 1/2, par. 571
26 815 ILCS 375/11.2 new
27 815 ILCS 375/13 from Ch. 121 1/2, par. 573
28 815 ILCS 375/15 from Ch. 121 1/2, par. 575
29 815 ILCS 375/17.1 new
30 815 ILCS 375/20 from Ch. 121 1/2, par. 580
31 815 ILCS 375/21 from Ch. 121 1/2, par. 581
32 815 ILCS 375/24 from Ch. 121 1/2, par. 584
33 815 ILCS 405/2 from Ch. 121 1/2, par. 502
34 815 ILCS 405/2.9 from Ch. 121 1/2, par. 502.9
HB2211 Enrolled (corrected) -95- LRB9004659SMdv
1 815 ILCS 405/2.11 from Ch. 121 1/2, par. 502.11
2 815 ILCS 405/2.13 from Ch. 121 1/2, par. 502.13
3 815 ILCS 405/2.16 new
4 815 ILCS 405/2.17 new
5 815 ILCS 405/3 from Ch. 121 1/2, par. 503
6 815 ILCS 405/5 from Ch. 121 1/2, par. 505
7 815 ILCS 405/6 from Ch. 121 1/2, par. 506
8 815 ILCS 405/7 from Ch. 121 1/2, par. 507
9 815 ILCS 405/8 from Ch. 121 1/2, par. 508
10 815 ILCS 405/9 from Ch. 121 1/2, par. 509
11 815 ILCS 405/11 from Ch. 121 1/2, par. 511
12 815 ILCS 405/11.1 new
13 815 ILCS 405/12 from Ch. 121 1/2, par. 512
14 815 ILCS 405/12.1 new
15 815 ILCS 405/13 from Ch. 121 1/2, par. 513
16 815 ILCS 405/14 from Ch. 121 1/2, par. 514
17 815 ILCS 405/21 from Ch. 121 1/2, par. 521
18 815 ILCS 405/23.1 new
19 815 ILCS 405/24 from Ch. 121 1/2, par. 524
20 815 ILCS 405/27 from Ch. 121 1/2, par. 527
21 815 ILCS 405/28 from Ch. 121 1/2, par. 528
22 815 ILCS 405/31 from Ch. 121 1/2, par. 531