Public Act 094-0635
Public Act 0635 94TH GENERAL ASSEMBLY
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Public Act 094-0635
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| SB2060 Enrolled |
LRB094 10968 DRJ 42097 b |
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| AN ACT concerning military personnel, which may be referred | to as the Illinois Patriot Plan.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 1. Short title. This Act may be cited as the | Military Personnel Cellular Phone Contract Termination Act.
| Section 5. Definition. In this Act: | "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| Section 10. Termination of cellular phone contract without | penalty. Any service member who is deployed on active duty, or | the spouse of that service member, may terminate, without | penalty, a cellular phone contract that meets both of the | following requirements:
| (1) The contract is entered into on or after the | effective date of this Act.
| (2) The contract is executed by or on behalf of the | service member who is deployed on active duty.
| Section 15. Effective date of termination. Termination of | the cellular phone contract shall not be effective until:
| (1) thirty days after the service member who is | deployed on active duty or the service member's spouse | gives notice by certified mail, return receipt requested, | of the intention to terminate the cellular phone contract | together with a copy of the military or gubernatorial | orders calling the service member to active duty and of any |
| orders further extending the service member's period of | active duty; and
| (2) unless the service member who is deployed on active | duty owns the cellular phone, the cellular phone is | returned to the custody or control of the cellular | telephone company, or the service member who is deployed on | active duty or the service member's spouse agrees in | writing to return the cellular phone as soon as practical | after the deployment is completed.
| Section 900. The Department of Central Management Services | Law of the
Civil Administrative Code of Illinois is amended by | adding Section 405-272 as follows:
| (20 ILCS 405/405-272 new) | Sec. 405-272. Bulk long distance telephone services for | military personnel on active duty. | (a) In this Section: | "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Immediate family" means a service member's spouse | residing in the service member's household, brothers and | sisters of the whole or of the half blood, children, including | adopted children and stepchildren, parents, and grandparents. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| (b) The Department may enter into a contract to purchase | bulk long distance telephone services and make them available | at cost, or may make bulk long distance telephone services | available at cost under any existing contract the Department | has entered into, to persons in the immediate family of service | members deployed on active duty so that those persons in the | service members' families can communicate with the service | members so deployed. If the Department enters into a contract |
| under this Section, it shall do so in accordance with the | Illinois Procurement Code and in a nondiscriminatory manner | that does not place any potential vendor at a competitive | disadvantage. | (c) In order to be eligible to use bulk long distance | telephone services purchased by the Department under this | Section, a service member or person in the service member's | immediate family must provide the Department with a copy of the | military or gubernatorial orders calling the service member to | active duty and of any orders further extending the service | member's period of active duty.
| (d) If the Department enters into a contract under this | Section, the Department shall adopt rules as necessary to | implement this Section.
| Section 902. The Illinois Municipal Code is amended by | adding Section 11-117-12.2 as follows:
| (65 ILCS 5/11-117-12.2 new) | Sec. 11-117-12.2. Military personnel on active duty; no | stoppage of gas or electricity; arrearage. | (a) In this Section: | "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| (b) No municipality owning a public utility shall stop gas | or electricity from entering the residential premises of which | a service member was a primary occupant immediately before the | service member was deployed on active duty for nonpayment for | gas or electricity supplied to the residential premises. | (c) Upon the return from active duty of a residential | consumer who is a service member, the municipality shall offer | the residential consumer a period equal to at least the period |
| of the residential consumer's deployment on active duty to pay | any arrearages incurred during the period of the residential | consumer's deployment. The municipality shall inform the | residential consumer that, if the period the municipality | offers presents a hardship to the consumer, the consumer may | request a longer period to pay the arrearages. | (d) In order to be eligible for the benefits granted to | service members under this Section, a service member must | provide the municipality with a copy of the military or | gubernatorial orders calling the service member to active duty | and of any orders further extending the service member's period | of active duty.
| Section 905. The Illinois Insurance Code is amended by | adding Section 224.05 as follows:
| (215 ILCS 5/224.05 new) | Sec. 224.05. Military personnel on active duty; no lapse of | life insurance policy. | (a) Except as provided in subsection (b), this Section | shall apply to any individual life insurance policy insuring | the life of a member of the armed services or reserve forces of | the United States or a member of the Illinois National Guard | who is on active duty pursuant to an executive order of the | President of the United States, an act of the Congress of the | United States, or an order of the Governor, if the life | insurance policy meets both of the following conditions: | (1) The policy has been in force for at least 180 days. | (2) The policy has been brought within the | "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), | 50 U.S.C. App. 541 and following. | (b) This Section does not apply to any policy that was | cancelled or that had lapsed for the nonpayment of premiums | prior to the commencement of the insured's period of military | service. | (c) An individual life insurance policy described in this |
| Section shall not lapse or be forfeited for the nonpayment of | premiums during the military service of a member of the armed | services or reserve forces of the United States or a member of | the Illinois National Guard or during the 2-year period | subsequent to the end of the member's period of military | service. | (d) In order to be eligible for the benefits granted to | service members under this Section, a service member must | provide the life insurance company with a copy of the military | or gubernatorial orders calling the service member to active | duty and of any orders further extending the service member's | period of active duty.
| (e) This Section does not limit a life insurance company's | enforcement of provisions in the insured's policy relating to | naval or military service in time of war.
| Section 910. The Public Utilities Act is amended by adding | Section 8-201.5 as follows:
| (220 ILCS 5/8-201.5 new) | Sec. 8-201.5. Military personnel on active duty; no | stoppage of gas or electricity; arrearage. | (a) In this Section: | "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| (b) No company or electric cooperative shall stop gas or | electricity from entering the residential premises of which a | service member was a primary occupant immediately before the | service member was deployed on active duty for nonpayment for | gas or electricity supplied to the residential premises. | (c) In order to be eligible for the benefits granted to | service members under this Section, a service member must |
| provide the company or electric cooperative with a copy of the | military or gubernatorial orders calling the service member to | active duty and of any orders further extending the service | member's period of active duty.
| (d) Upon the return from active duty of a residential | consumer who is a service member, the company or electric | cooperative shall offer the residential consumer a period equal | to at least the period of deployment on active duty to pay any | arrearages incurred during the period of the residential | consumer's deployment. The company or electric cooperative | shall inform the residential consumer that, if the period that | the company or electric cooperative offers presents a hardship | to the consumer, the consumer may request a longer period to | pay the arrearages and, in the case of a company that is a | public utility, may request the assistance of the Illinois | Commerce Commission to obtain a longer period. No late payment | fees or interest shall be charged to the residential consumer | during the period of deployment or the repayment period.
| Section 915. The Code of Civil Procedure is amended by | adding Section 9-107.10 as follows:
| (735 ILCS 5/9-107.10 new) | Sec. 9-107.10. Military personnel on active duty; action | for possession. | (a) In this Section: | "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| (b) In an action for possession of residential premises of | a tenant, including a tenant who is a resident of a mobile home | park, who is a service member deployed on active duty, or of | any member of the tenant's family who resides with the tenant, |
| if the tenant entered into the rental agreement on or after the | effective date of this amendatory Act of the 94th General | Assembly, the court may, on its own motion, and shall, upon | motion made by or on behalf of the tenant, do either of the | following if the tenant's ability to pay the agreed rent is | materially affected by the tenant's deployment on active duty: | (1) Stay the proceedings for a period of 90 days, | unless, in the opinion of the court, justice and equity | require a longer or shorter period of time. | (2) Adjust the obligation under the rental agreement to | preserve the interest of all parties to it. | (c) In order to be eligible for the benefits granted to | service members under this Section, a service member or a | member of the service member's family who resides with the | service member must provide the landlord or mobile home park | operator with a copy of the military or gubernatorial orders | calling the service member to active duty and of any orders | further extending the service member's period of active duty.
| (d) If a stay is granted under this Section, the court may | grant the landlord or mobile home park operator such relief as | equity may require.
| Section 920. The Interest Act is amended by changing | Section 4 and by adding Section 4.05 as follows:
| (815 ILCS 205/4) (from Ch. 17, par. 6404)
| Sec. 4. General interest rate.
| (1) Except as otherwise provided in this Section 4.05, in
| In all written contracts it shall be lawful for the parties to
| stipulate or agree that 9% per annum, or any less sum of | interest, shall be
taken and paid upon every $100 of money | loaned or in any manner due and
owing from any person to any | other person or corporation in this state, and
after that rate | for a greater or less sum, or for a longer or shorter time,
| except as herein provided.
| The maximum rate of interest that may lawfully be |
| contracted for is
determined by the law applicable thereto at | the time the contract is
made. Any provision in any contract, | whether made before or after July
1, 1969, which provides for | or purports to authorize, contingent upon a
change in the | Illinois law after the contract is made, any rate of
interest | greater than the maximum lawful rate at the time the contract
| is made, is void.
| It is lawful for a state bank or a branch of an | out-of-state bank, as those
terms are defined in Section 2 of | the Illinois Banking Act, to receive or to
contract to receive
| and collect interest and charges at any rate or rates agreed | upon by
the bank or branch and the borrower.
It is lawful for a | savings bank chartered under the Savings Bank Act or a
savings | association chartered under the Illinois Savings and Loan Act | of 1985
to receive or contract to receive and collect interest | and charges at any rate
agreed upon by the savings bank or | savings association and the borrower.
| It is lawful to receive or to contract to receive and | collect
interest and charges as authorized by this Act and as | authorized by the
Consumer Installment Loan Act and by the | "Consumer Finance Act", approved July
10,
1935, as now or | hereafter amended. It is lawful to charge, contract
for, and | receive any rate or amount of interest or compensation with
| respect to the following transactions:
| (a) Any loan made to a corporation;
| (b) Advances of money, repayable on demand, to an | amount not less
than $5,000, which are made upon warehouse | receipts, bills of lading,
certificates of stock, | certificates of deposit, bills of exchange, bonds
or other | negotiable instruments pledged as collateral security for | such
repayment, if evidenced by a writing;
| (c) Any credit transaction between a merchandise | wholesaler and
retailer; any business loan to a business | association or copartnership
or to a person owning and | operating a business as sole proprietor or to
any persons | owning and operating a business as joint venturers, joint
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| tenants or tenants in common, or to any limited | partnership, or to any
trustee owning and operating a | business or whose beneficiaries own and
operate a business, | except that any loan which is secured (1) by an
assignment | of an individual obligor's salary, wages, commissions or
| other compensation for services, or (2) by his household | furniture or
other goods used for his personal, family or | household purposes shall be
deemed not to be a loan within | the meaning of this subsection; and
provided further that a | loan which otherwise qualifies as a business
loan within | the meaning of this subsection shall not be deemed as not | so
qualifying because of the inclusion, with other security | consisting of
business assets of any such obligor, of real | estate occupied by an
individual obligor solely as his | residence. The term "business" shall
be deemed to mean a | commercial, agricultural or industrial enterprise
which is | carried on for the purpose of investment or profit, but | shall
not be deemed to mean the ownership or maintenance of | real estate
occupied by an individual obligor solely as his | residence;
| (d) Any loan made in accordance with the provisions of | Subchapter I
of Chapter 13 of Title 12 of the United States | Code, which is designated
as "Housing Renovation and | Modernization";
| (e) Any mortgage loan insured or upon which a | commitment to insure
has been issued under the provisions | of the National Housing Act,
Chapter 13 of Title 12 of the | United States Code;
| (f) Any mortgage loan guaranteed or upon which a | commitment to
guaranty has been issued under the provisions | of the Veterans' Benefits
Act, Subchapter II of Chapter 37 | of Title 38 of the United States Code;
| (g) Interest charged by a broker or dealer registered | under the
Securities Exchange Act of 1934, as amended, or | registered under the
Illinois Securities Law of 1953, | approved July 13, 1953, as now or
hereafter amended, on a |
| debit balance in an account for a customer if
such debit | balance is payable at will without penalty and is secured | by
securities as defined in Uniform Commercial | Code-Investment Securities;
| (h) Any loan made by a participating bank as part of | any loan
guarantee program which provides for loans and for | the refinancing of
such loans to medical students, interns | and residents and which are
guaranteed by the American | Medical Association Education and Research
Foundation;
| (i) Any loan made, guaranteed, or insured in accordance | with the
provisions of the Housing Act of 1949, Subchapter | III of Chapter 8A of
Title 42 of the United States Code and | the Consolidated Farm and Rural
Development Act, | Subchapters I, II, and III of Chapter 50 of Title 7 of
the | United States Code;
| (j) Any loan by an employee pension benefit plan, as | defined in Section
3 (2) of the Employee Retirement Income | Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an | individual participating in such plan, provided that such
| loan satisfies the prohibited transaction exemption | requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 | (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) | (1)) of the Employee Retirement Income Security Act of | 1974;
| (k) Written contracts, agreements or bonds for deed | providing for
installment purchase of real estate;
| (1) Loans secured by a mortgage on real estate;
| (m) Loans made by a sole proprietorship, partnership, | or corporation to
an employee or to a person who has been | offered employment by such sole
proprietorship, | partnership, or corporation made for the sole purpose of
| transferring an employee or person who has been offered | employment to another
office maintained and operated by the | same sole proprietorship, partnership,
or corporation;
| (n) Loans to or for the benefit of students made by an | institution of
higher education.
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| (2) Except for loans described in subparagraph (a), (c), | (d),
(e), (f) or (i) of subsection (1) of this Section, and | except to the
extent permitted by the applicable statute for | loans made pursuant to
Section 4a or pursuant to the Consumer | Installment Loan Act:
| (a) Whenever the rate of interest exceeds 8% per annum | on any
written contract, agreement or bond for deed | providing for the installment
purchase of residential real | estate, or on any loan secured by a mortgage
on residential | real estate, it shall be unlawful to provide for a
| prepayment penalty or other charge for prepayment.
| (b) No agreement, note or other instrument evidencing a | loan
secured by a mortgage on residential real estate, or | written contract,
agreement or bond for deed providing for | the installment purchase of
residential real estate, may | provide for any change in the contract rate of
interest | during the term thereof. However, if the Congress of the | United
States or any federal agency authorizes any class of | lender to enter, within
limitations, into mortgage | contracts or written contracts, agreements or
bonds for | deed in which the rate of interest may be changed during | the
term of the contract, any person, firm, corporation or | other entity
not otherwise prohibited from entering into | mortgage contracts or
written contracts, agreements or | bonds for deed in Illinois may enter
into mortgage | contracts or written contracts, agreements or bonds
for | deed in which the rate of interest may be changed during | the term
of the contract, within the same limitations.
| (3) In any contract or loan which is secured by a mortgage, | deed of
trust, or conveyance in the nature of a mortgage, on | residential real
estate, the interest which is computed, | calculated, charged, or collected
pursuant to such contract or | loan, or pursuant to any regulation or rule
promulgated | pursuant to this Act, may not be computed, calculated, charged
| or collected for any period of time occurring after the date on | which the
total indebtedness, with the exception of late |
| payment penalties, is paid
in full.
| For purposes of this Section, a prepayment shall mean the | payment of the
total indebtedness, with the exception of late | payment penalties if
incurred or charged, on any date before | the date specified in the contract
or loan agreement on which | the total indebtedness shall be paid in full, or
before the | date on which all payments, if timely made, shall have been
| made. In the event of a prepayment of the indebtedness which is | made on a
date after the date on which interest on the | indebtedness was last
computed, calculated, charged, or | collected but before the next date on
which interest on the | indebtedness was to be calculated, computed, charged,
or | collected, the lender may calculate, charge and collect | interest on the
indebtedness for the period which elapsed | between the date on which the
prepayment is made and the date | on which interest on the indebtedness was
last computed, | calculated, charged or collected at a rate equal to 1/360 of
| the annual rate for each day which so elapsed, which rate shall | be applied
to the indebtedness outstanding as of the date of | prepayment. The lender
shall refund to the borrower any | interest charged or collected which
exceeds that which the | lender may charge or collect pursuant to the
preceding | sentence. The provisions of this amendatory Act of 1985 shall
| apply only to contracts or loans entered into on or after the | effective
date of this amendatory Act, but shall not apply to | contracts or loans
entered into on or after that date that are | subject to Section 4a of this
Act, the Consumer Installment | Loan Act, or the Retail Installment Sales
Act, or that provide | for the refund of precomputed interest on prepayment
in the | manner provided by such Act.
| (Source: P.A. 92-483, eff. 8-23-01.)
| (815 ILCS 205/4.05 new) | Sec. 4.05. Military personnel on active duty; limitation on | interest rate. | (a) In this Section: |
| "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Obligation" means any retail installment sales contract, | other contract for the purchase of goods or services, or bond, | bill, note, or other instrument of writing for the payment of | money arising out of a contract or other transaction for the | purchase of goods or services. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| (b) Notwithstanding any contrary provision of State law, | but subject to the federal Servicemembers Civil Relief Act, no | creditor in connection with an obligation entered into on or | after the effective date of this amendatory Act of the 94th | General Assembly, but prior to a service member's deployment on | active duty, shall charge or collect from a service member who | is deployed on active duty, or the spouse of that service | member, interest or finance charges exceeding 6% per annum | during the period that the service member is deployed on active | duty. | (c) Notwithstanding any contrary provision of law, | interest or finance charges in excess of 6% per annum that | otherwise would be incurred but for the prohibition in | subsection (b) are forgiven. | (d) The amount of any periodic payment due from a service | member who is deployed on active duty, or the spouse of that | service member, under the terms of the obligation shall be | reduced by the amount of the interest and finance charges | forgiven under subsection (c) that is allocable to the period | for which the periodic payment is made. | (e) In order for an obligation to be subject to the | interest and finance charges limitation of this Section, the | service member deployed on active duty, or the spouse of that | service member, shall provide the creditor with written notice | of and a copy of the military or gubernatorial orders calling |
| the service member to active duty and of any orders further | extending the service member's period of active duty, not later | than 180 days after the date of the service member's | termination of or release from active duty. | (f) Upon receipt of the written notice and a copy of the | orders referred to in subsection (e), the creditor shall treat | the obligation in accordance with subsection (b), effective as | of the date on which the service member is deployed to active | duty. | (g) A court may grant a creditor relief from the interest | and finance charges limitation of this Section, if, in the | opinion of the court, the ability of the service member | deployed on active duty, or the spouse of that service member, | to pay interest or finance charges with respect to the | obligation at a rate in excess of 6% per annum is not | materially affected by reason of the service member's | deployment on active duty.
| Section 925. The Motor Vehicle Leasing Act is amended by | adding Section 37 as follows:
| (815 ILCS 636/37 new) | Sec. 37. Military personnel on active duty; termination of | lease. | (a) In this Act: | "Active duty" means active duty pursuant to an executive | order of the President of the United States, an act of the | Congress of the United States, or an order of the Governor. | "Motor vehicle" means any automobile, car minivan, | passenger van, sport utility vehicle, pickup truck, or other | self-propelled vehicle not operated or driven on fixed rails or | track. | "Service member" means a member of the armed services or | reserve forces of the United States or a member of the Illinois | National Guard.
| (b) Any service member who is deployed on active duty for a |
| period of not less than 180 days, or the spouse of that service | member, may terminate any motor vehicle lease that meets both | of the following requirements: | (1) The lease is entered into on or after the effective | date of this amendatory Act of the 94th General Assembly. | (2) The lease is executed by or on behalf of the | service member who is deployed on active duty. | (c) Termination of the motor vehicle lease shall not be | effective until: | (1) the service member who is deployed on active duty, | or the service member's spouse, gives the lessor by | certified mail, return receipt requested, a notice of the | intention to terminate the lease together with a copy of | the military or gubernatorial orders calling the service | member to active duty and of any orders further extending | the service member's period of active duty; and | (2) the motor vehicle subject to the lease is returned | to the custody or control of the lessor not later than 15 | days after the delivery of the written notice. | (d) Lease amounts unpaid for the period preceding the | effective date of the lease's termination shall be paid on a | prorated basis. The lessor may not impose an early termination | charge, but any taxes, costs of summons, and title or | registration fees and any other obligation and liability of the | lessee under the terms of the lease, including reasonable | charges to the lessee for excess wear, use, and mileage, that | are due and unpaid at the time of the lease's termination shall | be paid by the lessee. | (e) The lessor shall refund to the lessee lease amounts | paid in advance for a period after the effective date of the | lease's termination within 30 days after the effective date of | the lease's termination. | (f) Upon application by the lessor to a court before the | effective date of the lease's termination, relief granted by | this Section may be modified as justice and equity require.
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| Section 999. Effective date. This Act takes effect upon | becoming law. |
Effective Date: 8/22/2005
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