SB0141sam001 99TH GENERAL ASSEMBLY

Sen. Steve Stadelman

Filed: 4/1/2015

09900SB0141sam001 LRB099 03414 KTG 33595 a

AMENDMENT TO SENATE BILL 141

AMENDMENT NO. ______. Amend Senate Bill 141 by replacing everything after the enacting clause with the following:

"Section 5. The Uniform Commercial Code is amended by changing Section 9-609 as follows:

(810 ILCS 5/9-609)

Sec. 9-609. Secured party's right to take possession after default.

(a) Possession; rendering equipment unusable; disposition on debtor's premises. After default, a secured party:

(1) may take possession of the collateral; and

(2) without removal, may render equipment unusable and dispose of collateral on a debtor's premises under Section 9-610.

A secured party may not disable or render unusable any computer program or other similar device embedded in the collateral if immediate injury to any person or property is a reasonably foreseeable consequence of such action. A secured party who disables or renders unusable such a computer program or other similar device in such circumstances shall be liable in accordance with applicable rules of law to any person who sustains an injury to person or property as a reasonably foreseeable result of the secured party's action.

A secured party shall not disable a vehicle by using starter interrupt technology unless the secured party complies with all of the following:

(A) At the time of the sale, the secured party provides the buyer written notice of both of the following:

(i) That the vehicle is equipped with starter interrupt technology that the secured party can use to shut down the vehicle remotely.

(ii) That a warning will be provided no less than 48 hours before the use of the starter interrupt technology to shut down the vehicle remotely and the manner and method in which that warning will occur. The secured party shall offer the buyer a choice of warning methods, including warning from the device, telephone call, e-mail, or text message, if available, provided that the warning method does not violate applicable State or federal law.

(B) At least 30 days prior to disabling the vehicle for the buyer's failure to tender timely loan repayments, the secured party provides the buyer written notice of all of the following:

(i) That the loan is past due.

(ii) That the secured party may use starter interrupt technology to disable the vehicle within 30 days after the mailing date of the notice.

(iii) The amount currently due on the loan.

(iv) The acceptable forms of payment of the amount currently due.

(v) That the vehicle will not be disabled if the buyer tenders the amount currently due on the loan to the secured party in an acceptable form of payment within 30 days after the mailing date of the notice.

(vi) That, if the loan is not paid, a warning will be provided using the warning method specified at the time of sale to the buyer no less than 48 hours before the use of the starter interrupt technology to shut down the vehicle remotely.

In the event of an emergency, the buyer will be provided with the ability to start a secured party-disabled vehicle for no less than 24 hours after the vehicle's initial disablement.

(b) Judicial and nonjudicial process. A secured party may proceed under subsection (a):

(1) pursuant to judicial process; or

(2) without judicial process, if it proceeds without breach of the peace.

(c) Assembly of collateral. If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.

(Source: P.A. 91-893, eff. 7-1-01.)".