103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3283

 

Introduced 2/7/2024, by Sen. Patrick J. Joyce

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 375/18  from Ch. 121 1/2, par. 578

    Amends the Motor Vehicle Retail Installment Sales Act. Provides that each person, other than a seller or holder, who signs a retail installment contract may be held liable only to the extent that he actually receives the motor vehicle described or identified in the contract, except that a parent or spouse or any other person who co-signs such retail installment contract (rather than any other person listed as an owner of the motor vehicle on the Certificate of Title issued for the motor vehicle who co-signs such retail installment contract) may be held liable to the full extent of the deferred payment price notwithstanding such parent or spouse or any other person listed as an owner has not actually received the motor vehicle described or identified in the contract and except to the extent such person other than a seller or holder, signs in the capacity of a guarantor of collection.


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A BILL FOR

 

SB3283LRB103 36834 SPS 66945 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Motor Vehicle Retail Installment Sales Act
5is amended by changing Section 18 as follows:
 
6    (815 ILCS 375/18)  (from Ch. 121 1/2, par. 578)
7    Sec. 18. Each person, other than a seller or holder, who
8signs a retail installment contract may be held liable only to
9the extent that he actually receives the motor vehicle
10described or identified in the contract, except that a parent
11or spouse or any other person listed as an owner of the motor
12vehicle on the Certificate of Title issued for the motor
13vehicle who co-signs such retail installment contract may be
14held liable to the full extent of the deferred payment price
15notwithstanding such parent or spouse or any other person
16listed as an owner has not actually received the motor vehicle
17described or identified in the contract and except to the
18extent such person other than a seller or holder, signs in the
19capacity of a guarantor of collection.
20    The obligation of such guarantor is secondary, and not
21primary. The obligation arises only after the seller or holder
22has diligently taken all ordinary legal means to collect the
23debt from the primary obligor, but has not received full

 

 

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1payment from such primary obligor or obligors, or after the
2primary obligor has become insolvent, or service of summons
3cannot be obtained on the primary obligor, or it is otherwise
4apparent that it is useless to proceed against the primary
5obligor.
6    No provisions in a retail installment contract obligating
7such guarantor are valid unless:
8        (1) there appears below the signature space provided
9    for such guarantor the following:
10        "I hereby guarantee the collection of the above
11    described amount upon failure of the seller named herein
12    to collect said amount from the buyer named herein."; and
13        (2) the guarantor, in addition to signing the retail
14    installment contract, signs a separate instrument in the
15    following form:
16
"EXPLANATION OF GUARANTOR'S OBLIGATION
17        You ........... (name of guarantor) by signing the
18    retail installment contract and this document are agreeing
19    that you will pay $......... (total deferred payment
20    price) for the purchase of ........... (description of
21    goods or services) purchased by ............ (name of
22    buyer) from ........... (name of seller).
23        Your obligation arises only after the seller or holder
24    has attempted through the use of the court system to
25    collect this amount from the buyer.
26        If the seller cannot collect this amount from the

 

 

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1    buyer, you will be obligated to pay even though you are not
2    entitled to any of the goods or services furnished. The
3    seller is entitled to sue you in court for the payment of
4    the amount due."
5    The instrument must be printed, typed, or otherwise
6reproduced in a size and style equal to at least 8 point bold
7type, may contain no other matter (except a union printing
8label) than above set forth and must bear the signature of the
9co-signer and no other person. The seller must give the
10co-signer a copy of the retail installment contract and a copy
11of the co-signer statement.
12(Source: P.A. 91-357, eff. 7-29-99.)