[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ Senate Amendment 002 ] |
90_HB2211sam001
LRB9004659SMdvam02
1 AMENDMENT TO HOUSE BILL 2211
2 AMENDMENT NO. . Amend House Bill 2211 on page 4,
3 line 27, by replacing "minim" with "minimum"; and
4 on page 8, line 25, after "manager" by inserting "of a
5 limited liability company"; and
6 on page 15, by replacing lines 29 and 30 with the following:
7 "loans in a principal amount exceeding $800 and not exceeding
8 $25,000 $10,000 at rates of interest charge greater than
9 otherwise allowed by"; and
10 on page 19, line 25, by replacing "within" with "at least";
11 and
12 on page 27, below line 31, by inserting the following:
13 "(g) A limited purpose branch may not be located within
14 1,000 feet of a facility operated by an inter-track wagering
15 licensee or an organization licensee subject to the Illinois
16 Horse Racing Act of 1975, on a riverboat subject to the
17 Riverboat Gambling Act, or within 1,000 feet of the location
18 at which the riverboat docks."; and
19 on page 28, line 4, after "receive" by inserting "either
20 rebate of"; and
21 on page 36, line 8, before "sale" by inserting "purchase or";
-2- LRB9004659SMdvam02
1 and
2 on page 42, line 24, by replacing "redeem" with "reinstate
3 the contract and recover redeem"; and
4 on page 43, line 2, by replacing "redeem" with "reinstate the
5 contract and recover redeem"; and
6 on page 43, line 6, by replacing "redeem" with "reinstate the
7 contract and recover redeem"; and
8 on page 43, line 14, after "car" by inserting "and reinstate
9 the loan"; and
10 on page 43, by replacing lines 21 through 23 with the
11 following:
12 "Total due as of the date of this
13 notice plus any additional amounts
14 which may become due between the date
15 of the notice and the date of
16 reinstatement. $....."; and
17 on page 43, line 26 by replacing "listed above" with the
18 following:
19 "plus any amounts which may become due between the date of
20 the notice and the date of reinstatement listed above"; and
21 on page 44, line 34, by replacing "written or" with "or
22 written" and
23 on page 45, by replacing lines 1 through 6 with the
24 following:
25 "interpretation thereof by the Department of Financial
26 Institutions or any other department or agency of the State,
27 notwithstanding that after such act or omission has occurred,
28 such rule, regulation or interpretation is amended, rescinded
29 or determined by judicial or other authority to be invalid
30 for any reason. All interpretations issued after January 1,
-3- LRB9004659SMdvam02
1 1998 must be written and signed by the Department's Chief
2 Counsel and approved by the Director."; and
3 on page 46, by replacing line 22 with the following:
4 "associations, savings banks, pawnbrokers, or credit unions,
5 or licensees under the Residential Mortgage License Act for
6 residential mortgage loans made pursuant to that Act. This
7 Act does"; and
8 on page 48, below line 12, by inserting the following:
9 "Section 23. The Interest Act is amended by changing
10 Section 4a as follows:
11 (815 ILCS 205/4a) (from Ch. 17, par. 6410)
12 Sec. 4a. Installment loan rate.
13 (a) On money loaned to or in any manner owing from any
14 person, whether secured or unsecured, except where the money
15 loaned or in any manner owing is directly or indirectly for
16 the purchase price of real estate or an interest therein and
17 is secured by a lien on or retention of title to that real
18 estate or interest therein, to an amount not more than
19 $25,000 (excluding interest) which is evidenced by a written
20 instrument providing for the payment thereof in 2 or more
21 periodic installments over a period of not more than 181
22 months from the date of the execution of the written
23 instrument, it is lawful to receive or to contract to receive
24 and collect either:
25 (i) interest in an amount equivalent to interest
26 computed at a rate not exceeding 9% per year on the
27 entire principal amount of the money loaned or in any
28 manner owing for the period from the date of the making
29 of the loan or the incurring of the obligation for the
30 amount owing evidenced by the written instrument until
31 the date of the maturity of the last installment thereof,
-4- LRB9004659SMdvam02
1 and to add that amount to the principal, except that
2 there shall be no limit on the rate of interest which may
3 be received or contracted to be received and collected by
4 (1) any bank that has its main office or, after May 31,
5 1997, a branch in this State; (2) a savings and loan
6 association chartered under the Illinois Savings and Loan
7 Act of 1985 or a federal savings and loan association
8 established under the laws of the United States and
9 having its main office in this State; or (3) any lender
10 licensed under either the Consumer Finance Act or, the
11 Consumer Installment Loan Act or the Sales Finance Agency
12 Act, but in any case in which interest is received,
13 contracted for or collected on the basis of this clause
14 (i), the debtor may satisfy in full at any time before
15 maturity the debt evidenced by the written instrument,
16 and in so satisfying must receive a refund credit against
17 the total amount of interest added to the principal
18 computed in the manner provided under Section 15(f)(3) of
19 the Consumer Installment Loan Act for refunds or credits
20 of applicable interest on payment in full of precomputed
21 loans before the final installment due date; or
22 (ii) interest accrued on the principal balance from
23 time to time remaining unpaid, from the date of making of
24 the loan or the incurring of the obligation to the date
25 of the payment of the debt in full, at a rate not
26 exceeding the annual percentage rate equivalent of the
27 rate permitted to be charged under clause (i) above, but
28 in any such case the debtor may, provided that the debtor
29 shall have paid in full all interest and other charges
30 accrued to the date of such prepayment, prepay the
31 principal balance in full or in part at any time, and
32 interest shall, upon any such prepayment, cease to accrue
33 on the principal amount which has been prepaid.
34 (b) Whenever the principal amount of an installment loan
-5- LRB9004659SMdvam02
1 is $300 or more and the repayment period is 6 months or more,
2 a minimum charge of $15 may be collected instead of interest,
3 but only one minimum charge may be collected from the same
4 person during one year. When the principal amount of the loan
5 (excluding interest) is $800 or less, the lender or creditor
6 may contract for and receive a service charge not to exceed
7 $5 in addition to interest; and that service charge may be
8 collected when the loan is made, but only one service charge
9 may be contracted for, received, or collected from the same
10 person during one year.
11 (c) Credit life insurance and credit accident and health
12 insurance, and any charge therefor which is deducted from the
13 loan or paid by the obligor, must comply with Article IX 1/2
14 of the Illinois Insurance Code and all lawful requirements of
15 the Director of Insurance related thereto. When there are 2
16 or more obligors on the loan contract, only one charge for
17 credit life insurance and credit accident and health
18 insurance may be made and only one of the obligors may be
19 required to be insured. Insurance obtained from, by or
20 through the lender or creditor must be in effect when the
21 loan is transacted. The purchase of that insurance from an
22 agent, broker or insurer specified by the lender or creditor
23 may not be a condition precedent to the granting of the loan.
24 (d) The lender or creditor may require the obligor to
25 provide property insurance on security other than household
26 goods, furniture and personal effects. The amount and term of
27 the insurance must be reasonable in relation to the amount
28 and term of the loan contract and the type and value of the
29 security, and the insurance must be procured in accordance
30 with the insurance laws of this State. The purchase of that
31 insurance from an agent, broker or insurer specified by the
32 lender or creditor may not be a condition precedent to the
33 granting of the loan.
34 (e) The lender or creditor may, if the contract
-6- LRB9004659SMdvam02
1 provides, collect a delinquency and collection charge on each
2 installment in default for a period of not less than 10 days
3 in an amount not exceeding 5% of the installment on
4 installments in excess of $200 or $10 on installments of $200
5 or less, but only one delinquency and collection charge may
6 be collected on any installment regardless of the period
7 during which it remains in default. In addition, the contract
8 may provide for the payment by the borrower or debtor of
9 attorney's fees incurred by the lender or creditor. The
10 lender or creditor may enforce such a provision to the extent
11 of the reasonable attorney's fees incurred by him in the
12 collection or enforcement of the contract or obligation.
13 Whenever interest is contracted for or received under this
14 Section, no amount in addition to the charges authorized by
15 this Section may be directly or indirectly charged,
16 contracted for or received, except lawful fees paid to a
17 public officer or agency to record, file or release security,
18 and except costs and disbursements including reasonable
19 attorney's fees, incurred in legal proceedings to collect a
20 loan or to realize on a security after default. This Section
21 does not prohibit the receipt of any commission, dividend or
22 other benefit by the creditor or an employee, affiliate or
23 associate of the creditor from the insurance authorized by
24 this Section.
25 (f) When interest is contracted for or received under
26 this Section, the lender must disclose the following items to
27 the obligor in a written statement before the loan is
28 consummated:
29 (1) the amount and date of the loan contract;
30 (2) the amount of loan credit using the term
31 "amount financed";
32 (3) every deduction from the amount financed or
33 payment made by the obligor for insurance and the type of
34 insurance for which each deduction or payment was made;
-7- LRB9004659SMdvam02
1 (4) every other deduction from the loan or payment
2 made by the obligor in connection with obtaining the
3 loan;
4 (5) the date on which the finance charge begins to
5 accrue if different from the date of the transaction;
6 (6) the total amount of the loan charge for the
7 scheduled term of the loan contract with a description of
8 each amount included using the term "finance charge";
9 (7) the finance charge expressed as an annual
10 percentage rate using the term "annual percentage rate".
11 "Annual percentage rate" means the nominal annual
12 percentage rate of finance charge determined in
13 accordance with the actuarial method of computation with
14 an accuracy at least to the nearest 1/4 of 1%; or at the
15 option of the lender by application of the United States
16 rule so that it may be disclosed with an accuracy at
17 least to the nearest 1/4 of 1%;
18 (8) the number, amount and due dates or periods of
19 payments scheduled to repay the loan and the sum of such
20 payments using the term "total of payments";
21 (9) the amount, or method of computing the amount
22 of any default, delinquency or similar charges payable in
23 the event of late payments;
24 (10) the right of the obligor to prepay the loan
25 and the fact that such prepayment will reduce the charge
26 for the loan;
27 (11) a description or identification of the type of
28 any security interest held or to be retained or acquired
29 by the lender in connection with the loan and a clear
30 identification of the property to which the security
31 interest relates. If after-acquired property will be
32 subject to the security interest, or if other or future
33 indebtedness is or may be secured by any such property,
34 this fact shall be clearly set forth in conjunction with
-8- LRB9004659SMdvam02
1 the description or identification of the type of security
2 interest held, retained or acquired;
3 (12) a description of any penalty charge that may
4 be imposed by the lender for prepayment of the principal
5 of the obligation with an explanation of the method of
6 computation of such penalty and the conditions under
7 which it may be imposed;
8 (13) unless the contract provides for the accrual
9 and payment of the finance charge on the balance of the
10 amount financed from time to time remaining unpaid, an
11 identification of the method of computing any unearned
12 portion of the finance charge in the event of prepayment
13 of the loan.
14 The terms "finance charge" and "annual percentage rate"
15 shall be printed more conspicuously than other terminology
16 required by this Section.
17 (g) At the time disclosures are made, the lender shall
18 deliver to the obligor a duplicate of the instrument or
19 statement by which the required disclosures are made and on
20 which the lender and obligor are identified and their
21 addresses stated. All of the disclosures shall be made
22 clearly, conspicuously and in meaningful sequence and made
23 together on either:
24 (i) the note or other instrument evidencing the
25 obligation on the same side of the page and above or
26 adjacent to the place for the obligor's signature;
27 however, where a creditor elects to combine disclosures
28 with the contract, security agreement, and evidence of a
29 transaction in a single document, the disclosures
30 required under this Section shall be made on the face of
31 the document, on the reverse side, or on both sides,
32 provided that the amount of the finance charge and the
33 annual percentage rate shall appear on the face of the
34 document, and, if the reverse side is used, the printing
-9- LRB9004659SMdvam02
1 on both sides of the document shall be equally clear and
2 conspicuous, both sides shall contain the statement,
3 "NOTICE: See other side for important information", and
4 the place for the customer's signature shall be provided
5 following the full content of the document; or
6 (ii) one side of a separate statement which
7 identifies the transaction.
8 The amount of the finance charge shall be determined as
9 the sum of all charges, payable directly or indirectly by the
10 obligor and imposed directly or indirectly by the lender as
11 an incident to or as a condition to the extension of credit,
12 whether paid or payable by the obligor, any other person on
13 behalf of the obligor, to the lender or to a third party,
14 including any of the following types of charges:
15 (1) Interest, time price differential, and any
16 amount payable under a discount or other system of
17 additional charges.
18 (2) Service, transaction, activity, or carrying
19 charge.
20 (3) Loan fee, points, finder's fee, or similar
21 charge.
22 (4) Fee for an appraisal, investigation, or credit
23 report.
24 (5) Charges or premiums for credit life, accident,
25 health, or loss of income insurance, written in
26 connection with any credit transaction unless (a) the
27 insurance coverage is not required by the lender and this
28 fact is clearly and conspicuously disclosed in writing to
29 the obligor; and (b) any obligor desiring such insurance
30 coverage gives specific dated and separately signed
31 affirmative written indication of such desire after
32 receiving written disclosure to him of the cost of such
33 insurance.
34 (6) Charges or premiums for insurance, written in
-10- LRB9004659SMdvam02
1 connection with any credit transaction, against loss of
2 or damage to property or against liability arising out of
3 the ownership or use of property, unless a clear,
4 conspicuous, and specific statement in writing is
5 furnished by the lender to the obligor setting forth the
6 cost of the insurance if obtained from or through the
7 lender and stating that the obligor may choose the person
8 through which the insurance is to be obtained.
9 (7) Premium or other charges for any other
10 guarantee or insurance protecting the lender against the
11 obligor's default or other credit loss.
12 (8) Any charge imposed by a lender upon another
13 lender for purchasing or accepting an obligation of an
14 obligor if the obligor is required to pay any part of
15 that charge in cash, as an addition to the obligation, or
16 as a deduction from the proceeds of the obligation.
17 A late payment, delinquency, default, reinstatement or
18 other such charge is not a finance charge if imposed for
19 actual unanticipated late payment, delinquency, default or
20 other occurrence.
21 (h) Advertising for loans transacted under this Section
22 may not be false, misleading, or deceptive. That advertising,
23 if it states a rate or amount of interest, must state that
24 rate as an annual percentage rate of interest charged. In
25 addition, if charges other than for interest are made in
26 connection with those loans, those charges must be separately
27 stated. No advertising may indicate or imply that the rates
28 or charges for loans are in any way "recommended",
29 "approved", "set" or "established" by the State government or
30 by this Act.
31 (i) A lender or creditor who complies with the federal
32 Truth in Lending Act, amendments thereto, and any regulations
33 issued or which may be issued thereunder, shall be deemed to
34 be in compliance with the provisions of subsections (f), (g)
-11- LRB9004659SMdvam02
1 and (h) of this Section.
2 (Source: P.A. 88-348; 89-208, eff. 9-29-95.)"; and
3 on page 48, line 15, by replacing "21, and" with "and 21,";
4 and
5 on page 48, line 16, by deleting "24,"; and
6 on page 56, below line 6, by inserting the following:
7 "Notwithstanding any other provision of this Act or any
8 other law of this State, there is no obligation or duty to
9 disclose to an obligor under a retail installment contract:
10 (i) any agreement to sell, assign, or otherwise transfer the
11 contract to a third party for an amount which is equal to, in
12 excess of, or less than the amount financed under the
13 contract; or (ii) that the assignee of the contract or the
14 person who funded it may pay the seller or the person who
15 originated the contract all or a portion of the prepaid
16 finance charges and other fees or a portion of the finance
17 charge to be paid by the buyer over the term of the
18 transaction or any other compensation irrespective of how the
19 compensation is determined."; and
20 on page 60, line 31, after "seller", in both places, by
21 inserting "or holder"; and
22 on page 60, line 33, by replacing "loan" with "retail
23 installment sales contract"; and
24 on page 61, line 1, after "seller" by inserting "or holder";
25 and
26 on page 61, line 3, by replacing "either the seller" with
27 "the seller, holder,"; and
28 on page 61, line 4, by replacing "an affiliate" with "any of
29 their affiliates"; and
30 on page 61, line 5, by deleting "by the obligor"; and
-12- LRB9004659SMdvam02
1 on page 64, line 21, by replacing "redeem" with the
2 following:
3 "reinstate the contract and recover redeem"; and
4 on page 64, line 30, by replacing "redeem" with the
5 following:
6 "reinstate the contract and recover redeem"; and
7 on page 64, line 33, by replacing "redeem" with "reinstate
8 the contract and recover redeem"; and
9 on page 65, by replacing lines 16 through 18 with the
10 following:
11 "Total due as of the date of this
12 notice plus any additional amounts
13 which may become due between the date
14 of the notice and the date of
15 reinstatement. $ "; and
16 on page 65, line 21, by replacing "due" with the following:
17 "plus any additional amounts which may become due between the
18 date of this notice and the date of the reinstatement"; and
19 on page 66, by deleting lines 26 through 33; and
20 on page 67, by deleting lines 1 through 3; and
21 on page 67, line 6, by replacing "28, and 31" with "and 28";
22 and
23 on page 73, below line 23, by inserting the following:
24 "Notwithstanding any other provision of this Act or any
25 other law of this State, there is no obligation or duty to
26 disclose to an obligor under a retail installment contract:
27 (i) any agreement to sell, assign, or otherwise transfer the
28 contract to a third party for an amount which is equal to, in
29 excess of, or less than the amount financed under the
30 contract; or (ii) that the assignee of the contract or the
-13- LRB9004659SMdvam02
1 person who funded it may pay the seller or the person who
2 originated the contract all or a portion of the prepaid
3 finance charges and other fees or a portion of the finance
4 charge to be paid by the buyer over the term of the
5 transaction or any other compensation irrespective of how the
6 compensation is determined."; and
7 on page 77, line 27, after "seller", in both places, by
8 inserting "or holder"; and
9 on page 77, line 29, by replacing "loan" with "retail
10 installment sales contract"; and
11 on page 77, by replacing line 32 with the following:
12 "as the seller or holder discloses to the obligor that the
13 seller, holder,"; and
14 on page 78, line 1, by replacing "an affiliate" with "any of
15 their affiliates"; and
16 on page 78, line 2, by deleting "by the obligor"; and
17 on page 84, by deleting lines 28 through 33; and
18 on page 85, by deleting lines 1 through 5.