093_HB2644

 
                                     LRB093 07176 JLS 07331 b

 1        AN ACT concerning financial services.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois Financial Services Development
 5    Act is amended by changing Section 5 as follows:

 6        (205 ILCS 675/5) (from Ch. 17, par. 7005)
 7        Sec. 5.  Interest charges.  A financial  institution  may
 8    charge  and collect interest under a revolving credit plan on
 9    outstanding unpaid indebtedness  in  the  borrower's  account
10    under the plan at such periodic percentage rate applicable to
11    all outstanding unpaid indebtedness or rates as the agreement
12    governing  the  plan provides or as established in the manner
13    provided in the agreement governing the  plan.   A  financial
14    institution  may  not,  at  any  one time, charge and collect
15    interest at more than one  rate  on  the  unpaid  outstanding
16    indebtedness  in  the  borrower's  account.  If the agreement
17    governing the revolving credit plan so provides, the periodic
18    percentage rate or rates of interest under such plan may vary
19    in accordance with a  schedule  or  formula.   Such  periodic
20    percentage  rate  or  rates may vary from time to time as the
21    rate determined in accordance with such schedule  or  formula
22    varies  and  such  periodic  percentage  rate or rates, as so
23    varied, may be made  applicable  to  all  outstanding  unpaid
24    indebtedness under the plan on or after the effective date of
25    such  variation,  including any such indebtedness arising out
26    of purchases made or loans obtained prior to  such  variation
27    in  the periodic percentage rate or rates.  If the applicable
28    periodic percentage rate under the  agreement  governing  the
29    plan is other than daily, periodic interest may be calculated
30    on  an  amount  not  in  excess of the average of outstanding
31    unpaid  indebtedness  for  the  applicable  billing   period,
 
                            -2-      LRB093 07176 JLS 07331 b
 1    determined   by   dividing   the  total  of  the  amounts  of
 2    outstanding  unpaid  indebtedness  for  each   day   in   the
 3    applicable  billing  period  by  the  number  of  days in the
 4    billing period.  If the applicable periodic  percentage  rate
 5    under  the agreement governing the plan is monthly, a billing
 6    period shall be deemed to be a month or monthly if  the  last
 7    day  of  each billing period is on the same day of each month
 8    or does not vary by more that 4 days therefrom.
 9    (Source: P.A. 85-1432.)