HB4135 96TH GENERAL ASSEMBLY

LRB096 08893 AJO 19028 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4135

Introduced 2/27/2009, by Rep. Chapin Rose

SYNOPSIS AS INTRODUCED:

740 ILCS 155/0.05 new

Amends the Sureties Act. Provides that the Act applies to sureties who share primary liabilities with their principals on promissory notes or performance or other contracts and whose primary liabilities originate from the contracts of their principals. Provides that the Act does not apply to guarantors of payment or guarantors of collection who undertake obligations to pay creditors of principal debtors, but whose obligations are not primary liabilities or are otherwise created by contracts that are separate from the contractual obligations of the principals. Effective immediately.

A BILL FOR

AN ACT concerning civil law.

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

Section 5. The Sureties Act is amended by adding Section 0.05 as follows:

(740 ILCS 155/0.05 new)

Sec. 0.05. Primary liabilities; application of Act. The provisions of this Act apply to sureties who share primary liabilities with their principals on promissory notes or other obligations for the payment of money or for the performance of any other contracts, and whose primary liabilities originate from the very contracts under which their principals are obligated. The provisions of this Act do not apply to guarantors of payment or guarantors of collection who undertake obligations to pay creditors of principal debtors, but whose obligations are not primary liabilities or are otherwise created by contractual agreements between the creditors and the guarantors that are separate from the contractual obligations of the principals.

Section 99. Effective date. This Act takes effect upon becoming law.