(205 ILCS 675/5) (from Ch. 17, par. 7005)
Sec. 5.
A financial institution may charge and collect interest
under a revolving credit plan on outstanding unpaid indebtedness in the
borrower's account under the plan at such periodic percentage rate or rates
as the agreement governing the plan provides or as established in the
manner provided in the agreement governing the plan. If the agreement
governing the revolving credit plan so provides, the periodic percentage
rate or rates of interest under such plan may vary in accordance with a
schedule or formula. Such periodic percentage rate or rates may vary from
time to time as the rate determined in accordance with such schedule or
formula varies and such periodic percentage rate or rates, as so varied,
may be made applicable to all outstanding unpaid indebtedness under the plan
on or after the effective date of such variation, including any such
indebtedness arising out of purchases made or loans obtained prior to such
variation in the periodic percentage rate or rates. If the applicable
periodic percentage rate under the agreement governing the plan is
other than daily, periodic interest may be calculated on an amount not in
excess of the average of outstanding unpaid indebtedness for the applicable
billing period, determined by dividing the total of the amounts of
outstanding unpaid indebtedness for each day in the applicable billing
period by the number of days in the billing period. If the applicable
periodic percentage rate under the agreement governing the plan is monthly,
a billing period shall be deemed to be a month or monthly if the last day
of each billing period is on the same day of each month or does not vary by
more than 4 days therefrom.
(Source: P.A. 97-813, eff. 7-13-12.)
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