(505 ILCS 17/45)
(a) This Section applies to all production contracts that have capital
(b) Except as provided in subsection (c), a contractor shall not take action
terminate or cancel a production contract until the contractor has done the
(1) Provided the producer with written notice of the
intention to terminate or cancel at least 60 days before the effective date of the termination or cancellation.
(2) Reimbursed the contract producer for the value of
the remaining useful life of the capital investment items. In calculating this reimbursement amount, the contractor may take into account the producer's ability to use the capital investments in other business enterprises of the producer and the opportunity to recoup the cost of the capital improvements by sale or lease.
(c) Exceptions. A contractor may terminate or cancel a production contract
without remedy as required in subsection (b) if the basis for the termination
cancellation is any of the following:
(1) A voluntary abandonment of the contractual
relationship by the producer. A complete failure of a producer's performance under a production contract shall be deemed to be abandonment.
(2) Failure of the producer to meet the specific
provisions of the contract and failure to remedy his or her default.
(3) The conviction of a producer of an offense of
fraud or theft committed against the contractor.
(Source: P.A. 93-522, eff. 1-1-05