(625 ILCS 5/7-208) (from Ch. 95 1/2, par. 7-208)
    Sec. 7-208. Agreements for payment of damages. (a) Any 2 or more of the persons involved in a motor vehicle accident subject to the provisions of Section 7-201 or their authorized representatives, may at any time enter into a written agreement for the payment of an agreed amount in installments, with respect to all claims for injuries or damages resulting from the motor vehicle accident.
    (b) The Secretary of State, to the extent provided by any such written agreement properly filed with him, shall not require the deposit of security and shall terminate any prior order of suspension, or, if security has previously been deposited, the Secretary of State shall immediately return such security to the depositor or an appropriate personal representative.
    (c) In the event of a default in any payment under such agreement and upon notice of such default the Secretary of State shall forthwith suspend the driver's license and registration, or nonresident's operating privileges, of such person in default which shall not be restored unless and until:
        1. Such person deposits and thereafter maintains
    
security as required under Section 7-201 in such amount as the Secretary of State may then determine,
        2. Two years have elapsed since the acceptance of the
    
notice of default by the Secretary of State and during such period no action upon such agreement has been instituted in any court having jurisdiction, or
        3. The person enters into a second written agreement
    
for the payment of an agreed amount in installments with respect to all claims for injuries or damages resulting from the motor vehicle accident.
(Source: P.A. 90-774, eff. 8-14-98.)