(815 ILCS 375/6)
(from Ch. 121 1/2, par. 566)
(a) Except as provided under subsections (b) and
(c), every retail
installment contract must provide for a schedule of
periodic installment payments from the due
date of the
first installment payment to the date of the final maturity of the
(b) Retail installment contracts may provide for balloon-note financing.
For the purpose of this Section, balloon-note financing shall mean the manner
of purchase whereby a consumer agrees to select and perform, at the
conclusion of a pre-determined schedule of installment payments made in
periodic or monthly amounts, one of the following options:
(1) satisfy the balance of the contractual amount
(2) refinance any balance owing, on the terms
previously agreed upon at the time of executing the retail installment contract; or
(3) surrender the vehicle at such time and manner
agreed upon at the time of executing the retail installment contract.
(c) Retail installment contracts may provide for deferred payment of a
down payment provided any deferred portion of a down payment is payable not
later than 10 days prior to the due date of the first regularly scheduled
payment and is not subject to a finance charge.
(d) Retail installment contracts may be precomputed or interest bearing.
(Source: P.A. 90-437, eff. 1-1-98.)