(815 ILCS 405/17) (from Ch. 121 1/2, par. 517)
Sec. 17.
An agreement by a buyer that he will not assert against the
assignee or the holder of a retail installment contract executed by the
buyer any claim or defense which he may have against the seller and the
rights of a holder in due course of any negotiable note executed in
connection with a retail installment contract are enforceable by an
assignee or holder who takes his assignment or indorsement for value in
good faith and without notice of a claim or defense unless:
(a) the assignee or holder is an affiliate of the seller. "Affiliate"
includes a parent or subsidiary corporation, any person holding substantial
common ownership of stock of the assignee and the seller and any person
having the common ownership of the legal or commercial entities of assignee
and seller;
(b) the assignee or the holder has actual knowledge or has received
notice before the contract or note is acquired (1) of repetitive complaints
of a substantial nature by other buyers to any governmental agency that the
seller has failed or refused to perform his agreements with such buyers;
and (2) of the failure of the seller to perform his agreements with such
buyers within a reasonable time after the governmental agency has
determined that the complaints are well-founded and has notified seller
thereof, and the assignee, if known; or
(c) the assignee or the holder has actual knowledge or has received
notice from its course of dealing with the seller or from its own records
of substantial complaints by other buyers that seller has failed or refused
to perform his agreements with such buyers within a reasonable time after
such complaints are made.
(Source: Laws 1967, p. 2149.)
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