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Public Act 91-0142
SB377 Enrolled LRB9104949KSgc
AN ACT to amend the Motor Vehicle Franchise Act by
changing Section 10.1.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Vehicle Franchise Act is amended by
changing Section 10.1 as follows:
(815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
Sec. 10.1. (a) As used in this Section, "motorcycle"
means every motor vehicle having a seat or saddle for the use
of the rider and designed to travel with 3 or less wheels in
contact with the ground, excluding farm, garden, and lawn
equipment, and including off-highway vehicles.
(b) It shall be deemed a violation for a manufacturer, a
distributor, a wholesaler, a distributor branch or division,
or officer, agent or other representative thereof:
(1) To require a motorcycle franchisee to
participate in a retail financing plan or retail leasing
plan or to participate in any retail consumer insurance
plan.
(2) To own, to operate or to control any motorcycle
dealership in this State for a period longer than 2
years.
(3) Whenever any motorcycle dealer enters into a
franchise agreement, evidenced by a contract, with a
wholesaler, manufacturer or distributor wherein the
franchisee agrees to maintain an inventory and the
contract is terminated by the wholesaler, manufacturer,
distributor, or franchisee, then the franchisee may
require the repurchase of the inventory as provided for
in this Act. If the franchisee has any outstanding debts
to the wholesaler, manufacturer or distributor then the
repurchase amount may be credited to the franchisee's
account. The franchise agreement shall either expressly
or by operation of law have as part of its terms a
security agreement whereby the wholesaler, manufacturer,
or distributor agrees to and does grant a security
interest to the motorcycle dealer in the repurchased
inventory to secure payment of the repurchase amount to
the dealer. The perfection, priority, and other matters
relating to the security interest shall be governed by
Article 9 of the Uniform Commercial Code. The provisions
of this Section shall not be construed to affect in any
way any security interest that any financial institution,
person, wholesaler, manufacturer, or distributor may have
in the inventory of the motorcycle dealer.
(c) The provisions of this Section 10.1 are applicable
to all new or existing motorcycle franchisees and franchisors
and are in addition to the other rights and remedies provided
in this Act, and, in the case of a conflict with other
provisions contained in this Act, with respect to motorcycle
franchises, this Section shall be controlling.
(d) The filing of a timely protest by a motorcycle
franchise before the Motor Vehicle Review Board as prescribed
by Sections 12 and 29 of this Act, shall stay the effective
date of a proposed additional franchise or selling agreement,
or the effective date of a proposed motorcycle dealership
relocation, or the effective date of a cancellation,
termination or modification, or extend the expiration date of
a franchise or selling agreement by refusal to honor
succession to ownership or refusal to approve a sale or
transfer pending a final determination of the issues in the
hearing.
(Source: P.A. 88-349.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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