TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110 CONSUMER INSTALLMENT LOAN ACT
SECTION 110.80 SIMPLE INTEREST LOANS


 

Section 110.80  Simple Interest Loans

 

a)         No payment shall be accepted on the principal balance unless interest is paid to date or is agreed to by the licensee, except a payment may be credited to principal if the amount of the payment is not sufficient to pay the interest due for one day.

 

b)         A calendar month is the period from a given date in one month to the same numbered date in the following month, and if there is no same numbered date in the following month, to the last day of the following month.

 

c)         Interest shall be computed on the basis of one month's interest for each calendar month and 1/30 of a month's interest for each day in a fraction of a month or, alternatively, 1/365 of the agreed annual rate for each day actually elapsed.

 

d)         When a simple interest loan contract is renewed or refinanced, accrued but uncollected interest may be included in the principal amount of the new loan contract.

 

e)         Loans must be fully amortizing and repayable in substantially equal and consecutive weekly, biweekly, semimonthly, or monthly installments.  Rates may vary according to an index that is independently verifiable and beyond the control of the licensee.

 

(Source:  Amended at 35 Ill. Reg. 7319, effective April 21, 2011)