SB1514 EngrossedLRB101 09457 LNS 54555 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Installment Sales Contract Act is amended by
5changing Section 5 as follows:
 
6    (765 ILCS 67/5)
7    Sec. 5. Definitions. As used in this Act, unless the
8context otherwise requires:
9    "Amortization schedule" means a written schedule which
10sets forth the date of each periodic payment, the amount of
11each periodic payment that will be applied to the principal
12balance and the resulting principal balance, and the amount of
13each periodic payment that will be applied to any interest
14charged, if applicable, pursuant to the contract.
15    "Balloon payment" means a payment, other than the initial
16down payment, in which more than the ordinary periodic payment
17is charged during the contract.
18    "Business day" means any calendar day except Saturday,
19Sunday, or a State or federal holiday.
20    "Buyer" means the person who is seeking to obtain title to
21a property by an installment sales contract or is obligated to
22make payments to the seller pursuant to the contract.
23    "Date of sale" means the date that both the seller and

 

 

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1buyer have signed the written contract.
2    "Dwelling structure" means any private home or residence or
3any building or structure intended for residential use with not
4less than one nor more than 4 residential dwelling units.
5    "Installment sales contract" or "contract" means any
6contract or agreement, including a contract for deed, bond for
7deed, or any other sale or legal device whereby a seller agrees
8to sell and the buyer agrees to buy a residential real estate,
9in which the consideration for the sale is payable in
10installments for a period of at least one year after the date
11of sale, and the seller continues to have an interest or
12security for the purchase price or otherwise in the property.
13"Installment sales contract" does not include a financing
14arrangement that for religious or cultural reasons does not
15allow the imposition or collection of interest and that is
16offered by a person, partnership, association, limited
17liability company, or corporation doing business under and as
18permitted by any law of this State or the United States
19relating to banks, savings and loan associations, savings
20banks, or credit unions, or third-party religious or cultural
21lenders.
22    "Residential real estate" means real estate with a dwelling
23structure, excluding property that is sold as a part of a tract
24of land consisting of 4 acres or more zoned for agricultural
25purposes.
26    "Seller" means an individual or legal entity that possesses

 

 

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1a legal or beneficial interest in real estate and that enters
2into an installment sales contract more than 3 times during a
312-month period to sell residential real estate. Any individual
4or legal entity that has a legal or beneficial interest in real
5estate under the name of more than one legal entity shall be
6considered the same seller.
7    "Third-party religious or cultural lender" means an
8individual or legal entity licensed under the Residential
9Mortgage License Act of 1987 that is in compliance with the
10principles and norms of an established religious or cultural
11legal system and that is obtaining an interest in a residential
12dwelling solely as collateral security for a financing
13arrangement that for religious or cultural reasons does not
14allow the imposition or collection of interest and had no
15interest in the residential dwelling prior to the consummation
16of the financing arrangement, other than an interest in the
17nature of collateral security that may have been obtained as
18part of a prior financing arrangement made by the third-party
19lender.
20(Source: P.A. 100-416, eff. 1-1-18; 100-626, eff. 7-20-18.)