SB1578 96TH GENERAL ASSEMBLY

LRB096 11014 MJR 21301 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1578

Introduced 2/19/2009, by Sen. A. J. Wilhelmi

SYNOPSIS AS INTRODUCED:

815 ILCS 160/2

from Ch. 17, par. 7102

Amends the Credit Agreements Act. Provides that specified provisions shall not constitute a defense to a claim that arises out of bad faith conduct intended to unjustly benefit a creditor or a third party. Provides that the mere failure by a creditor to enter into a credit agreement with or to provide a written commitment to a debtor, without more, shall not constitute bad faith under specified provisions. Provides for the legislative intent of the General Assembly and that certain provisions apply to pending actions as well as actions commenced on or after the effective date of the amendatory Act. Effective immediately.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Credit Agreements Act is amended by changing Section 2 as follows:

(815 ILCS 160/2) (from Ch. 17, par. 7102)

Sec. 2. Credit agreements to be in writing.

(a) A debtor may not maintain an action on or in any way related to a credit agreement unless the credit agreement is in writing, expresses an agreement or commitment to lend money or extend credit or delay or forbear repayment of money, sets forth the relevant terms and conditions, and is signed by the creditor and the debtor.

(b) This Section shall not constitute a defense to a claim that arises out of bad faith conduct intended to unjustly benefit a creditor or a third party. Mere failure by a creditor to enter into a credit agreement with or to provide a written commitment to a debtor, without more, shall not constitute bad faith under this Section.

(c) By enacting this amendatory Act of the 96th General Assembly, it is the intent of the General Assembly to make explicit the original meaning of Section 2 of the Credit Agreements Act. See Machinery Transports of Illinois v. Morton Community Bank, 293 Ill.App.3d 207 (3rd Dist. 1997).

(d) This amendatory Act of the 96th General Assembly applies to pending actions as well as actions commenced on or after its effective date.

(Source: P.A. 86-613.)

Section 99. Effective date. This Act takes effect upon becoming law.