SB3423 98TH GENERAL ASSEMBLY

LRB098 18590 JLS 53731 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3423

Introduced 2/14/2014, by Sen. John M. Sullivan

SYNOPSIS AS INTRODUCED:

815 ILCS 180/40

Amends the Collateral Protection Act. Provides that a servicer subject to regulations issued by the Consumer Financial Protection Bureau under the Dodd-Frank Act that places hazard insurance in substantial compliance with those regulations shall be deemed in substantial compliance with this 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 Collateral Protection Act is amended by changing Section 40 as follows:

(815 ILCS 180/40)

Sec. 40. Substantial compliance.

(a) A creditor that places collateral protection insurance in substantial compliance with the terms of this Act shall not be directly or indirectly liable in any manner to a debtor, co-signor, guarantor, or any other person, in connection with the placement of the collateral protection insurance. Notices and coupon books required to be mailed under this Act shall be mailed by United States Mail, first class, postage prepaid.

(b) A servicer subject to the regulations prescribed by the Consumer Financial Protection Bureau pursuant to Section 1463 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act (12 C.F.R. 1024.37) that places hazard insurance in substantial compliance with those regulations shall be deemed to be in substantial compliance with the terms of this Act.

(Source: P.A. 89-623, eff. 8-9-96; 90-35, eff. 6-27-97.)

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