Illinois General Assembly - Full Text of HB1519
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Full Text of HB1519  103rd General Assembly


Sen. Elgie R. Sims, Jr.

Filed: 4/24/2023





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2    AMENDMENT NO. ______. Amend House Bill 1519 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Student Loan Servicing Rights Act is
5amended by changing Sections 1-5 and 25-5 and by adding
6Article 7 as follows:
7    (110 ILCS 992/1-5)
8    Sec. 1-5. Definitions. As used in this Act:
9    "Applicant" means a person applying for a license pursuant
10to this Act.
11    "Borrower" or "student loan borrower" means a person who
12has received or agreed to pay a student loan for his or her own
13educational expenses.
14    "Cosigner" means a person who has agreed to share
15responsibility for repaying a student loan with a borrower.
16    "Department" means the Department of Financial and



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1Professional Regulation.
2    "Division of Banking" means the Division of Banking of the
3Department of Financial and Professional Regulation.
4    "Federal loan borrower eligible for referral to a
5repayment specialist" means a borrower who possesses any of
6the following characteristics:
7        (1) requests information related to options to reduce
8    or suspend his or her monthly payment;
9        (2) indicates that he or she is experiencing or
10    anticipates experiencing financial hardship, distress, or
11    difficulty making his or her payments;
12        (3) has missed 2 consecutive monthly payments;
13        (4) is at least 75 days delinquent;
14        (5) is enrolled in a discretionary forbearance for
15    more than 9 of the previous 12 months;
16        (6) has rehabilitated or consolidated one or more
17    loans out of default within the past 12 months; or
18        (7) has not completed a course of study, as reflected
19    in the servicer's records, or the borrower identifies
20    himself or herself as not having completed a program of
21    study.
22    "Federal education loan" means any loan made, guaranteed,
23or insured under Title IV of the federal Higher Education Act
24of 1965.
25    "Income-driven payment plan certification" means the
26documentation related to a federal student loan borrower's



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1income or financial status the borrower must submit to renew
2an income-driven repayment plan.
3    "Income-driven repayment options" includes the
4Income-Contingent Repayment Plan, the Income-Based Repayment
5Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn
6Plan, the Revised Pay As You Earn Plan, and any other federal
7student loan repayment plan that is calculated based on a
8borrower's income.
9    "Licensee" means a person licensed pursuant to this Act.
10    "Other repayment plans" means the Standard Repayment Plan,
11the Graduated Repayment Plan, the Extended Repayment Plan, or
12any other federal student loan repayment plan not based on a
13borrower's income.
14    "Private loan borrower eligible for referral to a
15repayment specialist" means a borrower who possesses any of
16the following characteristics:
17        (1) requests information related to options to reduce
18    or suspend his or her monthly payments; or
19        (2) indicates that he or she is experiencing or
20    anticipates experiencing financial hardship, distress, or
21    difficulty making his or her payments.
22    "Requester" means any borrower or cosigner that submits a
23request for assistance.
24    "Request for assistance" means all inquiries, complaints,
25account disputes, and requests for documentation a servicer
26receives from borrowers or cosigners.



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1    "Secretary" means the Secretary of Financial and
2Professional Regulation, or his or her designee, including the
3Director of the Division of Banking of the Department of
4Financial and Professional Regulation.
5    "Servicing" means: (1) receiving any scheduled periodic
6payments from a student loan borrower or cosigner pursuant to
7the terms of a student loan; (2) applying the payments of
8principal and interest and such other payments with respect to
9the amounts received from a student loan borrower or cosigner,
10as may be required pursuant to the terms of a student loan; and
11(3) performing other administrative services with respect to a
12student loan.
13    "Student loan" or "loan" means any federal education loan
14or other loan primarily for use to finance a postsecondary
15education and costs of attendance at a postsecondary
16institution, including, but not limited to, tuition, fees,
17books and supplies, room and board, transportation, and
18miscellaneous personal expenses. "Student loan" includes a
19loan made to refinance a student loan.
20    "Student loan" shall not include an extension of credit
21under an open-end consumer credit plan, a reverse mortgage
22transaction, a residential mortgage transaction, or any other
23loan that is secured by real property or a dwelling.
24    "Student loan" shall not include an extension of credit
25made by a postsecondary educational institution to a borrower
26if one of the following apply:



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1        (1) The term of the extension of credit is no longer
2    than the borrower's education program.
3        (2) The remaining, unpaid principal balance of the
4    extension of credit is less than $1,500 at the time of the
5    borrower's graduation or completion of the program.
6        (3) The borrower fails to graduate or successfully
7    complete his or her education program and has a balance
8    due at the time of his or her disenrollment from the
9    postsecondary institution.
10    "Student loan servicer" or "servicer" means any person
11engaged in the business of servicing student loans. "Student
12loan servicer" or "servicer" includes persons or entities
13acting on behalf of the State Treasurer. "Student loan
14servicer" includes an income share agreement provider covered
15under Article 7 of this Act.
16    "Student loan servicer" shall not include:
17        (1) a bank, savings bank, savings association, or
18    credit union organized under the laws of the State or any
19    other state or under the laws of the United States;
20        (2) a wholly owned subsidiary of any bank, savings
21    bank, savings association, or credit union organized under
22    the laws of the State or any other state or under the laws
23    of the United States;
24        (3) an operating subsidiary where each owner of the
25    operating subsidiary is wholly owned by the same bank,
26    savings bank, savings association, or credit union



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1    organized under the laws of the State or any other state or
2    under the laws of the United States;
3        (4) the Illinois Student Assistance Commission and its
4    agents when the agents are acting on the Illinois Student
5    Assistance Commission's behalf;
6        (5) a public postsecondary educational institution or
7    a private nonprofit postsecondary educational institution
8    servicing a student loan it extended to the borrower;
9        (6) a licensed debt management service under the Debt
10    Management Service Act, except to the extent that the
11    organization acts as a subcontractor, affiliate, or
12    service provider for an entity that is otherwise subject
13    to licensure under this Act;
14        (7) any collection agency licensed under the
15    Collection Agency Act that is collecting post-default
16    debt;
17        (8) in connection with its responsibilities as a
18    guaranty agency engaged in default aversion, a State or
19    nonprofit private institution or organization having an
20    agreement with the U.S. Secretary of Education under
21    Section 428(b) of the Higher Education Act (20 U.S.C.
22    1078(B));
23        (9) a State institution or a nonprofit private
24    organization designated by a governmental entity to make
25    or service student loans, provided in each case that the
26    institution or organization services fewer than 20,000



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1    student loan accounts of borrowers who reside in Illinois;
2        (10) a law firm or licensed attorney that is
3    collecting post-default debt; or
4        (11) the State Treasurer.
5(Source: P.A. 100-540, eff. 12-31-18; 100-635, eff. 12-31-18;
6101-586, eff. 8-26-19.)
7    (110 ILCS 992/Art. 7 heading new)

9    (110 ILCS 992/7-1 new)
10    Sec. 7-1. Purpose and construction. This Article shall be
11construed as a consumer protection law for all purposes. This
12Article shall be liberally construed to effectuate its
14    (110 ILCS 992/7-3 new)
15    Sec. 7-3. Applicability. This Article applies only to
16educational income share agreements that:
17        (1) are not made, insured, or guaranteed under Title
18    IV of the federal Higher Education Act of 1965 or another
19    federally subsidized educational finance program; and
20        (2) are extended to a consumer expressly, in whole or
21    in part, for postsecondary educational expenses, tuition,
22    or other obligations of, or pay amounts to or on behalf of
23    such an individual, for the costs associated with a



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1    postsecondary training program or any other program
2    designed to increase the individual's human capital,
3    employability, or earning potential, including, but not
4    limited to, a program eligible to participate as a program
5    under Title IV of the federal Higher Education Act of
6    1965, as well as any personal expenses, such as books,
7    supplies, transportation, and living costs, incurred by
8    the individual while enrolled in such a program and any
9    other costs or expenses included in the definition of
10    "qualified higher education expenses" under 26 U.S.C.
11    529(e)(3)(A), including the refinancing of loans or income
12    share agreements used for the purposes described in this
13    paragraph (2) and regardless of whether the income share
14    agreement is provided by the educational institution that
15    the consumer attends.
16    (110 ILCS 992/7-5 new)
17    Sec. 7-5. Definitions. As used in this Article:
18    "Amount financed" means the amounts advanced by the income
19share agreement provider to the consumer or on behalf of the
20consumer or, if the income share agreement provider is a
21merchant financing the sale of goods or services to the
22consumer using an income share agreement, "amount financed"
23means the amount credited by the income share agreement
24provider toward the purchase of such goods and services on
25behalf of the consumer.



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2    "Annual percentage rate" or "APR" means the percentage
3rate calculated according to the Federal Reserve Board's
4methodology as set forth under Regulation Z, 12 CFR Part 1026.
5The "annual percentage rate" of an income share agreement is
6the measure of the cost of the income share agreement,
7expressed as a yearly rate, that relates to the amount and
8timing of value received by the consumer to the amount and
9timing of payments made. The "annual percentage rate" is
10determined in accordance with either the actuarial method or
11the United States rule method.
12    "Cash price" means the price that the consumer would pay
13for the goods or services for which the educational income
14share agreement proceeds are advanced in an equivalent cash
15transaction between the consumer and the provider of goods or
16services. The Cash price excludes any amounts paid by the
17consumer as a down payment to the income share agreement
19    "Consumer" means a natural person who enters into an
20Educational Income Share Agreement for educational purposes.
21    "Disposable earnings" means that part of the earnings of
22an individual remaining after the deduction from total
23earnings of amounts required by law to be withheld.
24    "Federal poverty guidelines" means the poverty guidelines
25published by the federal Department of Health and Human
26Services under the authority of 42 U.S.C. 9902(2) in the



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1Federal Register.
2    "Garnishment" means any legal or equitable procedure
3through which earnings of an individual are required to be
4withheld for payment of obligations to an income share
5agreement provider as set forth in the Code of Civil
7    "Income share agreement" or "ISA" means an agreement
8between a consumer and an ISA provider under which:
9        (1) the ISA provider credits or advances a sum of
10    money to the consumer or to a third party on the consumer's
11    behalf or, if the ISA provider is a seller of goods or
12    services to the consumer, the ISA provider credits or
13    advances toward the purchase of such goods or services;
14        (2) the consumer is obligated to make periodic
15    payments, if any become due, to the ISA provider
16    calculated, based upon, or determined by the consumer's
17    income;
18        (3) the consumer only incurs an obligation in each
19    payment period if the individual's income in that period
20    is above an income threshold specified in the ISA
21    agreement;
22        (4) there is an ISA duration after which the
23    obligation is complete regardless of how much has been
24    paid, as long as the consumer has paid any prior amounts
25    due; and
26        (5) each of these elements is available at the time of



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1    contracting of the income share agreement. For purposes of
2    this definition, an income share agreement shall be
3    treated as "credit", within the meaning of that term under
4    15 U.S.C. 1602(f), and as a "private education loan",
5    within the meaning of that term under 15 U.S.C.
6    1650(a)(8), to the extent the proceeds of the ISA are used
7    for postsecondary educational expenses in a manner
8    consistent with the definition of that term.
9    "Income threshold" means a fixed dollar amount that is the
10minimum income per payment period that an ISA recipient is
11required to earn before the ISA recipient is required to make a
12payment on an income share agreement for such payment period.
13    "Index" means the Consumer Price Index for Urban Wage
14Earners and Clerical Workers: U.S. City Average, All Items,
151967=100, compiled by the Bureau of Labor Statistics, United
16States Department of Labor.
17    "ISA duration" means the maximum time during which a
18consumer could remain obligated on the income share agreement,
19other than periods when an income share agreement provider is
20attempting to collect past-due amounts and absent periods of
21payment relief pauses, forbearance, military service
22suspension, or other suspension of obligations at the request
23of the consumer, regardless of whether the consumer's income
24is greater than the minimum income.
25    "ISA maximum number of payments" means the maximum number
26of ISA payments during ISA payment periods in which the



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1consumer's income is equal to or greater than the income
2threshold that a consumer could be required to make pursuant
3to the terms of the income share agreement. "ISA maximum
4number of payments" does not include periods of payment relief
6    "ISA payment" means a calculated monthly payment in excess
7of $0.00 that counts toward the maximum income-based payments
8under the ISA. An "ISA payment" is required only for income
9earned during an ISA payment period in which the consumer's
10income was equal to or greater than the income threshold.
11    "ISA payment calculation method" means the mechanism,
12formula, percentage, dollar figure, or other means of
13calculating a student's payment obligation, based on the
14student's income, under the terms of the income share
16    "ISA payment cap" means the maximum amount of money a
17consumer must pay to satisfy the terms of an income share
18agreement, which may be expressed as a dollar value, a
19multiple of the amount funded to the student or on the
20student's behalf, or as a maximum effective annual percentage
22    "ISA payment cap" does not include charges related to
23default or other charges and fees that are due under the income
24share agreement.
25    "Income share agreement provider" means:
26        (1) a person that provides money, payments, or credits



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1    to or on behalf of a consumer pursuant to the terms of an
2    income share agreement; or
3        (2) any other person engaged in the business of
4    soliciting, making, funding, or extending income share
5    agreements. This definition does not apply to an entity
6    that either (i) has no direct interactions with the
7    consumer and is not responsible for making credit
8    decisions regarding the consumer or (ii) is the provider
9    of the educational services to the consumer, even if the
10    entity may qualify under paragraph (1), or whose role is
11    solely limited to the marketing or advertising of the
12    income share agreement to the consumer on behalf of a
13    licensed income share agreement provider.
14    "Payment relief pause" means a period of time that is
15requested by the consumer during which the consumer is not
16required to make payments despite the consumer's income
17exceeding the income threshold.
18    "Sales price" means, for an educational income share
19agreement, the sum of the cash price and any other amounts
20financed by the educational income share agreement.
21    (110 ILCS 992/7-10 new)
22    Sec. 7-10. Monthly payment affordability.
23    (a) Each educational income share agreement shall specify
24the ISA payment calculation method applicable to the
25educational income share agreement. An income share agreement



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1provider shall not enter into an educational ISA with a
2consumer if the consumer would be committing to pay more than
320% of his or her income at any time during the ISA duration,
4based on information available to the income share agreement
5provider at the time of the projection, inclusive of any
6payment obligations that the income share agreement provider
7knows will arise in the future for other educational ISAs and
8education loans upon which the consumer is obligated at the
9time of the projection. The ISA provider must confirm a
10consumer's educational ISA and education loan liabilities
11through a verifiable third-party source. At a minimum, the
12income share agreement provider must confirm such liabilities
13using information maintained by a nationwide consumer
14reporting agency, as defined by 15 U.S.C. 1681a(f), and doing
15so is sufficient for meeting the requirement in this
16paragraph; however, nothing in this paragraph shall prohibit
17an income share agreement provider from using other sources to
18provide additional verification. For the purposes of
19calculating the portion of a student's future income that
20would be consumed by the educational ISA for which the student
21has applied and other educational ISAs and education loans
22known at the time, the ISA provider shall calculate the
23aggregate future burden of all such obligations, including the
24educational ISA for which the student is applying, at
25hypothetical future income levels ranging from the income
26threshold of the ISA for which the student has applied up to



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1$70,000, with such number adjusting for inflation each year,
2in increments of $10,000. The terms of the educational ISA for
3which the student has applied cannot cause the student's
4aggregate future burden to exceed the limit in subsection (b)
5at any of the income increments stated in this paragraph. For
6the purpose of calculating the percentage burden of an
7educational ISA at a given future income level, the ISA
8provider shall use the ISA payment amount that would be
9applicable for the ISA at such income level. For the purpose of
10calculating the percentage burden of an educational loan at a
11given future income level, the ISA provider shall divide the
12annual payment obligation by income level using the most
13affordable payment plan or option which would yield the lowest
14monthly payments that would be available to the student at
15such income level under such loan. For students enrolled in a
16Title IV program, as part of this analysis the ISA provider
17shall assume a federal loan balance equal to the larger of (1)
18the student's existing federal loan balance, and (2) the
19aggregate maximum amount the student is eligible to borrow
20under Federal Direct Stafford Loans for his or her status,
21dependent or independent.
22    (b) The income share agreement must state that when a
23consumer has income that is equal to or below the income
24threshold set forth in the educational income share agreement
25that the consumer's payment obligation is zero dollars. The
26income threshold at the time of origination must be high



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1enough such that the consumer's gross income minus any
2educational income share agreement obligation must leave the
3consumer with gross income equal to at least 200% of the
4federal poverty guidelines for a single person.
5    (c) An educational income share agreement must offer at
6least 3 months of voluntary payment relief pauses, so long as a
7consumer's current income at the time of requesting the
8payment relief pause is equal to or less than 400% of the
9federal poverty guidelines for a single individual, for every
1030 income-determined payments required under the educational
11income share agreement.
12    (110 ILCS 992/7-15 new)
13    Sec. 7-15. Maximum effective annual percentage rate. An
14educational income share agreement must specify that the
15maximum amount that a consumer could be required to pay under
16the educational income share agreement will not result in a
17consumer ever being required to pay an effective annual
18percentage rate that is greater than 22%. If at any time the
19provider accepts a payment of an amount that would cause the
20limit in this Section to apply, the provider shall refund any
21amounts, within 20 calendar days, necessary to ensure that the
22consumer's payments do not result in an effective annual
23percentage rate that is greater than the limit specified in
24this Section.



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1    (110 ILCS 992/7-20 new)
2    Sec. 7-20. Limits on duration of educational income share
4    (a) ISA maximum number of payments shall not exceed 180
5monthly payments.
6    (b) The ISA duration shall not exceed 240 months,
7excluding any months in which a consumer has requested and
8received a payment relief pause.
9    (110 ILCS 992/7-25 new)
10    Sec. 7-25. Risk sharing.
11    (a) An educational income share agreement provider may not
12contract for educational income share agreement terms that
13would result in a consumer having income that is less than or
14equal to 300% of the federal poverty guidelines for a single
15person for the ISA duration being required to make a stream of
16ISA payments that would yield an effective APR greater than
178%, or the high yield of the 10-year United States Constant
18Maturity Treasury Notes auctioned at the final auction held
19before the current calendar year in which an ISA offering is
20made plus 7%, whichever is greater.
21    (b) An educational income share agreement provider may not
22contract for educational income share agreement terms that
23would result in a consumer having income that is less than or
24equal to 400% of the federal poverty guidelines for a single
25person for the ISA duration being required to make a stream of



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1ISA payments that would yield an effective APR greater than
212%, or the high yield of the 10-year United States Constant
3Maturity Treasury Notes auctioned at the final auction held
4before the current calendar year in which an ISA offering is
5made plus 11%, whichever is greater.
6    (c) An educational income share agreement provider may not
7contract for educational income share agreement terms that
8would result in a consumer having income that is less than or
9equal to 500% of the federal poverty guidelines for a single
10person for the ISA duration being required to make a stream of
11ISA payments that would yield an effective APR greater than
1215%, or the high yield of the 10-year United States Constant
13Maturity Treasury Notes auctioned at the final auction held
14before the current calendar year in which an ISA offering is
15made plus 14%, whichever is greater.
16    (d) An educational income share agreement provider may not
17contract for educational income share agreement terms that
18would result in a consumer having income that is less than or
19equal to 600% of the federal poverty guidelines for a single
20person for the ISA duration being required to make a stream of
21ISA payments that would yield an effective APR greater than
2218%, or the high yield of the 10-year United States Constant
23Maturity Treasury Notes auctioned at the final auction held
24before the current calendar year in which an ISA offering is
25made plus 17%, whichever is greater.
26    (e) For the purposes of determining the various tiers set



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1forth in this Section, an income share agreement provider
2shall calculate the effective APR by determining the various
3federal poverty guidelines tiers at the time the consumer's
4educational income share agreement is originated and assuming
5such amounts are fixed through the ISA duration.
6    (f) For the purposes of determining ISA duration in this
7Section, an income share agreement provider shall assume the
8ISA duration started after a period equal to the expected
9length of the program for which a consumer is enrolling.
10    (110 ILCS 992/7-30 new)
11    Sec. 7-30. Limits on covered income. An educational income
12share agreement must specify the definition of income to be
13used for the purposes of calculating a consumer's payment
14obligation under the educational income share agreement. No
15educational income share agreement shall include any of the
16following in its definition of income:
17        (1) The income of the consumer's spouse, party to a
18    civil union under the Illinois Religious Freedom and Civil
19    Union Act, children or dependents.
20        (2) Any amount paid by the consumer under Title II or
21    XVI of the Social Security Act, 42 U.S.C. 401 et seq., 42
22    U.S.C. 1381 et seq.; or under a State program funded by
23    Title IV of the Social Security Act, 42 U.S.C. 601 et seq.
24        (3) Individual retirement account distributions.
25        (4) Pensions and annuities.



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1        (5) Social security benefits.
2        (6) Any sources of government aid provided to
3    individuals, including, but not limited to:
4            (A) unemployment programs;
5            (B) disaster relief programs;
6            (C) Medicare or Medicaid benefits;
7            (D) benefits received through the Supplemental
8        Nutrition Assistance Program;
9            (E) economic impact payments;
10            (F) the earned income tax credit or child tax
11        credit;
12            (G) other income excluded from the definition of
13        taxable income set forth by the Internal Revenue
14        Service; or
15            (H) passive income that is not derived as a result
16        of a consumer's active participation in any trade or
17        business.
18    (110 ILCS 992/7-35 new)
19    Sec. 7-35. Fees permitted. In addition to the ISA
20obligation permitted by this Act, an income share agreement
21provider may contract for and receive the following additional
23        (1) government fees and taxes;
24        (2) a fee, which shall not exceed the sum of $25, for a
25    failure to provide documentation to the income share



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1    agreement provider for the confirmation and reconciliation
2    of the consumer's income within 30 days after the date on
3    which such documentation is due, as reflected in the
4    written notice to the consumer;
5        (3) a fee for processing any forms to confirm the
6    consumer's income with the United States Internal Revenue
7    Service or a State department of revenue or taxation on a
8    dollar-for-dollar, pass-through basis of the expenses
9    incurred by the income share agreement provider;
10        (4) a late payment fee in the amount of $15 or 5% of
11    the late payment, whichever is less, for any payment that
12    is more than 15 days past due; no late payment fee may be
13    charged more than once per late payment;
14        (5) an amount not exceeding $25, plus any actual
15    expenses incurred in connection with a check or draft that
16    is not honored because of insufficient or uncollected
17    funds or because no such account exists;
18        (6) other fees authorized by the Secretary. In
19    determining whether to authorize a charge, the Secretary
20    shall consider whether the charge benefits the consumer
21    and is reasonable;
22        (7) before or after default in payment of a scheduled
23    payment of an educational income share agreement, the
24    parties to the educational income share agreement may
25    agree in writing to a deferral of all or part of one or
26    more unpaid payments and the income share agreement



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1    provider may make, at the time of deferral and receive at
2    that time or at any time thereafter, a deferral charge not
3    exceeding an amount equal to 5% of the missed payment.
4    Provided this subsection shall not apply to voluntary
5    payment relief pauses.
6    (110 ILCS 992/7-40 new)
7    Sec. 7-40. Restriction on security interest. Under no
8circumstances shall an educational income share agreement
9provider take a security interest in any collateral in
10connection with an educational income share agreement.
11    (110 ILCS 992/7-45 new)
12    Sec. 7-45. Discharge of obligations.
13    (a) All obligations under an educational income share
14agreement shall terminate if the consumer is deemed totally
15and permanently disabled by the applicable governmental
17    (b) All obligations under an educational income share
18agreement shall terminate upon the death of the consumer.
19    (110 ILCS 992/7-50 new)
20    Sec. 7-50. Prohibition on co-signers. No educational
21income share agreement shall include or permit the use of a
22co-signer in connection with any obligation related to an
23educational income share agreement.



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1    (110 ILCS 992/7-55 new)
2    Sec. 7-55. Limitation on acceleration.
3    (a) Income share agreement providers shall not attempt to
4accelerate or otherwise liquidate a future payment stream
5under an educational income share agreement.
6    (b) Notwithstanding subsection (a), nothing in this
7Section shall prevent an income share agreement provider from
8collecting or pursuing any other remedy available to the
9income share agreement provider for the collection of amounts
10that were due from the consumer under an educational income
11share agreement that were not paid or properly remitted to the
12income share agreement provider. Nothing in this Section shall
13prevent an income share agreement provider from calculating a
14projected future income for a consumer and calculating a
15consumer's payment obligation using that projection if the
16consumer does not provide contractually obligated
17documentation of income.
18    (c) Notwithstanding subsection (a), an educational income
19share agreement may contain a provision that allows a consumer
20to terminate his or her educational income share agreement
21before the events terminating further obligations under the
22income share agreement. The early termination mechanisms, such
23as total caps on payments due to the income share agreement
24provider or other rights to partially or fully terminate
25further obligations under the educational income share



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1agreement, must be optional to the consumer and within the
2consumer's control. In such circumstances, such mechanisms
3shall not be deemed a form of acceleration.
4    (110 ILCS 992/7-60 new)
5    Sec. 7-60. No assignment of wages.
6    (a) An income share agreement provider may not take an
7assignment of earnings of the consumer for payment or as
8security for payment of a debt arising out of an educational
9income share agreement. An assignment of earnings in violation
10of this Section is unenforceable by the assignee of the
11earnings and revocable by the consumer. This Section does not
12prohibit a consumer from authorizing deductions from his or
13her earnings in favor of a licensee if the authorization
14complies with the Illinois Wage Assignment Act.
15    (b) A sale of unpaid earnings made in consideration of the
16payment of money to or for the account of the seller of the
17earnings is deemed to be a loan to the seller secured by an
18assignment of earnings.
19    (110 ILCS 992/7-65 new)
20    Sec. 7-65. Limitations on garnishment. Before entry of
21judgment in an action against a consumer for a payment arising
22from an educational income share agreement, a licensee may not
23attach unpaid earnings of the consumer by garnishment or like



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1    (110 ILCS 992/7-70 new)
2    Sec. 7-70. Use of multiple agreements. An income share
3agreement provider shall not use multiple agreements with
4respect to a single educational income share agreement with
5intent to violate any limitations of this Act.
6    (110 ILCS 992/7-75 new)
7    Sec. 7-75. Required disclosures.
8    (a) An income share agreement provider shall disclose the
9following information to each consumer, clearly and
10conspicuously, in a form that the consumer can keep at the time
11the transaction is consummated:
12        (1) The date of the educational income share
13    agreement.
14        (2) The dollar amount of the amount financed.
15        (3) The sales price of the transaction if different
16    from the amount financed;
17        (4) The ISA payment calculation method. Any
18    percentages used in the ISA payment calculation method
19    shall be rounded to the nearest one-hundredth of 1% if the
20    percentage is not a whole number.
21        (5) The maximum number of payments expressed as a
22    whole number.
23        (6) The maximum duration expressed as a whole number
24    of the period of time.



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1        (7) The income threshold expressed as a dollar amount
2    and a statement that payments will only be required during
3    periods when the consumer's income is equal to or exceeds
4    the income threshold.
5        (8) An itemization of the amount financed; if the ISA
6    provider is a seller of goods or services, then the amount
7    of any down payment and any additional fees or costs shall
8    be itemized.
9        (9) The definition of income to be used for the
10    purposes of calculating the consumer's obligations under
11    the educational income share agreement.
12        (10) A description of the terms under which the
13    obligations of the consumer under the educational income
14    share agreement will be extinguished before the full ISA
15    duration.
16        (11) A payment schedule that shows the date on which
17    the first payment will be due and reflects each date
18    thereafter during the ISA duration that a payment may be
19    due.
20        (12) An itemization of any permissible fees associated
21    with the ISA.
22        (13) A description of the methods used by the ISA
23    provider to engage in a process of reconciliation and
24    verification to determine if the consumer's payments are
25    more than, equal to, or less than the payments owed by the
26    consumer under his or her educational income share



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1    agreement; this description shall include the following:
2            (i) a description of the frequency or triggers for
3        the commencement of the income verification process;
4            (ii) a description of the requirements and timing
5        of the process in which the consumer must participate
6        in order for the ISA provider to verify the consumer's
7        income; and
8            (iii) a description of any records or forms,
9        including tax records, that the consumer may be
10        required to execute or submit.
11        (14) The name and address of the ISA provider.
12        (15) A table displaying the dollar amounts of each
13    payment, the number of payments, the effective annual
14    percentage rate, and the total of all payments that a
15    consumer would be required to pay under the educational
16    income share agreement at a range of annual income levels
17    based on the ISA duration. The comparison table shall
18    include a statement that "This comparison table is for
19    illustrative purposes only and may not reflect the amounts
20    that you are likely to pay under this educational income
21    share agreement. This table assumes you have the same
22    income over the entire term of your educational income
23    share agreement. It does not take into account changes in
24    income. Your income will likely change over time. This
25    table does not represent the income or range of incomes
26    that you are likely to earn in the future.". In computing



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1    the APR, the ISA provider shall use the amount financed
2    and may assume that the educational income share agreement
3    will be disbursed in the amount and with the disbursement
4    schedule that it reasonably expects to follow for such
5    educational income share agreement and that payments would
6    commence on the date set forth in the educational income
7    share agreement. The income used in this disclosure shall
8    include, at minimum, the obligations at the following
9    incomes:
10            (i) no income;
11            (ii) income equal to the annual equivalent of the
12        income threshold;
13            (iii) various income scenarios with at least
14        calculations at annual incomes of $40,000, $60,000,
15        $80,000, $100,000, $125,000, $150,000, $175,000, and
16        $200,000; and
17            (iv) if known by the ISA provider, the consumer's
18        current income.
19        (16) A statement that the educational income share
20    agreement is not a fixed payment installment loan and that
21    the amount the consumer will be required to pay under the
22    educational income share agreement:
23            (i) may be more or less than the amount financed by
24        the ISA provider; and
25            (ii) will vary in proportion with the consumer's
26        income.



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1    (b) The disclosures required by this Section shall be
2grouped together and segregated from all other information.
3    (c) The disclosures required by this Section may be
4provided to a consumer in electronic form, subject to
5compliance with the consumer's consent and other applicable
6provisions of the Electronic Signatures in Global and National
7Commerce Act, 15 U.S.C. 7001 et seq., and applicable State
9    (d) If model documents are established pursuant to any
10federal law covering income share agreements, compliance with
11those forms shall be considered compliance with this Act with
12respect to the disclosure requirements contained in this Act.
13    (110 ILCS 992/7-80 new)
14    Sec. 7-80. Early completion. An educational income share
15agreement shall specify the terms and conditions by which the
16consumer may extinguish his or her obligations under the
17educational income share agreement before the end of the
18educational income share agreement's duration. An educational
19income share agreement may include any method to determine the
20early completion payment; however, a consumer may always
21cancel an educational income share agreement by making
22aggregate payments, excluding payments to fees, equal to the
23ISA payment cap, and an ISA must include at least one
24time-value cap that may not exceed the limits specified in
25Section 7-15. The consumer is entitled to this early



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1completion regardless of whether the consumer makes this early
2completion payment by making regularly scheduled payments or
3by making a single lump sum payment in the amount of the early
4completion payment.
5    This Section shall create an early completion mechanism
6for educational income share agreements that is in lieu of
7other State laws regarding prepayment penalties.
8    (110 ILCS 992/7-85 new)
9    Sec. 7-85. Assumption of increase in future income.
10    (a) If a consumer fails to provide income documentation as
11reasonably required by an educational income share agreement,
12an income share agreement provider may assign an amount of
13income to the consumer and compute the consumer's monthly
14payment amount by any of the following methods, to the extent
15disclosed in the educational income share agreement:
16        (1) assigning an income amount obtained from a
17    reasonably reliable third party or a credit reporting
18    agency;
19        (2) if the consumer previously provided income
20    documentation or has had an income assigned in the prior
21    12-month period that has increased by an amount not to
22    exceed 10%, but such increase may not be applied more than
23    once per 12-month period;
24        (3) contacting the consumer's employer, or any person
25    or entity reasonably believed to represent the consumer's



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1    employer, to obtain, verify, or update the consumer's
2    income information;
3        (4) contacting the Department of Revenue or the
4    Internal Revenue Service to obtain the most recent
5    information available about the student's income; or
6        (5) assigning a reasonable qualified income based on
7    the incomes of:
8            (A) the nearest reasonably relevant quantile of
9        income for individuals working in the profession for
10        which the consumer's educational program was intended
11        to prepare the participant, as determined by
12        information published by the Bureau of Labor
13        Statistics or other reasonably reliable publicly
14        available data sources; or
15            (B) the nearest reasonably relevant quantile of
16        income of consumers who attended the same or a
17        reasonably comparable covered educational program or
18        course of study, as determined by information
19        published by the Bureau of Labor Statistics or other
20        reasonably reliable publicly available data sources.
21    (b) If an income share agreement provider assigns an
22income to a consumer's educational income share agreement,
23then it shall notify the consumer in the monthly billing
24statement, and in each billing statement thereafter while the
25assigned income remains applicable to the consumer's
26educational income share agreement, that income has been



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1assigned and of the consumer's rights under this Section.
2    (c) If the consumer does provide income information as
3reasonably required by the educational income share agreement
4within one year of the date on which the income share agreement
5provider notified the consumer that assigned income will be
6applied to the educational income share agreement, then,
7within 15 days after the income share agreement provider's
8receipt of such information, the income share agreement
9provider shall update each prior instance in which assigned
10income was applied using the income information provided by
11the consumer; if the consumer provides income information more
12than one year after the income share agreement provider first
13assigned income to the consumer's educational income share
14agreement, then the income share agreement provider may, but
15is not obligated to, update each prior instance in which
16assigned income was applied using the income information
17provided by the consumer.
18    (d) An income share agreement provider that assigns income
19to an educational income share agreement shall retain all
20applicable records relating to the method and data sources
21used to make such estimation for 3 years after the end of that
22educational income share agreement.
23    (110 ILCS 992/7-90 new)
24    Sec. 7-90. Receipts; statements of account; evidence of



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1    (a) The income share agreement provider shall deliver or
2mail to the consumer, without request, a written receipt for
3each payment made pursuant to an educational income share
4agreement. A periodic statement showing a payment received by
5mail complies with this subsection (a).
6    (b) Upon written request of a consumer, the income share
7agreement provider shall provide a written statement of the
8dates and amounts of payments made within the 12 months
9preceding the month in which the request is received. The
10statement shall be provided without charge once during each
11year of the term of the obligation. If additional statements
12are requested, the income share agreement provider may charge
13an amount not to exceed $5.00 for each additional statement.
14    (c) After a consumer has fulfilled all obligations with
15respect to an educational income share agreement, the income
16share agreement provider, upon request of the consumer, shall
17deliver or mail to the consumer written evidence acknowledging
18termination of all obligations with respect to the income
19share agreement.
20    (110 ILCS 992/7-95 new)
21    Sec. 7-95. Adjustment of dollar amounts.
22    (a) From time to time the dollar amounts in this Act
23designated as subject to change shall change, as provided in
24this Section, according to and to the extent of changes in the



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1    (b) The index for December of the year preceding the year
2in which this Act becomes effective is the reference base
4    (c) The designated dollar amounts shall change on July 1
5of each even-numbered year if the percentage of change,
6calculated to the nearest whole percentage point, between the
7index and the end of the preceding year and the reference base
8index is 10% or more, but:
9        (1) the portion of the percentage change in the index
10    in excess of a multiple of 10% shall be disregarded and the
11    dollar amounts shall change only in multiples of 10% of
12    the amounts provided in this Act on the date of enactment;
13    and
14        (2) the dollar amounts shall not change if the amounts
15    required by this Section are those currently in effect
16    pursuant to this Act as a result of earlier application of
17    this Section.
18    (d) If the index is revised, the percentage of change
19pursuant to this Section shall be calculated on the basis of
20the revised index. If a revision of the index changes the
21reference base index, a revised reference base index shall be
22determined by multiplying the reference base index then
23applicable by the rebasing factor furnished by the Bureau of
24Labor Statistics. If the index is superseded, the index
25referred to in this Section is the one represented by the
26Bureau of Labor Statistics as reflecting most accurately



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1changes in the purchasing power of the dollar for consumers.
2    (e) The Department shall adopt a rule setting forth, on or
3before April 30 of each year in which dollar amounts are to
4change, the changes in dollar amounts required by this
5Section. As soon as practical after the changes occur, the
6Department shall adopt a rule setting forth the changes in the
7index required by subsection (d), including, if applicable,
8the numerical equivalent of the reference base index under a
9revised reference base index and the designation or title of
10any index superseding the index.
11    (f) A person does not violate this Act with respect to a
12transaction otherwise complying with this Act if he or she
13relies on dollar amounts either determined according to
14subsection (c) or appearing in the last rule of the Department
15announcing the then-current dollar amounts.
16    (110 ILCS 992/7-100 new)
17    Sec. 7-100. Construction against implicit authority. This
18Act is a general Act intended as a unified coverage of its
19subject matter; no part of this Act shall be construed to be
20impliedly repealed by subsequent legislation if that
21construction can reasonably be avoided.
22    (110 ILCS 992/7-105 new)
23    Sec. 7-105. Application of other Acts. Educational income
24share agreements and income share agreement providers are



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1subject to other Articles of this Act, the Know Before You Owe
2Private Education Loan Act, and the Predatory Loan Prevention
3Act and shall comply with their requirements and any rules
4adopted by the Department of Financial and Professional
5Regulation pursuant to those Acts. Nothing in this Section is
6intended to imply that an educational income share agreement
7(i) is not a credit transaction or (ii) upon an obligation
8accruing, does not create a debt.
9    (110 ILCS 992/7-110 new)
10    Sec. 7-110. Rulemaking. Notwithstanding any other
11provision of this Act, the Secretary may enact rules for the
12regulation of any educational income share agreement provider
13that does not engage in the servicing of student loans,
14including, but not limited to, educational income share
15agreements. The Secretary's authority to adopt rules shall
16include, but is not limited to, licensure, examination,
17supervision, investigation, confidentiality, and enforcement.
18Such rules may supersede and expressly waive the application
19of any provision of this Act that conflicts with such rules,
20except the provisions in this Article.
21    (110 ILCS 992/25-5)
22    Sec. 25-5. Enforcement; Consumer Fraud and Deceptive
23Business Practices Act. The Attorney General may enforce a
24violation of Article 5 or 7 of this Act as an unlawful practice



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1under the Consumer Fraud and Deceptive Business Practices Act.
2(Source: P.A. 100-540, eff. 12-31-18.)
3    Section 10. The Consumer Installment Loan Act is amended
4by changing Section 1 as follows:
5    (205 ILCS 670/1)  (from Ch. 17, par. 5401)
6    Sec. 1. License required to engage in business. No person,
7partnership, association, limited liability company, or
8corporation shall engage in the business of making loans of
9money and charge, contract for, or receive on any such loan a
10greater annual percentage rate than 9% except as authorized by
11this Act after first obtaining a license from the Director of
12Financial Institutions (hereinafter called the Director). No
13licensee, or employee or affiliate thereof, that is licensed
14under the Payday Loan Reform Act shall obtain a license under
15this Act except that a licensee under the Payday Loan Reform
16Act may obtain a license under this Act for the exclusive
17purpose and use of making title-secured loans, as defined in
18subsection (a) of Section 15 of this Act and governed by Title
1938, Section 110.300 of the Illinois Administrative Code. For
20the purpose of this Section, "affiliate" means any person or
21entity that directly or indirectly controls, is controlled by,
22or shares control with another person or entity. A person or
23entity has control over another if the person or entity has an
24ownership interest of 25% or more in the other. A person or



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1entity licensed to provide educational income share agreements
2is exempt from the requirements of this Act to the extent of
3its operation under Article 7 of the Student Loan Servicing
4Rights Act.
5    In this Act, "Director" means the Director of Financial
6Institutions of the Department of Financial and Professional
8(Source: P.A. 101-658, eff. 3-23-21.)
9    Section 15. The Interest Act is amended by changing
10Section 4 as follows:
11    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
12    Sec. 4. General interest rate.
13    (1) Except as otherwise provided in Section 4.05, in all
14written contracts it shall be lawful for the parties to
15stipulate or agree that an annual percentage rate of 9%, or any
16less sum, shall be taken and paid upon every $100 of money
17loaned or in any manner due and owing from any person to any
18other person or corporation in this state, and after that rate
19for a greater or less sum, or for a longer or shorter time,
20except as herein provided.
21    The maximum rate of interest that may lawfully be
22contracted for is determined by the law applicable thereto at
23the time the contract is made. Any provision in any contract,
24whether made before or after July 1, 1969, which provides for



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1or purports to authorize, contingent upon a change in the
2Illinois law after the contract is made, any rate of interest
3greater than the maximum lawful rate at the time the contract
4is made, is void.
5    It is lawful for a state bank or a branch of an
6out-of-state bank, as those terms are defined in Section 2 of
7the Illinois Banking Act, to receive or to contract to receive
8and collect interest and charges at any rate or rates agreed
9upon by the bank or branch and the borrower. It is lawful for a
10savings bank chartered under the Savings Bank Act or a savings
11association chartered under the Illinois Savings and Loan Act
12of 1985 to receive or contract to receive and collect interest
13and charges at any rate agreed upon by the savings bank or
14savings association and the borrower.
15    It is lawful to receive or to contract to receive and
16collect interest and charges as authorized by this Act and as
17authorized by the Consumer Installment Loan Act, the Payday
18Loan Reform Act, the Retail Installment Sales Act, the
19Illinois Financial Services Development Act, the Motor Vehicle
20Retail Installment Sales Act, or the Consumer Legal Funding
21Act, or the Student Loan Servicing Rights Act. It is lawful to
22charge, contract for, and receive any rate or amount of
23interest or compensation, except as otherwise provided in the
24Predatory Loan Prevention Act, with respect to the following
26        (a) Any loan made to a corporation;



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1        (b) Advances of money, repayable on demand, to an
2    amount not less than $5,000, which are made upon warehouse
3    receipts, bills of lading, certificates of stock,
4    certificates of deposit, bills of exchange, bonds or other
5    negotiable instruments pledged as collateral security for
6    such repayment, if evidenced by a writing;
7        (c) Any credit transaction between a merchandise
8    wholesaler and retailer; any business loan to a business
9    association or copartnership or to a person owning and
10    operating a business as sole proprietor or to any persons
11    owning and operating a business as joint venturers, joint
12    tenants or tenants in common, or to any limited
13    partnership, or to any trustee owning and operating a
14    business or whose beneficiaries own and operate a
15    business, except that any loan which is secured (1) by an
16    assignment of an individual obligor's salary, wages,
17    commissions or other compensation for services, or (2) by
18    his household furniture or other goods used for his
19    personal, family or household purposes shall be deemed not
20    to be a loan within the meaning of this subsection; and
21    provided further that a loan which otherwise qualifies as
22    a business loan within the meaning of this subsection
23    shall not be deemed as not so qualifying because of the
24    inclusion, with other security consisting of business
25    assets of any such obligor, of real estate occupied by an
26    individual obligor solely as his residence. The term



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1    "business" shall be deemed to mean a commercial,
2    agricultural or industrial enterprise which is carried on
3    for the purpose of investment or profit, but shall not be
4    deemed to mean the ownership or maintenance of real estate
5    occupied by an individual obligor solely as his residence;
6        (d) Any loan made in accordance with the provisions of
7    Subchapter I of Chapter 13 of Title 12 of the United States
8    Code, which is designated as "Housing Renovation and
9    Modernization";
10        (e) Any mortgage loan insured or upon which a
11    commitment to insure has been issued under the provisions
12    of the National Housing Act, Chapter 13 of Title 12 of the
13    United States Code;
14        (f) Any mortgage loan guaranteed or upon which a
15    commitment to guaranty has been issued under the
16    provisions of the Veterans' Benefits Act, Subchapter II of
17    Chapter 37 of Title 38 of the United States Code;
18        (g) Interest charged by a broker or dealer registered
19    under the Securities Exchange Act of 1934, as amended, or
20    registered under the Illinois Securities Law of 1953,
21    approved July 13, 1953, as now or hereafter amended, on a
22    debit balance in an account for a customer if such debit
23    balance is payable at will without penalty and is secured
24    by securities as defined in Uniform Commercial
25    Code-Investment Securities;
26        (h) Any loan made by a participating bank as part of



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1    any loan guarantee program which provides for loans and
2    for the refinancing of such loans to medical students,
3    interns and residents and which are guaranteed by the
4    American Medical Association Education and Research
5    Foundation;
6        (i) Any loan made, guaranteed, or insured in
7    accordance with the provisions of the Housing Act of 1949,
8    Subchapter III of Chapter 8A of Title 42 of the United
9    States Code and the Consolidated Farm and Rural
10    Development Act, Subchapters I, II, and III of Chapter 50
11    of Title 7 of the United States Code;
12        (j) Any loan by an employee pension benefit plan, as
13    defined in Section 3 (2) of the Employee Retirement Income
14    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
15    individual participating in such plan, provided that such
16    loan satisfies the prohibited transaction exemption
17    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
18    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
19    (1)) of the Employee Retirement Income Security Act of
20    1974;
21        (k) Written contracts, agreements or bonds for deed
22    providing for installment purchase of real estate,
23    including a manufactured home as defined in subdivision
24    (53) of Section 9-102 of the Uniform Commercial Code that
25    is real property as defined in the Conveyance and
26    Encumbrance of Manufactured Homes as Real Property and



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1    Severance Act;
2        (l) Loans secured by a mortgage on real estate,
3    including a manufactured home as defined in subdivision
4    (53) of Section 9-102 of the Uniform Commercial Code that
5    is real property as defined in the Conveyance and
6    Encumbrance of Manufactured Homes as Real Property and
7    Severance Act;
8        (m) Loans made by a sole proprietorship, partnership,
9    or corporation to an employee or to a person who has been
10    offered employment by such sole proprietorship,
11    partnership, or corporation made for the sole purpose of
12    transferring an employee or person who has been offered
13    employment to another office maintained and operated by
14    the same sole proprietorship, partnership, or corporation;
15        (n) Loans to or for the benefit of students made by an
16    institution of higher education.
17    (2) Except for loans described in subparagraph (a), (c),
18(d), (e), (f) or (i) of subsection (1) of this Section, and
19except to the extent permitted by the applicable statute for
20loans made pursuant to Section 4a or pursuant to the Consumer
21Installment Loan Act:
22        (a) Whenever the rate of interest exceeds an annual
23    percentage rate of 8% on any written contract, agreement
24    or bond for deed providing for the installment purchase of
25    residential real estate, or on any loan secured by a
26    mortgage on residential real estate, it shall be unlawful



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1    to provide for a prepayment penalty or other charge for
2    prepayment.
3        (b) No agreement, note or other instrument evidencing
4    a loan secured by a mortgage on residential real estate,
5    or written contract, agreement or bond for deed providing
6    for the installment purchase of residential real estate,
7    may provide for any change in the contract rate of
8    interest during the term thereof. However, if the Congress
9    of the United States or any federal agency authorizes any
10    class of lender to enter, within limitations, into
11    mortgage contracts or written contracts, agreements or
12    bonds for deed in which the rate of interest may be changed
13    during the term of the contract, any person, firm,
14    corporation or other entity not otherwise prohibited from
15    entering into mortgage contracts or written contracts,
16    agreements or bonds for deed in Illinois may enter into
17    mortgage contracts or written contracts, agreements or
18    bonds for deed in which the rate of interest may be changed
19    during the term of the contract, within the same
20    limitations.
21    (3) In any contract or loan which is secured by a mortgage,
22deed of trust, or conveyance in the nature of a mortgage, on
23residential real estate, the interest which is computed,
24calculated, charged, or collected pursuant to such contract or
25loan, or pursuant to any regulation or rule promulgated
26pursuant to this Act, may not be computed, calculated, charged



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1or collected for any period of time occurring after the date on
2which the total indebtedness, with the exception of late
3payment penalties, is paid in full.
4    (4) For purposes of this Section, a prepayment shall mean
5the payment of the total indebtedness, with the exception of
6late payment penalties if incurred or charged, on any date
7before the date specified in the contract or loan agreement on
8which the total indebtedness shall be paid in full, or before
9the date on which all payments, if timely made, shall have been
10made. In the event of a prepayment of the indebtedness which is
11made on a date after the date on which interest on the
12indebtedness was last computed, calculated, charged, or
13collected but before the next date on which interest on the
14indebtedness was to be calculated, computed, charged, or
15collected, the lender may calculate, charge and collect
16interest on the indebtedness for the period which elapsed
17between the date on which the prepayment is made and the date
18on which interest on the indebtedness was last computed,
19calculated, charged or collected at a rate equal to 1/360 of
20the annual rate for each day which so elapsed, which rate shall
21be applied to the indebtedness outstanding as of the date of
22prepayment. The lender shall refund to the borrower any
23interest charged or collected which exceeds that which the
24lender may charge or collect pursuant to the preceding
25sentence. The provisions of this amendatory Act of 1985 shall
26apply only to contracts or loans entered into on or after the



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1effective date of this amendatory Act, but shall not apply to
2contracts or loans entered into on or after that date that are
3subject to Section 4a of this Act, the Consumer Installment
4Loan Act, the Payday Loan Reform Act, the Predatory Loan
5Prevention Act, or the Retail Installment Sales Act, or that
6provide for the refund of precomputed interest on prepayment
7in the manner provided by such Act.
8    (5) For purposes of items (a) and (c) of subsection (1) of
9this Section, a rate or amount of interest may be lawfully
10computed when applying the ratio of the annual interest rate
11over a year based on 360 days. The provisions of this
12amendatory Act of the 96th General Assembly are declarative of
13existing law.
14    (6) For purposes of this Section, "real estate" and "real
15property" include a manufactured home, as defined in
16subdivision (53) of Section 9-102 of the Uniform Commercial
17Code that is real property as defined in the Conveyance and
18Encumbrance of Manufactured Homes as Real Property and
19Severance Act.
20(Source: P.A. 101-658, eff. 3-23-21; 102-987, eff. 5-27-22.)
21    Section 97. Severability. The provisions of this Act are
22severable under Section 1.31 of the Statute on Statutes.
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".