Full Text of HB2508 98th General Assembly
HB2508enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Motor Vehicle Franchise Act is amended by | 5 | | changing Section 10.1 as follows:
| 6 | | (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
| 7 | | Sec. 10.1.
(a) As used in this Section, "motorcycle" means | 8 | | every motor
vehicle having a seat or saddle for the use of the | 9 | | rider and designed to
travel with 3 or less wheels in contact | 10 | | with the ground, excluding farm,
garden, and lawn equipment, | 11 | | and including off-highway
vehicles.
| 12 | | (b) It shall be deemed a violation for a manufacturer, a | 13 | | distributor, a
wholesaler, a distributor branch or division, or | 14 | | officer, agent or other
representative thereof:
| 15 | | (1) To require a motorcycle franchisee to participate | 16 | | in a retail
financing plan or retail leasing plan or to | 17 | | participate in any retail
consumer insurance plan.
| 18 | | (2) To own, to operate or to control any motorcycle | 19 | | dealership in this
State for a period longer than 2 years.
| 20 | | (3) Whenever any motorcycle dealer enters into a | 21 | | franchise agreement,
evidenced by a contract, with a | 22 | | wholesaler, manufacturer or distributor
wherein the | 23 | | franchisee agrees to maintain an inventory and the contract |
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| 1 | | is
terminated by the wholesaler, manufacturer, | 2 | | distributor, or franchisee,
then the franchisee may | 3 | | require the repurchase of the inventory as provided
for in | 4 | | this Act. If the franchisee has any outstanding debts to | 5 | | the
wholesaler, manufacturer or distributor then the | 6 | | repurchase amount may be
credited to the franchisee's | 7 | | account.
The franchise agreement shall either expressly or | 8 | | by operation of law have as
part of its terms a security | 9 | | agreement whereby the wholesaler, manufacturer, or
| 10 | | distributor agrees to and does grant a security interest to | 11 | | the motorcycle
dealer in the repurchased inventory to | 12 | | secure payment of the repurchase amount
to the dealer. The | 13 | | perfection, priority, and
other matters relating to the | 14 | | security interest shall be governed by Article 9
of the | 15 | | Uniform Commercial Code. The provisions of this Section | 16 | | shall not be
construed to affect in any way any security | 17 | | interest that any financial
institution, person, | 18 | | wholesaler, manufacturer, or distributor may have in the
| 19 | | inventory of the motorcycle dealer.
| 20 | | (4) To require a motorcycle dealer to utilize
| 21 | | manufacturer approved floor fixtures for the display of any
| 22 | | product that is not a product of the manufacturer. | 23 | | (5) To require a motorcycle dealer to purchase
lighting | 24 | | fixtures that are to be installed in the
dealership only | 25 | | from the manufacturer's approved vendors. | 26 | | (6) To require a motorcycle dealer to relocate to a
new |
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| 1 | | or alternate facility. | 2 | | (c) The provisions of this Section 10.1 are applicable to | 3 | | all new or
existing
motorcycle
franchisees and franchisors and | 4 | | are in addition to the other rights and
remedies provided in | 5 | | this Act, and, in the case of a conflict with other
provisions | 6 | | contained in this Act, with respect to motorcycle franchises,
| 7 | | this Section shall be controlling.
| 8 | | (d) The filing of a timely protest by a motorcycle | 9 | | franchise before the
Motor Vehicle
Review Board as prescribed | 10 | | by Sections 12 and 29 of this Act, shall stay the
effective
| 11 | | date of a proposed additional franchise or selling agreement, | 12 | | or the effective
date of a
proposed motorcycle dealership | 13 | | relocation, or the effective date of a
cancellation,
| 14 | | termination or modification, or extend the expiration date of a | 15 | | franchise or
selling
agreement by refusal to honor succession | 16 | | to ownership or refusal to approve a
sale
or
transfer pending a | 17 | | final determination of the issues in the hearing.
| 18 | | (Source: P.A. 91-142, eff. 7-16-99.)
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