Illinois Compiled Statutes
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815 ILCS 710/10.1
(815 ILCS 710/10.1)
(from Ch. 121 1/2, par. 760.1)
(a) As used in this Section, "motorcycle" means every motor
vehicle having a seat or saddle for the use of the rider and designed to
travel with 3 or less wheels in contact with the ground, excluding farm,
garden, and lawn equipment, and including off-highway
(b) It shall be deemed a violation for a manufacturer, a distributor, a
wholesaler, a distributor branch or division, or officer, agent, or other
(1) To require a motorcycle franchisee to participate
in a retail financing plan or retail leasing plan or to participate in any retail consumer insurance plan.
(2) To own, to operate or to control any motorcycle
dealership in this State for a period longer than 2 years.
(4) To require a motorcycle dealer to utilize
manufacturer approved floor fixtures for the display of any product that is not a product of the manufacturer.
(5) To require a motorcycle dealer to purchase
lighting fixtures that are to be installed in the dealership only from the manufacturer's approved vendors.
(6) To require a motorcycle dealer to relocate to a
new or alternate facility.
Whenever any motorcycle dealer enters into a franchise agreement,
evidenced by a contract, with a wholesaler, manufacturer, or distributor
wherein the franchisee agrees to maintain an inventory and the contract is
terminated by the wholesaler, manufacturer, distributor, or franchisee,
then the franchisee may require the repurchase of the inventory as provided
for in this Act. If the franchisee has any outstanding debts to the
wholesaler, manufacturer, or distributor, then the repurchase amount may be
credited to the franchisee's account.
The franchise agreement shall either expressly or by operation of law have as
part of its terms a security agreement whereby the wholesaler, manufacturer, or
distributor agrees to and does grant a security interest to the motorcycle
dealer in the repurchased inventory to secure payment of the repurchase amount
to the dealer. The perfection, priority, and
other matters relating to the security interest shall be governed by Article 9
of the Uniform Commercial Code. The provisions of this Section shall not be
construed to affect in any way any security interest that any financial
institution, person, wholesaler, manufacturer, or distributor may have in the
inventory of the motorcycle dealer.
(c) The provisions of this Section 10.1 are applicable to all new or
franchisees and franchisers and are in addition to the other rights and
remedies provided in this Act, and, in the case of a conflict with other
provisions contained in this Act, with respect to motorcycle franchises,
this Section shall be controlling.
(d) The filing of a timely protest by a motorcycle franchise before the
Review Board as prescribed by Sections 12 and 29 of this Act, shall stay the
date of a proposed additional franchise or selling agreement, or the effective
date of a
proposed motorcycle dealership relocation, or the effective date of a
termination, or modification, or extend the expiration date of a franchise or
agreement by refusal to honor succession to ownership or refusal to approve a
transfer pending a final determination of the issues in the hearing.
(Source: P.A. 100-863, eff. 8-14-18.)